Benihana There Are Several Differences Research Proposal

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This increased turnover is one of the main sources of operating efficiency at Benihana, versus a typical restaurant that may only have one lunch and two dinner seatings. The extra seatings that flow from the efficient production methods allow Benihana to generate extra profit from each table in a given night.

3) The Benihana concept is essentially an approachable version of a foreign experience. Note that only 2.2% of survey respondents claimed the differentness of the restaurant to be the highlight. That is the point of Benihana. It's different but not so different that it is going to be unusual or threatening. If it was truly perceived as different, it would not be as popular. The ingredients are familiar and the preparation in non-threatening (nothing raw, for example). Thus, the food is essentially comfort food. The majority of survey respondents stated the food was the reason they came. There is nothing terribly dynamic about the food, but then most consumers do not want dynamic food. The dynamism comes in the at-table preparation, the Japanese staff and the Japanese decor. The concept essentially lends an exotic feeling what is essentially mainstream comfort food (fried meat and vegetables).

That said, if the food did not deliver, people would not return.

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Thankfully, Benihana's food benefits from being exceptionally fresh, served within seconds of preparation. This is an element of the concept that should not be overlooked -- not just for the novelty of the preparation but for the fact that the end result is very fresh, which gives it an advantage over other restaurant food, which can take minutes to reach the table.

4) Benihana's cost structure is different than most restaurants. The cost of food is lower than at typical restaurant. Benihana does about 30% on food, less than that of a typical restaurant. Similarly, its beverage cost of 20% is at the low end for a typical restaurant.

Benihana has controlled other costs as well. Labor costs are much lower than for a typical restaurant, at just 10% compared with 30% or more. This reflects the efficient kitchen organization that allows for fewer staff. The management and rent costs are in line with the industry average, the latter at the low end of the range and the former at the high end of the range.

At 10%, however, the company spends significantly more on advertising than does most of the competition. The typical restaurant tops out at 2% of revenues spent on.....

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