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Topics: Cost, Iron Chef, Scientific method Pages: 36 (2284 words) Published: May 27, 2015
Case Study Analysis
Benihana of Tokyo
Binus Business School,
MM Executive Batch 20
Presented by Group I
Alexander Christian
Dina Sandri Fani
Jenna Widyawati
Ridwan Martawidjaja

The Story of Benihana

2

The 70’s Benihana Facing Issues

3

Detailed Analysis

4

Conclusion & Recommendation

5

Key Takeaways

Case Analysis – Benihana of Tokyo

1

7/28/2014

Table of Contents

2

The Story of Benihana

2

The 70’s Benihana Facing Issues

3

Detailed Analysis

4

Conclusion & Recommendation

5

Key Takeaways

Case Analysis – Benihana of Tokyo

1

7/28/2014

Table of Contents

3

1935

1st Benihana’s restaurant chain in Japan



1958

Introduction of Hibachi table arrangement



1964

Entry in US at West Side, NY



1966

2nd restaurant chain at East Side, NY



1967

3rd restaurant in Chicago; Big Blockbuster



1969

4th & 5th restaurant opened in SF and Las
Vegas. Started franchising the unit



1970

Opened Benihana Palace. Discontinued
franchising scheme



1971

Bill Susha joined Benihana’s management



1972

15 units in US (9 owned, 5 franchised, & 1
JV). Grossed revenue over $12 mio per year.
Considered future expansion

Case Analysis – Benihana of Tokyo



7/28/2014

Benihana of Tokyo in Years

4

Americans and Their Eating Behavior

Enjoyed eating in
exotic surroundings

2

3

Deeply mistrustful
of exotic foods

Enjoyed watching
their foods being
prepared

Case Analysis – Benihana of Tokyo

7/28/2014

1

5

Problems at the Restaurant Industry in the United States
High labor
cost

Availability

Limited seating capacity
Food storage and food
wastage
Contribute significantly to
the overhead cost of the
typical restaurant

Case Analysis – Benihana of Tokyo

7/28/2014

Contributed
30-35% to
total
operating
expense

6

Introduced hibachi table
arrangement

Simplified menu (Middle
American entrees)

 Keep labor cost low at
a level of 10-12%

 Virtually no waste

 Minimize flow time
resulted to higher
turnover rate

 Cut food costs to
between 30-35%
depending on the price
of meat

 Higher utilization and
throughput due to high
turnover rate

 Lower overhead costs

Japanese historical
authenticity
 Hire two crews of
Japanese carpenters to
keep authenticity
 Decorations, foods,
and chefs are all
Japanese

Creating unique business model is the key for Benihana to win the market!!!

Case Analysis – Benihana of Tokyo

7/28/2014

How Benihana responded Americans’ eating behavior and
problems faced by the restaurant industry in the United States

7

The 70’s Benihana Business Model
Unique positioning is reflected on its chosen business model

Value Proposition
• Theatre of Stomach
• Japan historical authenticity
• Simplicity in operational

Channels
• Owned restaurant and franchise (later stopped in 1970)
• Outstanding visual ads through newspaper and magazines

Case Analysis – Benihana of Tokyo

• Business travellers
• Leisure customers

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Customer Segment

8

The 70’s Benihana Business Model
Unique positioning is reflected on its chosen business model

Revenue Streams
• Beverage sale through lounge and Food sell from Hibachi
• Franchise system

Key Resources

Case Analysis – Benihana of Tokyo

• Personal assistance through full service restaurant system • Co-creation by using customer feedback

7/28/2014

Customer Relationship

• Restaurant physical asset
• Human resources: Japanese chefs and other staffs

9

The 70’s Benihana Business Model
Unique positioning is reflected on its chosen business model

Restaurant operation and management
People development
Competitive compensation and benefit
Creative marketing

Key Partnership
• Raw material vendors
• Japanese carpenter

Cost Structure
• Restaurant cost: raw...
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