Essay About Benihana Concept And High Levels Of Customer Service

Beninana
Beninana
Questions:
1. What is the Benihana concept?
Benihanas concept is based on the following factors:
– Efficiency: Cost control
– Achieve high levels of customer service with less skilled labor
– Limited menu reduces food and waste costs
– Fast table turnover due to limited menu and cooking time, food and info transfer inefficiencies reduced
by eliminating servers
– Large bars increase beverage (high-margin) % of sales
– 78% floor space is dining or bar (vs. 70% elsewhere)
– Simple management structure (4 execs + controller in corporate), good incentive plan, high level of
control
– High quality and customer service: Cooking at the table is entertaining, attentive and reassures
Americans that exotic foods are OK. Chefs are highly trained showmen. Only USDA prime beef used.
– Advertising & PR: Spend unprecedented 8% of sales on programs with “impact philosophy” – visible,
visual, creative, offbeat ads to attract first-time customers, to be retained by the quality of their
experience.
– Authentic Japanese atmosphere: Chefs, décor, etc. all from Japan.
Benihana produces food at the point of of service (from earlier prep in back), eliminating the need for
skilled cooks and servers (only kyacktail waitresses).
– Affords an engaging, interactive dining experience; reduces waiting for servers
– Service of food by chef enables Benihana to provide uncommonly attentive service at low cost –
element of instant gratification
– Limited menu reduces food costs and waste, but limits customers options
2. Is Benihana a successful operation? How successful?
Benihana is successful operation because of the close relationships developed over the years with our
customers, investors and employees. The Benihana concept began as a family business on the streets of
New York in 1964, and has grown to every corner of the world by adopting and living by a strong code
of conduct and ethics.
3. Prepare an operating statement for the Chicago restaurant based on the operating information in the
case.
4. What are the key ingredients in Benihanas successful recipe? How does Benihana achieve these
numbers?
The key ingredients in Benihanas successful recipe include:
– Concept of preparing and serving food at the table and combined with Japanese concept/culture is
unique
– Management owned due to uniqueness after franchising and joint ventures failed
– Exotic ambiance/ “Different” environment
– High quality food and limited to three simple middle American entrees which contributes to minimal
wastage
– Quick service (average of 45 min.)
– Caters to business and pleasure customers
– Locality, central location (business districts)
– Highly trained
Benihana Tokyo 12/07/11 10.19
– Consistent level of standards
– Contract arrangements as well as good incentives resulted in low staff turnover
– Correct (moderate) pricing
– Target audience (middle income)
– Optimised space utilisation
5. Examine the service delivery system of Benihana of Tokyo.