Q: What is the Benihana Concept?

The Benihana concept is based on an authentic Japanese atmosphere. It involves the use of traditional
American foods like chicken and steak are presented using the Hiabchi table arrangement where the chef
serves as a showman and cooks in front of the customers. Thus, the whole cooking process is converted
into a show where the cooking and serving happen in front of the customer while this saves the need for a
large kitchen at a back-end allowing the restaurant to have more seating area for its customers.
Q: What is Benihana selling?
Benihana was selling its customers the experience of Japanese cooking and dining rather than merely
serving them food. The key features of such a strategy were the hibachi table arrangement with attention
to customers which transformed the complete food experience for customers. The salient features of this
experience that Benihana was selling were:

Limited food menu (only three Middle American entrees)

Minimal flow time (low waiting time for customers)

High space utilization

Non-traditional kitchen (which reduces labor cost and cost of kitchen space)

Authentic Japanese infrastructure

Q: How does Benihanas cost-structure differ from that of a typical restaurant?

Cost
Food Cost
Labour Cost
Beverages Cost
Management
Salaries
Rent
Promotional &
Advertisement
Cost
Cost Savings

Typical
Restaurant
38-40%
25-30%
34-42%

Benihana
30%
20%
10-12%

2-6%
4.5-9%

4%
5-7%

0.75-2%

10%
21.2550%