Submitted by - Group 3

Aravind Joni (27NMP08)
Anjali Khanna (27NMP46 )
Lata Singh (27NMP53 )
Parvathi VS (27NMP61)
Y Manoj Kumar (27NMP76 )

What is Benihana Concept? HIBACHI Cooking Style Bringing the operations close to the customer. Both front door and back door. EATER-TAINMENT Historical Authenticity Limited menu to reduce waste and cost. Skilled chefs Increased bar lounge area to increase the revenue from beverages. 22% space used as back office space as compared to 30% for normal restaurant Unique Experience .

            What is the process flow on a busy night? Customer enters restaurant Waitress enters and takes order Soups. Customer enjoys the food Customer pays and leaves . Salads & Beverages are provided Chef arrives and starts cooking the ordered items on HIBACHI table Customer enjoys the Cooking visuals and customizations to the food.

ow does Benihana cost structure differ from that of a typical sit-down restaurant?     Optimum space utilization :The restaurants have about 8% more than average productive dinning space Non-Conventional Kitchen:They eliminated the conventional kitchen with the hibachi table arrangement thereby reducing the labour cost and the additional cost of kitchen space. Infrastructure : The infrastructure was built by the materials gathered From old houses disassembled carefully in Japan and was built by the two crews of Japanese carpenters . Limited menu :By reducing the menu to only three simple Middle American entrees: steak. chicken and shrimp they cut the food costs to between 30% and 35% and this also lead to reduce wastage.

This helped in attracting customers Better Layout: This increased the productive area by about 8% effectively compared to competitors. but also reduces labor cost and takes away any apprehensions regarding exotic fare.Hibachi Table arrangement :This unique feature not only adds to the showmanship of the restaurant's culinary offerings. Even building materials were shipped from Japan directly. . Authentic ambience: Every entity inside the restaurant was made authentic. Location advantage :The restaurants are located in heavily populated areas so as to attract clientele for lunch and dinner.

Average annual salary of a chef = 6/25*.13 Million Number of chef = 6 Total number of labors= 25 Assuming salaries of all labors are same.13 M =3120 $ .3 Million $ Labor cost = 0.Calculate the chef’s annual wages for Chicago unit?   Labor cost(waitress +chef+2-3 people in bar + Bus staff +dishwasher) = 10% annual revenue Annual revenue 1.

Calculate Profit after tax for Chicago Sales Revenue Food Revenue Beverage Revenue   Cost of sales 100% 70% 30%     Food 21% Beverage 9% Total cost of sales   Gross Profit           =30% of 70 =30% of 30% 30       ***Assuming to be 100% 70% sales100-30 7 .

linen.775% =51 % 19% 8 .5% 10% 4% 1.375% 0.375% 1.75% 1.5% 10% 4% 1.65% 3% 50.25% 0.Operating costs Miscellaneous expenses Labour Employee benefits Employee meals Advertising Management Laundry. uniforms Replacements Supplies Menu Music Utilities Administrative expenses Repairs Rent Taxes Insurance Interest Depreciation Total Net Profit before tax   1.5% 5% 1% 0.75% 1.75% 0.875% 0.5% 1.

3million.3million = $247000 Assuming Tax rate 35%: PAT = 0. According to the above figure.65* 247000 = $ 160. net profit before tax = 19% of $1.Calculate Profit after tax for Chicago Sales of Chicago is equal to $1.550 9 .

. INSEPARABILITY: (Closure Proximity) The service providers physical connection to the service being provided. The Teppanyaki Table The average turnover at the teppanyaki table was an hour which was normally 45 minutes earlier. each such team handled two regular tables. SERVICE CHARACTERSTICS : 1. Each table accommodated eight diners with service being provided by a chef and a waitress. Above every table was an exhaust hood to remove cooking steam and odors and much of the heat from the griddle. After a group of eight had been seated. the waitress would take the order and bring whatever soup salad and beverages were requested after which the chef would appear wheeling his cart with the food items to the table. The customers involvement in the service production process.Discuss the Services characteristics and concepts in context of the case.

g. deeds and efforts which cannot be felt. sensed or touched. How do you get customers to take notice of your service when they cannot touch it. SIMULTAINEITY: Services produced and consumed at same time e. .2. The food was cooked in front of the customer by Japanese chefs. and the décor was that of an authentically detailed Japanese country inn. INTANGIBILITY : Services are performances. 3. Customized offerings of the chefs which are immediately consumed by the customer.

overall it accounted for about 30% to 40% of the dollar volume despite a significantly lower check average. . Motivating Non-peak consumptions The hours of operations for the 15 units varied according to local requirements.4. the lower menu price average at lunch reflected smaller portions and fewer combinations. Lunch business was important . PERISHABILITY: Services cannot be saved . though not necessarily every day for each. All were open for lunch and dinner. their unused capacity cannot be reserved and they cannot be inventoried. Essentially the same menu items were served for both meals .

Authentic food Transparency in service delivery .Service concepts : focuses on results Competitive priority CUSTOMER VALUE : Customized food Entertainment along with food Wait time reduced as menu was minimal and each table has one chef.