Benihana of Tokyo

in Operation Management
The GODFATHER:
1. Alexander Siregar
2. Amelia Hidayah
3. Sadewo Yakti
4. Imlati Helmi
 Introduction of Benihana
The main actors & who are What is its business unit?
they?
– Hiroaki “Rocky” Aoki  Food-Service sales
– Bill Susha
– Allen Saito
– Glen Simoes
Organization PAPASAN

Chart ROCKY

V.P.
OPERATIONS
(BILL SUSHA) FRANCHISE UNITS
(AMERICAN)

MANAGER-
OPERATIONS
(ALLEN SAITO)
ADVERTISING/
CONTROLLER P.R.
(AMERICAN) (GLEN SIMOES)
(AMERICAN)

COMPANY
OWNED UNIT

RESTAURANT
MANAGER
(JAPANESE)

CHIEF CHEF
(JAPANESE)
 Benihana’s Operation
Operation in Restaurant Operation in Management
Kitchen & Hibachi Table & Investment
Site Selection
Stocking Turnover Strategy

Chef & Services

Company Restaurant
Expansion Building Process

Billing Payment Extras

Recruitment,
Promotion Training, Selection,
& Staffing
 Its History
In 1966,
• West Side  East Side
• Best money maker units: 3 units in Chicago ($ 1.3
million/year)

In 1970,
• Benihana sold 6 franchise, 1 is bought back
• 15 units across the country
 Its Uniqueness
• The “Hibachi Table” concept
• Historical authenticity for the building material
• Use of space for kitchen is only 22%
 Its Strengths
• Highly trained chefs
• Excellent quality of foods
keep the customer coming
• Excellent service
• Personnel turnover rates is very low
 Its Weaknesses
• Building materials are imported from Japan  high cost
• Limited carpenter to build units
• 30 oriental staff needed for operating a unit
 Strategic Plans for Development
Operation in Restaurant
• Chinese-Japanese combination in
service operation
• Presenting dynamic cooking show
to the customers
Operation in Management
• Advertising policy
– $1 million per year for advertising &
$1,5 million per year for promotion
– Media mix
– Publicity
– Market research survey
• Retail sale:
Benihana’s food products chain
• Introducing sale goals & budgets
• Using accounting staff & controller
• Training & staffing:
Front men  potential managers
 Its Opportunities

Future
FutureExpansion
Expansion Franchise,Joint
Franchise,JointVenture,
Venture,
totoUnited
UnitedStates,
States, major
majorcities,
cities,suburbia,
suburbia,etc
etc
overseas,
overseas,and
andJapan
Japan

Potential
Potentialnew
newmarket
market Youth
Youthmarket
market
 Its Threats

Quick
Quickservice
serviceoperation
operation Chinese
Chineseservice
serviceisisbetter
better
 Its Problems
• The management isn’t showing good
focus in making decisions
• The management is bad in planning
• In franchise policy
– None of the investors had any restaurant
experience Ineffective
– Minimum resource of the oriental staff
• It cost $ 300.000 to build 1 unit
• Decoration as part of service? Inefficient
 Its Problems
• What benihana is really selling? (Russ Carpenter)
• Benihana’s core service:
Quality (+)

Flexibility (-) OM Speed (-)

(Operation
Management)

Price (+)
 Ideas for Solution
• The Chinese-Japanese combination for service operation
 Speed
• Food variation
 Flexibility
• Retail sale (to produce a line of Japanese food products
under Benihana label)
 Flexibility
 Ideas for Solution
• Searching for new source of alternative raw materials
 Cost & Flexibility
• Optimizing or increasing restaurant space for bar & lounge
use (the beverage cost averaged is 20% of beverage sales)
 Profit
QUE QUESTION
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