Benihana of Tokyo in Operation Management

The GODFATH ER: 1. Alexander Siregar 2. Amelia Hidayah 3. Sadewo Yakti

Introduction of Benihana
The main actors & who are they?
Hiroaki Rocky Aoki Bill Susha Allen Saito Glen Simoes

What is its business unit? Food-Service sales

Organization Chart

Benihanas Operation
Operation in Restaurant
Kitchen & Stocking Hibachi Table & Turnover Investment Strategy

Operation in Management
Site Selection

Chef & Services Company Expansion Billing Payment Extras Recruitment, Promotion Training, Selection, & Staffing Restaurant Building Process

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 qualitykeep of the customer foods 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:
Benihanas food products chain

Introducing sale goals & budgets Using accounting staff & controller

Its Opportunities
Future Expansion Franchise,Joint Venture, to United States, major cities, suburbia, etc overseas, and Japan Potential new market Youth market

Its Threats
Chinese service is better Quick service operation

Its Problems
The management isnt showing good focus in making decisions The management is bad in planning In franchise policy
None of the investors had any restaurant experience Minimum resource of the oriental staff

Ineffe ctive Ineffi cient

It cost $ 300.000 to

Its Problems
What benihana is really selling? (Russ Carpenter) Benihanas core service: Quality (+) OM
(Operation Management)

Flexibility (-)

Speed (-)

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

QUESTION

QUESTION