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Benihana

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Text Preview 1. What is Benihana's value proposition to its customers?

Benihana strives to be unique and promises to be a fun place to eat for all. Benihana's primary value proposition to its customers is providing high quality of quick service and authentic exotic food at reasonable price. Unlike a traditional restaurant where you place the order and food is served to you, at Benihana you get to watch the food being cooked and also get entertained in the process. Each chef has a different style and personality so you often get a different experience each time you visit. 2. What were Benihana's key operational innovations (list three) that enables it to serve the meal in less than one hour during the peak period?

The key 3 operational innovations that enabled Benihana to serve meals in less than one hour during peak period were -

a) Restricting the menu to 3 simple entree options: chicken, steak and shrimp, removing the indecision on the part of the patrons. b) Minimize the in-process delays by cutting the middle man i.e. the waiters. The cook now takes the orders, cooks and serves the customers thus giving them full attention from the time he arrives. c) By using the teppanyaki table the cook is now able to cater to a group of 8 people at one time. This results in better capacity utilization as well as better throughput. The cook controls the pace and so do the patrons who end up pacing each other up as well with the fear of falling behind. d) Adopt batching style to increase the throughput and capacity utilization. This was achieved by increasing the bar/lounge area which served dual purpose of keeping the customers engaged while they wait and also generate revenue by selling drinks. 3. Compare the operating statistics for a typical restaurant (see Exhibit 1) with those of Benihana for major categories such as food cost, beverage cost, payroll, and rent. Why, for example, does Benihana have a food cost of 30-35%, whereas a typical restaurant has a food... Show More

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