case study

1

GROUP MEMBERS: NAMRATHA RSUKRITI SHARMA

SAMPOORNA SARKARPRIYAM SINGH

MANEESH BHATIA

BENIHANA OF TOKYO

2

P R O C E S S FLOW D I A G RA M

Customer enters

restaurant

Customer orders for drink

Customer enters dining

area

Customer orders for food

Customer waits for the chef

Chef arrives and starts cooking

Customer enjoys the food

Customer pays and leaves

3

inputs

LABOUR

MATERIAL

ENERGY CAPITAL

INPUTS

4

LA B O U R

CHEF

WAITRESS

MANAGER

ASSISTANT MANAGER

FRONT MEN

5

M AT E R I A L

FOOD Biggest purchase : meat

BEVERAGE

6

EN E R GY

LIGHTING

COOKING

7

cap i t a l

REAL ESTATE

EQUIPMENTFURNITURE

8

OUTputs

SERVICE

FOOD

9

Ta s k s , f l o w s & s t o r a g e

1. TAKING ORDER2. COOKING

TASKS

FLOWS

STORAGE

1. FLOW OF GOODS• FOOD• BEVERAGE

2. FLOW OF INFORMATION• ORDER OF FOOD

RAW MATERIAL1. FOOD – cooked or

uncooked state2. BEVERAGE

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OTHE R PA RAMETERS

CYCLE TIME

Min time: 45 minutesMax time: 90 minutes

Average = 60 minutes

CYCLE TIME

THROUGHPUT TIME

11

BATCH SIZE =

CAPACITY DEPENDS

ON SEATING CAPACITY

Each table accomodates 8 people.If there are 5 tables, then capacity will be 5x8=40

12

IDLE TIME

Between lunch and dinner

Efficiency UtilizationSetup time Run time

OTHERS

Key Elements Of Focus

13

Optimum Space Utilization

Hibachi Table arrangement

Waste Management and StorageHistorical authenticity

Location Advantage

The restaurants are built with materials imported from Japan along with the help of a Japanese crew. The chefs too are formally educated Japanese chefs

Elements Benihana Focus

The restaurants have about 8% more than average productive dinning space.

This unique feature not only adds to the showmanship of the restaurant's culinary offerings, but also reduces labour cost and takes away any apprehensions regarding exotic fare.

The Benihana restaurants cut food costs substantially just by smartly serving the most wanted entrees and thereby cutting on storage costs and this also helps in avoiding waste.

The restaurants are located in heavily populated areas so as to attract clientele for lunch and dinner.

14

Cost-Structure: Profit Making ModelIn

frastr

uctu

re

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.

Served MenuBy 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.

Non-Conventional KitchenThey eliminated the conventional

kitchen with the hibachi table arrangement thereby reducing the

labour cost and the additional cost of kitchen space.

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Cost-Structure: Profit Making Model(Chicago Branch)

4%Management

5%Rent

30%Food

10%Labour

10%Ads

69 % Savings

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Making Operations EfficientElimination Of Kitchen Space

1. It builds an amount of trust among the customers which was lacking before.

2. There is an effective reduction in space for kitchen and the same space can be used as the productive dining area.

3. It also gives an opportunity to attract customers by exhibiting the culinary skills of the chefs in an innovative manner.

4. This also reduces the labour costs low.

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Making Operations Efficient

Simple Menu

By keeping the menu

simple and limited only

to three entrees, there

is reduction in food

waste which in turn

reduces food costs.

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Making Operations Efficient

Authentic ambience: Every entity inside the restaurant was made authentic. Even building materials were shipped from Japan directly. This helped in attracting customersBetter Layout: This increased the productive area by about 8% effectively compared to competitors.

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Balance-Sheet-It’s all about Money(Given)

Share of Food and Beverages

Food

Beverages

Cost per share

FoodLabourAdvertisingRentManagement

Assumptions: •Labor costs include Payroll, Employee benefits, and Employee meals.•The costs are assumed on the higher end of the range

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Balance-Sheet-It’s all about Money(Solution)

Sales 100%  

Food 70%  

Beverage 30%  

Cost of sales    

Food 21% 30% of 70

Beverage 9% 30% of 30

Total cost of sales 30%  

Gross Profit 70% 100-30

***Assuming sales to be 100%

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Balance-Sheet-It’s all about Money(Solution)Operating costs  Labour 10%Advertising 10%Management 4%Laundry, linen, uniforms 2%Replacements 1%Supplies 1.50%Menu 0.50%Music 1%Utilities 2%Administrative expenses 2%Repairs 2%Rent 5%Taxes 1.50%Insurance 1%Interest 1%Depreciation 4%Total 51%Net Profit before tax 19%

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Balance-Sheet-It’s all about Money(Conclusion)

•The sales is equal to $1.3million.•According to the above figure, net profit

before tax = 19% of $1.3million = $247000

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Time Calculation(Sum)

To Determine: The maximum throughput time is the time

that elapses from the time a person enters the bar to the time

he/she leaves the restaurant.

Given information: The dining area is five times the

capacity Of the bar.

Assumptions:Seating capacity of bar is 1 and that of

dining area is 5(for ease in calculation). The average turnover at the teppanyaki table is one

hour. The first 5 people who enter the bar will get seating

inside the dining area.The sixth person who enters the bar

will have to wait until one table inside the dining area becomes

vacant.

Solution:Considering all the possibilities, a person who

enters after 1 minute of the dining area becoming busy will

have to wait for 59 minutes, a person who enters after 2 mins

will have to wait for 58 minutes. The maximum waiting time for

person will be 60 minutes. Therefore the average waiting time = (1+2+3+.....+58+59+60)/60 = 30.5

minutes

24Thank

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