Case Study on Success of Benihana of Tokyo

Group 4 1

Evolution of Benihana of TokyoEvolution of Benihana of Tokyo

Year Event

1935 First restaurant Japan

1958 Introduction of Hibachi table

1964 Entry in US, Manhattan

1966East side restaurant, Manhattan

1967Chicago unit, Big Block buster

1970Benihana Palace, Third unit in Manhattan

1972

Total 15 units in US (9 owned, 5 Franchised and 1 JV

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30-35

38-48

25-3030-35

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Benihana’s Operating Statistics

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Winning Strategy behind Benihana’s Success

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• Effective implementation strategy helped Benihana in– Penetration in US market– Positioning: Appealing to

a different customer need

– Successful cost reduction

Implementation Strategy

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• Three years formal apprenticeship training with certification in Benihana form of Cooking

• Three to Six months course in English language and for American Manners

• Training was continuous process

Effective Training

• Chances of growth in organization

• Paternal attitude - Cultural bonding with management

• Good salaries and perks like bonus plan

• Intangible benefits like job security and well being of employees

• Pride serves as a motivating factor

Employee Satisfaction and Motivation

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Effective and Aggressive Marketing

• Investment up to 8 – 10 % of gross sales in advertising

• Promoted as an experience vis-à-vis an eatery

• Innovative advertising approach

• More visuals in advertisement

• ‘Word of Mouth’ Publicity

Customer Satisfaction

• Food Quality liked by 98 % - use of prime grade food

• Service liked by 93 %

• Overall Atmosphere liked by 93 % of people

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Management Concerns

• Franchising

– No knowledge of native Japanese style

– No experience of Investors w.r.t. restaurant business

• Future expansion

– Fund availability / concern about loosing autonomy by taking loans

– Manpower constraints

– Higher cost and lead time for Japanese construction material

– Limited carpenter crew

• Catering need of younger generation

• Limited to primary markets only

• Diversification

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Analysis

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Scope for Improvement : Our recommendations

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• MDP – ELPM course content in Introduction to Manufacturing Management by Prof. Saji Gopinath

• Operations Management By Richard Chase, Robert Jacobs, Nicholas Aquilano and Nitin Agarwal

• Images from www.google.com

References

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