Benihana has a unique production process compared to typical restaurants. It prepares food at the customer's table on a hibachi grill, allowing for an interactive dining experience. This eliminates the need for skilled cooks and servers. Benihana also has highly trained chefs, a limited menu, optimized space utilization, and is located in busy areas. During peak times, the cocktail lounge helps improve operation efficiency by allowing wait staff to serve drinks and freeing up space in the dining area. The process flow involves customers ordering drinks in the lounge, being seated for their meal, watching the chef cook at the table, then paying and leaving. This fast turnover and limited menu keep costs low compared to other restaurants.

1. (1) What are the differences between the production processes of Benihana and a typical
restaurant?
Benihana, one of the successful Japanese restaurants has been founded by Hiroaki Aoki (Rocky) in
1964, stared franchising in 1969, has 15 member until 1972 with key member Bill Susha (Vice
President of Operation), Allen Saito (Manager in Operation), Gen Simoes (Director in advertisement
and Marketing).Benihana has following uniqueness that drives high productivity, operational efficiency,
customer satisfaction, high demand and turnover compare to other traditional restaurant
 Creative Dining Experience: Benihana produces food at the point of service (from earlier
prep in back), eliminating the need for skilled cooks and servers (only kyacktail waitresses).
 Controlling Quality and Customer Satisfaction: The “Hibachin Table” concept, where cook
prepare food in front of customer.
 Highly Trained, motivated and skilled Chef: Prepare authentic, delicious and attractive foods
 Faster Service: Affords an engaging, interactive dining experience and reduces waiting for
servers. Minimize flow time : Keeping turnover rate high thus high utilization and throughput
 Time Management: Ready with basic food processing stuff in off peak time. Compact cooking
time in off-peck time. Customer stays 45 min in peak time and 90 min in off-peak time.
 Authenticity and real showcasing: Service of food by chef enables Benihana to provide
uncommonly, element of instant gratification.
 Service Excellence with Low Cost: Attentive service at low cost
 Waste Management and storage Strategy: Limited menu reduces food costs and waste, but
limits customers’ options.
 Entertainment, Interior design, Historical Authenticity for building material: Unique
entertainment with added bonus Japanese cooking tangible process .Presenting dynamic
cooking show to customer
 Optimized Space Utilization : Only 22% space used for kitchen
 Location Advantage: Restaurant are located in heavily populated and Central Business Area
(2) What is the process flow at Benihana? What role does the cocktail lounge serve on a
busy night? (Consider design choices which generate operation efficiencies. How do the
choices of process technology and operations strategy contribute to the financial
performance? )
Benihana’s Process Flow: The following flow diagram provides the typical process flow in Benihana
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
Pay
Food
Go to
Benihana
Drinks
Get
Hungry
Decide to
go to
Benihana
Never
Return
Satisfied?
Yes No
Debasis Chakraborty International Business School EMBA

2. Benihana’s Operational Strategy during peak time
 Efficient Time Management: Cooking time can be limited to that required for the show
(any other prep can be conducted during off-peak hours).Reduce the flow time.
 Fast table turnover due to limited menu and cooking time, food and info transfer
inefficiencies reduced by eliminating servers.
 Limited Menu Option – Gave both time efficiency and reduces food and waste costs.
 Staffing Strategy: Use waiters in the cocktail lounge area, Managers for taking Order,
expert chefs for fast food processing
 Space Optimization: Optimization and increase Restaurant space for bar and lounge use
 Effective Communication and Coordination: Well communication in entire process
 Operational Strategy and efficiencies
Benihana’s Operation in restrurent Benihana’s Operation in Management
*******
Benihana’s Process Analysis Model: Cost Structure
Cost Head Industry
Standard
Benihana
Row material cost 38-48% 30%
Beverages of cost (% of
sales)
25-30% 20%
Wages and Salaries
Labor cost Out of
Operating
expenses(Independent
benefit)
30-42% 10%
Benihana’s
labor cost is low
Management benefit 2-6% 4%
Rent out of operating
expenses
4.5-9% 5-7%
Space occupancy 30% 22%
Promotional and
Advertising cost
.75-2% 10%
Construction Cost Lower Higher
Debasis Chakraborty International Business School EMBA

3. Appendix
Process Analysis
Assume that the dining process takes 60 minutes, and that we want customers in the bar for 24
minutes.
Consider three scenarios:
1. Bar - 8 seats; Dining area - 40 seats
2. Bar - 16 seats; Dining Area - 80 seats
3. Bar - 48 seats; Dining Area - 120 seats
 Bar - 8 seats; Dining area - 40 seats
It takes 60 minutes for one customer to eat dinner, and there are 40 seats in the dining area.
Therefore 40 people eat every 60 minutes (throughput).
On the average a dinner cycle is completed every 60 minutes/40 people = 1.5 minutes per person
(cycle time). We know that dinners are processed in batches of 8, so on the average a table of 8
finishes every 12 minutes.
This means that the 8-seat bar must empty every 12 minutes.
The "ideal" time for someone to remain in the bar is about double that time (because this will be just
after the second drink has reached the table). Therefore, it would appear that the ratio of 0.2 (8 bar
seats to 40 dining seats) is too small.
 Bar - 16 seats; Dining Area - 80 seats
It takes 60 minutes for one customer to eat dinner, and there are 80 seats in the dining area.
Therefore 80 people eat every 60 minutes (throughput). On the average a dinner cycle is completed
every 60 minutes/80 people = 0.75 minutes per person (cycle time).
We know that dinners are processed in batches of 8, so on the average a table of 8 finishes every 6
minutes. This means that the 16-seat bar must empty every 12 minutes. Therefore, it would appear
that the ratio of 0.2 (16 bar seats to 80 dining seats) is too small. In fact, all this does is double the
restaurant’s capacity and the bar time remains at 12 minutes. The only benefit is that 16 seats might
allow the host or hostess to do a better job of assembling groups of eight.
 Bar - 48 seats; Dining Area - 120 seats
It takes 60 minutes for one customer to eat dinner, and there are 120 seats in the dining area.
Therefore 120 people eat every 60 minutes (throughput). On the average a dinner cycle is completed
every 60 minutes/120 people = 0.5 minutes per person (cycle time). We know that dinners are
processed in batches of 8, so on the average a table of 8 finishes every 4 minutes. To send 8 people
into the dining area every 4 minutes means that the 48-seat bar must empty every 24 minutes.
Perfect! Given our assumptions regarding the cycle times of the bar and the dining area, it would
appear that a ratio of bar seats to grill seats of 0.4 is about right. (In this case 120:48, but the ratio is
more important than the specific numbers.)
Debasis Chakraborty International Business School EMBA