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Name : Aghnia Pertiwi Mulya NIM : 29119079 Homework Management Operations (Benihana Of Tokyo Case) Deadline 31/08/2019 Summary Benihana is a successful Japanese-themed teppanyaki restaurant chain with units in US. Benihana pioneered the communal dining concept in the US in the early 1960s where up to eight diners sit around a steel hibachi grill and wait anxiously for their personal cooking show to begin. The food is prepared in front of the seated diners and is delivered to them with personalized services; at the same time ensuring that high quality standards of food production are met. Benihana has utilized several tactics to manage demand and process variability resulting in the reduction of food costs and operational costs while simultaneously turning dining into a unique entertainment event in higher margins than the traditional restaurant. No 1

Operations Decisions Objectives

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Organizational Structure

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Management Systems

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Product/Services

Benihana Of Tokyo To change the way Americans think about Japanese food and offers the new experience of dining with hibachi style of cooking. Became the leader of Japanese food in America Based on Organization chart, there are people from Japanese and American who control the business. all the operations cycle include franchise unit is under V.P Operation and directly report to Rocky. It will help Rocky to know what happened in all branch/units without go to the field.  All managers reported to the managers of operations after that report to V.P Operations who charge of operations and business development. He usually controls system by introducing sales goals and budgets, he makes bonus plan, built up an accounting staff and controller to monitor costs and maintain if there is an overhead cost.  In fact, the company is essentially being run by three people—Rocky, V.P Operations and Manager Operations.  They served food and beverages, the food is not really traditional Japanese, only three simple Middle American entrees: Steak, chicken, and shrimp. And the accompaniments were unvaried: bean sprouts, zucchini, fresh mushrooms, onions, and rice.  The food cooked through a Hibachi cooking, where the customers sit in front of the cook preparing in open fire and steel griddle plate.

No 5

Operations Decisions Demand

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Quality

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Costing/Pricing

Benihana Of Tokyo Rocky says that Americans enjoyed eating in exotic surroundings but were deeply mistrustful of exotic foods. Then people very much enjoy watching their food being prepared. So Rocky used chef from Japan to cooked in front of customers.  Using fresh ingredient and reducing the menu, so the restaurant just makes sure the quality of three ingredients is good (meat, chicken and shrimps).  Rocky want gives the best services for customer, so the employee and chef has been training for a long time, so when they passed the training, they are ready to work in the restaurant.  The atmosphere of restaurant must be like Japanese restaurant or historical authenticity so the walls, ceilings, beams, artifacts and decorative lights of Benihana are all from Japan. Pricing $6 at lunch to $10 at dinner Cost Food: (30%), labor: (10%), advertising: (10%), management: (4%), and rent: (5%) Menu items were limited, which would mean low wastage and would cut the cost by 30-35% if we compare to operating statistics for a Typical service restaurant it lower than other industry cost of 38%48%. Profit = TR – TC (based on case) Sales (%) Food 70 Beverages 30 Total Sales 100 Cost (%) Food 30 Labour 10 Advertising 10 Management 4 Rent 5 Total Cost (59) Profit 41 So, based on the simulation, benihana can provide profit until 41%, It’s higher than other industry typical services restaurant.

No 8

Operations Decisions Process Technology

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Capacity

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Location

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Production Planning

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Layout

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Performance

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Logistics

Benihana Of Tokyo Cooking process is in the table in front of customers, using Hibachi table. The critical source of cooking is the chef because they must be skillful and know the cooking with Japanese technic. Space Utilization: cuts 8% of average back space (22% as opposed to 30%) for a 5000 square feet operation. It is approximately 3900 front space and 1100 square feet for back space. Lounge wait time on busy night 1. Average time spent in Benihana: 1 – 1,5 hours 2. Average time spent to enjoy the food: 45 minutes (from seated to leave the restaurant) 3. Non-busy nights: 60 mins – 45 mins = 15 mins 4. Busy Nights: 90 mins – 45 mins = 45 mins Its utilization is still low because customers wait too long before they can enjoy the food. Benihana had one basic criterion for the site selectionhigh traffic to sure that a lot of people were nearby or going by both at lunch and at dinner. It likes business district.  Decided to discontinue the program franchise because most of their franchisees were businessmen have no knowledge of native Japanese style and No experience about the restaurant business.  Because each new unit costs have a minimum of $300.000 so they maybe expand to suburbs  Advertising with visual product to sell. The advertisement appeared in some Magazine like New York Times, New York Magazine)  They want to make authentic Japanese atmosphere. The walls, ceilings, beams, artifacts, and decorative lights of a Benihana are all from Japan.  Minimum back space: The hibachi table made most of the area productive dining space; only 22% space was back of the house. Normally a restaurant requires 30% of its total space as back of the house.  Minimize the cost  Expand the restaurant all over US  Pioneer of Japanese food with hibachi style One of the important elements of the restaurant is material for furniture. So Benihana shipped in pieces to US where they are reassembled by one of Rocky’s Father two crews of Japanese Carpenters.

No 15

Operations Decisions Inventory

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People

Benihana Of Tokyo  Because they only served steak, chicken and shrimp, they have virtually no waste and cut food.  It will minimize the inventory (they no need big space for food or beverages)  Benihana hire chef directly from Japan, they trained three-year formal apprenticeship. All were young, single, native Japanese and all of them is given three to six-month course to learn English language and American manners as well as the Benihana form of cooking.  All Managers are Japanese except V.P Operations, controller and advertising are from American  Provided good incentives to the employees and created a connection with them, thus helping reduce the employee turnover.