Benihana of Tokyo Essay

Benihana of Tokyo has been very no-hit for the last 40 years since 1964. From a small restaurant, it has developed into a string of themed restaurants. The success of Benihana has been attributed to the superb perfect shade management (TQM) process especially in primary(prenominal)taining the overall exotic ambience and the spunky spirit provender provided. All these strengths bring in to providing an unforgettable dining experience to its consumers and be reflected in their ability to retain consumers which is shown in exhibit 4 such that 65. % of their customers ar return customers. Benihana is able to minimize speak to effectively without affecting the quality of pabulum and service provided. From Exhibit 1, total cost of sales are kept to 35-45% of total sales. Their attempt to reduce operating be is to a fault reflected through with(predicate) and through a fair net profit margin of 0. 5-9% of sales. Benihana off work of floor blank expeditiously to decrease labor party be and rent. The expulsion of the conventional kitchen with the hibachi arrangement al menials the bon ton to keep labor cost low and at the same sentence, give great amount of attentive service.This boosted its dining experience, through constant interaction with consumers. Benihana also focuses on focaliseting up their businesses in areas with full(prenominal) traffic, especially in the business territorial dominion areas. Rent is usually high in these areas. By using floor space much efficiently, Benihana is able to serve much consumers during peak period and allow for more sales to cover the higher term of a contract costs. The concept that Benihana adopts is that consumers are served at their tables with impudently prepared diet by the chef.By only providing 3 menus to consumers, this reduces food costs and wastage. Benihanas lower food costs are also reduced through the use of fresh ingredients, where storage is minimized. The main process flow of a B enihana restaurant is different from a typical restaurant. In Benihana, the orders for the soup, salad and beverages interpreted by the waiter small-arm the order for the main dish is taken directly to the chef. This allows Benihana to quicken the process flow, and make it more efficient, as it eliminated the waiting time in ordering and receiving their orders.As the food is freshly prepared, the production flow is very short as there is special(a) movement to the food macrocosm move from the storage area to the tables where food is organism prepared. As food is being served on the spot after being cooked, this allows Benihana to exercise their quality of the food, and this satisfies consumers as shown in their feedback in Exhibit 4, where food is the main cotton up of Benihana restaurants. Benihana is also able to reduce labor costs through the use of a simple management structure in each of their restaurant.In addition, chefs and waiters would clear the dishes and set the ta ble for the next customer, un analogous the use of cleaners in typical restaurants. This also reduces labor costs. Benihana success is also attributed to their TQM organization where the management also emphasizes the importance of quality control in every employees responsibility. They emphasize quality in their stimulant drugs like the high quality food provided, and the sources of food are also selected carefully. Benihana also highlight quality in the process of destiny their food to their consumers.However, the management of Benihana also faces problems disdain their raving success. Their attempts to go into franchising didnt go as planned as edgy was unwilling to give up its control, and he felt that these franchisees were non well render with the experience and knowledge to run a food business, especially one that relates with Nipponese culture. In addition, Bill Susha, the head of operations for Benihana recognizes that if Benihana wants to slip away to expand, it wi ll face higher costs in terms of letting as well as shortfall of well trained employees.Although Benihana has been proven that their uniqueness cannot be replicated easily by competitors, critics deal been predicting that the uniqueness of Benihana is only a cultus and it will not last. As Benihana is providing not only products, but also the service, they should continue to emphasize and improve on their TQM, as in this industry, employees are key input sources and by implementing TQM, there will be positive impacts on the service being delivered.