Benihana - HBS Case Study Write Up

Cold Call Summary
From 1964-72, Rocky Aoki built Benihana into a successful restaurant chain (15 locations, $12M revs). Major drivers of success include:
• Efficiency: Cost control
o Achieve high levels of customer service with less skilled labor
o Limited menu reduces food and waste costs
o Fast table turnover due to limited menu and cooking time, food and info transfer inefficiencies reduced by eliminating servers
o Large bars increase beverage (high-margin) % of sales
o 78% floor space is dining or bar (vs. 70% elsewhere)
o Simple management structure (4 execs + controller in corporate), good incentive plan, high level of control
• High quality and customer service: Cooking at the table is entertaining, attentive and reassures Americans that exotic foods are OK. Chefs are highly trained showmen. Only USDA prime beef used.
• Advertising & PR: Spend unprecedented 8% of sales on programs with “impact philosophy” – visible, v...