Benihana of Tokyo Company Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Brief background of the company

The company was a unique steakhouse during the year 1972 that was known by many people. The chefs from Japan were employed to cook food in a room where customers could see them. There were beautiful decorations resembling those from Japan, which attracted many customers. The restaurant started business with 40 seats and later the expansion had fifteen units located all over the country with nine of them under the ownership of the company.

Benihana of Tokyo Company commenced business in the year 1935 when Aoki started a chain in Japan. The name Benihana originated from a red flower that was planted near where the restaurant was located. The Aoki family had operated restaurants for a long period but competition begun in the year 1958 when it had the idea of hibachi table that the father used to ensure success of the business (Sasser 1)

The problems or issues the firm encounters

The problems encountered were lack of employees to work in the restaurants as well as high wages and salaries. The solution to the problem was elimination of kitchens that were not necessary and attending the customers well for them to enjoy the services and come back again. The dinning area was increased to accommodate more people while the back of the house remained at 22% of the whole space.

The methods of storing food were a problem because large amount of it was wasted after going bad within a short period. There was a proposal to change the food in the menu so that the one not selling fast could be reduced such as chicken and beef. This brought solution to problem of wasting food and the cost of food was reduced depending on the selling price of meat (Sasser 2)

Analysis Strategically and Operationally

The company ordered materials for building from Japan where cost was affordable. The units build could recover the costs incurred for building within the first six months after the operations were commenced. There was fast development that led to increased revenue used to establish other units such as Marina Towers.

The unit in Chicago generated a lot of money compared to other units. The cost of advertisement to reach customers and inform them about the services offered by the company was affordable. The company preferred to own units rather than franchising in the year 1970 because the economy was unstable.

The end of franchising led to problems because those people who bought them did not have experience on how to operate restaurants. The investors who came from United States of America had trouble because they required staff from Japan with whom they could not relate well.

The Benihana company success was at risk when the people who were aware of its operations wanted to begin a restaurant but failed to make profit within one year. There was difficulty in imitating the business leading to pressure from competitors who wanted to franchise. Rocky realized the space in the bar needed to be increased at Benihana east. The tables for serving customers had exhaust to remove bad smell, excess heat and steam.

Enough dinners were available with chefs as well as waiters who served customers immediately they arrived. The meat was purchased in large quantity every time and the hours of operations depended on demand for the services. The location of the restaurants determined the time of opening and closing the business. Many customers during lunchtime were provided with menu to select the meal to be served (Sasser 3).

Ethics and Sustainability Issues

The number of people expected to use the services offered determined the site where the restaurants were located. Many people were available during lunch hour and dinner to enjoy meals of their choice. The units that offered accommodation were located in the business areas so that the customers could access them easily.

There was training of staff in order to offer quality services to the customers and a course of Japanese English for six months. The managers of the restaurants trained staff so that they can meet the goals for continuous growth of the company. Advertisement was done to create awareness of the business to the customers and persuade them to utilize the services. Market research was done for the company to establish the potential customers in order to attract and retain them (Sasser 4)

Action plans

The plan for expansion includes five units to be opened every year such as Hotel in Canada with effective management. There is need to increase the number of staff to prevent shortage as well as training them to have experience in the duties assigned. The major cities will be considered for establishment of restaurants at an affordable cost (Sasser 5).

Conclusion

The Benihana Company should expand business in the United States of America where small units with high profit margin are recommended. The existing markets need to be penetrated where there are many people so that the business can be successful. The units within the company should operate as separate entities where they account for the operations as well as profit in each unit (Sasser 6).

Works Cited

Sasser, Earl. Benihana of Tokyo, Allston: Harvard Business School, 2004. Print

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2019, April 16). Benihana of Tokyo Company. https://ivypanda.com/essays/benihana-of-tokyo/

Work Cited

"Benihana of Tokyo Company." IvyPanda, 16 Apr. 2019, ivypanda.com/essays/benihana-of-tokyo/.

References

IvyPanda. (2019) 'Benihana of Tokyo Company'. 16 April.

References

IvyPanda. 2019. "Benihana of Tokyo Company." April 16, 2019. https://ivypanda.com/essays/benihana-of-tokyo/.

1. IvyPanda. "Benihana of Tokyo Company." April 16, 2019. https://ivypanda.com/essays/benihana-of-tokyo/.


Bibliography


IvyPanda. "Benihana of Tokyo Company." April 16, 2019. https://ivypanda.com/essays/benihana-of-tokyo/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1