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