Operations Management Case Study Report Case: Benihana of Tokyo PREPARED BY: UNDER THE GUIDANCE OF: Dhruv Gupta 13DM Prof. A.K. Dey. Case Study on Success of Benihana of Tokyo Group 4. 1. Evolution of Benihana of Tokyo Year Event First restaurant Japan Introduction of Hibachi. short case analysis with recommendation for HBS’ Benihana of Tokyo Case What strategic measures should Benihana of Tokyo take in order to sustain future.
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Benihana of Tokyo – Case – Harvard Business School
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Dhruv Gupta 13DM Prof. He got himself enrolled in the school of restaurant management at New York City College, thinking that he would never go hungry in the restaurant business.
He did a systematic analysis of US restaurant market and discovered that although American enjoyed eating in exotic surrounding but were deeply mistrustful towards exotic foods. He also learned that the American enjoyed watching their food being prepared. These learning helped Rocky to open up his first unit of Figure 2: Benihana founder Hiroaki Benihana by The major problem that Rocky addressed “Rocky” Aoki from the analysis was the shortage of skilled labor which he eliminated studh the Hibachi table arrangement, which required only the chef as a skilled person.
The instant success of the first unit helped Rocky to open six franchises within the next seven years soon after which he realized that the franchise owners were investors and had no restaurant experience which made it even more difficult for them to relate to a native Japanese staff. Food and beverages Types of food served: Steak, chicken and shrimp Target customers: Business person, tourist visitors, white collars Site selection: Target high traffic area Benihana restaurants adopted well defined and accurate methods during site selection and training of chefs which helped them reduced the average dinner turnover time.
Apart from this each restaurant had a simply management structure which allowed all the managers to report benhiana the operation manager, Allen Saito who in turn reported to Bill Susha Vice President which made it easier for the top management to control the company.
All this along with the unique combination of Japanese paternalism in an American setting made the Benihana model difficult to replicate but there were certain problems that the management was facing during the future expansion plans. According to Bill Susha Srudy President the company could limit to opening only 5 units a year because that was as fast as the two crews of Japanese carpenter could tlkyo.
Furthermore they had the constraints of the staff and the cost factor which confined them to open there units in major cities.
Benihana of Tokyo
There were other issues which had to be addressed for example importing every item from Japan used in construction of a unit and using Japanese carpenters. Considering all these advantages and disadvantages into account the company had three principal areas for growth: The United States, overseas and Japan.
With the idea of going public someday the company had moved into joint-ventures in Mexico and overseas for the meantime. The future plans also include targeting younger generations benihaa introducing a combination of Chinese and Japanese operations and expand the Benihana experience in various other domains such benihaha Renoir exhibitions and model agencies etc. Low Cost Rocky realized that low cost could be achieved and as the customer experience was unique, so it led to high profits.
Benihana of TOKYO by on Prezi
Food cost relative to the industry: Beverages cost lower than the industry: Ot the menu was simple and limited so, the food wastage was reduced. Authentic Japanese atmosphere 3. They keep an optimal mix to meet the business district and residential flow.
Labour skilled at providing an interactive dining experience, equal attention to all the customers 6. Hibachi and Teppanyaki Table: Tables are designed in such a way that chef prepares food directly in front of the customers therefore reducing variability from waitress and customer can easily communicate the menu. Then tookyo helps the customer to participate in the cooking process.
Model difficult to replicate: Dtudy restaurants adopted well defined and accurate methods during site selection and training of chefs which helped them reduced the average dinner turnover time and the unique combination of Japanese paternalism in an American setting made the Benihana model difficult to replicate 8.
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