Benihana Case
1)
Sales and costs (percentages are relative to gross sales, unless stated otherwise) | Percentages | Dollars/yr | | Typical Restaurant | Typical Benihana Restaurant | Typical Benihana Restaurant | Gross Sales | 100% | 100% | $1,300,000 | Food Sales | 70-80% | 70% | $910,000 | Beverage Sales | 20-30% | 30% | $390,000 | Food cost, % of food sales | 38-48% | 30% | $273,000 | Beverage cost, % of beverage sales | 25-30% | 20% | $78,000 | Gross profit | 55-65% | 73% | $949,000 | Labor, benefits | 35-40% | 10% | $130,000 | Advertising | 0.75-2% | 8-10% | $130,000 | Rent | 4.5-9% | 4-7% | $65,000 | Other (supplies, isc., utilities, admin, maint., insurance, royalties) | 10-20% | 10-15% (no royalties) | $150,000 | …show more content…
Between 7 pm and 8 pm, once again on average, we find there to be about 1 minute between arrivals, increasing back to 4 minutes per arrival from 8 pm to 9 pm. If the average party size is 4, then we can sum up these averages to be (60/4*4) + (60/1 * 4) + (60/4 *4) = 360 customers, which is BH’s demand. With 15 tables and batching, BH has a capacity of 15*8= 120 seats at any given time and since the average dining time observed from the simulation is 1 hour, the total capacity within the 3 hour period is 120*3= 360. Since capacity meets demand, one would think the utilization rate should be 100%, but yet for the 15 table simulation run earlier, we find the number to be at 52.21%. The reason for this is that there is variability in demand, size of a party, and even in the dining times. Customers don’t always arrive at a steady stream of 8 per table. There is a higher concentration between 7 pm and 8 pm, in comparison to the other timeframes during which demand can’t be met with capacity while during other times, there will be unused capacity. Customers also don’t always arrive in a perfect batch of 8; a batch of 7 might leave one seat unused. And sometimes, customers tend to stay longer than the average one hour, causing a bottleneck in the …show more content…
If 14 tables clear every hour, then one table clears ever 60/14 = 4.29 minutes. A customer entering the 54-seater bar would be 55th in line, thus just making the 7th batch in line. The 7th batch in line would have to wait approximately 7 X 4.29 = 30 minutes before being seated at a dining table.
5)
The bar: * increases turnover and efficient allocation of seats * facilitates batching and eliminates variability in the batch size which allows for profit maximization * standardizes the variability of customer throughput * It allows for an opportunity to generate additional revenue while customers wait to be seated in the dining room
The chef: * reduces service time by standardizing training and skill set * delivers consistency in product * turnover is faster and higher capacity because the chef force feeds the customer while making the food * Increases price to customers because it adds an entertainment value * reduces customer anxiety because their food is prepared in front of them * customers don't get bored if they are amongst boring company because they get to see their food being prepared in a stylish way * Reduces fixed costs because less kitchen space required and more space can be given to dining room thus allowing higher potential to earn revenues
Limited
Sales and costs (percentages are relative to gross sales, unless stated otherwise) | Percentages | Dollars/yr | | Typical Restaurant | Typical Benihana Restaurant | Typical Benihana Restaurant | Gross Sales | 100% | 100% | $1,300,000 | Food Sales | 70-80% | 70% | $910,000 | Beverage Sales | 20-30% | 30% | $390,000 | Food cost, % of food sales | 38-48% | 30% | $273,000 | Beverage cost, % of beverage sales | 25-30% | 20% | $78,000 | Gross profit | 55-65% | 73% | $949,000 | Labor, benefits | 35-40% | 10% | $130,000 | Advertising | 0.75-2% | 8-10% | $130,000 | Rent | 4.5-9% | 4-7% | $65,000 | Other (supplies, isc., utilities, admin, maint., insurance, royalties) | 10-20% | 10-15% (no royalties) | $150,000 | …show more content…
Between 7 pm and 8 pm, once again on average, we find there to be about 1 minute between arrivals, increasing back to 4 minutes per arrival from 8 pm to 9 pm. If the average party size is 4, then we can sum up these averages to be (60/4*4) + (60/1 * 4) + (60/4 *4) = 360 customers, which is BH’s demand. With 15 tables and batching, BH has a capacity of 15*8= 120 seats at any given time and since the average dining time observed from the simulation is 1 hour, the total capacity within the 3 hour period is 120*3= 360. Since capacity meets demand, one would think the utilization rate should be 100%, but yet for the 15 table simulation run earlier, we find the number to be at 52.21%. The reason for this is that there is variability in demand, size of a party, and even in the dining times. Customers don’t always arrive at a steady stream of 8 per table. There is a higher concentration between 7 pm and 8 pm, in comparison to the other timeframes during which demand can’t be met with capacity while during other times, there will be unused capacity. Customers also don’t always arrive in a perfect batch of 8; a batch of 7 might leave one seat unused. And sometimes, customers tend to stay longer than the average one hour, causing a bottleneck in the …show more content…
If 14 tables clear every hour, then one table clears ever 60/14 = 4.29 minutes. A customer entering the 54-seater bar would be 55th in line, thus just making the 7th batch in line. The 7th batch in line would have to wait approximately 7 X 4.29 = 30 minutes before being seated at a dining table.
5)
The bar: * increases turnover and efficient allocation of seats * facilitates batching and eliminates variability in the batch size which allows for profit maximization * standardizes the variability of customer throughput * It allows for an opportunity to generate additional revenue while customers wait to be seated in the dining room
The chef: * reduces service time by standardizing training and skill set * delivers consistency in product * turnover is faster and higher capacity because the chef force feeds the customer while making the food * Increases price to customers because it adds an entertainment value * reduces customer anxiety because their food is prepared in front of them * customers don't get bored if they are amongst boring company because they get to see their food being prepared in a stylish way * Reduces fixed costs because less kitchen space required and more space can be given to dining room thus allowing higher potential to earn revenues
Limited