Benihana Of Tokyo Executive Summary essay

In terms of decoration, the building materials were imported from Japan to the United State and reassembled by Japanese carpenters as Rocky insists of historical authenticity. After the success of West Side, in 1966 Rocky built a second unit on the East Side and quickly developed a separate clientele and prospered.

In 1967, Barron Hilton approached Rocky was concerned whether or not it was possible to open a unit in the Marina Towers in Chicago. Rocky flew to Chicago and saw a vacant site and immediately contacted the owner and igned a lease next day without going to the Marian Towers.This third unit in Chicago was very profitable with instant success as the food and beverage split was 70/30 with low expenses. The fourth unit was in San Francisco and the fifth was a joint venture in Las Vegas in 1969.

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Rocky commenced franchising in Boston, Fort Lauderdale, Beverly Hill, Harrisburg and Pennsylvania but didn’t do well. Rocky decided to stop franchising because franchisees didn’t have restaurant experience, can’t relate to predominantly native Japanese staff and difficult to control them. In 1970, several groups ried to imitate the Benihana, but they eventually folded within a year.Rocky realised that the amount of bar space for Benihana West Was insufficient and he doubled the size of the bar/lounge area in Benihana East.

In 1970 the third Manhattan operation called Benihana Palace was open with enormous bar/ lounge area. Figures from 1972 information revealed that beverage sales from Benihana West, East and Palace represented 1 8%, 20%-22% and of total sales, while the beverage cost averaged 20% from beverage sales. The average turnover at the Teppanyaki table was an hour to an hour nd a half.Rocky only purchased USA “A” Prime Grade meat, the food and beverage run about $6 at lunch and O at dinner. The lunch business overall accounted for of the total dollar volume despite lower check average, therefore, site selection was based upon high traffic with huge crowd.

Chefs were considered to be the key of SUCcess, hence all of them were young highly trained and certified Japanese. They needed to undergo three years formal apprenticeship and three to six months course to learn English language in Japan and American manners and Benihana form of cooking.Training chefs faced competition among themselves to perfect their art in hopes to promote to chief chef. Staff turnover in United State was very low because the chefs can quickly rise in the American Benihana operation and their well-bring as well as job security were taken care of by the company.

Bill Susha the V. P.

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