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Since its humble beginnings in 1964, Benihana of Tokyo has evolved from a small restaurant into a thriving chain of themed establishments. The key to its sustained success over the last 40 years lies in the implementation of an exemplary Total Quality Management (TQM) process. This process not only ensures an exotic ambiance but also guarantees the delivery of high-quality food, contributing to an unforgettable dining experience for patrons. The evidence of this success is underscored by the impressive statistic in Exhibit 4, revealing that 65.5% of their customers are loyal returnees.
Benihana's ability to effectively minimize costs without compromising the quality of its offerings is evident in various aspects of its operation.
Exhibit 1 demonstrates that the total costs of sales consistently remain within the range of 35-45% of total sales. This strategic cost management is further manifested in a commendable net profit margin ranging from 0.5% to 9% of sales. A closer examination reveals that Benihana achieves cost efficiency by utilizing floor space judiciously, thereby reducing labor costs and optimizing rent expenses.
The elimination of the conventional kitchen in favor of the hibachi arrangement is a key innovation.
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This not only keeps labor costs low but also allows the provision of a substantial amount of attentive service. By efficiently utilizing floor space, particularly in high-traffic areas like business districts, Benihana maximizes its ability to serve a larger customer base during peak periods, effectively compensating for the higher rental costs associated with such locations.
Benihana's unique approach to its menu contributes significantly to its cost-effectiveness.
Offering only three menus reduces food costs and minimizes wastage. The emphasis on using fresh ingredients, which require minimal storage, further aids in lowering overall food costs. The distinctive process flow within a Benihana restaurant sets it apart from typical dining establishments. Orders for soup, salad, and beverages are taken by waiters, while orders for the main dish are conveyed directly to the chef. This streamlined approach eliminates waiting times and enhances overall efficiency in the order fulfillment process.
The production flow is characterized by a short duration, as freshly prepared food moves swiftly from the storage area to the tables. This not only maintains the quality of the food but also fulfills the desires of consumers, as indicated in the feedback presented in Exhibit 4, where the food emerges as the primary highlight of the Benihana dining experience. The operational simplicity extends to the management structure, where chefs and waiters actively engage in clearing dishes and setting tables for the next customer, thereby minimizing the need for additional cleaning staff and reducing labor costs.
The success of Benihana is further underlined by its commitment to Total Quality Management. Quality control is not just a managerial concern; it is instilled as a responsibility in every employee. This emphasis on quality extends from the careful selection of high-quality food sources to the meticulous process of serving meals to consumers. By adopting a simple yet effective management structure in each restaurant, Benihana successfully integrates quality into every aspect of its operation.
However, even in the face of remarkable success, Benihana's management confronts challenges. The attempt to venture into franchising faced obstacles, primarily due to the reluctance of key decision-makers, such as Rocky, to relinquish control. Concerns were raised regarding the readiness and competence of franchisees in running a food business, particularly one deeply rooted in Japanese culture. Additionally, Bill Susha, the head of Operations for Benihana, acknowledges the potential escalation of costs related to rentals and the shortage of well-trained employees if the company pursues further expansion.
While critics have voiced concerns about the sustainability of Benihana's uniqueness, arguing that it may be a passing fad, the company must remain vigilant. As a provider of both products and services, Benihana must continue to emphasize and enhance its Total Quality Management. Recognizing that employees are key input sources in the food service industry, the positive impact of implementing TQM on the quality of service becomes imperative for long-term success. As Benihana navigates the challenges of expansion, maintaining its distinctiveness and unwavering commitment to quality will be crucial in ensuring continued triumph in the dynamic culinary landscape.
In conclusion, Benihana of Tokyo's remarkable journey from a small restaurant in 1964 to a flourishing chain of themed establishments is a testament to its effective Total Quality Management process. The commitment to an exotic ambiance, high-quality food, and cost efficiency has created an unforgettable dining experience, evident in the substantial number of loyal return customers. The strategic utilization of floor space, unique menu offerings, and an efficient operational model contribute to the company's success. While challenges and skeptics exist, Benihana's emphasis on Total Quality Management positions it well for continued success in the ever-evolving culinary landscape.
Benihana of Tokyo: A Culinary Success Story. (2018, Oct 24). Retrieved from https://studymoose.com/success-of-benihana-of-tokyo-essay
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