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  • 1. (1) What are the differences between the production processes of Benihana and a typicalrestaurant?Benihana, one of the successful Japanese restaurants has been founded by Hiroaki Aoki (Rocky) in1964, stared franchising in 1969, has 15 member until 1972 with key member Bill Susha (VicePresident of Operation), Allen Saito (Manager in Operation), Gen Simoes (Director in advertisementand Marketing).Benihana has following uniqueness that drives high productivity, operational efficiency,customer satisfaction, high demand and turnover compare to other traditional restaurant Creative Dining Experience: Benihana produces food at the point of service (from earlierprep in back), eliminating the need for skilled cooks and servers (only kyacktail waitresses). Controlling Quality and Customer Satisfaction: The “Hibachin Table” concept, where cookprepare food in front of customer. Highly Trained, motivated and skilled Chef: Prepare authentic, delicious and attractive foods Faster Service: Affords an engaging, interactive dining experience and reduces waiting forservers. Minimize flow time : Keeping turnover rate high thus high utilization and throughput Time Management: Ready with basic food processing stuff in off peak time. Compact cookingtime in off-peck time. Customer stays 45 min in peak time and 90 min in off-peak time. Authenticity and real showcasing: Service of food by chef enables Benihana to provideuncommonly, element of instant gratification. Service Excellence with Low Cost: Attentive service at low cost Waste Management and storage Strategy: Limited menu reduces food costs and waste, butlimits customers’ options. Entertainment, Interior design, Historical Authenticity for building material: Uniqueentertainment with added bonus Japanese cooking tangible process .Presenting dynamiccooking show to customer Optimized Space Utilization : Only 22% space used for kitchen Location Advantage: Restaurant are located in heavily populated and Central Business Area(2) What is the process flow at Benihana? What role does the cocktail lounge serve on abusy night? (Consider design choices which generate operation efficiencies. How do thechoices of process technology and operations strategy contribute to the financialperformance? )Benihana’s Process Flow: The following flow diagram provides the typical process flow in BenihanaCustomerentersrestaurantCustomerorders for drinkCustomerenters diningareaCustomerorders for foodCustomer waitsfor the chefChef arrivesand startscookingCustomerenjoys the foodCustomer paysand leavesPayFoodGo toBenihanaDrinksGetHungryDecide togo toBenihanaNeverReturnSatisfied?Yes NoDebasis Chakraborty International Business School EMBA
  • 2. Benihana’s Operational Strategy during peak time Efficient Time Management: Cooking time can be limited to that required for the show(any other prep can be conducted during off-peak hours).Reduce the flow time. Fast table turnover due to limited menu and cooking time, food and info transferinefficiencies reduced by eliminating servers. Limited Menu Option – Gave both time efficiency and reduces food and waste costs. Staffing Strategy: Use waiters in the cocktail lounge area, Managers for taking Order,expert chefs for fast food processing Space Optimization: Optimization and increase Restaurant space for bar and lounge use Effective Communication and Coordination: Well communication in entire process Operational Strategy and efficienciesBenihana’s Operation in restrurent Benihana’s Operation in Management*******Benihana’s Process Analysis Model: Cost StructureCost Head IndustryStandardBenihanaRow material cost 38-48% 30%Beverages of cost (% ofsales)25-30% 20%Wages and SalariesLabor cost Out ofOperatingexpenses(Independentbenefit)30-42% 10%Benihana’slabor cost is lowManagement benefit 2-6% 4%Rent out of operatingexpenses4.5-9% 5-7%Space occupancy 30% 22%Promotional andAdvertising cost.75-2% 10%Construction Cost Lower HigherDebasis Chakraborty International Business School EMBA
  • 3. AppendixProcess AnalysisAssume that the dining process takes 60 minutes, and that we want customers in the bar for 24minutes.Consider three scenarios:1. Bar - 8 seats; Dining area - 40 seats2. Bar - 16 seats; Dining Area - 80 seats3. Bar - 48 seats; Dining Area - 120 seats Bar - 8 seats; Dining area - 40 seatsIt takes 60 minutes for one customer to eat dinner, and there are 40 seats in the dining area.Therefore 40 people eat every 60 minutes (throughput).On the average a dinner cycle is completed every 60 minutes/40 people = 1.5 minutes per person(cycle time). We know that dinners are processed in batches of 8, so on the average a table of 8finishes every 12 minutes.This means that the 8-seat bar must empty every 12 minutes.The "ideal" time for someone to remain in the bar is about double that time (because this will be justafter the second drink has reached the table). Therefore, it would appear that the ratio of 0.2 (8 barseats to 40 dining seats) is too small. Bar - 16 seats; Dining Area - 80 seatsIt takes 60 minutes for one customer to eat dinner, and there are 80 seats in the dining area.Therefore 80 people eat every 60 minutes (throughput). On the average a dinner cycle is completedevery 60 minutes/80 people = 0.75 minutes per person (cycle time).We know that dinners are processed in batches of 8, so on the average a table of 8 finishes every 6minutes. This means that the 16-seat bar must empty every 12 minutes. Therefore, it would appearthat the ratio of 0.2 (16 bar seats to 80 dining seats) is too small. In fact, all this does is double therestaurant’s capacity and the bar time remains at 12 minutes. The only benefit is that 16 seats mightallow the host or hostess to do a better job of assembling groups of eight. Bar - 48 seats; Dining Area - 120 seatsIt takes 60 minutes for one customer to eat dinner, and there are 120 seats in the dining area.Therefore 120 people eat every 60 minutes (throughput). On the average a dinner cycle is completedevery 60 minutes/120 people = 0.5 minutes per person (cycle time). We know that dinners areprocessed in batches of 8, so on the average a table of 8 finishes every 4 minutes. To send 8 peopleinto the dining area every 4 minutes means that the 48-seat bar must empty every 24 minutes.Perfect! Given our assumptions regarding the cycle times of the bar and the dining area, it wouldappear that a ratio of bar seats to grill seats of 0.4 is about right. (In this case 120:48, but the ratio ismore important than the specific numbers.)Debasis Chakraborty International Business School EMBA