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GROUP MEMBERS: NAMRATHA R
           SUKRITI SHARMA
        SAMPOORNA SARKAR
             PRIYAM SINGH
                     1
           MANEESH BHATIA
PROCESS              FLOW                DIAGRAM

     Customer                              Customer
                         Customer
       enters                             enters dining
                      orders for drink
     restaurant                               area




    Chef arrives
                      Customer waits        Customer
     and starts
                       for the chef       orders for food
      cooking




      Customer        Customer pays
   enjoys the food      and leaves

                                                            2
inputs

   LABOUR        MATERIAL

            INPUTS

   ENERGY            CAPITAL

                               3
LABOUR




         4
MATERIAL
           Biggest purchase :
           meat




                                5
ENERGY




         6
capital




          7
OUTputs




          8
Tasks, flows               &    storage
                                1. FLOW OF GOODS
                                    • FOOD
     FLOWS                          • BEVERAGE
                                2. FLOW OF INFORMATION
                                    • ORDER OF FOOD

 TASKS
                  STORAGE

1. TAKING ORDER             RAW MATERIAL
2. COOKING                  1. FOOD – cooked or uncooked
                               state
                            2. BEVERAGE


                                                           9
OTHER   PARAMETERS




        Min time: 45 minutes   Average = 60 minutes
        Max time: 90 minutes




                                                10
=




    Each table accomodates 8 people.
    If there are 5 tables, then capacity will
    be 5x8=40



                                      11
Between lunch and dinner




         Efficiency
                      Utilization
         Setup time
                      Run time
                                    12
Key Elements Of Focus

                                      The restaurants have about 8% more
                                      than average productive dinning space.

                                          Optimum Space Utilization




   Location Advantage
The restaurants are located
in heavily populated areas
so as to attract clientele for
                                 Elements Benihana Focus                            Hibachi Table arrangement
lunch and dinner.                                                                   This unique feature not only adds
                                                                                      The Benihana restaurants cut
                                                                                     to thecosts substantially just by
                                                                                      food showmanship of
                                                                                    the restaurant's culinary wanted
                                                                                      smartly serving the most
                                                                                    offerings,and thereby cutting on
                                                                                      entrees but also reduces labour
                                                                                    cost and takes and this also helps
                                                                                      storage costs away any
                                                                                    apprehensions regarding exotic
                                                                                      in avoiding waste.
                                                                                    fare.
                Historical authenticity                                    Waste Management and Storage
                   The restaurants are built with materials
                   imported from Japan along with the help of
                   a Japanese crew.
                   The chefs too are formally educated                                                       13
                   Japanese chefs
Cost-Structure: Profit Making Model


                                       Served Menu
                                         By reducing the menu to only
                                    three simple Middle American entrees:
                                 steak, chicken and shrimp they cut the food
                                                   costs to
                                              between 30% and 35%
                                    and this also lead to reduce wastage.




 Non-Conventional Kitchen
        They eliminated the conventional
                 kitchen with the
  hibachi table arrangement thereby reducing the
               labour cost and the
        additional cost of kitchen space.                               14
Cost-Structure: Profit Making Model(Chicago Branch)
                            4%
                30%        Manag
                Food       ement      10%
                                      Ads
        10%
       Labour
                                             5%
                                            Rent




                       69 % Savings                15
Making Operations Efficient
                              Elimination Of Kitchen Space
                              1. It builds an amount of trust
                                 among the customers which
                                 was lacking before.
                              2. There is an effective reduction
                                 in space for kitchen and the
                                 same space can be used as the
                                 productive dining area.
                              3. It also gives an opportunity to
                                 attract customers by exhibiting
                                 the culinary skills of the chefs
                                 in an innovative manner.
                              4. This also reduces the labour
                                 costs low.

                                                           16
Making Operations Efficient




                              17
Making Operations Efficient




                              Authentic ambience: Every entity
                              inside the restaurant was made
                              authentic. Even building
                              materials were shipped from
                              Japan directly. This helped in
                              attracting customers
                              Better Layout: This increased the
                              productive area by about 8%
                              effectively compared to
                              competitors.
                                                          18
Balance-Sheet-It’s all about Money(Given)
        Share of Food and
           Beverages



                       Food
                                          Cost per share

                       Beverages                            Food
                                                            Labour
                                                            Advertising
                                                            Rent
                                                            Management




  Assumptions:
•Labor costs include Payroll, Employee benefits, and Employee meals.
•The costs are assumed on the higher end of the range            19
Balance-Sheet-It’s all about Money(Solution)

    Sales                     100%

    Food                      70%

    Beverage                  30%



    Cost of sales

    Food                      21%         30% of 70

    Beverage                  9%          30% of 30

    Total cost of sales       30%



    Gross Profit              70%         100-30
                          ***Assuming sales to be 100%   20
Balance-Sheet-It’s all about Money(Solution)
       Operating costs
       Labour                     10%
       Advertising                10%
       Management                 4%
       Laundry, linen, uniforms   2%
       Replacements               1%
       Supplies                   1.50%
       Menu                       0.50%
       Music                      1%
       Utilities                  2%
       Administrative expenses    2%
       Repairs                    2%
       Rent                       5%
       Taxes                      1.50%
       Insurance                  1%
       Interest                   1%
       Depreciation               4%
       Total                      51%
       Net Profit before tax      19%          21
Balance-Sheet-It’s all about Money(Conclusion)


• The sales is equal to $1.3million.
• According to the above figure, net profit before
tax = 19% of $1.3million = $247000




                                                 22
Time Calculation(Sum)
  To Determine:       The maximum throughput time is the time
  that elapses from the time a person enters the bar to the time
  he/she leaves the restaurant.
  Given information:        The dining area is five times the
  capacity Of the bar.
  Assumptions:Seating      capacity of bar is 1 and that of
  dining area is 5(for ease in calculation).
  The average turnover at the teppanyaki table is one hour.
  The first 5 people who enter the bar will get seating inside
  the dining area.The sixth person who enters the bar will have
  to wait until one table inside the dining area becomes vacant.
  Solution:Considering    all the possibilities, a person who
  enters after 1 minute of the dining area becoming busy will
  have to wait for 59 minutes, a person who enters after 2 mins
  will have to wait for 58 minutes. The maximum waiting time for
  person will be 60 minutes.
 Therefore the average waiting time =                      23
                       (1+2+3+.....+58+59+60)/60 = 30.5 minutes
24

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Case study

  • 1. GROUP MEMBERS: NAMRATHA R SUKRITI SHARMA SAMPOORNA SARKAR PRIYAM SINGH 1 MANEESH BHATIA
  • 2. PROCESS FLOW DIAGRAM Customer Customer Customer enters enters dining orders for drink restaurant area Chef arrives Customer waits Customer and starts for the chef orders for food cooking Customer Customer pays enjoys the food and leaves 2
  • 3. inputs LABOUR MATERIAL INPUTS ENERGY CAPITAL 3
  • 4. LABOUR 4
  • 5. MATERIAL Biggest purchase : meat 5
  • 6. ENERGY 6
  • 9. Tasks, flows & storage 1. FLOW OF GOODS • FOOD FLOWS • BEVERAGE 2. FLOW OF INFORMATION • ORDER OF FOOD TASKS STORAGE 1. TAKING ORDER RAW MATERIAL 2. COOKING 1. FOOD – cooked or uncooked state 2. BEVERAGE 9
  • 10. OTHER PARAMETERS Min time: 45 minutes Average = 60 minutes Max time: 90 minutes 10
  • 11. = Each table accomodates 8 people. If there are 5 tables, then capacity will be 5x8=40 11
  • 12. Between lunch and dinner Efficiency Utilization Setup time Run time 12
  • 13. Key Elements Of Focus The restaurants have about 8% more than average productive dinning space. Optimum Space Utilization Location Advantage The restaurants are located in heavily populated areas so as to attract clientele for Elements Benihana Focus Hibachi Table arrangement lunch and dinner. This unique feature not only adds The Benihana restaurants cut to thecosts substantially just by food showmanship of the restaurant's culinary wanted smartly serving the most offerings,and thereby cutting on entrees but also reduces labour cost and takes and this also helps storage costs away any apprehensions regarding exotic in avoiding waste. fare. Historical authenticity Waste Management and Storage The restaurants are built with materials imported from Japan along with the help of a Japanese crew. The chefs too are formally educated 13 Japanese chefs
  • 14. Cost-Structure: Profit Making Model Served Menu By reducing the menu to only three simple Middle American entrees: steak, chicken and shrimp they cut the food costs to between 30% and 35% and this also lead to reduce wastage. Non-Conventional Kitchen They eliminated the conventional kitchen with the hibachi table arrangement thereby reducing the labour cost and the additional cost of kitchen space. 14
  • 15. Cost-Structure: Profit Making Model(Chicago Branch) 4% 30% Manag Food ement 10% Ads 10% Labour 5% Rent 69 % Savings 15
  • 16. Making Operations Efficient Elimination Of Kitchen Space 1. It builds an amount of trust among the customers which was lacking before. 2. There is an effective reduction in space for kitchen and the same space can be used as the productive dining area. 3. It also gives an opportunity to attract customers by exhibiting the culinary skills of the chefs in an innovative manner. 4. This also reduces the labour costs low. 16
  • 18. Making Operations Efficient Authentic ambience: Every entity inside the restaurant was made authentic. Even building materials were shipped from Japan directly. This helped in attracting customers Better Layout: This increased the productive area by about 8% effectively compared to competitors. 18
  • 19. Balance-Sheet-It’s all about Money(Given) Share of Food and Beverages Food Cost per share Beverages Food Labour Advertising Rent Management Assumptions: •Labor costs include Payroll, Employee benefits, and Employee meals. •The costs are assumed on the higher end of the range 19
  • 20. Balance-Sheet-It’s all about Money(Solution) Sales 100% Food 70% Beverage 30% Cost of sales Food 21% 30% of 70 Beverage 9% 30% of 30 Total cost of sales 30% Gross Profit 70% 100-30 ***Assuming sales to be 100% 20
  • 21. Balance-Sheet-It’s all about Money(Solution) Operating costs Labour 10% Advertising 10% Management 4% Laundry, linen, uniforms 2% Replacements 1% Supplies 1.50% Menu 0.50% Music 1% Utilities 2% Administrative expenses 2% Repairs 2% Rent 5% Taxes 1.50% Insurance 1% Interest 1% Depreciation 4% Total 51% Net Profit before tax 19% 21
  • 22. Balance-Sheet-It’s all about Money(Conclusion) • The sales is equal to $1.3million. • According to the above figure, net profit before tax = 19% of $1.3million = $247000 22
  • 23. Time Calculation(Sum) To Determine: The maximum throughput time is the time that elapses from the time a person enters the bar to the time he/she leaves the restaurant. Given information: The dining area is five times the capacity Of the bar. Assumptions:Seating capacity of bar is 1 and that of dining area is 5(for ease in calculation). The average turnover at the teppanyaki table is one hour. The first 5 people who enter the bar will get seating inside the dining area.The sixth person who enters the bar will have to wait until one table inside the dining area becomes vacant. Solution:Considering all the possibilities, a person who enters after 1 minute of the dining area becoming busy will have to wait for 59 minutes, a person who enters after 2 mins will have to wait for 58 minutes. The maximum waiting time for person will be 60 minutes. Therefore the average waiting time = 23 (1+2+3+.....+58+59+60)/60 = 30.5 minutes
  • 24. 24