Benihana of Tokyo Case Analysis (1)

Problem Analysis

Statement of the Problem What strategic strategic measures measures should Benihana Benihana of Tokyo take in order order to sustain sustain future growth? There are three (3) underlying management issues and challenges that we can identify in answering our main problem, these are the expansion constraints, franchising issues, which happened to be one of the ways of expansion and lastly a threat in the business operations model relati!e to the current customer and market beha!ior" #or franchising, in!estors ha!e no knowledge of the $apanese culture and the Benihana style of cooking thus eliminating the companys core !alue of authenticity on each of these opened branches" %n addition, most of the franchisees ha!e minimal experience on operating a restaurant business, which pro!ed to be detrimental to the franchises growth" growth" This led &oki to discontinue the program after years of implementing implementing it" 'xpansio 'xpansion n was also an issue due to company companys s unwillingne unwillingness ss to take the risk of  borrowing from financial institution, institution, the scarcity of trained staff and limited producti!ity of   carpenters" %n operations, operations, there was an ongoing concern concern on the restaurants limited limited menu !ariation as well as slow ser!ice option" &side from this, cost for ad!ertisement and * is eating a substantial amount of companys o!erall expense plus presence in secondary market and markets outside + is non-existent"

Recommended Courses of Action:  &fter a thorough analysis of the problem, the group was able to identify recommendations for each of the underlying management issues" Expansion Constraints The company company should should take funds from financia financiall institut institutions ions in order order to further fuel growth" They must go public but &oki should limit public stock offerings to less than ./0 so he would still has control of the company, after all, the company has funds" %nstead of going into #ranchising, the company might as well de!elop 1oint !entures with %nternational 2otel companies" Through Through this, they would be able to reach out international market" e!el e!elopi oping ng diffe differen rentt produ product ct !alue !alue propo proposit sition ion would would also also cater cater to different different target markets" #or younger generations that would opt for faster  ser!ice, the company might want to establish a new restaurant operations model such as Benihana #astfood theme where customers can dine-in, opt to take out or order thru dri!e-thru" Through this, the company can still prese reser! r!e e the their origi rigin nal res restau tauran rant concep cept, whic hich is with the 2ibachi4Tappanyaki table concept"

Operations The company might want to create new menu !ariations like sushi, udon and gyo5a"  &llowing local chefs and staffs to hasten hiring process, thus reducing recruitment cost"  &ll-you-can-eat concept can also be introduced in order to widen target market"