Abstract
Founded in 1964 by Hiroaki Aoki, Benihana of Tokyo is a global restaurant franchise that specializes in Japanese Cuisine. Benihana targets diverse clientele across the globe who are interested in Japanese cuisine since that is the restaurant’s main menu. The key proposition is that the firm offers the best of Japanese cuisine experience. The restaurant’s main strength is that it offers exceptional steaks usually prepared in front of the customer. The main weakness is that the planned ambitious global expansion may lead to too high a number of hotels that may lead to brand dilution and hence take away the prestige traditionally associated with the restaurant. The biggest opportunity for the firm is the high potential presented by emerging markets. The biggest threat to the franchise is that competition on varied price points, which may become a race to the bottom. It is prudent for the management to keep high quality customer service to get an edge over its competitors and establish a presence in global emerging markets.
Introduction
Founded in 1964 by Hiroaki Aoki, Benihana of Tokyo is a restaurant that specializes in steaks that are prepared in the customer’s presence. Since its foundation, the company had grown to 15 operations by 1972 and is looking to expand even more. This is a case study of the Benihana of Tokyo. This case study will discuss the company’s journey and its prospects looking into the future carrying out a SWOT analysis.
6 Ps
People
Benihana targets diverse clientele across the globe who are interested in Japanese cuisine since that is the restaurant’s main menu. The market is not highly segmented as the firm seeks to offer a similar feel across its franchises across the globe. Like any other restaurant, the buying decision comes from individual customers who enjoy Japanese cuisine.
Product
The restaurant’s main offering is Japanese cuisine and Benihana is a key player in this segment in the markets where it has been introduced.
Price
Distribution
This being a franchise, the restaurant is available in different parts of the globe including Toronto, Bucharest and London.
Promotion
The key proposition is that the firm offers the best of Japanese cuisine experience. This is communicated to clients mainly through online advertising and the reception so far has been commendable.
Performance
The mission of the chain is to be a leader in its industry, and so far, this goal is on course to be achieved considering the planned massive expansion.
SWOT Analysis
Strengths
The restaurant’s main strength is that it offers exceptional steaks usually prepared in front of the customer.
Its Japanese theme offers it a unique set of loyal clientele and sets apart from most competition in the market.
Restaurants spend a tremendous part of their income on waste foods. By reducing the number of dishes, Benihana manages to reduce the amount of waste food. The average restaurant uses about 30% of their space on the back space.
Efficient utilization of space due to innovative designs. The restaurant’s design eliminated the need of a kitchen and, as a result, cut the backspace needed to 22%.
Aoki, the restaurant’s founder, applies various strategies that ensure minimal input into the operation. He is also considerate of both his employees and customers.
Weaknesses
Planned ambitious global expansion may lead to too high a number of hotels that may lead to brand dilution and hence take away the prestige usually associated with the restaurant.
Competition from established players in the business will mean less market share for the hotel.
Opportunities
With a planned expansion, the firm is poised to take advantage of emerging international markets such as Africa and Brazil because these markets present a unique opportunity and high potential.
Customer service innovation to retain more customers.
Threats
Competition on varied price points, which may become a race to the bottom.
The restaurant’s growth may stagnate.
As is the case with most businesses in ordinary markets, the threat of new entrants is existential. This may bring about a dip in the sales of the restaurant going into the future.
Recommendations
The restaurant should stick to its visionary mode of operation that applies various strategies that ensure minimal input into the operation.
The restaurant should continue being considerate of both his employees and customers, as this will give it an edge.
As the firm enters into more markets, it should eye emerging markets that hold huge potential.
The firm should focus on differentiating its brand since the restaurant business is faced with huge competition in most parts of the globe. This will create a loyal set of clientele which will ensure the firm remains sustainable across the globe.
