According to Benihana's FDD, where are the Reef Kitchens venues located?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
We opened our first restaurant in January 2004 in New York, New York. We currently own, operate, manage or license 63 venues including 28 STKs and 27 Kona Grills in major metropolitan cities in North America, Europe and the Middle East and 8 F&B venues in four hotels and casinos in the United States and Europe.
We opened the following eight new venues in 2023:
- Owned STK restaurant in Charlotte, North Carolina
- Owned STK restaurant in Boston, Massachusetts
- Owned STK restaurant in Salt Lake City, Utah
- Owned Kona Grill restaurant in Columbus, Ohio
- Owned Kona Grill restaurant in Riverton, Utah
- Owned Kona Grill restaurant in Phoenix, Arizona
- Two Bao Yum venues through a licensing agreement with Reef Kitchens
Recently the Company exited its licensing agreement with REEF Kitchens and has no venues operating pursuant to that agreement.
We intend to add six to eight new venues in 2024. In March 2024, we opened the following:
● Owned STK restaurant in Washington DC
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company recently exited its licensing agreement with REEF Kitchens and has no venues operating pursuant to that agreement. However, in 2023, Benihana had two Bao Yum venues operating through a licensing agreement with Reef Kitchens. One Reef Kitchens venue was located in Austin, Texas. Additionally, in 2023, Benihana opened two licensed virtual Bao Yum locations in Denver, Colorado in conjunction with REEF Kitchens.
Prior to exiting the agreement, Benihana managed Reef Kitchens venues in Austin, Texas. This indicates that Benihana had previously expanded its Bao Yum concept through a licensing agreement with Reef Kitchens, utilizing Reef Kitchens' infrastructure to operate virtual locations.
For a prospective Benihana franchisee, this information highlights the company's past strategy of partnering with virtual kitchen providers like Reef Kitchens to expand its brand presence. It also demonstrates Benihana's willingness to explore alternative operating models to reach new markets. However, the termination of the Reef Kitchens agreement suggests that this strategy may not have been successful or aligned with the company's long-term goals.