What was the average domestic restaurant revenue for Benihana's owned and managed STK restaurants in 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
spend per transaction is calculated by dividing total restaurant sales by total number of transactions for a specified period. Our management team uses these indicators to analyze trends in customers' preferences, customer expenditures and the overall effectiveness of menu changes and price increases. For our comparable STK restaurants, our average check was $131 for 2022 compared to $114 for 2021. The average spend per transaction was $61 for Kona Grill restaurants for 2022 compared to $56 for 2021.
Average Comparable Restaurant Revenue. Average comparable restaurant revenue consists of the average sales of our comparable restaurants over a ce
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the average comparable restaurant revenue for STK restaurants was $16.3 million for the year ended December 31, 2021. This figure is calculated by dividing the total comparable restaurant sales in a given period by the total number of comparable restaurants in that period. This metric assists Benihana's management in measuring changes in customer traffic, pricing, and brand development.
It's important to note that this average is specifically for 'comparable' STK restaurants. The FDD defines 'same store sales' (SSS) as total food and beverage sales at domestic owned and managed restaurants opened for at least a full 18-month period. For STK SSS, this measure includes total revenue from owned and managed STK locations, excluding revenue from the STK restaurant located in the W Hotel in Los Angeles, California, due to a F&B hospitality management agreement with the hotel. Revenues from locations where Benihana does not directly control the event sales force are also excluded from this measure.
For a prospective Benihana franchisee, understanding these metrics is crucial. The average comparable restaurant revenue provides a benchmark for potential sales performance, while the SSS calculation offers insight into the performance of established locations. However, it is important to consider that these figures are averages and individual restaurant performance may vary. Factors such as location, market conditions, and management effectiveness can all impact a restaurant's revenue.
Therefore, while the $16.3 million average provides a useful data point, potential franchisees should conduct thorough due diligence, including reviewing the performance of specific locations and considering their own market conditions, before making an investment decision. They should also inquire with Benihana about the specific criteria used to determine 'comparable' restaurants and the factors that may influence revenue performance.