What are the characteristics of Benihana branded facilities in Non-Traditional Locations?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
.
We have entered into agreements with licensees and concessionaires for the operation of BENIHANA® branded facilities in non-traditional venues such as sports stadiums, arenas, shopping centers with limited menu offerings and no catering or delivery outside of the venue ("Non-Traditional Locations"). As of the date of this Disclosure Document, there are five Non-Traditional Locations in operation in stadiums and arenas the United States. We also have signed two other franchise agreements for a "Concession Model" location at retail and entertainment venues in Miami, Florida, as more fully described below, and we may continue to offer such franchise opportunities in the future.
Certain of our subsidiaries own and operate the RA Sushi ("RA SUSHI") restaurant concept, which offers sushi and a full menu of Pacific Rim dishes in an environment targeting a younger demographic and featuring upbeat design elements. RA SUSHI restaurants may compete with the BENIHANA concept and with your franchised restaurant.
Source: Item 1 — THE FRANCHISOR, ITS PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company has agreements with licensees and concessionaires to operate Benihana branded facilities in non-traditional venues. These locations include sports stadiums, arenas, and shopping centers. These non-traditional locations offer limited menus and do not provide catering or delivery services outside of the venue. As of the date of the FDD, there are five non-traditional Benihana locations operating in stadiums and arenas within the United States.
Benihana has also signed two franchise agreements for a "Concession Model" location at retail and entertainment venues in Miami, Florida. The document indicates that Benihana may continue to offer such franchise opportunities in the future. The Concession Model offers a limited menu and does not feature the hibachi or teppanyaki style of Japanese cooking where food is prepared on a grill that forms a part of the table on which it is served.
For prospective franchisees, this means there are opportunities to operate Benihana restaurants in venues beyond the traditional restaurant setting. However, these non-traditional locations come with limitations, such as a restricted menu and no catering or delivery services. The Concession Model also deviates from the traditional teppanyaki style that Benihana is known for. Franchisees should carefully consider these differences and whether they align with their business goals and capabilities.