What were the COVID-19 related expenses for Benihana in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
ts to compete with popular new restaurant or F&B hospitality services operation formats, concepts or trends that emerge from time to time, and we cannot provide any assurance that any changes we make to any of our concepts in response will be successful or not adversely affect our profitability.
Health and Safety
The COVID-19 pandemic has had a significant effect on our restaurant traffic and our business, financial condition and results of operations.
The COVID-19 pandemic significantly affected our business and results. We incurred COVID-19 related costs of $2.5 million and $5.8 million in 2022 and 2021, respectively. We have made operational changes to adhere to government requirements on safety and sanitation in our restaurants. However, we cannot guarantee that changes to our operatio
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, COVID-19 related expenses were $2.5 million in 2022. These expenses primarily covered sanitation, supplies, and safety precautions implemented to prevent the spread of COVID-19. This shows a decrease from 2021, where these expenses totaled $5.8 million.
For a prospective franchisee, understanding these costs is crucial. While the worst of the pandemic may be over, health and safety remain a key concern for customers and staff. Benihana's commitment to sanitation and safety precautions may influence customer perception and loyalty.
The FDD also indicates that COVID-19 had a significant effect on restaurant traffic, business, financial condition, and results of operations. While it is not possible to estimate the full impact that COVID-19 could have on the business going forward, the spread of the virus and the measures taken by governments or by Benihana in response could adversely impact the business, financial condition, and results of operations. This highlights the potential ongoing financial impact of health crises on restaurant operations, even as conditions improve.