What are some examples of direct operating expenses for a Benihana owned restaurant?

According to Benihana's 2024 Franchise Disclosure Document, direct operating expenses for Benihana owned restaurants include the costs of supplies such as paper, smallwares, china, silverware, glassware, cleaning supplies, credit card fees, and linen costs. These expenses are typically measured as a variable expense based on the restaurant's net revenues. This means that as a Benihana restaurant generates more revenue, these direct operating expenses are expected to increase proportionally.

For a prospective franchisee, understanding these direct operating expenses is crucial for financial planning and management. Since these expenses are variable, franchisees need to carefully monitor their net revenues and manage these costs effectively to maintain profitability. Efficient management of these supplies and related expenses can directly impact the financial health of the franchise.

It is important for potential Benihana franchisees to note that these direct operating expenses are just one component of the overall operating expenses. Other significant expenses include payroll, occupancy costs, outside services, repairs and maintenance, and marketing. A comprehensive understanding of all these expenses is essential for successful franchise ownership.