What factors does Benihana consider when analyzing prospective restaurant sites for STK locations?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
,000 square feet. In 2021, the average domestic restaurant revenues and average domestic check per person for owned and managed STK restaurants that have been open 18 months at December 31, 2021 were $14.8 million and $114, respectively.
We are focused on expanding our global STK footprint. We believe that the locations of our STK restaurants are critical to our long-term success, and we devote significant time and resources to analyzing prospective restaurant sites. We intend to continue our focus on (i) metropolitan areas with demographic
PROSPECTIVE TESTAURAITESTES.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company devotes significant resources to analyzing prospective restaurant sites for STK locations, as they believe location is critical to long-term success. Benihana intends to focus on metropolitan areas with demographic and discretionary spending profiles that favor their high-end concept. They also seek partners with excellent track records and brand recognition.
In addition to demographic and partner considerations, Benihana considers factors such as traffic patterns, proximity to high-end shopping areas, office buildings, hotels, and convention centers. They also evaluate area restaurant competition, accessibility, and visibility. These criteria suggest that Benihana aims to place STK restaurants in high-traffic, affluent areas that are easily accessible and visible to potential customers.
For a prospective franchisee, this indicates that site selection will be a collaborative and thorough process. Benihana's focus on specific demographic profiles and complementary businesses suggests that franchisees will need to work closely with the franchisor to identify locations that meet these criteria. The evaluation of competition, accessibility, and visibility highlights the importance of market research and due diligence in the site selection process.