What happened to Benihana's licensing agreement with REEF Kitchens, and what is the current status of venues operating under that agreement?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Recently the Company exited its licensing agreement with REEF Kitchens and has no venues operating pursuant to that agreement.
We intend to add six to eight new venues in 2024. In March 2024, we opened the following:
● Owned STK restaurant in Washington DC
There is currently one Company-owned STK restaurant, one Company-owned Kona Grill restaurant, and one Company-owned Salt Water Social restaurant under construction in the following cities:
- Owned STK restaurant in Aventura, Florida
- Owned Kona Grill restaurant Tigard, Oregon
- Owned Salt Water Social restaurant in Denver, Colorado
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company has exited its licensing agreement with REEF Kitchens. As of the date of the FDD, there are no venues operating under that agreement. This indicates a complete termination of the partnership, meaning Benihana is no longer affiliated with REEF Kitchens for operating any venues.
This change could impact Benihana's strategic direction, as the company is now focusing on adding six to eight new venues in 2024, including an owned STK restaurant in Washington DC that opened in March 2024. Additionally, there are plans to open one Company-owned STK restaurant in Aventura, Florida, one Company-owned Kona Grill restaurant in Tigard, Oregon, and one Company-owned Salt Water Social restaurant in Denver, Colorado.
The termination of the REEF Kitchens agreement and the focus on company-owned venues suggest a shift in Benihana's operational strategy. Prospective franchisees should inquire about the reasons for ending the REEF Kitchens agreement and how this change will affect the company's overall growth and market presence. Understanding the details behind this decision can provide valuable insights into Benihana's future plans and potential opportunities for franchisees.