What is included in Benihana's outside services expenses?

According to Benihana's 2024 Franchise Disclosure Document, outside services expenses for owned restaurants include several components. These expenses cover music and entertainment costs, such as payments for live DJs, which can be a significant part of the ambiance in a Benihana restaurant. Additionally, the expenses include the costs of security services to ensure the safety of the premises and customers.

Outside cleaning services are also part of these expenses, which suggests that Benihana may contract with external cleaning companies to maintain the cleanliness of the restaurant. Finally, delivery service fees are included, indicating that Benihana may offer delivery services to customers, and the fees associated with these services are classified under outside services.

For a prospective franchisee, understanding these components is crucial for budgeting and financial planning. These costs can vary based on location, the frequency of entertainment, and the extent of delivery services offered. It's important to note that these expenses are specifically for 'owned restaurant operating expenses,' so franchisees should clarify with Benihana whether similar classifications apply to franchised locations or if there are differences in how these costs are accounted for.