What items are included in Benihana's direct operating expenses?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Owned restaurant operating expenses. We measure owned restaurant operating expenses as a percentage of owned restaurant net revenues. Owned restaurant operating expenses include the following:
- Direct operating expenses. Direct operating expenses consist of supplies, such as paper, smallwares, china, silverware and glassware, cleaning supplies, credit card fees and linen costs. Direct operating expenses are typically measured as a variable expense based on owned restaurant net revenues.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, direct operating expenses for owned restaurants are measured as a percentage of the restaurant's net revenues. These expenses are considered variable.
The direct operating expenses consist of the costs of supplies such as paper, smallwares, china, silverware, and glassware.
Additionally, direct operating expenses include cleaning supplies, credit card fees, and linen costs. These items are essential for the daily operation of the restaurant and contribute to the overall customer experience.