What are the key differences between the Restaurant Model and the Concession Model for a Benihana Restaurant?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
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We are offering franchises in the fifty United States and in Washington, D.C. (and elsewhere in the Territory) for operating BENIHANA Restaurants, either full-size restaurants under the Restaurant Model or limited-menu locations under the Concession Model, that specialize in the hibachi or teppanyaki style of Japanese cooking, and in which, under the Restaurant Model, food is prepared on a grill that forms a part of the table on which it is served ("BENIHANA Restaurants"). BENIHANA Restaurants offer casual dining in a distinctive Japanese atmosphere enhanced under the Restaurant Model by unique entertainment provided by highly-skilled chefs that prepare fresh steak, chicken, and seafood at the center of the guest table. BENIHANA Restaurants operate under the mark BENIHANA and use other trademarks, trade names, logos, emblems, and indicia of origin as we designate, including those identified in Item 13 (the "Marks" or "Proprietary Marks").
BENIHANA Restaurants offer distinctive products and services utilizing a distinctive business format, including color schemes, designs, signage, equipment, layouts, operating systems, methods, procedures, standards, techniques, proprietary information, and marketing and advertising standards and formats, all of which have been and may be modified, amended, supplemented, or further developed from time to time (the "BENIHANA System"). As part of the BENIHANA System, we have and continue to establish specific operating standards for various aspects of BENIHANA Restaurants, including: location; physical characteristics; operating procedures and business processes; menu and products sold; product specifications; supplier qualifications; qualifications, organization, and training of restaurant personnel, including franchisees and their personnel; marketing of products and the BENIHANA Marks; and all other things affecting the experience of consumers who patronize BENIHANA Restaurants (the "BENIHANA Standards").
Source: Item 1 — THE FRANCHISOR, ITS PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company offers two franchise models: the Restaurant Model and the Concession Model. The primary difference lies in the menu and cooking style. The Restaurant Model features a full-size restaurant specializing in hibachi or teppanyaki-style Japanese cooking, where food is prepared on a grill that forms part of the table. This model provides a distinctive Japanese dining experience with chefs providing entertainment as they cook.
In contrast, the Concession Model is a limited-menu location that does not offer the hibachi or teppanyaki cooking style. This means that food is not prepared on a grill at the table. Benihana has limited experience with the Concession Model, primarily in captive locations such as sports stadiums. This suggests that the Concession Model is designed for venues where space or operational constraints prevent the full-service restaurant experience.
For prospective franchisees, this distinction is crucial. The Restaurant Model requires a larger space and a higher level of staffing and training to accommodate the interactive cooking experience. The Concession Model, on the other hand, may be suitable for smaller venues with less complex operational needs. However, given Benihana's limited experience with the Concession Model outside of captive locations, franchisees should carefully consider the potential risks and challenges associated with this model. It would be prudent to inquire about the performance data of existing Concession Model locations and the level of support Benihana provides for this model.