How many new venues does Benihana intend to open in 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
ols, banqueting and catering facilities, private dining rooms, room service and mini bars tailored to the specific needs of high-end hotels and casinos. We also provide hospitality advisory and consulting services to certain clients. Our F&B hospitality clients operate global hospitality brands such as the W Hotel, ME Hotel, Hippodrome Casino, and Curio Collection by Hilton.
2
We opened our first restaurant in January 2004 in New York, New York. We currently own, operate, manage or license 63 venues including 25 STKs and 25 Kona Grills in major metropolitan cities in North America, Europe and the Middle East and 13 F&B venues in six hotels and casinos in the United States and Europe. We intend to open eight to twelve new venues in 2023, including a Kona Grill restaurant in Columbus, OH which opened in January 2023. There are currently three Company-owned STK restaurants (Charlotte, NC, Boston, MA and Washington D.C.) and two Company-owned Kona Grill restaurants (Riverton, UT and Phoenix, AZ) under construction.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company intended to open between eight and twelve new venues in 2023. The document also specifies that Benihana opened eight new venues in 2023, including STK restaurants in Charlotte, North Carolina; Boston, Massachusetts; and Salt Lake City, Utah; Kona Grill restaurants in Columbus, Ohio; Riverton, Utah; and Phoenix, Arizona; and two Bao Yum venues through a licensing agreement with Reef Kitchens. However, the agreement with Reef Kitchens has since ended, and those venues are no longer operating.
For prospective franchisees, this indicates Benihana's active expansion and growth strategy. The mix of owned STK and Kona Grill restaurants, along with the now-defunct Bao Yum licensed locations, demonstrates a diversified approach to venue types and partnerships. The opening of these restaurants also led to increased depreciation and amortization expenses of $3.6 million, and pre-opening expenses of $8.9 million.
It's important to note that while Benihana aimed to open eight to twelve new venues, they successfully opened eight. This difference between the intended and actual number of openings could be due to various factors such as construction delays, permitting issues, or strategic decisions. The FDD also mentions that there are several restaurants currently under construction, which suggests continued growth in the near future.
Overall, the information suggests that Benihana is actively investing in expanding its footprint through a combination of company-owned restaurants and strategic partnerships. However, potential franchisees should be aware of the associated pre-opening and operational costs, as well as the potential for changes in strategy, as demonstrated by the exit from the Reef Kitchens agreement.