What measures has Benihana implemented in response to COVID-19 concerns to protect the health and safety of its employees and guests?

According to Benihana's 2024 Franchise Disclosure Document, in response to COVID-19, Benihana has taken several steps to ensure a safe environment for both guests and employees. These measures include increased cleaning protocols, such as creating a sanitation role focused on high-touch and high-traffic areas. They have also implemented daily health and safety checklists and provided additional personal protective equipment and cleaning supplies. Benihana has also engaged third-party vendors to perform electrostatic cleaning of its restaurants. The company requires masks to be worn in all restaurants and offices where required by local law. Benihana also provides regular communication regarding the impact of the COVID-19 pandemic, including health and safety protocols and procedures.

Benihana's FDD indicates that these measures have resulted in significant costs. Specifically, COVID-19 related expenses were $5.8 million and $5.5 million for 2021 and 2020, respectively, composed primarily of sanitation, supplies, and safety precautions taken to prevent the spread of COVID-19. In 2022, these costs were $2.5 million. These costs can impact the profitability of the franchise.

While Benihana has implemented these measures, the FDD also states that the company cannot guarantee that these changes will be effective in keeping employees and customers safe from COVID-19. The continuation of normal dining operations is subject to events beyond the company's control, including the effectiveness of governmental efforts to halt the spread of COVID-19. This means that despite the measures taken, there is still a risk of business disruption due to the pandemic.