How much were Benihana's pre-opening costs for company-owned restaurants in 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
unclaimed property laws, outstanding gift card balances may then be recognized as breakage in the consolidated statements of operations and comprehensive income as a component of owned restaurant net revenue. For the years ended De
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the pre-opening costs for company-owned restaurants in 2021 were $1.0 million. These costs are expensed as they are incurred before the restaurant opens for business. In comparison, the pre-opening costs for 2020 were $0.2 million.
It's important to note that these pre-opening expenses for 2021 were primarily related to the STK Bellevue, which opened in July 2021. This gives prospective franchisees an idea of the scale and type of expenses that Benihana incurs when launching a new company-owned restaurant. These expenses can include items such as payroll, training, and non-cash rent.
Understanding these historical costs can help a potential Benihana franchisee better assess the financial investments required when opening a new location, although these figures pertain specifically to company-owned restaurants and may not directly translate to franchised locations. Franchisees should inquire about the specific pre-opening costs they can expect to incur for their own franchised location.