How much did Benihana spend on maintenance capital expenditures for existing restaurants in 2023, including furniture, fixtures, and equipment?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Depreciation and amortization. Depreciation and amortization expense increased $3.6 million to $15.7 million for 2023 from $12.1 million for 2022. The increase was primarily attributable to the opening of eight new owned venues since August 2022 and capital expenditures to maintain and enhance the guest experience in our restaurants.
| December 31, 2023 | December 31, 2022 | |
|---|---|---|
| Furniture, fixtures and equipment | $ 49,753 | $ 33,372 |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Benihana's Item 22 discusses capital expenditures. While it mentions that some existing restaurants will require capital improvements to maintain or improve the facilities, it does not provide a specific figure for the total amount spent on maintenance capital expenditures, including furniture, fixtures, and equipment, for existing restaurants in 2023.
The document does provide some related financial information. For example, it states that depreciation and amortization expense increased by $3.6 million to $15.7 million for 2023, from $12.1 million in 2022. This increase is partly attributed to capital expenditures to maintain and enhance the guest experience in the restaurants. Additionally, the document includes a table that lists the value of furniture, fixtures, and equipment as of December 31, 2023 ($49,753,000) and December 31, 2022 ($33,372,000), but this represents the total value of these assets, not the amount spent on maintenance during 2023.
To get a clear understanding of the specific maintenance capital expenditures for existing Benihana restaurants, a prospective franchisee should ask the franchisor for a detailed breakdown of these costs. This information is crucial for assessing the ongoing investment required to keep a franchise location up to brand standards and maintain profitability.