What does Benihana's owned restaurant cost of sales include?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Owned restaurant cost of sales. Owned restaurant cost of sales includes all owned restaurant food and beverage expenditures. We measure cost of goods as a percentage of owned restaurant net revenues. Owned restaurant cost of sales are generally influenced by the cost of food and beverage items, menu mix, discounting activity and restaurant level controls. See "Item 1A. Risk Factors — Increases in commodity prices would adversely affect our results of operations."
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, owned restaurant cost of sales includes all owned restaurant food and beverage expenditures. Benihana measures the cost of goods as a percentage of owned restaurant net revenues.
These costs are generally influenced by several factors. These factors include the cost of food and beverage items, the menu mix, any discounting activity, and the restaurant-level controls in place.
Prospective franchisees should understand that fluctuations in commodity prices can adversely affect Benihana's results of operations, as noted in Item 1A, Risk Factors. Therefore, effective management of these costs is crucial for maintaining profitability.