What were the pre-opening costs for Benihana for the year ended December 31, 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
net income to EBITDA and Adjusted EBITDA and for a reconciliation of operating income (loss) to Restaurant Operating Profit.
Results of Operations
The following table sets forth certain statements of operations data for the periods indicated (in thousands):
| For the year ended December 31, | ||||
|---|---|---|---|---|
| 2021 | 2020 | |||
| Revenues: | ||||
| Owned restaurant net revenue | $ | 264,404 | $ | 136,618 |
| Management, license and incentive fee revenue | 12,774 | 5,325 | ||
| Total revenues | 277,178 | 141,943 | ||
| Cost and expenses: | ||||
| Owned operating expenses: | ||||
| Owned restaurant cost of sales | 67,468 | 34,024 | ||
| Owned restaurant operating expenses | 144,529 | 87,042 | ||
| Total owned operating expenses | 211,997 | 121,066 | ||
| General and administrative (including stock-based compensation of $3,618 | ||||
| and $1,773 for the years ended December | 25,573 | 13,922 | ||
| 31, | ||||
| 2021 and 2020, respectively) | ||||
| Depreciation and amortization | 10,790 | 10,114 | ||
| COVID-19 related expenses | 5,821 | 5,492 | ||
| Transaction costs | 160 | 1,109 | ||
| Lease termination expenses | 1,912 | 3,315 | ||
| Agreement restructuring expenses | 503 | 452 | ||
| Pre-opening expenses | 1,037 | 178 | ||
| Other income, net | — | (11) | ||
| Total costs and expenses | 257,793 | 155,637 | ||
| Operating income (loss) | 19,385 | (13,694) | ||
| Other (income) expenses, net: | ||||
| Interest expense, net of interest income | 3,780 | 5,329 | ||
| Loss on early debt extinguishment | 600 | — | ||
| Gain on CARES Act Loan Forgiveness | (18,529) | — | ||
| Total other (income) expenses, net | (14,149) | 5,329 | ||
| Income (loss) before provision (benefit) for income taxes | 33,534 | (19,023) | ||
| Provision (benefit) for income taxes | 1,586 | (5,400) | ||
| Net income (loss) | 31,948 | (13,623) | ||
| Less: net income (loss) attributable to noncontrolling interest | 600 | (798) | ||
| Net income (loss) attributable to The ONE Group Hospitality, | $ | 31,348 | $ | (12,825) |
| Inc. |
The following table sets forth certain statements of operations data as a percentage of total revenues for the periods indicated. Certain percentage amounts may not sum to total due to rounding.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, pre-opening costs for the year ended December 31, 2021, were $1.037 million. This figure is part of the total costs and expenses reported by Benihana.
Specifically, these pre-opening expenses related to the STK Bellevue restaurant, which opened in July 2021, and non-cash pre-open rent for STK Dallas and STK San Francisco, which were under construction at the time. These costs are expensed as they are incurred before a restaurant opens for business.
Understanding these pre-opening costs is crucial for prospective franchisees as it provides insight into the financial investments Benihana makes before opening a new location. It's important to note that these figures reflect expenses for company-owned restaurants, and the costs for franchised locations may vary. Franchisees should inquire about the specific pre-opening expenses they can expect to incur when establishing their own Benihana franchise.