What were the pre-opening expenses for Benihana in 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
t to incur additional agreement restructuring expenses going forward.
COVID-19 related expenses. COVID-19 related expenses were $5.8 million and $5.5 million for 2021 and 2020, respectively, composed primarily of sanitation, supplies and s
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, pre-opening expenses for 2021 totaled $1.0 million. These expenses were specifically 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.
Pre-opening expenses for Benihana cover costs incurred before the opening of an owned or managed STK or Kona Grill restaurant, whether at a leased or F&B location. These costs mainly include manager salaries and relocation, employee payroll, training, and lease costs before the restaurant opens. The FDD indicates that these expenses can vary significantly from one location to another.
Factors influencing pre-opening expenses include the proximity of the new location to existing restaurants, rent during construction and training, the size and layout of the location, staffing requirements, the difficulty of hiring staff, travel and lodging costs, the timing of the opening, and any unexpected delays in obtaining necessary licenses and permits. Prospective franchisees should consider these factors when estimating their own potential pre-opening expenses for a Benihana franchise.