What were the pre-opening expenses for Benihana in 2022?

According to Benihana's 2024 Franchise Disclosure Document, pre-opening expenses for 2022 totaled $5.5 million. These expenses primarily covered payroll, training, and non-cash rent related to the opening of STK San Francisco in August 2022 and STK Dallas in November 2022. These expenses also covered Kona Grill Columbus, which opened in January 2023, and two other new restaurants under construction at the time. Of the total pre-opening expenses, $1.1 million was specifically attributed to non-cash rent.

These pre-opening expenses are costs Benihana incurs before a restaurant opens, including manager salaries, relocation costs, employee payroll, training, and lease costs during the pre-opening phase. The actual amount can vary significantly depending on factors such as the location of the restaurant, the amount of rent expensed during construction and training, the restaurant's size and layout, staffing needs, and any unexpected delays in obtaining necessary licenses and permits.

For a prospective Benihana franchisee, understanding these pre-opening expenses is crucial for budgeting and financial planning. The FDD indicates that these costs can fluctuate, so franchisees should carefully consider all potential variables when estimating their own pre-opening expenses. It is important to note that these figures relate to company-owned restaurants, and franchisee costs may differ. Franchisees should discuss these potential costs with Benihana to get a more accurate estimate for their specific location and circumstances.