What were the pre-opening expenses for Benihana in 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
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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 company-owned restaurants in 2023 totaled $8.9 million. These costs are expensed as incurred before the restaurant opens for business. In 2022, these costs were $5.5 million.
Pre-opening expenses for Benihana consist of costs incurred before opening an owned or managed STK or Kona Grill restaurant at either a leased or F&B location. These expenses primarily include manager salaries and relocation costs, employee payroll, training costs for new employees, and lease costs incurred before opening. They also cover payroll and travel costs for the new restaurant opening training team.
These pre-opening expenses can vary significantly from one Benihana location to another. Factors influencing these costs include the proximity of existing restaurants, the amount of rent expensed during construction and training, the size and layout of the location, the number of employees required, the difficulty of staffing, travel and lodging costs, the timing of the opening, and any unexpected delays in obtaining necessary licenses and permits.