What were the primary components of Benihana's COVID-19 related expenses?

According to Benihana's 2024 Franchise Disclosure Document, COVID-19 related expenses primarily consisted of sanitation, supplies, and safety precautions. In 2021, these expenses totaled $5.8 million, while in 2020, they amounted to $5.5 million. These costs reflect the measures Benihana took to adapt its business and ensure a safe environment for both guests and employees during the pandemic.

For a prospective Benihana franchisee, understanding these expenses is crucial for financial planning. The fact that Benihana incurred such significant costs highlights the potential financial impact of health crises on restaurant operations. While the specific expenses may vary depending on the location and the scale of the operation, franchisees should be prepared for similar costs related to maintaining health and safety standards.

It's also important to note that these expenses can fluctuate based on the evolving nature of health regulations and the prevalence of health concerns. Franchisees should stay informed about local and national health guidelines and be prepared to adjust their operations and budgets accordingly. While the FDD mentions that all restaurants are currently open for in-person dining, it also acknowledges that the continuation of normal dining operations is subject to events beyond the company's control, including the effectiveness of governmental efforts to halt the spread of COVID-19.