What were the primary components of Benihana's other expenses in 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| | | |
| Interest expense, net of interest income | 2.1% | 0.7% | | | Total other expenses, net | 2.1% | 0.7% | | | Income before provision for income taxes | 0.7% | 4.5% | | | (Benefit) provision for income taxes | (0.5)% | 0.3% | | | Net income | 1.2% | 4.2% | | | Less: net loss attributable to noncontrolling interest | (0.2)% | (0.1)% | | | Net income attributable to The ONE Group Hospitality, | 1.4% | 4.3% | | | Inc. | | | |
(1) These expenses are being shown as a percentage of owned restaurant net revenue.
The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods indicated (in thousands):
| For the year ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Net income attributable to The ONE Group Hospitality, | $ | 4,718 | $ | 13,534 |
| Inc. | ||||
| Net loss attributable to noncontrolling interest | (692) | (215) | ||
| Net income | 4,026 | 13,319 | ||
| Interest expense, net of interest income | 7,028 |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company's other expenses totaled $1.021 million in 2023. The FDD provides a table that includes a line item for "Other expenses," but it does not detail the specific components that make up this category.
For a prospective Benihana franchisee, understanding the composition of these "Other expenses" is crucial for accurate financial planning. These expenses can encompass a variety of costs, such as bank charges, minor repairs, or other miscellaneous operational costs that are not categorized elsewhere.
To gain a clearer understanding of what these "Other expenses" entail, a potential franchisee should ask Benihana for a detailed breakdown. This inquiry would help in better forecasting and managing expenses, contributing to the overall financial health of the franchise.