What was the primary reason for the increase in Benihana's management and license fee revenues in 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
for 2021 from $136.6 million for 2020. The increase was primarily attributable to strong sales as state and local governments eased COVID-19 seating capacity restrictions in markets where we operate combined with strong execution of our sales initiatives. Same store sales increased 92.8% in 2021.
Management, license and incentive fee revenue. Management and license fee revenues increased $7.5 million, or 139.9%, to $12.8 million for 2021 from $5.3 milli
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the primary reason for the increase in management and license fee revenues in 2021 was the easing of COVID-19 restrictions and the opening of new venues. Specifically, local governments lifted stay-at-home orders and eased seating capacity restrictions in the markets where Benihana operates. This allowed for increased restaurant activity and revenue generation.
In addition to the easing of restrictions, Benihana also benefited from the revenue generated by new managed and licensed locations. During 2021, Benihana opened two managed STKs, one licensed STK, and three managed food and beverage venues. These new locations contributed to the overall increase in management and license fee revenues.
The combined effect of eased restrictions and new venue openings resulted in a significant increase in management and license fee revenues for Benihana. The revenues increased by $7.5 million, or 139.9%, rising from $5.3 million in 2020 to $12.8 million in 2021. This substantial growth highlights the positive impact of both external factors (easing restrictions) and internal initiatives (new venue openings) on Benihana's financial performance.