What was the primary reason for the increase in Benihana's management and license fee revenues in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| STK | Kona Grill | ONE Hospitality | Corporate | Total | |
|---|---|---|---|---|---|
| For the year ended December 31, 2023 | |||||
| Total revenues | $ 198,679 | $ 131,716 | $ 1,999 | $ 375 | $ 332,769 |
| Operating income (loss) | 38,890 | 2,189 | 187 | (31,972) | 9,294 |
| Capital asset additions | $ 28,426 | $ 21,450 | $ 123 | $ 3,551 | $ 53,550 |
| As of December 31, 2023 | |||||
| Total assets | $ 153,769 | $ 97,840 | $ 5,868 | $ 59,768 | $ 317,245 |
| For the year ended December 31, 2022 | STK | Kona Grill | ONE Hospitality | Corporate | Total |
| Total revenues | $ 187,402 | $ 126,341 | $ 2,344 | $ 551 | $ 316,638 |
| Operating income (loss) | 40,343 | 7,217 | 1,282 | (32,536) | 16,306 |
| Capital asset additions | $ 19,116 | $ 10,496 | $ 139 | $ 2,878 | $ 32,629 |
| As of December 31, 2022 | |||||
Results of Operations for the Years Ended December 31, 2023 and December 31, 2022
Revenues
Owned restaurant net revenue. Owned restaurant net revenue increased $16
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Benihana's management and license fee revenues actually decreased in 2023 compared to 2022. The document states that management and license fee revenues decreased by $0.4 million, or 2.4%, from $15.8 million in 2022 to $15.4 million in 2023. This decrease is primarily attributed to the non-renewal of the management agreement for Radio at the ME London hotel.
In contrast, the 2021 revenues saw an increase that was primarily attributable to local governments lifting stay at home orders and easing seating capacity restrictions in the markets in which Benihana operates, as well as revenue generated from two managed STKs, one licensed STK, and three managed F&B venues opened during 2021.
Prospective franchisees should note that fluctuations in management and license fee revenues can be influenced by factors such as the opening or closing of managed or licensed locations, changes in management agreements, and external factors like government regulations and economic conditions. It's important to consider these factors when evaluating the potential revenue streams associated with a Benihana franchise.