What was the total amount of COVID-19 related expenses for Benihana in 2021?

According to Benihana's 2024 Franchise Disclosure Document, COVID-19 related expenses for the year 2021 totaled $5.8 million. These expenses primarily covered sanitation, supplies, and safety precautions implemented to mitigate the spread of COVID-19. This figure reflects the costs Benihana incurred across its operations to comply with health regulations and ensure the safety of both customers and staff during the ongoing pandemic.

For a prospective franchisee, understanding these costs is crucial as it provides insight into the potential financial impact of health crises on the business. While the worst of the pandemic may be over, the possibility of future outbreaks or similar events necessitates a preparedness plan, including budgeting for sanitation and safety measures. The decrease in COVID-19 related expenses from $5.8 million in 2021 to $2.5 million in 2022 suggests a reduction in these costs as the pandemic eased, but it also highlights the potential for significant expenses in times of crisis.

It's important to note that these expenses are specific to Benihana's corporate operations and may not directly translate to the costs a franchisee might incur. Factors such as location, local regulations, and the size of the franchise unit can influence the actual expenses. However, this information serves as a valuable benchmark for franchisees to consider when developing their own financial projections and risk management strategies. Prospective franchisees should discuss with Benihana the specific COVID-related costs they might expect to incur.