What was the total amount of depreciation and amortization expenses for Benihana in 2022?

According to Benihana's 2024 Franchise Disclosure Document, depreciation and amortization related to property and equipment totaled $11.7 million for the year ending December 31, 2022. This figure reflects the expense recognized for the wear and tear or consumption of Benihana's physical assets like buildings, equipment, and furniture over that year. Additionally, the amortization of intangible assets, such as the Kona Grill trade name, was also factored into this amount.

Depreciation and amortization are accounting methods used to allocate the cost of assets over their useful lives. For Benihana, this includes depreciating computers, equipment, furniture, and fixtures over three to fifteen years, and leasehold improvements over the shorter of their useful lives or the remaining lease term. The company's policy is to begin depreciating construction in progress once the assets are placed into service.

Understanding depreciation and amortization expenses is crucial for prospective Benihana franchisees because it impacts the company's profitability and financial health. While these are non-cash expenses, they reflect the ongoing investment needed to maintain and update the physical and intangible assets necessary for running the business. Monitoring these expenses can provide insights into how Benihana manages its assets and invests in its restaurants.

In 2022, depreciation and amortization accounted for 3.8% of Benihana's total costs and expenses. This percentage, along with the absolute dollar amount, provides a benchmark for franchisees to assess the financial performance and efficiency of the company's operations. By comparing these figures over time, franchisees can identify trends and potential areas for improvement or concern.