What was the total amount of pre-opening expenses related to non-cash rent for Benihana?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
1 million for 2022. The increase was attributable to increased stock-based compensation expense and additional investments required ahead of new restaurant openings partially offset by lower incentive-based performance compensation. As a percentage of revenues, general and administrative costs were 9.2% in both 2023 and 2022.
Depreciation and amortization. Depreciation and amortization expense increased $3.6 million to $15.7 million for 2023 from $12.1 million for 2022. The increase was primarily attributable to the opening of eight new owned venues since August 2022 and capital expenditures to maintain a
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, in 2023, the total pre-opening expenses related to non-cash rent amounted to $1.8 million. These expenses were part of the overall pre-opening expenses of $8.9 million, which included costs for payroll, training, and non-cash rent for six STK and Kona Grill restaurants that opened in 2023, as well as for restaurants under development.
In 2022, Benihana's pre-opening expenses totaled $5.5 million, primarily related to costs associated with STK San Francisco, STK Dallas, and restaurants opened in 2023. Within this amount, $1.1 million was specifically attributed to non-cash rent. These figures provide insight into the scale of investment Benihana makes before opening new locations.
For a prospective Benihana franchisee, understanding these pre-opening expenses is crucial. Non-cash rent, in particular, represents a significant portion of these costs. It is important to note that pre-opening expenses can vary depending on factors such as location, size, staffing needs, and any unexpected delays in obtaining necessary licenses and permits. Therefore, a detailed understanding of these costs is essential for financial planning and forecasting.