What was the total amount of Benihana's pre-opening expenses for restaurants, excluding training teams, for the year ended December 31, 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
net income to EBITDA and Adjusted EBITDA and for a reconciliation of operating income (loss) to Restaurant Operating Profit.
Results of Operations
The following table sets forth certain statements of operations data for the periods indicated (in thousands):
| For the year ended December 31, | ||||
|---|---|---|---|---|
| 2021 | 2020 | |||
| Revenues: | ||||
| Owned restaurant net revenue | $ | 264,404 | $ | 136,618 |
| Management, license and incentive fee revenue | 12,774 | 5,325 | ||
| Total revenues | 277,178 | 141,943 | ||
| Cost and expenses: | ||||
| Owned operating expenses: | ||||
| Owned restaurant cost of sales | 67,468 | 34,024 | ||
| Owned restaurant operating expenses | 144,529 | 87,042 | ||
| Total owned operating expenses | 211,997 | 121,066 | ||
| General and administrative (including stock-based compensation of $3,618 | ||||
| and $1,773 for the years ended December | 25,573 | 13,922 | ||
| 31, | ||||
| 2021 and 2020, respectively) | ||||
| Depreciation and amortization | 10,790 | 10,114 | ||
| COVID-19 related expenses | 5,821 | 5,492 | ||
| Transaction costs | 160 | 1,109 | ||
| Lease termination expenses | 1,912 | 3,315 | ||
| Agreement restructuring expenses | 503 | 452 | ||
| Pre-opening expenses | 1,037 | 178 | ||
| Other income, net | — | (11) | ||
| Total costs and expenses | 257,793 | 155,637 | ||
| Operating income (loss) | 19,385 | (13,694) | ||
| Other (income) expenses, net: | ||||
| Interest expense, net of interest income | 3,780 | 5,329 | ||
| Loss on early debt extinguishment | 600 | — | ||
| Gain on CARES Act Loan Forgiveness | (18,529) | — | ||
| Total other (income) expenses, net | (14,149) | 5,329 | ||
| Income (loss) before provision (benefit) for income taxes | 33,534 | (19,023) | ||
| Provision (benefit) for income taxes | 1,586 | (5,400) | ||
| Net income (loss) | 31,948 | (13,623) | ||
| Less: net income (loss) attributable to noncontrolling interest | 600 | (798) | ||
| Net income (loss) attributable to The ONE Group Hospitality, | $ | 31,348 | $ | (12,825) |
| Inc. |
The following table sets forth certain statements of operations data as a percentage of total revenues for the periods indicated. Certain percentage amounts may not sum to total due to rounding.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total pre-opening expenses for the year ended December 31, 2022, amounted to $5,519. This figure represents the costs Benihana incurred before opening new restaurants, but it's important to note that this figure does not specify whether it includes or excludes training team expenses.
These pre-opening expenses are a standard part of establishing a new restaurant. They typically include costs associated with site selection, leasehold improvements, permits, initial marketing, and other startup costs. For prospective franchisees, understanding these expenses is crucial for budgeting and financial planning.
While the provided information gives the total pre-opening expenses, it does not break down the individual components or clarify whether training team expenses are included. A potential franchisee should seek clarification from Benihana regarding the specific items included in this $5,519 figure to gain a more detailed understanding of the costs associated with opening a new franchise location.