What was the total amount spent on payroll and related expenses for Benihana as of December 31, 2020?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| | Total equity | $ 229,835 | $ 215,569 | | Total liabilities and equity | | |
See notes to the consolidated financial statements.
F-5
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in thousands, except earnings per share and related share information)
| 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 31, 2021 and 2020, respectively) | 25,573 | 13,922 | ||
| 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, Inc. | $ | 31,348 | $ | (12,825) |
| Currency translation (loss) gain | 1 | 5 | ||
| Comprehensive income (loss) attributable to The One Group Hospitality, Inc. | $ | 31,349 | $ | (12,820) |
| Net inco |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, specific details regarding Benihana's payroll and related expenses as of December 31, 2020, are not explicitly outlined. While the provided financial statements offer a breakdown of various revenue and expense categories, a distinct line item for 'payroll and related expenses' is not present.
However, the financial data does include 'Owned restaurant operating expenses,' which totaled $87,042 for the year ended December 31, 2020. It is plausible that payroll costs are a significant component of this broader category. Additionally, 'General and administrative' expenses are listed as $13,922 for the same period, which may include some payroll-related costs for corporate staff.
Prospective Benihana franchisees should recognize that without a precise figure for payroll expenses, it's challenging to assess labor costs accurately. To gain a clearer understanding, it is crucial to ask the franchisor for a detailed breakdown of 'Owned restaurant operating expenses' and 'General and administrative' expenses. This inquiry should aim to identify the specific amounts allocated to payroll, wages, benefits, and related employment costs. Understanding these costs is vital for projecting the profitability and operational expenses of a Benihana franchise.