What were the total owned operating expenses for Benihana in 2020?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2021 2020 Revenues: Owned restaurant net revenue 95.4 % 96.2 % Management, license and incentive fee revenue 4.6 % 3.8 % Total revenues 100.0 % 100.0 % Cost and expenses: Owned operating expenses: Owned restaurant cost of sales (1) 25.5 % 24.9 % Owned restaurant operating expenses (1) 54.7 % 63.7 % Total owned operating expenses (1) 80.2 % 88.6 % General and administrative (including stock-based compensation of 1.3% and 1.2% for the years ended December 31, 2021 and 2020, respectively) 9.2 % 9.8 % Depreciation and amortization 3.9 % 7.1 % COVID-19 related expenses 2.1 % 3.9 % Transaction costs 0.1 % 0.8 % Lease termination expenses 0.7 % 2.3 % Agreement restructuring expenses 0.2 % 0.3 % Pre-opening expenses 0.4 % 0.1 % Other income, net —% —% Total costs and expenses 93.0 % 109.6 % Operating income (loss) 7.0 % (9.6)% Other (income) expenses, net: Interest expense, net of interest income 1.4 % 3.8 % Loss on early debt extinguishment 0.2 % —% Gain on CARES Act Loan Forgiveness (6.7)% —% Total other (income) expenses, net (5.1)% 3.8 % Income (loss) before provision (benefit) for income taxes 12.1 % (13.4)% Provision (benefit) for income taxes 0.6 % (3.8)% Net income (loss) 11.5 % (9.6)% Less: net income (loss) attributable to noncontrolling interest 0.2 % (0.6)% 11.3 % (9.0)% | For the year ended December 31, |
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Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total owned operating expenses for Benihana in 2020 were 88.6% of total revenues. This figure represents the sum of owned restaurant cost of sales (24.9%) and owned restaurant operating expenses (63.7%).
This information is crucial for potential Benihana franchisees as it provides insight into the cost structure of company-owned restaurants. While this data reflects the performance of company-owned locations, it can serve as a benchmark for franchisees to evaluate their own potential operating expenses. Understanding these expense ratios can help franchisees with financial planning and budgeting.
It's important to note that these figures are presented as percentages of total revenues, not as absolute dollar amounts. Factors such as location, market conditions, and management efficiency can influence actual operating expenses for individual franchise locations. Franchisees should conduct thorough due diligence and consider these factors when projecting their own expenses.
Prospective franchisees should also inquire about the specific components included in 'owned restaurant operating expenses' to gain a more detailed understanding of where costs are incurred. This will allow for a more accurate comparison and better financial forecasting for their own Benihana franchise.