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What were the total owned operating expenses for Benihana in 2021?

Benihana Franchise · 2024 FDD

Answer 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 $

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 the year ended December 31, 2021, were $211,997. This figure represents the sum of owned restaurant cost of sales ($67,468) and owned restaurant operating expenses ($144,529). These expenses are a key indicator of the costs associated with running Benihana's company-owned restaurants.

For a prospective franchisee, understanding these operating expenses is crucial. While franchisees will have their own operating expenses, this provides a benchmark for comparison. It's important to note that these figures reflect company-owned restaurants and may not directly translate to franchised locations due to differences in scale, management practices, and local market conditions.

It is also worth noting that in 2021, Benihana saw a significant increase in revenue and a decrease in operating costs as a percentage of revenue compared to 2020. This was attributed to the easing of COVID-19 restrictions and effective cost management. Franchisees should inquire about the specific factors that contributed to these improvements and how they can implement similar strategies in their own businesses.

Reviewing these figures in the context of overall financial performance, including revenues and other expenses, provides a comprehensive view of Benihana's operational efficiency. Prospective franchisees should analyze these trends to assess the potential profitability and sustainability of a Benihana franchise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.