factual

What was the total owned restaurant net revenue 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,

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2024 FDD)

According to Benihana's 2024 Franchise Disclosure Document, the total owned restaurant net revenue for the year ending December 31, 2021, was $264,404. This figure represents the revenue generated by restaurants that Benihana owns and operates directly, as opposed to franchised locations. This number does not include revenue from management, license, and incentive fees.

For a prospective franchisee, this indicates the potential revenue that Benihana's corporate-owned restaurants can generate. While franchisees operate independently, the performance of company-owned stores can provide insight into the brand's overall financial health and market appeal. It's important to note that individual franchise locations may experience different revenue levels based on factors such as location, market conditions, and management effectiveness.

In comparison, the owned restaurant net revenue for the year 2020 was $136,618. The increase in revenue from 2020 to 2021 could be attributed to various factors, such as the recovery from the COVID-19 pandemic, changes in consumer behavior, or strategic initiatives implemented by Benihana. A potential franchisee should investigate the reasons behind this increase to better understand the brand's growth trajectory and future prospects.

It is important to consider that these figures represent the net revenue, which is the revenue after deducting any applicable discounts or returns. Franchisees should also review other financial metrics, such as cost of sales and operating expenses, to gain a comprehensive understanding of the profitability of Benihana restaurants. Additionally, prospective franchisees should inquire about the specific factors that influence revenue generation at both company-owned and franchised locations.

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.