What were the total owned restaurant operating expenses for Benihana in 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 |
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 operating expenses for the year ending December 31, 2022, were $250,054. This figure represents the sum of owned restaurant cost of sales ($75,365) and owned restaurant operating expenses ($174,689).
For a prospective Benihana franchisee, understanding these operating expenses is crucial. It provides insight into the costs associated with running a corporate-owned restaurant, which can serve as a benchmark for estimating expenses in a franchised location. While a franchisee's costs may differ, this information offers a valuable reference point.
It's important to note that these figures are for restaurants owned and operated by Benihana, and a franchisee's expenses may vary based on location, management practices, and other factors. Additionally, these figures do not include general and administrative expenses, depreciation, or other costs, which are listed separately in the financial statement.
Therefore, while this information is helpful, a potential franchisee should conduct thorough due diligence, including creating a detailed business plan with realistic expense projections, and consult with existing franchisees to gain a comprehensive understanding of the costs involved in operating a Benihana franchise.