What were the total owned restaurant operating expenses for Benihana in 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
interested parties to evaluate companies in our industry. We use Adjusted EBITDA and Restaurant Operating Profit, alongside other GAAP measures such as net income, to measure profitability, as a key profitability target in our budgets, and to compare our performance against that of peer companies despite possible differences in calculation.
Please refer to the table on page 30 for our reconciliation of net income to EBITDA and Adjusted EBITDA and for a reconciliation of operating income to Restaurant Operating Profit.
Results of Operations
The following table sets forth certain statements of operations data for t
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 ended December 31, 2023, were $266,977. This figure represents the sum of owned restaurant cost of sales ($75,727) and owned restaurant operating expenses ($191,250).
For a prospective Benihana franchisee, understanding these operating expenses is crucial for assessing the financial health and potential profitability of the franchise. These expenses reflect the costs associated with running company-owned restaurants, which can provide insights into the types and amounts of expenses a franchisee might encounter. Note that these figures do not include general and administrative costs, depreciation, pre-opening expenses, or other expenses, which are listed separately.
It's important to note that the owned restaurant operating expenses increased from $250,054 in 2022 to $266,977 in 2023. This increase could be due to various factors such as increased cost of goods, higher labor costs, or other operational changes. A potential franchisee should investigate the reasons behind this increase to better understand potential future cost trends.
Analyzing these figures in comparison to the owned restaurant net revenue, which was $317,366 in 2023, helps to understand the operating margin of the restaurants. This information, combined with other costs and expenses, ultimately impacts the net income attributable to The ONE Group Hospitality, Inc., which was $4,718 in 2023.