What was the total value of Benihana's inventory as of December 31, 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
inancial statements. We believe that our audit provides a reasonable basis for our opinion.
/s/ Plante & Moran PLLC
We served as the Company's auditor from 2018 to 2021.
Boulder, Colorado
March 19, 2021
F-4
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share information)
| | December 31, 2021 | December 31, 2020 | |----------------------------------------------------------------------
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company's inventory as of December 31, 2021, was valued at $3,915. This figure is part of the company's current assets, which totaled $42,927 on that date. Understanding the inventory value can be important for prospective franchisees as it reflects the cost of goods on hand, which directly impacts the restaurant's operational efficiency and financial health.
Inventory management is a critical aspect of running a Benihana franchise. Efficiently managing inventory levels ensures that the restaurant can meet customer demand without incurring excessive storage costs or spoilage. The $3,915 valuation suggests the level of investment Benihana maintains in supplies and goods to support its operations.
For a potential franchisee, it's essential to understand how Benihana manages its inventory, including supply chain logistics, storage practices, and waste reduction strategies. This insight can help in forecasting operational costs and ensuring profitability. Reviewing trends in inventory valuation over time, as presented in the FDD, can also provide a clearer picture of the company's financial stability and operational performance.