case study
TRANSCRIPT
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GROUP MEMBERS: NAMRATHA RSUKRITI SHARMA
SAMPOORNA SARKARPRIYAM SINGH
MANEESH BHATIA
BENIHANA OF TOKYO
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P R O C E S S FLOW D I A G RA M
Customer enters
restaurant
Customer orders for drink
Customer enters dining
area
Customer orders for food
Customer waits for the chef
Chef arrives and starts cooking
Customer enjoys the food
Customer pays and leaves
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inputs
LABOUR
MATERIAL
ENERGY CAPITAL
INPUTS
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LA B O U R
CHEF
WAITRESS
MANAGER
ASSISTANT MANAGER
FRONT MEN
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M AT E R I A L
FOOD Biggest purchase : meat
BEVERAGE
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EN E R GY
LIGHTING
COOKING
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cap i t a l
REAL ESTATE
EQUIPMENTFURNITURE
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OUTputs
SERVICE
FOOD
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Ta s k s , f l o w s & s t o r a g e
1. TAKING ORDER2. COOKING
TASKS
FLOWS
STORAGE
1. FLOW OF GOODS• FOOD• BEVERAGE
2. FLOW OF INFORMATION• ORDER OF FOOD
RAW MATERIAL1. FOOD – cooked or
uncooked state2. BEVERAGE
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OTHE R PA RAMETERS
CYCLE TIME
Min time: 45 minutesMax time: 90 minutes
Average = 60 minutes
CYCLE TIME
THROUGHPUT TIME
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BATCH SIZE =
CAPACITY DEPENDS
ON SEATING CAPACITY
Each table accomodates 8 people.If there are 5 tables, then capacity will be 5x8=40
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IDLE TIME
Between lunch and dinner
Efficiency UtilizationSetup time Run time
OTHERS
Key Elements Of Focus
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Optimum Space Utilization
Hibachi Table arrangement
Waste Management and StorageHistorical authenticity
Location Advantage
The restaurants are built with materials imported from Japan along with the help of a Japanese crew. The chefs too are formally educated Japanese chefs
Elements Benihana Focus
The restaurants have about 8% more than average productive dinning space.
This unique feature not only adds to the showmanship of the restaurant's culinary offerings, but also reduces labour cost and takes away any apprehensions regarding exotic fare.
The Benihana restaurants cut food costs substantially just by smartly serving the most wanted entrees and thereby cutting on storage costs and this also helps in avoiding waste.
The restaurants are located in heavily populated areas so as to attract clientele for lunch and dinner.
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Cost-Structure: Profit Making ModelIn
frastr
uctu
re
The infrastructure was built by
the materials gathered From
old houses
disassembled carefully in Japan
and was built by the
two crews of Japanese carpenters.
Served MenuBy reducing the menu to only
three simple Middle American entrees: steak, chicken and shrimp they cut the food
costs to between 30% and 35%
and this also lead to reduce wastage.
Non-Conventional KitchenThey eliminated the conventional
kitchen with the hibachi table arrangement thereby reducing the
labour cost and the additional cost of kitchen space.
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Cost-Structure: Profit Making Model(Chicago Branch)
4%Management
5%Rent
30%Food
10%Labour
10%Ads
69 % Savings
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Making Operations EfficientElimination Of Kitchen Space
1. It builds an amount of trust among the customers which was lacking before.
2. There is an effective reduction in space for kitchen and the same space can be used as the productive dining area.
3. It also gives an opportunity to attract customers by exhibiting the culinary skills of the chefs in an innovative manner.
4. This also reduces the labour costs low.
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Making Operations Efficient
Simple Menu
By keeping the menu
simple and limited only
to three entrees, there
is reduction in food
waste which in turn
reduces food costs.
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Making Operations Efficient
Authentic ambience: Every entity inside the restaurant was made authentic. Even building materials were shipped from Japan directly. This helped in attracting customersBetter Layout: This increased the productive area by about 8% effectively compared to competitors.
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Balance-Sheet-It’s all about Money(Given)
Share of Food and Beverages
Food
Beverages
Cost per share
FoodLabourAdvertisingRentManagement
Assumptions: •Labor costs include Payroll, Employee benefits, and Employee meals.•The costs are assumed on the higher end of the range
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Balance-Sheet-It’s all about Money(Solution)
Sales 100%
Food 70%
Beverage 30%
Cost of sales
Food 21% 30% of 70
Beverage 9% 30% of 30
Total cost of sales 30%
Gross Profit 70% 100-30
***Assuming sales to be 100%
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Balance-Sheet-It’s all about Money(Solution)Operating costs Labour 10%Advertising 10%Management 4%Laundry, linen, uniforms 2%Replacements 1%Supplies 1.50%Menu 0.50%Music 1%Utilities 2%Administrative expenses 2%Repairs 2%Rent 5%Taxes 1.50%Insurance 1%Interest 1%Depreciation 4%Total 51%Net Profit before tax 19%
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Balance-Sheet-It’s all about Money(Conclusion)
•The sales is equal to $1.3million.•According to the above figure, net profit
before tax = 19% of $1.3million = $247000
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Time Calculation(Sum)
To Determine: The maximum throughput time is the time
that elapses from the time a person enters the bar to the time
he/she leaves the restaurant.
Given information: The dining area is five times the
capacity Of the bar.
Assumptions:Seating capacity of bar is 1 and that of
dining area is 5(for ease in calculation). The average turnover at the teppanyaki table is one
hour. The first 5 people who enter the bar will get seating
inside the dining area.The sixth person who enters the bar
will have to wait until one table inside the dining area becomes
vacant.
Solution:Considering all the possibilities, a person who
enters after 1 minute of the dining area becoming busy will
have to wait for 59 minutes, a person who enters after 2 mins
will have to wait for 58 minutes. The maximum waiting time for
person will be 60 minutes. Therefore the average waiting time = (1+2+3+.....+58+59+60)/60 = 30.5
minutes
24Thank
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