GROUP MEMBERS: NAMRATHA R

SUKRITI SHARMA
SAMPOORNA SARKAR
PRIYAM SINGH
MANEESH BHATIA
1
PROC E S S FLOW DI A GRA 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
2
inputs
LABOUR MATERIAL
ENERGY CAPITAL
INPUTS
3
LA BOUR
4
MA TE RI A L
Biggest purchase :
meat
5
ENE RGY
6
capi tal
7
OUTputs
8
Tas ks , fl ows & storage
1. TAKING ORDER
2. COOKING
TASKS
FLOWS
STORAGE
1. FLOW OF GOODS
FOOD
BEVERAGE
2. FLOW OF INFORMATION
ORDER OF FOOD
RAW MATERIAL
1. FOOD cooked or uncooked
state
2. BEVERAGE
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OTHE R PARAMETERS
Min time: 45 minutes
Max time: 90 minutes
Average = 60 minutes
10
=
Each table accomodates 8 people.
If there are 5 tables, then capacity will
be 5x8=40
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Between lunch and dinner

Efficiency
Utilization
Setup time
Run time
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Key Elements Of Focus
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Optimum Space Utilization
Hibachi Table arrangement
Waste Management and Storage Historical 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.

Cost-Structure: Profit Making Model
Served Menu
By 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 Kitchen
They 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%
Manag
ement
5%
Rent
30%
Food
10%
Labour
10%
Ads
69 % Savings
15
Making Operations Efficient
Elimination 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
17
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 customers
Better Layout: This increased the
productive area by about 8%
effectively compared to
competitors.

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Balance-Sheet-Its all about Money(Given)
Share of Food and
Beverages
Food
Beverages
Cost per share
Food
Labour
Advertising
Rent
Management
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-Its 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%
20
Balance-Sheet-Its 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%
21
Balance-Sheet-Its 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
22
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






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