What is the payback period for a restaurant (finish Table 1 of the reading)?

1. What is the payback period for a restaurant (finish Table 1 of the reading)?
2. How big a factor is the bar in Benihana’s profitability? See the Benihana Simulation ResultsPreview the <link is hidden> file.
3. Is Benihana constrained by its capacity?
4. In 10 words or less, what is the secret to Benihana’s success?

Go to: Benihana: A New Look at an Old Classic

Excel File: Benihana Simulation Results Preview the document includes 15 simulated days of operations under different scenarios. The results were generated using the following parameters and assumptions, which closely reflect the real-life setting for a typical Benihana restaurant:

Customers arrive in party sizes ranging from 2 to 12, with an average of 4.
Party inter-arrival times are generated by an exponential probability distribution, with an average of 4 minutes, except for during the “dinner rush”, when the inter-arrival times are 1 minute on average.
The cocktail lounge has a capacity of 55 persons, this is where customers are batched in groups of 8.
The dining area has a capacity of 112 persons.
If the bar is full, arriving parties depart immediately instead of waiting to eat.
Customers consume one drink every twelve minutes they spend in the bar (case data).
The duration of meals is normally distributed with a mean of 60 min., std. dev. of 7 min.
The distribution of beef, chicken and shrimp choices is customized to case data.

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