Benihana
Food & Beverage · Full-Service Restaurants
- Active units
- 8
- Royalty
- 5.0%
Franchised, year-end 2024
of weekly Net Sales
About Benihana
Benihana is a Japanese-themed restaurant chain based in the United States. Founded in 1964 by Hiroaki Rocky Aoki, the chain is known for its theatrical teppanyaki cooking style, where skilled chefs prepare meals in front of the guests on a hibachi grill. Initially, Benihana started as a small four-table restaurant in New York City. However, Aoki's innovative approach quickly gained popularity, and the concept expanded rapidly throughout the United States. Today, Benihana's headquarters are located in Aventura, Florida. The company's main products and services revolve around its teppanyaki-style dining experience. Guests enjoy a wide range of options, including a variety of meat, seafood, and vegetable dishes cooked and served by skilled chefs. Additionally, Benihana offers sushi, sashimi, and other Japanese-inspired menu items. Benihana operates globally with over 70 locations in more than 20 countries, including the United States, Canada, Mexico, Brazil, Australia, and the United Kingdom. The company has also formed noteworthy partnerships to expand its reach. For instance, in 2012, Benihana announced a joint venture with Japanese restaurant operator Toridoll Holdings to open restaurants in Japan. In terms of market position, Benihana is recognized as a leading Japanese-themed restaurant chain with a strong global presence. It continues to compete with other Japanese cuisine chains such as Kabuki and Kona Grill, along with local restaurants in each market. Benihana has consistently generated impressive global sales, thanks to its unique dining experience. Over the years, Benihana has witnessed various notable events and achievements. In 2012, the company celebrated its 50th anniversary, marking half a century of success and growth. Benihana has also expanded its menu offerings by introducing new dishes and cocktails, catering to evolving consumer preferences. As of the latest available information, Benihana continues to flourish and is well-established as a prominent player in the global restaurant industry.
Key terms
- Franchise fee
$40k
- Brand fund
2.0% of Net Sales
- Local advertising
4.0% of Net Sales
- Footprint
6,000 – 8,000 sq ft
- Veteran discount
Not offered
Brand Percentile Rankings
Growth
- Total locations8
Franchised units open at year-end
- New openings1
Gross new units opened during the calendar year
- 1-year unit growth rate14.3%
Net unit growth versus prior year
- 3-year unit CAGR15.5%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio1.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$4.8M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open18 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.