Benihana vs Broadway Pizza

Characteristics and Issues| Benihana of Tokyo| Broadway Pizza| Conflicts & Lessons| Competitive Advantage| * Low cost (competitor) * Labor cost * Strategic Marketing * Low waste * Lower overhead| * Use of technology * Family oriented| Rocky Aoki was able to keep labor, food, beverage and facility costs lower than traditional restaurant design using hibachi grills, a new service innovation. This service innovation however, did require higher marketing costs, as the American public had never experienced this dining model.
Broadway Pizza viewed their competitive advantage as their ability to combine family oriented robot entertainment and dining under one roof. This turned out not be a competitive advantage as the breakeven costs was too high. | Order Qualifier/ Winners| * Food prepared in front of customer * Community dinning * Cooking was entertainment | * Quality food * Child focused atmosphere * Interactive * Multiple dining locations| The order winners for Benihana are their community dining style, chefs cooking in front of and providing entertainment to patrons.
This showed that enjoy eating and being entertained at the same time. This same idea of being entertained while eating defined Broadway Pizza’s order winners as their family focused robotic entertainment drew in patrons. | Competitive Priorities| * Innovative * Cost * Time * Quality (chefs)| * Innovative * Flexibility * Quality * Cost| The competitive priorities for Benihana were to increase efficiency in the traditional restaurant model by using innovation to cut costs i. e.

Hibachi and Umbrella drinks and using highly trained skilled labor to ensure customer service. Broadway Pizza also placed competitive priority on innovation by adding robotic entertainment to a family restaurant, however the lesson to be learned is that Broadway pizza innovated for the sake of innovation there was no benefit to the shareholders. Benihana innovated as a cost saving mechanism and increased profits. | Operations Strategy| * Limited menu * Skilled labor & management * System and service exec. Max utilization * Food prep| * Bring families together * Family menu * Inexpensive entertainment * Variety of entertainment| Benihana operations strategy decreased costs and allowed for maximization of resources while Broadway pizza strategy was to entertain people with a lack of focus on cost metrics. | Mission| * To provide ding and quality entertainment while reducing costs| * Combining robotic entertainment and food service under one roof| The main difference between Benihana and Broadway pizza is the focus on cost.
Both wanted to provide a combined dining and entertainment service| Location| * Urban * Metropolitan| * Areas with high and dense family populations| Benihana’s locations were well thought out and planned in large cities with densely populated areas. Building Benihana’s in large cities allowed the staff to assimilate with American’s- and therefore helped with the appeal and recruiting of Japanese staff. Broadway Pizza did not have a plan for choosing its’ locations, other than driving around and looking for vacated space in family neighborhoods.
This led to a much smaller market segment per store. | Service Scape| * Authentic Japanese experience * Novelty Dining * Relaxed atmosphere (umbrella drink)| * Parents enjoy seeing their children happy * Multiple robotic programs to ensure a new experience each visit| Benihana restaurants were decorated by Japanese carpenters using authentic Japanese decor and materials. This provided guests with the sites and ambiance of being in Japan.
Additionally, this hibachi communal-style dining was the first of its kind in the US which provided for a novelty restaurant for families, singles, and group gatherings. Offering a limited menu but a variety of drink options leaves the atmosphere to be fun, entertaining and relaxing. Broadway Pizza’s robots were programmed with multiple songs to ensure that a new experience was had during repeat visits. Keeping the entertainment fresh kept children interested, and parents willing to become repeat visitors. |
Layout| * Customer flow from bar to dining area * Two hibachi grills next to each other * Small kitchen * Standard design using authentic Japanese materials/artifacts | * Multiple rooms offering unique dining and entertainment * Stressful environment due to low visibility of children * No standard design| Rocky knew that something was wrong when he opened his first Benihana restaurant in regards to layout design. The bar was not big enough to hold waiting customers, but he got it right after the third try and continued the model in the following store openings.
Having 2 hibachi grills next to each other allowed for efficient cooking for the chef and quick service for customers. Small kitchens opened up dining space, and the interior being authentic made for a nice atmosphere. BP did not have a standard design for each of it’s location, and always ended up with a stressful environment. With floor to ceiling walls separating “rooms”, visibility was low and safety a concern. Although the space offered multiple entertaining options, it was not ideal for family togetherness and safety. Job process and design| * Chef controls dining flow * Food prepared before reaching chef * Front men maximize table utilization | * Mangers control technology and food services * Invested in quick serving pizza ovens to ensure customer satisfaction| Each person in BH played a specific role in the flow of customers through the system. The front men greeted and served umbrella drinks, and ensured that groupings of 8 were rounded up and ready to sit-to maximize capacity and utilization.
Simple menus made for quick food prep, and prepared for the chef so he could take the cart for more than 1 table and go. BP installed quick cooking pizza ovens reducing wait times and increasing customer satisfaction. What kind of managers should be hired for BP? Hospitality or food? A lost vision and identity in this regard made it difficult for staff to have efficient control, while additionally needing a staff person who understands robot technology. Technology and Information Support Systems| * Recruiting and training of staff | * Programmable robots * Arcade games * Quick oven| BH had a strict process for the recruiting and training of its staff, with ads recruiting experienced chefs to go through a specific 15wk training with approved BH teachers. BP was mostly technology based, with arcade games, robot shows (each with multiple programs), and upgraded cooking tools (6min pizzas). This structure required another manager or staff person to focus solely on technology in each store. Organization structure| * Simple management structure * Three man corporate structure * Franchise * Certified chefs| * Complicated corporate structure * Poorly defined roles * Lack of hiring structure| Benihana implemented an organizational structure that implemented control and focus on specific roles and operated those roles with efficiency to improve cost. Chef’s managed and operated while corporate focused on the big picture. Broadway implemented a complicated structure that was hard to follow and had poorly defined roles which led to a lack of control. Customer Contact , behavior, skills| * Highly interactive * Trained employees to combine skilled labor and defined service management skills * Trained in American culture| * Technology interactive with scheduled shows * Sufficient service management skills| The main focus of Benihana was to provide superior service management from both the front room employees and back room. This provided a full experience from the certified chefs to the experienced support staff. Broadway Pizza developed a strategy to use interactive technology with scheduled shows and service management skills that provided positive customer service scores. Service provider selection, development, and empowerment| * Employees certified and trained in American culture * Only Japanese employees * Low turn-over rate * Employees have the ability to be promoted * Chef controls speed of dinner * Front men responsible for table utilization which directing effects bottom line profits| * Did not know what industry to source management candidates from * Specialized robotic technicians * No defined corporate ladder| Based on the success of Benihana, they have created an environment for their employees that stimulate a positive work environment, low turn-over rates and higher utilization rates for the entire company. Broadway Pizza wanted to provide a service for both entertainment and food but from the high turn-over rates and no room for corporation growth, Broadway was unable to recruit the right candidates for the positions. | Recognition and reward| * Real world benefits * Certifications * Work Visa * Education/ Training | * N/A| Having the right recognition for Benihana’s employees has kept them from losing qualified chefs through offering visa’s to work and also education opportunities they might not have otherwise had access to.
Based on Broadways performance it was clear that they implemented no recognition or rewards which led to the high turn-over rates. | Service Recovery and guarantees| * Guaranteed authentic Japanese atmosphere including building materials and staff * Studied service upsets and used data in creation of new locations| * Guaranteed robotic functionality| Benihana has guaranteed its service based around the authentic Japanese experience with the use of hibachi grills as well as authentic materials and staff. Benihana has also implemented strategies to deal with past difficulties and the use of data to pick correct new locations. Broadway Pizza offers its core strategy which is to offer a dining experience that offers a robotic experience. |