Benihana Operations Management: Constraints & Queuing

Introduction: Simulation and Operational Goals

The simulation makes a substantial contribution to the manner in which this case study can be analyzed and understood. In particular, by making use of simulation, it was possible to understand the details of Benihana's profitability and to offer several insights on the management of operations. The main objective of this simulation was to maximize utilization, throughput time, and nightly profit generated during evening hours of operation — that is, from 6:00 PM to 10:30 PM. This was achieved by employing different strategies such as bar sizing, batching, hours of operation, and advertising (Dhamdere, 2002).

The initial five challenges are specific challenges in which only one or two factors can be altered to achieve maximum nightly profit. The ultimate challenge encompasses (1) designing and developing the best overall strategy and (2) making use of factors from the previously tackled challenges in order to maximize profit in general (Dhamdere, 2002). The purpose of this paper is to examine how an organization can increase the effectiveness and efficiency of the operational systems that produce its products and services. The paper applies pertinent Operations Management (OM) theories as a framework to identify issues with the current operations of Benihana, a Japanese-themed restaurant.

One of the Operations Management theories most pertinent to this case study is the Theory of Constraints. This theory can be defined as a concept that stresses the importance of constraints in limiting the performance level of a business. In other terms, the Theory of Constraints can be described as a model that identifies any management system as being limited from accomplishing its objectives by a number of restrictions (Institute of Management Accountants, 1999).

Theory of Constraints

The Theory of Constraints encourages business leaders to confront restrictions and bottlenecks in order to recognize and achieve their primary purpose: to make money and maximize profits. Refined in both its formation and design, the theory focuses management's attention on the components and features that impede the performance of the system employed by the company. It places weight on optimizing performance subject to the distinct set of constraints present in existing processes and service offerings. It also presents an action framework that aligns managerial activity around a small number of highly visible system components (Institute of Management Accountants, 1999).

The Theory of Constraints is of pronounced significance to managers involved in delivering services to consumers, primarily because it is a substantial element for improving process flows. Its influence is wide-ranging in terms of building an understanding of bottlenecks within a practice and enabling managers to address those obstacles so as to create a process flow that is both effective and efficient (Seyring et al., 2009).

In connection with providing services to consumers, the theory helps managers comprehend what constraints stand in the way of meeting consumer requirements and wants. According to Khan (2015), there are distinct phases to applying the Theory of Constraints, and these phases can be of pronounced significance to managers when delivering services to consumers (Sasser, 2004).

In brief, the first phase requires managers to detect and identify the constraints hindering the process — determining what prevents the best delivery of services to consumers. The next phase is to decide on the best means of exploiting those constraints. All other decisions become subordinate to this one. Managers can then carry out a reassessment to determine whether consumer needs have been met (Sasser, 2004).

The Theory of Constraints can be applied directly to the Benihana case study. One constraint that limited the restaurant's performance was food wastage. Food storage and wastage were found to be significant contributors to overhead costs (Sasser, 2004).

For this reason, the menu was reduced to just three simple meals: shrimp, chicken, and steak. This not only increased consumer satisfaction — as these were the preferred meal choices — but also cut food costs significantly. Another constraint was the fact that American consumers, while drawn to exotic dining environments such as Benihana, were largely wary of unfamiliar foods (Sasser, 2004).

This insight prompted a change in restaurant operations: meals were prepared in full view of the diners. This not only heightened enjoyment — as guests found entertainment in watching the food being prepared — but also increased their overall satisfaction. A further constraint involved the time intervals in serving consumers, which directly affected how many guests could be seated and served in a single evening. By adjusting service timing before, during, and after peak periods, the company was able to increase nightly revenue. This approach also gave other consumers the perception that the restaurant was exceptionally busy and therefore popular (Sasser, 2004).

Queuing Theory

Waiting is a familiar part of everyday life. Every individual, at one point or another, has experienced standing in line at a bank, a supermarket, or some other venue. Traffic congestion is continually observed in hospitals, with consumers having to endure waiting times for every service offered. These in-line waiting situations are what is referred to as queuing problems (Nafees, 2007).

The common feature of these situations is that a number of individuals — the arrivals — attempt to receive service from limited facilities, and as a result must repeatedly wait their turn. Queuing theory is an Operations Management model that uses queuing models to analyze the efficiency of service delivery within a business's operations (Nafees, 2007).

Applying queuing theory to restaurant operations can greatly assist businesses seeking to manage their revenue proactively. After all, the primary driver of revenue in a restaurant is the number of consumers a restaurant can serve in a given shift, in addition to the average order value (Sasser, 2004).

Businesses should make use of all available restaurant enhancements and process improvements in order to meet consumer needs and wants. Queuing theory is very much applicable to the Benihana case study. The restaurant does an outstanding job not only of increasing its average order value per guest but also of reducing average cycle time without consumers ever noticing. First, Benihana was able to increase the average order value by having guests wait in the bar area for exactly twelve minutes (Sasser, 2004).

This time period was long enough for consumers to order a drink, yet not so long as to make them restless or impatient. In addition, the restaurant was able to reduce average cycle time by allowing the chef to set the pace of the dinner. Crucially, the consumer did not determine when the meal would be served; rather, it was the chef who served the shrimp or steak at a time of his own choosing. As a result, consumers moved through their meals and were finished before they realized it. Because the entire cooking experience resembled a kind of theatre, consumers did not feel rushed or take offence at the pace set by the chef (Sasser, 2004).

Conclusion

The simulation makes a substantial contribution to the manner in which this case study can be analyzed and understood. In particular, by making use of simulation, it was possible to understand the details of Benihana's profitability and to offer several insights on the management of operations. The main objective of this simulation was to maximize utilization, throughput time, and nightly profit generated during evening hours of operation — that is, from 6:00 PM to 10:30 PM. This was achieved by employing different strategies such as bar sizing, batching, hours of operation, and advertising (Dhamdere, 2002).