However, net income for the latest fiscal half year was up more modestly to $4 million from $3.9 million in the same 1999 period.
The slower upturn in net income was partly the result of costs involved in opening new restaurants, according to Benihana president Joel A. Schwartz. Such costs reflect rents paid and other direct expenses incurred during the construction of new locations, as well as investments in pre-opening employee training, he says in a prepared statement.
The Miami-based company currently operates 56 restaurants: 51 so-called teppanyaki-style units where meals are prepared at each table, three Sushi Doraku by Benihana operations and two under the Haru sushi banner.
Another 12 teppanyaki restaurants are licensed for operation by franchisees. Seven of the company's restaurants are in South Florida, including two Sushi Dorakus.
Teppanyaki-style Benihanas are under development in Santa Monica, CA; Las Colinas, TX; Westbury, NY and Wheeling, IL. Three new Haru sushi facilities are all being built in New York City, including one in Manhattan's Times Square District that is expected to open before year-end.
The family of Rocky Aoki, who founded the chain in New York, continues to hold a majority interest in the firm.
Benihana is now committed to ongoing expansion, Schwartz reports. "Our finances are in excellent condition and we have the capacity to significantly grow the company," he states. "Enhanced profitability remains our prime objective."
While it continues to seek new locations, Benihana is selectively adding new tables at existing units, trying to put its real estate to the highest use.
Not only are chain-owned restaurants doing better, but revenues from franchised operations are also reported to be on the increase. During the current fiscal year's first half, these rose 19.9% from the corresponding year-ago period.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
