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Benihana

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This article is about the restaurant chain. For the skateboarding trick, see Benihana (skateboarding).
Benihana Inc.
Company typePrivate
Founded1964; 60 years ago (1964)
FounderHiroaki Aoki
Headquarters
Aventura, Florida (North America)
Benihana Bldg. 9th Floor, Chuo-ku, Tokyo (Japan)　
,
United States & Japan
Key people
Tom Baldwin (President and CEO)
ProductsJapanese cuisine
RevenueIncrease US$314M (FY 2010)[1]
Decrease−US$7.74M (FY 2010)[1]
Decrease −US$10.0M (FY 2010)[1]
Total assetsDecrease US$234M (FY 2010)[2]
Total equityDecrease US$144M (FY 2010)[2]
Owner
  • One Group Hospitality Inc.
  • (2024–present)
Number of employees
7400
DivisionsBenihana, Samurai, Haru, RA Sushi
Websitewww.benihana.com

Benihana (Japanese: 紅花, "Safflower") is a chain of Japanese restaurants. Originally founded by Yunosuke Aoki as a cafe in Tokyo in 1945, Benihana spread to the United States in 1964 when his son Hiroaki "Rocky" Aoki opened its first restaurant in New York City.

Benihana Inc., based in Aventura, Florida,[3] owns 68 Japanese teppanyaki restaurants, including its flagship Benihana Teppanyaki brand, and franchises 12 more in the United States, Caribbean and Central and South America. Additionally, it owns one Samurai restaurant and 19 RA Sushi restaurants in the United States.[4] Benihana was acquired by One Group, parent company of the STK and Kona Grill chains, in February 2024 for $365 million.[5]

Benihana introduced the teppanyaki restaurant concept, which had originated in Japan in the late 1940s, to the United States, and later to other countries.

The original Benihana location in Tokyo is part of Benihana Inc. (株式会社 紅花), a Japanese company, which also owns the Benihana Building in Nihonbashi and the Aoki Tower in Ginza.[6]

History

Benihana Bekkan in Nihonbashi, Tokyo, the first Benihana teppanyaki restaurant.

Japan

Yunosuke Aoki found a jazz café called "Ellington" in the Nihonbashi district of Tokyo in 1937. The café was destroyed during the firebombing of Tokyo in 1945 and reopened in 1947 as a coffee shop called Benihana. Aoki opened a restaurant on the second floor in 1950. In 1955, he opened a teppanyaki restaurant across the street, now known as Benihana Bekkan. This was followed by a Ginza location in 1956, which closed in 1997 and was demolished to make way for the Aoki Tower office building.[6]

Benihana on West 56th Street in New York City

United States

The first American Benihana location was in 1964 on West 56th Street in New York City opened by 25-year-old Hiroaki Aoki, the son of Yunosuke Aoki and father of Steve Aoki and Devon Aoki.[7] Aoki, a wrestler who had qualified for but did not attend the 1960 Summer Olympics,[8] started the restaurant with US$10,000 (equivalent to $98,240 in 2023) earned from driving an ice cream truck in Harlem.[9]

A chef preparing a dinner at the table

Aoki's concept was for the meals to be theatrically prepared by a knife-wielding, joke-telling chef at a teppanyaki table surrounded by a wooden eating surface in front of the guests (teppan meaning "steel grill" or "griddle" and yaki meaning "grilled" or "broiled"). It did not do well until early 1965, when Clementine Paddleford of the New York Herald Tribune gave it a rave review.[8] The Beatles and Muhammad Ali were among the celebrities who patronized the four-table restaurant.[10]

Within a year Aoki opened a bigger restaurant that featured samurai armor, heavy wooden ceiling beams, and sliding shōji screens to provide some privacy.[citation needed]

In 1968, it opened its first restaurant outside of New York City in Chicago.[11]

In 1976, Aoki brought in consultant Hardwicke Companies (its founder Charles H. Stein was the original developer of Six Flags Great Adventure, as well as the operator of various New York restaurants including Tavern on the Green) as a partner to run the company. In 1980, Aoki terminated the relationship and settled a U.S. Securities and Exchange Commission complaint of insider trading of Hardwicke stock.[citation needed]

In 1983, Aoki spun off 11 Benihana U.S. restaurants into a separate company, Benihana Inc., and sold 49.1% to the public. He maintained full control over the 39 non-U.S. restaurants through his original company, Benihana of Tokyo.[12]

The company had some missteps including the opening of the upscale Big Splash restaurant and a frozen food division, Benihana National Classics. Its stock dove and shareholders sued over management including the fact that Aoki still had his privately held restaurants of the same name.[10]

In 1995, the company acquired 17 restaurants from Benihana of Tokyo.[13]

Following a guilty plea for insider trading in 1999, which would have led to the revocation of Benihana's liquor licenses, Rocky Aoki ceded control of Benihana of Tokyo and Benihana Inc. to a trust managed by his children and personal lawyer.[12]

The company has since expanded by purchasing the Haru and RA Sushi restaurants, which operate under the same names.[14] Haru is based in New York City; RA has locations across the country, and is based in Scottsdale, Arizona, with its original four locations scattered around the greater Phoenix area. Although Benihana owns these concepts, they are independently operated and were developed autonomously. It also acquired the Samurai and Kyoto restaurants which it has incorporated into its other brands.[citation needed]

In 2004, the company issued a class of preferred stock to BFC Financial corporation to renovate its restaurants and expand. The stock diluted Aoki's control of the chain and the family sued, citing that Benihana had no compelling need for the cash, other forms of capital were available, and that the terms of the preferred stock issued to BFC were onerous. A member of the board of directors was also a director of BFC, a company that held controlling interests in BankAtlantic, Blue Green, and Levitt Homes. However, the Delaware Court of Chancery upheld the transaction.[15]

Benihana's famous figural "tiki mugs" for exotic cocktails, the most common of which depicts "Hotei," a chubby Buddha-like figure with arms raised in the air, have become collectible.[citation needed]

Aoki died in 2008 at the age of 69.[16]

In 2009, Richard C. Stockinger became chief executive to replace Joel A. Schwartz,[17] and in 2010 became president as Juan C. Garcia resigned.[18]

Benihana agreed in 2012 to be purchased by the private equity firm of Angelo Gordon & Company for $296 million.[14]

On February 5, 2014, the Board of Directors of Benihana Inc. named Steve Shlemon the company's new president and chief executive officer.[19]

In 2016, Benihana Inc. named Thomas J. Baldwin CEO and president. Baldwin had been director of Benihana and served as an advisor to the operator's principal investor, Angelo, Gordon & Co.[20]

In 2023, Benihana was exploring a possible sale that could value the chain at $600 million or more.[21]

In 2024, Benihana was acquired by One Group Hospitality Inc.[22] One Group completed the deal in February 2024 for $365 million in cash, acquiring 86 Benihana locations, as well as Benihana's 19 Ra Sushi restaurants.[23]

Lawsuits

Benihana in Beaverton, Oregon

In Benihana of Tokyo, Inc. v. Benihana, Inc.,[24] financial issues and a change of corporate control led three of the members of the Benihana, Inc.'s board of directors to consider the issuance of convertible stock and its sale to a potential buyer. Eventually, the entire board approved resolutions ratifying a stock purchase agreement with the buyer and authorizing the stock issuance. Afterwards, the company filed an action against almost all of Benihana, Inc.'s directors, alleging breaches of fiduciary duties.

On January 30, 2011, Benihana (Kuwait) filed a defamation lawsuit against a blogger for writing about his experience on his website.[25][26][27] Las Palmas, the company that owns Benihana in Kuwait, took legal action against the reviewer for his "negative" attitudes towards the restaurant and for recording the videos without permission. The company alleged that the blogger worked for an advertising company and might have personal motives that could be linked to his work to denigrate Benihana and praise its competitors located in the same area.[27]

In 2015,the CEO of Benihana filed a lawsuit to sue Angelo Gordon, an Investment Firm.[28]

International locations

Benihana operates or franchises restaurants in the United States, the United Kingdom, Slovakia, Romania, the Middle East,[29] the Caribbean, Central and South America.[13][30]

See also

References

  1. ^ a b c Benihana (BNHNA) annual SEC income statement filing via Wikinvest.
  2. ^ a b Benihana (BNHNA) annual SEC balance sheet filing via Wikinvest.
  3. ^ Corporate Information. Benihana. Retrieved on 13 November 2016. "Benihana Inc.[...]21500 Biscayne Blvd., Suite 900, Aventura, FL 33180"
  4. ^ "About - Benihana Corporate Information - FAQs". Benihana. Retrieved 2024-05-21.
  5. ^ Joe Guszkowski (May 1, 2024). "STK parent One Group completes acquisition of Benihana for $365M". Restaurant Business. Retrieved 2024-05-21.
  6. ^ a b "BENIHANA｜COMPANY". レストラン紅花. Retrieved 2024-05-17.
  7. ^ "Sex, drugs, and cocktail shrimp: The story behind Benihana's wild card founder". The Hustle. 2018-05-02. Retrieved 2018-10-03.
  8. ^ a b "A Flower in the Debris: The Legacy of Benihana, Rocky Aoki's All-American Empire". The Ringer. July 24, 2018. Retrieved July 24, 2018.
  9. ^ "THE BENIHANA STORY - History". Benihana. Retrieved 2024-02-13.
  10. ^ a b "Benihana, Inc. profile – International Directory of Company Histories, Vol. 18. St. James Press, 1997 – Retrieved February 16, 2008". Fundinguniverse.com. Retrieved 2011-11-08.
  11. ^ Selvam, Ashok (2017-08-14). "Inside Benihana, Bringing Hibachi Theatrics Back to Chicago After 10 Years". Eater Chicago. Retrieved 2024-05-21.
  12. ^ a b "The crazy, bitter battle over Benihana". Fortune. Retrieved 2024-05-17.
  13. ^ a b "Corporate Information". Benihana.com. Retrieved 15 July 2017.
  14. ^ a b Gasparro, Annie (May 23, 2012). "Benihana to Go Private in Buyout". The Wall Street Journal. p. B6. Retrieved May 23, 2012.[permanent dead link‍]
  15. ^ "Benihana Inc · 8-K · For 12/9/05 · EX-99.1". secinfo.com. 2005-12-09. Retrieved 2011-11-08.
  16. ^ "Obituary". Legacy.com. Retrieved 2011-11-08.
  17. ^ Ruggless, Ron."Benihana names new CEO as Schwartz retires[permanent dead link‍]." Nations Restaurant News. February 10, 2009. Retrieved, February 19, 2010.
  18. ^ Ruggless, Ron."Benihana begins work with turnaround firm[permanent dead link‍]." Nations Restaurant News. January 14, 2009. Retrieved, February 19, 2010.
  19. ^ Bandell, Brian (February 5, 2014). "Former Carrabba's exec to lead Benihana". South Florida Business Journal. Retrieved 2018-10-03.
  20. ^ "Benihana Names Thomas J. Baldwin CEO and President – Foodservice Equipment & Supplies". www.fesmag.com. Archived from the original on 2017-09-09. Retrieved 2017-06-26.
  21. ^ "Benihana's owner explores sale of restaurant chain". Reuters. 12 July 2023. Retrieved 13 March 2024.
  22. ^ "One Group Hospitality buys Benihana parent for $365M". Restaurant Dive. Retrieved 2024-04-25.
  23. ^ Joe Guszkowski (May 1, 2024). "STK parent One Group completes acquisition of Benihana for $365M". Restaurant Business. Retrieved 2024-05-21.
  24. ^ Benihana of Tokyo, Inc. v. Benihana, Inc., 906 A.2d 114 (2006)
  25. ^ "Kuwait Times Website". Kuwaittimes.net. Archived from the original on 2011-11-24. Retrieved 2011-11-08.
  26. ^ "Kuwait blogger sued over bad restaurant review – Media". Arabian Business. ArabianBusiness.com. February 2011. Retrieved 2011-11-08.
  27. ^ a b "Kuwait blogger sued for posting dinner experience". gulfnews. 2011-02-01. Retrieved 2011-11-08.
  28. ^ "USA TODAY - Breaking News and Latest News Today". USA TODAY. Retrieved 2024-05-16.
  29. ^ "Benihana - Beirut, Lebanon". Retrieved 17 May 2020.
  30. ^ "Restaurant Locations". Benihana.com. Retrieved 15 July 2017.
  31. ^ "Japanese restaurant chain Benihana sets shop in India". The Economic Times. 15 January 2014. Retrieved 17 May 2020.

Further reading

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