Donner Company

Introduction

A company's ability to prosper in any competitive field is highly dependent

upon its ability to distinguish itself from its competitors. In the United States restaurant industry, approximately twenty-six percent of all new businesses fail within the first twelve months of operation. Furthermore, the cumulative failure rate in the first thirty-six months of operation rises to approximately sixty-one percent [1]. With this in mind, the significance of a company's competitive advantage becomes drastically apparent.

Benihana of Tokyo, a Japanese restaurant founded by Hiroaki Aoki, opened its doors to the United States in 1964 on the west side of Manhattan, New York. The origin of this restaurant began with the Benihana coffee shop turned full service restaurant in Tokyo, Japan. Founded in 1935 by Yunosuke Aoki, the name Benihana, meaning "Red Flower" in Japanese, refers to the red safflowers which grew wild in the streets of Tokyo near its original location. By combining a distinctive blend of eastern world culture, with non-traditional operation methods, Benihana of Tokyo was able to obtain success in an American industry plagued by an overwhelming failure rate.

Shortly following the success of its first location, Benihana of Tokyo began to expand throughout the United States. In 1966, Aoki opened an accompanying location on the east side of Manhattan. In short order, a westward expansion began to Chicago in 1967, and to San Francisco and Las Vegas in 1969. As of February 12, 2006 Benihana of Tokyo currently has eighty-two sites in the United States, with additional locations in thirteen countries on five continents [2] and the corporation continues to expand. Through continued success Benihana of Tokyo went public in July of 1987 and currently trades on the NASDAQ Stock Exchange under the symbol BNHNA.