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The Honolulu Advertiser

Posted on: Sunday, June 22, 2003

Benihana founder longs for return to bigger role

By Elaine Walker
Knight Ridder News Service

Rocky Aoki has served as a consultant and spokesman for Benihana since 1998.

Advertiser library photo • Oct. 15, 1986

MIAMI — Rocky Aoki has paid the price for his insider trading violation and now the colorful founder of Benihana wants to get back to what he loves: running restaurants.

Since stepping down as chief executive in 1998, Aoki has served as a consultant and spokesman for the Miami-based chain, which includes a restaurant at the Hilton Hawaiian Village. But the former Olympic wrestler and hot-air balloonist is angling to increase his profile and put his stamp on improving the concept he launched in 1964 — Japanese-style food served with circuslike showmanship. He already has plenty of areas where he wants to see changes, from reducing the cost of building restaurants to improving staff training.

"My blood is Benihana," said Aoki, who was in Miami Beach last week at the company's sushi restaurant, Doraku, to promote his new book, "Sake: Water from Heaven." "That's the only thing I do well. I could make Benihana much stronger with me present every day."

Aoki is investigating the possibility of returning as an officer of Benihana. But that could be difficult because he was prohibited from serving as an officer of a publicly traded company after pleading guilty in 1999 to insider trading.

The scandal had nothing to do with Benihana. Aoki admitted to profiting from a tip that Spectrum Information Technologies was about to hire then-Apple Computer Chairman John Scully. He paid a $500,000 fine and served three years probation.

"It's my mistake and I have to eat it," said Aoki, who said he regrets not fighting the charges against him as Martha Stewart is doing today. "But now I have a new life."

At 64, Aoki is no longer the daredevil he was in his younger years when he was nearly killed racing power boats and loved pulling stunts for publicity. But Aoki remains in relatively good health after recovering for a bout with hepatitis several years ago. Still a ladies' man, Aoki got married last year to his third wife, who encouraged him to write the book on sake.

The goal is to help introduce Americans to sake, in much the same way Aoki's restaurants popularized Japanese food and later sushi, long before it became the trendy cuisine it is today.

"Mr. Aoki put Japanese food on the world map and helped bring Japanese culture into the mainstream," said Ko Kodaira, Japan's consul general in Miami, who attended a lunch last week for Aoki's book launch. "I'm confident this book will be another great success for Mr. Aoki's career."

As part of his sake education, Aoki has also encouraged Benihana to beef up its sake menus and add sake bars to many restaurants.

The sake bars are just the latest idea for Aoki, who is always looking at new directions for Benihana. He's considering the possibility of developing a new high-end Japanese restaurant concept and opening a New York City restaurant village, featuring seven to 10 restaurateurs from Japan.

Aoki's trust still owns 47 percent of Benihana. Aoki has been drawing an annual salary of $600,000 for his consulting work.

After several years of steady earnings growth, the pace slowed down last year as the company had a disappointing fourth quarter. But for the year ending March 30, net income increased 7.3 percent to $9.5 million. Comparable store sales increased 4.4 percent, driven largely by the acquisition of RA Sushi Bar, a four-unit Arizona chain, and the continued growth of Haru, a Japanese fusion concept with five restaurants in New York City.

While Aoki supports the growth of these new concepts, he's concerned about the future of his baby: the 54 teppanyaki restaurants. One of the main reasons Aoki wants to take a more active role at Benihana is to protect the concept and not let anyone change it, including his son, Kevin Aoki, the company's vice president of marketing.

Kevin Aoki tries to dissuade his father's fears, explaining, "I want to evolve your concept."

Right now Benihana's traditional customer is a middle-class family, interested in good value who wants somewhere to celebrate special occasions. But Aoki's 34-year-old son hopes to broaden that market with small changes like new drink menus.

"We need to make Benihana more relevant to a younger generation," Kevin Aoki said. "My father and I want the same things, it's just our approach that's different."