Executives from ONE Group Hospitality (NASDAQ:STKS) outlined the company’s portfolio strategy, operating initiatives, and growth priorities during a conference presentation, emphasizing its positioning as a “vibe dining” operator across multiple restaurant brands.
Portfolio overview and “vibe dining” focus
The company described itself as a leader in “vibe dining,” which management framed as differentiated, experiential dining built around environment, showmanship, music, food, and cocktails. Executives said the strategy is centered on delivering a consistently strong guest experience through three areas they view as core strengths: operations, marketing, and culinary and beverage programs.
- Benihana, positioned around teppanyaki entertainment dining
- STK, a steakhouse brand
- Kona Grill, described as offering vibe dining at a lower price point, with a heavier emphasis on bar occasions, small plates, and cocktails
Executives also referenced RA Sushi within the company’s broader “grill concept” portfolio.
Benihana acquisition: rationale and synergy progress
Management said the Benihana acquisition was driven by the brand’s consumer resonance in experiential dining and the opportunity to gain scale by combining what it described as two of the top “vibe” brands, alongside STK. Executives pointed to supply chain and corporate cost opportunities, including shared purchasing benefits given both brands’ beef usage and the ability to operate under a combined general and administrative structure.
They also highlighted the operational fit, calling Benihana an operations-intensive concept that aligned with ONE Group’s operational focus, and said they were impressed by Benihana’s management bench and operator quality.
On valuation, executives said the company paid $365 million for Benihana and compared reported EBITDA levels before and after the transaction. They cited approximately $33 million of EBITDA in 2023 (prior to the acquisition) and said EBITDA exiting 2025 is around $92–$93 million, describing the step-up as about $60 million of added EBITDA from the acquisition.
Benihana table turns: moving toward a 90-minute goal
Management discussed efforts to improve table turns at Benihana, describing it as both an operational and economic opportunity. Executives said a typical Benihana restaurant has about 20 teppanyaki tables, seating roughly eight guests each, or approximately 160 seats at peak.
They said the brand historically operated with about a 120-minute sit time, which limited turns during peak holiday dining windows. Management argued that consumer research suggests guests prefer a 75–90 minute experience and noted that while the chef portion may take 45–50 minutes, guests can be seated longer than desired without the chef present.
Executives said the company has reduced table turns from about 120 minutes to about 105 minutes in 2025, describing that level as a current “sweet spot” while the company works through operational changes such as improving drink delivery and other process details. They reiterated the longer-term goal of reaching 90-minute turns, particularly during high-volume holiday periods, and said achieving two turns instead of 1.5 turns could materially increase peak-period covers. As an example, they referenced the potential to serve roughly 80 additional customers during peak time across roughly 20 busy December days, using an illustrative $60 per-person spend to show the revenue opportunity.
STK performance and the “barbell” strategy
On STK, management said the brand posted a positive comparable sales result in the fourth quarter, which they characterized as the first positive comp in some time. Executives attributed prior pressure in part to the brand having gained disproportionate market share and volume during the COVID recovery period, followed by a normalization in 2024 and 2025 as some of that surge “gave back.” They said that compared with pre-COVID levels, the brand remains meaningfully higher in average unit volume and traffic, while also noting that the business has returned to positive same-store sales and, in some instances, positive traffic.
Management also reiterated its “barbell strategy” for STK, which is designed to capture multiple customer segments by pairing value-focused offerings—such as happy hour, “three-six-nine” items, and fixed-price dinners—with premium offerings like Wagyu and higher-end wine.
Grill portfolio rationalization, loyalty, and growth priorities
Executives provided an update on Kona Grill and RA Sushi, saying the company has closed underperforming locations and is converting select sites into STK or Benihana. They said five restaurants are temporarily closed and slated for conversion. After portfolio cleanup, management said the company is left with around 30 operating grill locations, with those five expected to convert out. They also described allowing leases to expire on locations that do not meet the current real estate prototype, noting that some legacy sites were in malls or near movie theaters—areas they said have become less attractive for restaurants since COVID.
On loyalty, management said it launched a multi-brand program called Friends with Benefits in late April/early May of last year, consolidating prior email and single-brand efforts (including Kona Grill’s “Carnivore” program). Executives said the company had about 6 million members in its email databases and that more than 65% of those legacy guests have engaged with the new loyalty program. They added that the company has been signing up more than 8,000 new organic members per week and that loyalty members are spending about $10 more per visit on average. Management said it wants a full year of data to better quantify frequency impacts.
Looking ahead, executives pointed to a combination of barbell menu strategy, marketing, and loyalty as drivers of improving same-store sales trends. They also cited a prior-year Benihana pricing mismatch in the third quarter as creating an easier comparison later in the year, as pricing is expected to be aligned this year.
On profitability, management pointed to sales momentum and cost initiatives, highlighting that beef pricing is “locked in” through September 2026 and describing beef as a significant portion of cost of goods sold. They also mentioned anticipated labor improvements through better scheduling and noted expectations for improvement in frozen seafood costs.
For unit growth, management said the company is prioritizing more asset-light development, including taking second-generation restaurant spaces instead of new builds, as well as franchising and licensing. Executives said the company signed a 10-restaurant Benihana deal in the Bay Area—the largest franchise agreement in its history—and also referenced a two-restaurant commitment in the Florida Keys.
Finally, the company discussed off-premises initiatives, saying off-premises sales are around 10% of total sales and that growth efforts are focused on curbside pickup. Management said curbside can offer attractive incremental margins because it avoids third-party delivery fees. They cited product initiatives such as Benihana’s fried rice burritos and said STK has also built a takeout business around side dishes and handheld items.
On the balance sheet, executives said they plan to balance growth with free cash flow deployment to pay down its facility and expressed an intention to take advantage of interest rate markets as conditions improve.
About ONE Group Hospitality (NASDAQ:STKS)
ONE Group Hospitality Inc is a full-service hospitality company primarily engaged in the development, ownership and operation of upscale restaurant and lounge concepts. The company’s flagship brand, STK, combines a modern steakhouse menu with a high-energy lounge atmosphere, offering signature cuts of beef, fresh seafood, sushi selections, craft cocktails and an extensive wine program. ONE Group’s concept emphasizes a seamless blend of fine dining and nightlife, catering to guests seeking both culinary excellence and an immersive social experience.
Headquartered in El Segundo, California, ONE Group deploys a mixed model of company-owned and franchised locations across multiple markets.
