The ONE Group's Asset-Light Blitz Signals Major STK & Benihana Growth

DENVER, CO – December 29, 2025 – By Mark Peterson

The ONE Group Hospitality, Inc. is closing out 2025 with a series of aggressive strategic moves, signaling a significant acceleration of its growth plans for its flagship STK and Benihana brands. In a comprehensive development update, the Nasdaq-listed company (STKS) detailed a multi-pronged strategy centered on capital-efficient expansion, including its largest-ever asset-light development deal, successful low-cost restaurant conversions, and a deeper push into high-traffic sports arenas.

These fourth-quarter achievements underscore a disciplined blueprint for 2026 that prioritizes financial flexibility and high-return investments. The company is leveraging the power of its well-known brands to expand its footprint through franchising, joint ventures, and licensing, while simultaneously proving out a cost-effective model for company-owned growth. The moves position The ONE Group to capture new markets and revenue streams, from the San Francisco Bay Area to the snack aisle.

A Landmark Deal for the West Coast

The cornerstone of the company's recent announcements is a historic development agreement set to bring ten new Benihana-branded restaurants to the Greater San Francisco Bay Area. Described as the largest asset-light agreement in the company's history, the deal was struck with an experienced local operator and represents a major push to expand the iconic teppanyaki brand on the West Coast.

The agreement is structured to minimize capital outlay from The ONE Group, relying on a mix of development models. It includes three Benihana franchise locations, two Benihana joint venture locations, and five smaller-footprint Benihana Express licensed locations. This diverse approach allows for rapid market penetration while sharing risk and investment with a local partner.

The expansion is slated to begin swiftly, with the two joint venture restaurants expected to open their doors in 2026. The remaining eight franchised and licensed locations are scheduled to roll out over the next seven years, creating a long-term growth pipeline in a key metropolitan market.

Emanuel “Manny” Hilario, CEO of The ONE Group, commented on the strategic significance of the developments. “These fourth quarter developments represent significant progress across our strategic priorities,” he stated. “Our largest asset-light agreement ever demonstrates the strong demand for our Benihana brand while our successful STK openings and conversions validate our disciplined approach to capital-efficient growth.”

STK's Smart Conversion Strategy Pays Off

While Benihana expands through partnerships, the company's modern steakhouse concept, STK, is growing through a shrewd company-owned development strategy. The ONE Group successfully opened two new STK locations in the fourth quarter, both of which were conversions of existing restaurant spaces, dramatically reducing costs and timelines.

A new STK in Scottsdale, Arizona, which opened in October 2025, was converted from a former RA Sushi restaurant—another brand within The ONE Group's portfolio. The entire conversion was completed in approximately eight weeks and cost around $1 million, a fraction of the price of building a new restaurant from the ground up. Similarly, a new location in Oak Brook, Illinois, opened in December at a cost of about $1.5 million, further penetrating the competitive Greater Chicago market.

The company reports that both new STKs are demonstrating a “strong pace of performance,” providing immediate validation for this second-generation conversion model. This strategy not only allows for faster openings but also generates powerful unit economics, making it a central pillar of the company's plans for 2026. The ONE Group has already identified up to nine additional Kona Grill and RA Sushi locations that are candidates for conversion to either the STK or Benihana format by the end of 2026, with each project estimated to require a similarly modest capital investment of around $1 million.

Expanding Brand Reach Beyond the Dining Room

The ONE Group is also extending its brands into non-traditional venues to diversify revenue and enhance consumer awareness. The company has fortified its presence in professional sports and entertainment stadiums, where it can generate high-margin royalty streams and connect with millions of fans annually.

In Phoenix, the company renewed its three-year concession agreement at the Mortgage Matchup Center, home of the NBA's Phoenix Suns and WNBA's Phoenix Mercury. The new deal will see the existing Benihana concession joined by new STK-branded food offerings. On the East Coast, The ONE Group secured a new three-year Benihana concession at the UBS Arena in Elmont, New York, home of the NHL's New York Islanders. This adds to its existing presence at Yankee Stadium, strengthening its brand visibility in the crucial New York metropolitan area.

Further diversifying its portfolio, the company has entered the consumer packaged goods market. In collaboration with Flock Foods, The ONE Group has launched Benihana-branded Teriyaki Flavored Crispy Chicken Chips. This direct-to-consumer snack is positioned as a high-protein, low-carb option, tapping into the growing “better-for-you” market. The move extends the Benihana brand from a dining experience into an everyday consumer product, currently available online and planned for select retail stores in early 2026.

A Capital-Efficient Blueprint for 2026

Looking ahead, The ONE Group's strategy for 2026 is clear: disciplined, capital-efficient growth. The company plans to significantly reduce discretionary capital expenditures and focus new company-owned restaurant development on projects requiring $1.5 million or less to open. Instead of signing new leases, the company will work through its existing pipeline of approximately 12 signed leases, a move designed to strengthen its balance sheet and enhance financial flexibility.

The combination of its record-setting asset-light deal, proven low-cost conversion strategy, and expansion into new channels like stadiums and retail products paints a picture of a company executing a clear and multifaceted growth plan. By leveraging the strength of its established brands while maintaining strict financial discipline, The ONE Group is building a resilient and scalable model for the future.