The ONE Group’s Recipe for Growth: Asset-Light Deals and Brand Spinoffs

By Mark Peterson

DENVER, CO – December 29, 2025 – The ONE Group Hospitality, parent company of STK Steakhouse and the iconic Benihana brand, has unveiled a multi-pronged strategy focused on aggressive but financially disciplined growth. Capping off 2025 with a series of significant development milestones, the company is signaling a decisive pivot towards a capital-efficient or “asset-light” model, aiming to expand its ‘Vibe Dining’ empire through franchising, strategic conversions, and brand extensions that reach consumers far beyond the traditional restaurant table.

The fourth-quarter announcements include the company’s largest-ever development agreement for ten new Benihana locations, an expanded footprint in major sports arenas, the successful launch of two cost-effective STK steakhouses, and a foray into the retail snack market. Together, these initiatives paint a clear picture of the company's 2026 playbook: maximize brand value while minimizing direct capital outlay.

The Asset-Light Blueprint for Expansion

The cornerstone of The ONE Group's recent announcements is a landmark deal to open ten Benihana and Benihana Express locations throughout the Greater San Francisco Bay Area. Rather than building and owning these restaurants itself, the company is partnering with an experienced operator through a mix of franchise, joint venture, and licensing agreements. This asset-light approach is a popular strategy in the restaurant industry for its ability to facilitate rapid scaling with reduced financial risk.

This model allows The ONE Group to leverage its powerful brand recognition while its partners handle the significant capital investment and operational logistics. In return, the company secures a steady stream of high-margin royalty and fee income. The San Francisco Bay Area deal, which includes three full Benihana franchises, two joint ventures, and five smaller Benihana Express licensed locations, is set to unfold over the next seven years, with the first two joint venture sites expected to open in 2026.

The choice of the Bay Area is strategic. The region boasts a robust and sophisticated culinary scene with a well-documented appetite for Japanese cuisine, from high-end sushi to casual concepts. While competitive, the market offers a prime demographic of consumers willing to pay for quality and experience, fitting squarely with Benihana's interactive teppanyaki dining model. The deal validates the enduring appeal of the decades-old brand, which continues to attract partners for large-scale development.

“These fourth quarter developments represent significant progress across our strategic priorities,” said Emanuel “Manny” Hilario, CEO of The ONE Group, in the company's press release. “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.”

Maximizing Value from Within: Conversions and Capital Discipline

While franchising fuels new territory, The ONE Group is also looking inward to optimize its existing portfolio. The company is doubling down on a successful conversion strategy, transforming underperforming restaurants from its other brands, like RA Sushi and Kona Grill, into its more profitable STK and Benihana concepts. This approach significantly lowers the cost and time required to open a new location.

A prime example is the new STK in Scottsdale, Arizona, which opened in October 2025. The company converted a former RA Sushi restaurant into the modern steakhouse in approximately eight weeks for about $1 million—a fraction of the cost of building a new restaurant from the ground up. A second new STK in Oak Brook, Illinois, opened in December for a similarly modest $1.5 million. The company reports both are showing “strong early performance,” validating the financial model.

Looking ahead to 2026, this conversion strategy will be a central focus. The ONE Group has already identified up to nine additional Kona Grill and RA Sushi locations for potential conversion to either Benihana or STK formats. These projects, estimated to require around $1 million each, are anticipated to be “accretive to EBITDA,” meaning they are expected to boost overall earnings. This focus on low-cost, high-return projects allows the company to strengthen its balance sheet and enhance financial flexibility by reducing discretionary capital spending and prioritizing its existing real estate pipeline over signing new, expensive leases.

Beyond the Restaurant: Capturing New Audiences and Revenue Streams

The ONE Group's strategy extends well beyond the four walls of its restaurants. The company is actively placing its brands in high-traffic, high-visibility venues and even on grocery shelves. It recently renewed a three-year concession agreement at Phoenix’s Mortgage Matchup Center, home to the NBA’s Suns and WNBA’s Mercury, where it will continue to offer Benihana products and add new STK-branded items. Furthermore, it secured a new three-year deal to bring a Benihana concession to the UBS Arena in New York, home of the NHL's Islanders, complementing its existing presence at Yankee Stadium.

These stadium partnerships are more than just a side business. They serve as powerful marketing tools, generating what the company calls “millions of fan impressions” annually. At a time when consumers increasingly expect higher-quality and more diverse food options at live events, these premium offerings meet a growing demand while providing high-margin royalty income for The ONE Group. It’s a way to introduce the STK and Benihana experience to a captive audience, potentially driving traffic back to the brick-and-mortar restaurants.

In its most ambitious brand extension yet, the company has partnered with Flock Foods to launch Benihana-branded Teriyaki Flavored Crispy Chicken Chips. This move catapults the restaurant brand into the booming “better-for-you” snack market, a sector valued at over $96 billion and projected to grow significantly as consumers seek out healthier, high-protein options. While entering the competitive retail space carries risks of brand dilution if not executed properly, it also offers a massive opportunity to diversify revenue and connect with consumers in their daily lives. The direct-to-consumer chips are a calculated bet on the power of the Benihana name to stand out in a crowded market, bringing the familiar flavor of its teppanyaki grills to the pantry.