The ONE Group Hospitality announced a new asset‑light development agreement that will bring ten Benihana or Benihana Express restaurants to the Greater San Francisco Bay Area. The deal includes three franchised Benihana locations, two joint‑venture Benihana sites, and five licensed Benihana Express venues.
The agreement will see the two joint‑venture sites open in 2026, while the remaining franchised and licensed sites will roll out over the next seven years. This schedule aligns with the company’s goal of achieving a 60 % franchised footprint and generating high‑margin royalty income.
The company will partner with a seasoned operator—though the operator’s name has not been disclosed—to deploy the Benihana brand in high‑traffic venues such as airports, stadiums, and casinos without new build‑out capital. The focus on an asset‑light model is intended to accelerate expansion while keeping capital expenditures low.
In addition to the new development rights, the company plans to convert up to nine existing Kona Grill and RA Sushi locations to Benihana or STK formats by the end of 2026. Each conversion is expected to cost roughly $1 million and is projected to be accretive to EBITDA.
The new development rights will target sites that require $1.5 million or less to open, leveraging an existing pipeline of approximately 12 leases. This strategy is designed to improve cash flow, reduce debt‑servicing pressure, and support the company’s broader financial recovery.
CEO Emanuel Hilario said the agreement demonstrates strong demand for the Benihana brand and validates the company’s disciplined, capital‑efficient growth approach. He added that the expansion will help the company move toward a more sustainable, asset‑light business model.
The announcement follows a Q3 2025 net loss of $85.3 million and revenue of $180.2 million, underscoring the importance of the asset‑light strategy to restore profitability and strengthen the company’s balance sheet.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.