The ONE Group Hospitality, Inc. (STKS): ANSOFF MATRIX [Dec-2025 Updated]

You're looking at The ONE Group Hospitality, Inc.'s roadmap to push past that $820 million to $825 million revenue guidance for 2025, and frankly, it's a comprehensive playbook. As someone who's mapped out growth for big players for two decades, I see a clear, four-pronged attack here-it's not just about opening more doors, though they plan 5 to 7 new venues. They are leaning hard on their existing base, like maximizing that 6.5 million member loyalty program, while simultaneously planting flags in new European and Middle Eastern cities for STK, and even developing a whole new polished casual concept. This plan moves from the safest bet-Market Penetration-all the way to the biggest swing in Diversification, so you definitely need to see exactly how they plan to balance those risks to hit their targets below.

The ONE Group Hospitality, Inc. (STKS) - Ansoff Matrix: Market Penetration

Maximize the 'Friends with Benefits' loyalty program, which has over 6.5 million members. During the third quarter of 2025, the program added over 200,000 new members.

Increase Benihana capacity by adding 2 to 3 Teppanyaki tables per restaurant system-wide. This is being implemented to create meaningful capacity increases that directly boost revenue potential.

Drive positive traffic at STK, which saw a 4.1% transaction increase in Q1 2025. STK achieved positive traffic for the third consecutive quarter as of Q3 2025.

Convert up to nine underperforming Grill units to higher-margin STK or Benihana formats. The portfolio optimization effort involved closing six underperforming Grill locations, with five closed in the second quarter and one in the third quarter of 2025. The company plans to convert up to an additional nine units by the end of 2026.

Relocate underperforming venues to higher-quality real estate for stronger returns. Recent relocations and remodels, such as the STK relocation in Los Angeles, California (Westwood) in May 2025, are delivering improved margins and sales performance.

Here's a quick look at how key brand metrics trended during the first three quarters of 2025:

The ONE Group Hospitality, Inc. is also focusing on operational execution to support this strategy:

• Achieved Restaurant EBITDA margins of 17.7% for STK in Q1 2025.
• Achieved Restaurant-level EBITDA margins of 20.1% for Benihana in Q1 2025.
• Reported Adjusted EBITDA growth of 233% to $25.2 million in Q1 2025.
• The newly redesigned Benihana in San Mateo achieved record performance as the top opening in the brand's history.

The ONE Group Hospitality, Inc. (STKS) - Ansoff Matrix: Market Development

Market Development for The ONE Group Hospitality, Inc. centers on taking existing, proven restaurant concepts like STK and Benihana into new geographic territories and non-traditional sales channels. This strategy is heavily weighted toward capital-efficient growth, meaning less direct investment from The ONE Group Hospitality, Inc. per new location.

The near-term plan for 2025 is aggressive in terms of unit expansion, aiming to open a total of 5 to 7 new venues for the full year, which includes a mix of company-owned and franchised sites. This is being executed while simultaneously optimizing the existing portfolio, which involved closing seven underperforming Grill locations in the second quarter and identifying up to nine additional conversions to Benihana or STK formats through the end of 2026.

The commitment to an asset-light model is a core driver here, with management stating the long-term goal is for franchised, licensed, and managed locations to represent over 60% of the total footprint. This shift helps fund growth while maintaining balance sheet flexibility.

The Benihana brand is key to this strategy, moving beyond traditional dining rooms. The company is leveraging existing operational footprints by expanding Benihana into non-traditional venues, specifically utilizing its presence in 3 professional sports stadiums, which generates 9 million fan impressions annually. Furthermore, the Benihana Express model is being deployed to enter new, smaller domestic markets, with the second franchise Benihana Express location opening in Miami in the second quarter. This format allows for asset-light expansion without the full build-out of a traditional location.

For the STK brand, which already operates in major metropolitan cities in the U.S., Europe and the Middle East, the focus is on targeted international growth. While past activity included signing agreements for three new STK locations in Dubai and Abu Dhabi, the current Market Development focus is on targeting new major metropolitan cities in Europe and the Middle East for further STK penetration, using licensing deals to grow without significant capital investment.

Here's a quick look at the 2025 expansion targets and relevant financial context:

The success of the asset-light approach is tied directly to the performance of the new formats and existing brands in new markets. For example, the newly redesigned Benihana in San Mateo became the top-performing opening in the brand's history, validating the updated format which includes adding 2 to 3 Techniaki tables per restaurant to boost capacity.

The growth pipeline for Market Development includes:

• Opening 5 to 7 new venues in 2025.
• Expanding Benihana into non-traditional venues, leveraging 3 professional sports stadiums.
• Targeting a total footprint where franchise/managed locations exceed 60%.
• Utilizing the Benihana Express model for smaller domestic markets, with the second Express location opened in Q2.
• Continuing STK expansion in Europe and the Middle East through licensing agreements.

The ONE Group Hospitality, Inc. is focused on scaling its platform efficiently. The current total footprint, following the Benihana acquisition, is approximately 166 venues across 32 states and 12 countries as of 2024. The goal is to expand the total restaurant count to approximately 200 by 2030.

The ONE Group Hospitality, Inc. (STKS) - Ansoff Matrix: Product Development

Product Development within The ONE Group Hospitality, Inc. (STKS) focuses on enhancing existing offerings to increase customer spend and frequency across its portfolio, especially in response to recent top-line pressures.

Introduce premium holiday menus, like the Q3 2025 Wagyu and seafood focus, to boost average check.

The Q3 2025 premium holiday menu, centered on Wagyu and premium seafood, was introduced to align with more intentional diners. This product development effort occurred while consolidated comparable sales for Q3 2025 decreased by 5.9% year-over-year, with total GAAP revenues at $180.2 million. The goal is to lift the average check, which for Kona Grill in 2023 was $63 per transaction, compared to $64 in 2024.

Strategically expand Kona Grill's menu to reduce reliance on pressured categories like seafood.

Management noted headwinds across Kona Grill's core categories of seafood and sushi, prompting a strategic menu expansion to introduce broader culinary options less sensitive to economic fluctuations. This is part of a larger plan that sees the Kona Grill brand aiming for up to 200 restaurants nationwide.

Develop exclusive, high-margin cocktail and bar programs for the Vibe Dining experience.

The bar experience is a key driver for The ONE Group Hospitality, Inc.'s Vibe Dining concepts. In 2024, beverage sales at owned STK restaurants accounted for approximately 22% of owned STK restaurant revenues, and for Grill Concepts restaurants (which includes Kona Grill), beverage sales were approximately 20% of restaurant revenues.

Implement system-wide digital enhancements to improve online ordering and reservation conversion.

Digital product enhancements were rolled out across brand websites, including Benihana, STK, and Kona Grill, featuring fresh, mobile-optimized designs that are increasing both traffic and conversion rates. This digital push supports the Friends with Benefits loyalty program, which gained over 200,000 new members during the third quarter of 2025, bringing the total membership base to over 6.5 million members.

Offer new experiential dining packages at Benihana, like private chef teppanyaki classes.

Benihana continues to push experiential product development with its 'Be the Chef' program, offering a one-on-one training session with a master chef. This product offering has clear pricing tiers:

The experiential nature of this product is designed to drive engagement and premium spend, contrasting with the average transaction size of $111 at owned Benihana restaurants in 2024.

Here's a quick look at some operational metrics related to the portfolio undergoing optimization:

• Total GAAP revenues for Q3 2025: $180.2 million.
• Adjusted EBITDA for Q3 2025: $10.6 million.
• Total company-owned operating expenses as a percentage of company-owned restaurant net revenue projected for FY 2025: approximately 83.5%.
• STK average domestic check per person (2023): $130.
• STK average domestic restaurant revenues (2023): $17.3 million.

The ONE Group Hospitality, Inc. (STKS) - Ansoff Matrix: Diversification

The ONE Group Hospitality, Inc. (STKS) is pursuing diversification strategies, which involve moving into new markets and developing new offerings beyond its core STK Steakhouse and Kona Grill concepts. This is happening while the company is actively optimizing its existing portfolio, as evidenced by the Q3 2025 results.

The financial context as of the third quarter ended September 28, 2025, shows the need for strategic capital deployment:

Aggressively grow the ONE Hospitality management arm by securing new high-end hotel and casino contracts.

The ONE Group Hospitality, Inc.'s ONE Hospitality segment provides food and beverage hospitality management services for high-end venues in the U.S. and Europe. The company views franchise licenses and managed locations as a path to asset-light expansion, expecting these to represent over 60% of the total footprint over time. This strategy minimizes direct capital deployment while expanding brand presence through management contracts.

Develop a new, polished casual concept outside the current steakhouse or Japanese cuisine defintely portfolio.

The current portfolio includes STK (steakhouse), Kona Grill (polished casual grill), Benihana (interactive dining/sushi), and RA Sushi (Japanese cuisine). The company is actively converting underperforming Grill locations to either STK or Benihana formats, which requires about $1 million in capital investment per conversion. The goal for these conversions is to generate approximately $10 million in restaurant-level EBITDA and over $100 million in revenue across the converted units.

Acquire a complementary, non-restaurant hospitality service business, such as a catering company.

The company has been focused on portfolio optimization, closing 7 Grill locations across Q2 and Q3 2025. The available liquidity, including $6 million in cash and $28.7 million available under the revolving credit facility as of September 28, 2025, provides a base for potential strategic capital allocation, though no specific acquisition figures are public.

License the Vibe Dining concept as a turnkey food and beverage service for third-party venues.

This aligns with the asset-light growth focus. The company recently opened its second franchised Benihana Express location in Miami, Florida, which expands the Benihana brand without deploying company capital. The company targets a new restaurant opening every four to six weeks for the foreseeable future, as stated previously, with the Express format driving franchise interest.

• Franchise licenses and managed locations expected to exceed 60% of total footprint.
• The Express format is noted for generating strong franchise interest.
• The company previously targeted best-in-class ROIs of between 40 percent and 50 percent for STK and Kona Grill.

Launch a branded line of premium retail products, like STK sauces or Benihana rice.

While the company is focused on expanding its physical footprint and management services, the Q3 2025 results highlighted strategic initiatives including a new premium holiday menu and an expanded loyalty program to drive consumer engagement. The company is also executing a share repurchase program, having purchased 0.2 million shares for aggregate consideration of $0.6 million during Q2 2025.

• STK achieved positive traffic for the third consecutive quarter.
• Benihana delivered positive same-store sales in Q2 2025.