The ONE Group Hospitality, Inc. (STKS): Business Model Canvas [Dec-2025 Updated]

You're looking past the stock ticker to find the real engine driving The ONE Group Hospitality, Inc. (STKS), especially with their fiscal year 2025 revenue target hovering between $820 million and $825 million. Honestly, their model is a smart blend: they own the high-energy Vibe Dining experience like STK, but they are aggressively pushing asset-light growth through franchising and management deals, aiming for $14 million to $15 million in those fees alone. This Business Model Canvas strips away the noise to show you the nine critical pieces-from optimizing their brand portfolio to managing that massive 6.5 million+ member loyalty program-that make this strategy work. Keep reading to see the precise structure behind their next phase of growth.

The ONE Group Hospitality, Inc. (STKS) - Canvas Business Model: Key Partnerships

You're looking at how The ONE Group Hospitality, Inc. (STKS) uses external relationships to scale without tying up too much of its own capital. This asset-light focus is central to their strategy, especially with the integration of Benihana.

Franchisees and licensees for asset-light expansion

The push toward asset-light growth is aggressive; management expects franchise licensed and managed locations to eventually make up over 60% of the total footprint. This reduces capital intensity for expansion. So far in 2025, the company opened its second franchise Benihana Express location in Miami during the second quarter. This model is clearly gaining traction, though Q3 2025 saw a slight dip in fee revenue, as management noted the exiting of 2 license agreements. The long-term pipeline is substantial, targeting over 400 Benihana opportunities in the U.S. alone, alongside a roadmap for over 200 potential STK locations globally.

Here's a look at the financial expectation for this segment in fiscal year 2025:

High-end hotel and casino operators for ONE Hospitality F&B management

The ONE Hospitality platform is the vehicle for these management partnerships, which require minimal capital outlay from The ONE Group Hospitality, Inc. The typical target for these F&B hospitality service opportunities is to generate at least $500,000 of annual pre-tax income. The company currently operates venues in professional sports stadiums, using 3 such locations to generate 9 million fan impressions annually, with more airport and arena opportunities under discussion. For instance, the F&B partnership at the W Hotel in Los Angeles continues, where The ONE Group Hospitality, Inc. operates The Hideout restaurant and bar.

The structure of these management relationships is designed to generate management fees, often calculated as a percentage of the operation's revenues, plus potential milestone and incentive fees based on profitability.

• Target Annual Pre-Tax Income per F&B Opportunity: $500,000
• Number of Stadium Venues Currently Operating: 3
• Annual Fan Impressions from Stadium Venues: 9 million
• F&B Venues in Hotels/Casinos (as of Dec 31, 2024): 9 in 4 properties

Key protein and premium seafood suppliers for menu consistency

Menu consistency relies on strong supplier relationships, particularly for premium items that define the core concepts. The ONE Group Hospitality, Inc. is actively aligning its offerings with current diner preferences, as seen with the new premium holiday menu focusing on Wagyu and premium seafood. While specific supplier names aren't public, the brand focus dictates the partnership needs. STK features premium steaks and specialty cocktails, whereas Kona Grill is strategically diversifying its menu to lessen dependence on seafood and sushi, areas currently facing market headwinds.

Real estate developers for new venue locations (5-7 planned in 2025)

The development roadmap is being executed through a mix of owned, franchised, and managed locations, with developers being key to securing high-potential sites. The company plans to add 5 to 7 new venues in the 2025 fiscal year. Through the third quarter, this included 4 company-owned venues and 1 franchise location. The relocation of Kona Grill San Antonio is also part of this strategy to unlock stronger returns in existing markets. STK unit economics are a benchmark for new site selection, generating approximately $11 million in annual revenues with restaurant-level margins exceeding 20%.

New venue performance expectations guide site selection:

Finance: draft 13-week cash view by Friday.

The ONE Group Hospitality, Inc. (STKS) - Canvas Business Model: Key Activities

You're looking at the core actions The ONE Group Hospitality, Inc. takes to deliver value, and honestly, it's all about execution right now, especially with the integration of recent acquisitions and navigating margin pressures. Here are the hard numbers behind those activities as of late 2025.

Operating the Vibe Dining experience across all brands

The focus here is on maximizing throughput and maintaining the high-energy atmosphere that defines the experience. For the flagship STK brand, transaction growth was strong in the first quarter of fiscal year 2025, showing a positive 4.1%. To help with capacity, The ONE Group Hospitality, Inc. is actively implementing a system-wide upgrade, adding 2 to 3 Techniaki tables per restaurant to directly boost revenue potential. Furthermore, for the Benihana brand, a key operational goal for the fourth quarter of 2025 is to shrink table turns from 120 minutes down to 90 minutes to serve more guests during peak dinner times.

Strategic portfolio optimization, converting Grill units to STK/Benihana

This is about pruning underperformers and upgrading concepts. Through the second and third quarters of 2025, The ONE Group Hospitality, Inc. took decisive action by closing 7 underperforming Grill locations in Q2 and 1 additional location in Q3. Looking forward, management has identified up to 9 more Grill locations slated for conversion to either the Benihana or STK formats through the end of 2026. The first conversion of an RA Sushi location to an STK format was completed in Scottsdale, Arizona, opening at the end of October 2025. Once all planned conversions are done, the expectation is to operate profitable locations generating approximately $10 million in restaurant-level EBITDA and over $100 million in revenue.

Culinary innovation, like the new premium Wagyu holiday menu

Innovation is key to keeping the menu fresh and attracting intentional diners. The ONE Group Hospitality, Inc. introduced a new premium holiday menu centered around Wagyu and premium seafood. Separately, at Kona Grill, they are diversifying the menu to lessen dependence on seafood and sushi, categories facing current market headwinds.

Managing the 6.5 million+ member Friends with Benefits loyalty program

The loyalty program is a major driver for repeat business. As of the Q3 2025 earnings call, the Friends with Benefits program has surpassed 6.5 million members. In the third quarter alone, the company added over 200,000 new members. The perks are concrete:

• Earn 1 point for every $1 spent across participating brands.
• Receive a $50 birthday reward annually.
• Get a free appetizer instantly upon signing up.

New venue development and relocation of underperforming sites

Growth continues through new builds and strategic moves. Year-to-date through Q3 2025, The ONE Group Hospitality, Inc. opened 4 new company-owned venues and 1 franchise location. The full-year 2025 guidance anticipates 5 to 7 new venues in total. A significant relocation involved STK Los Angeles moving to a larger venue, while the former location reopened as Samurai Steakhouse. Franchise momentum is accelerating, with the second franchised Benihana Express opening in Q2. Management projects that franchise licenses and managed locations will soon account for over 60% of the total footprint.

Here's a quick look at the development pipeline and recent financial context:

The company maintains approximately $45 million in liquidity to fund this growth and other needs. Finance: draft 13-week cash view by Friday.

The ONE Group Hospitality, Inc. (STKS) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets that power The ONE Group Hospitality, Inc. (STKS) as of late 2025. These are the foundational elements that let them execute their Vibe Dining strategy.

Portfolio of high-value brands: STK, Benihana, Kona Grill, RA Sushi

The brand portfolio is central, especially following the major integration of Benihana and RA Sushi completed in 2024. This diversification across steakhouse, teppanyaki, and polished casual concepts spreads risk and captures different dining occasions. As of March 30, 2025, the total footprint across all concepts stood at 166 venues, which included owned, managed, licensed, and franchised locations. The company planned to add 5 to 7 new venues throughout fiscal year 2025.

For context on unit performance, in 2024, owned and managed STK restaurants open at least 24 months averaged domestic revenues of $15.5 million, with an average check per person of $127. The new Benihana prototype location in San Mateo, California, is annualizing at approximately $8 million in revenue.

Proprietary Vibe Dining concept and high-energy restaurant designs

The core intangible asset is the 'Vibe Dining' concept, which The ONE Group Hospitality, Inc. aims to be the global leader in. This concept is heavily reliant on high-energy designs, particularly evident at STK, where beverage sales accounted for approximately 22% of owned restaurant revenues in 2024. The focus on an energetic atmosphere is a key differentiator, helping STK achieve restaurant-level EBITDA margins of 17.7% in Q1 2025.

Intellectual property and operational know-how for teppanyaki

Owning the Benihana brand means owning the intellectual property for the only national teppanyaki brand in the U.S.. This includes the operational know-how for the interactive dining experience where highly skilled chefs cook on a flat-top grill in front of guests. The company is applying this experiential focus across the portfolio, noting that beverage sales at owned Benihana restaurants accounted for approximately 12% of their revenues from May 1, 2024, to December 31, 2024.

Real estate leases in major metropolitan, destination cities

The portfolio is strategically concentrated in high-value, high-traffic locations. STK specifically operates in major metropolitan cities across the U.S., Europe, and the Middle East. The company's strategy involves securing real estate in these destination cities, which supports the premium pricing and high-energy environment that drives revenue. The acquisition of Benihana and RA Sushi in May 2024 nearly tripled the total footprint to 168 venues worldwide, significantly expanding the physical asset base.

Customer data from the 6.5 million member loyalty program

The 'Friends with Benefits' loyalty program is a massive data resource. As of the third quarter of 2025, the program had grown to over 6.5 million members. The company added over 200,000 new members in Q3 2025 alone, with newly enrolled guests showing the strongest repeat participation. This data is used to maximize membership size and drive engagement to strengthen brand connection.

The loyalty program obligation is a financial liability on the balance sheet, though the deferred revenue allocated to unredeemed loyalty points was a small figure, $0.2 million, as of December 31, 2024.

Finance: draft 13-week cash view by Friday.

The ONE Group Hospitality, Inc. (STKS) - Canvas Business Model: Value Propositions

You're looking at how The ONE Group Hospitality, Inc. (STKS) delivers distinct value across its portfolio of brands as of late 2025. The core is blending high-quality offerings with a specific atmosphere, which drives customer choice.

Vibe Dining: Upscale cuisine blended with a high-energy, social atmosphere

This value proposition is centered around the STK brand, which mixes a modern steakhouse with a chic lounge. The goal is to create a social dining experience, often featuring a DJ-curated soundtrack. This approach delivered a transaction growth of 4.1% at the flagship STK brand in the first quarter of 2025, showing customer engagement with the atmosphere. Still, the overall comparable sales for all brands were down 4.1% in Q2 2025, indicating the environment remains challenging for even high-energy concepts.

The financial performance of this segment shows the premium nature of the offering, though margins have seen pressure. For instance, the profit margin for company-owned STK revenue declined from 17.7% in Q1 2025 to 15.9% in Q2 2025 amid elevated costs. To give you a concrete example of the upscale nature, dinner pricing at STK NYC Midtown begins at $95 per person.

The ONE Group Hospitality, Inc. operates a total of 30 STK venues as of early 2025, which are key drivers of their revenue, which reached $211.1 million in Q1 2025.

Experiential dining through Benihana's interactive teppanyaki chefs

For the Benihana concept, the value is in the interactive entertainment provided by the teppanyaki chefs alongside the meal. This experiential element helped this brand achieve positive comparable sales of 0.7% in the first quarter of 2025, contrasting with the overall consolidated comparable sales decline.

Premium American steakhouse experience with high-quality cuts at STK

Beyond the vibe, STK offers premium cuts, supporting its positioning as a superior steakhouse. This is evident in menu pricing, where specific premium offerings are priced high, such as the Kagoshima Prefecture A5 Picanha at $109 for 6oz or the Masami Ranch California Strip at $149 for 12oz. The company is working to maintain this quality while managing costs, as seen in the margin compression noted earlier.

Polished casual, bar-centric grill concept for broader appeal (Kona Grill)

Kona Grill targets a broader audience with its polished casual, bar-centric grill concept, serving American cuisine, sushi, and specialty cocktails. As of early 2025, The ONE Group Hospitality, Inc. operated 27 Kona Grill locations. Historically, in 2023, the average Kona Grill restaurant generated revenues of approximately $5.2 million, with an average spend per transaction of $63. The company believes it can grow the Kona Grill brand to 200 restaurants over the foreseeable future.

Turnkey F&B management for high-end hospitality venues

The ONE Hospitality platform provides fee-based solutions, including developing, managing, and operating F&B services for hotels and casinos. This is a capital-light strategy for growth. The ONE Group Hospitality, Inc. typically targets these F&B hospitality service opportunities where they believe they can generate at least $500,000 of annual pre-tax income. As of early 2025, this segment included 9 F&B venues across four hotels and casinos in the United States and Europe.

The value propositions contribute to the overall financial picture, with The ONE Group Hospitality, Inc. reiterating full-year 2025 GAAP guidance for total revenue between $835 million and $870 million.

Here is a quick summary of the brand footprint contributing to these value propositions as of early 2025:

The company's overall financial health reflects the integration of these value drivers. Total GAAP revenues for Q2 2025 were $207.4 million, and Adjusted EBITDA for Q1 2025 grew 233% to $25.2 million.

The ONE Group Hospitality, Inc. (STKS) - Canvas Business Model: Customer Relationships

You're looking at how The ONE Group Hospitality, Inc. (STKS) keeps guests coming back, which is critical when consolidated comparable sales dropped by 5.9% year on year in Q3 2025. The focus here is on building deep, measurable relationships across their portfolio of brands.

Friends with Benefits loyalty program for repeat visits and engagement

The Friends with Benefits rewards program is central to driving repeat visits. The company is focused on growing this program to fuel long-term business growth. As of the third quarter of 2025, the program had amassed over 6.5 million members. That's a significant base, with the program adding over 200,000 new members just during Q3 2025. The program's structure is designed to reward spend across all participating venues, including STK Steakhouse, Kona Grill, Benihana, RA Sushi, Samurai, or Salt Water Social.

Here's a breakdown of the core value proposition for members:

• Earn 1 point for every dollar spent.
• Receive a $50 birthday reward annually.
• Get a free appetizer instantly upon signing up.
• Access to exclusive events, promotions, and giveaways.

The management's stated objectives for the program are clear: maximize membership size, drive organic sign-ups, and increase member engagement to strengthen brand connection and repeat visits.

High-touch, superior service model to support the Vibe Dining concept

The Vibe Dining concept relies on this superior service, which is measurable in the unit economics of the core brands. High quality, they believe, drives customer satisfaction, which supports premium pricing and better margins. For instance, in the first quarter of 2025, the flagship STK brand achieved a restaurant-level EBITDA margin of 17.7%, while Benihana hit 20.1%. This operational profitability is the financial proof of the service model's success, even when consolidated comparable sales were negative 5.9% in Q3 2025.

The service model is also adapting to consumer intent. For example, The ONE Group Hospitality, Inc. (STKS) introduced a new premium holiday menu featuring Wagyu and premium seafood to align with selective diners who are more intentional about their choices.

The relationship between service quality and financial performance is evident in the brand strength:

Mobile-optimized brand websites to increase traffic and conversion rates

The ONE Group Hospitality, Inc. (STKS) has actively upgraded its digital storefronts. They rolled out fresh, mobile-optimized designs for Benihana, STK, Kona Grill, and RA Sushi, which are reported to be increasing both traffic and conversion rates. This focus on digital experience is vital, as general industry data shows that while mobile accounts for about 73% of all traffic, desktop still converts at roughly 2x the rate of mobile (4.3% vs 2.2% in one 2025 benchmark). For the food and beverage industry specifically, the average conversion rate in 2025 was cited in the range of 4.9% to 7.06%. Improving the mobile experience directly addresses the traffic share disparity to capture more of that high-volume mobile audience.

Targeted marketing to selective diners focused on premium offerings

The marketing strategy is geared toward the intentional diner, which aligns with the premium menu shifts mentioned earlier. This targeted approach is supported by general digital marketing trends showing that personalized experiences drive consumer action. For instance, data suggests that 80% of consumers are more likely to purchase from brands that offer personalized experiences. Furthermore, data-driven advertising is expected to yield significantly better results, with general statistics indicating data-driven ads deliver 3x higher conversion rates than non-targeted ones. The company's focus on premium offerings, like Wagyu, is a direct application of targeting diners who are less sensitive to macro-economic uncertainty and more focused on high-value experiences.

Finance: draft 13-week cash view by Friday.

The ONE Group Hospitality, Inc. (STKS) - Canvas Business Model: Channels

The ONE Group Hospitality, Inc. (STKS) utilizes a multi-channel approach to capture revenue, balancing capital investment with asset-light expansion.

Company-owned restaurants (primary channel for revenue)

Company-owned operations form the core revenue base, though the strategic focus is shifting toward capital-efficient models.

The company closed 5 Grill Concept locations.

Franchised and licensed locations for capital-efficient growth

This channel supports capital-efficient expansion, with long-term targets leaning heavily on third-party operation.

Managed F&B services in hotels, casinos, and resorts (ONE Hospitality)

The ONE Group Hospitality, Inc. provides hospitality management services across various high-end venues, which is captured within the managed/licensed revenue streams.

• Managed STK restaurant opened in Ontario, Canada in 2024.
• The company targets asset-light development of managed STKs and Kona Grills.

Non-traditional venues like professional sports stadiums and airports

Specific standalone financial data for stadiums and airports is not separately itemized, but these venues fall under the managed/licensed segment.

• The second Benihana Express opened in May 2025 at Bayside Marketplace.

The ONE Group Hospitality, Inc. reported Total GAAP Revenues for Q3 2025 of $180.2 million.

The ONE Group Hospitality, Inc. (STKS) - Canvas Business Model: Customer Segments

You're looking at who The ONE Group Hospitality, Inc. (STKS) is serving right now, based on the latest operational data through late 2025. It's a mix, but the premium end is definitely driving the higher spend per head.

Affluent, upscale diners seeking a high-energy, social experience

This segment is primarily targeted by the STK brand, which is positioned as a modern steakhouse blending a chic lounge feel. The experience is designed to be a social destination, complete with a DJ playing music throughout the restaurant. For owned and managed STK restaurants open at least 24 months at the end of 2024, the average check per person was $127. This group is still showing engagement; STK transactions grew by 4.1% in the first quarter of 2025, and saw a 2.8% increase in customer transactions in the second quarter of 2025. The bar component is significant here, as beverage sales accounted for approximately 22% of owned STK restaurant revenues in 2024.

Corporate and group event organizers for private dining and buyouts

While direct revenue segmentation for private events isn't public, the focus on high-end metropolitan locations suggests this segment is crucial for large-format bookings. The company is expanding into markets with demographic and discretionary spending profiles that favor their high-end concept, a key consideration when scouting new sites. The average domestic restaurant revenue for an owned/managed STK open over 24 months in 2024 was $15.5 million.

International travelers and tourists in major metropolitan markets

The ONE Group Hospitality, Inc. operates STK restaurants across North America, Europe, and the Middle East. The strategy involves targeting metropolitan areas, which naturally captures a significant portion of international visitors. The company plans to open between five to seven new venues in the full year 2025.

Polished casual diners seeking a bar-centric, diverse menu

This group is served by the Grill Concepts segment, which includes Kona Grill and RA Sushi. Kona Grill is specifically described as a bar-centric grill concept featuring American favorites in a polished casual atmosphere. In 2024, the average transaction at Kona Grill was $64. For the Benihana brand, which also contributes to this segment, the average transaction in 2024 was $111 for owned restaurants. The company is working to diversify menus, like at Kona Grill, to reduce reliance on categories facing market pressures.

Here's a quick look at the average spend metrics we have for the core concepts based on 2024 data:

The customer base is also being actively engaged through digital channels and loyalty efforts. The Friends with Benefits loyalty program is a key tool for driving repeat visits across the portfolio. As of the third quarter of 2025, the program has grown to over 6.5 million members.

• STK owned restaurant beverage sales were approximately 22% of revenue in 2024.
• STK saw transaction growth of 4.1% in Q1 2025.
• Benihana same store sales increased by 0.7% in Q1 2025.
• The company planned to open five to seven new venues in fiscal year 2025.

The ONE Group Hospitality, Inc. (STKS) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive The ONE Group Hospitality, Inc.'s (STKS) operational expenses as of late 2025. Honestly, managing costs in this high-end, experiential dining space is all about controlling the big buckets, especially after integrating a brand like Benihana.

The company provided specific guidance for its full-year 2025 cost structure metrics during its Q3 earnings call. These figures show where the majority of the revenue dollar is going before we even get to corporate overhead. For instance, the company-owned restaurant operating expenses-think daily running costs like labor, utilities, and supplies, excluding the direct cost of food-were projected to be approximately 83.5% of company-owned restaurant net revenue for fiscal year 2025.

Then you have the direct cost of what you serve. The cost of sales, which definitely includes protein sourcing, which is a huge driver for STK and Benihana, was guided to be about 21.1% of company-owned restaurant net revenue for the full year 2025. To be fair, this was slightly up from 20.9% in the prior year quarter, showing that commodity inflation was definitely still biting.

Here's a quick look at those key operational cost percentages from the full-year 2025 guidance:

Moving up to the corporate level, general and administrative costs (G&A), excluding stock-based compensation, were projected to land around $46 million for the full fiscal year 2025. For context, the G&A for Q2 2025 alone was reported at $11.662 million.

When you look at capital expenditures for new venues and relocations, the strategy is shifting toward a more capital-light approach, but investment is still happening. The company planned to open five to seven new venues in 2025. The anticipated net capital expenditure per new location was estimated to be between $3 million and $5 million per site. While the specific total net CapEx figure of $50 million wasn't confirmed in the latest reports, the per-unit investment is clear.

Finally, the cost of real estate itself, particularly for those high-end, destination spots, is a major factor. While we don't have a specific 2025 occupancy cost percentage for The ONE Group Hospitality, Inc., we do see the impact of existing leases. For example, Q2 2025 included $5.6 million in lease exit costs related to shutting down underperforming grill locations, which definitely shows the financial weight of those real estate commitments.

You should keep an eye on a few other related costs:

• Restaurant pre-opening expenses were guided to be between $5 million and $6 million for FY2025.
• The Q3 GAAP net loss was heavily impacted by a non-cash loss on impairment of $3.4 million related to the Grill optimization strategy.
• The company maintained a strong liquidity position, reporting $45 million in liquidity as of the end of Q3 2025.

Finance: draft 13-week cash view by Friday.

The ONE Group Hospitality, Inc. (STKS) - Canvas Business Model: Revenue Streams

The ONE Group Hospitality, Inc. (STKS) revenue streams are primarily driven by its owned and operated restaurant concepts, supplemented by asset-light management and franchise agreements.

Total GAAP revenues for fiscal year 2025 are projected to be between $820,000,000 and $825,000,000. This projection is based on anticipated consolidated comparable sales declines of between 2% and 3% for the full year.

The largest component of revenue comes from the direct operation of its venues.

For example, in the third quarter of 2025, company-owned restaurants net revenue totaled $177,400,000, representing the vast majority of the $180.2 million in total GAAP revenues for that quarter.

The asset-light segment provides a smaller, but consistent, revenue stream.

Managed, franchise, and license fee revenues are projected to be between $14,000,000 and $15,000,000 for fiscal year 2025. In the third quarter of 2025, this specific stream generated $2,800,000, down from $3,400,000 in the prior year quarter.

The ONE Group Hospitality, Inc. (STKS) revenue composition can be viewed through the lens of its most recent reported quarter's breakdown:

The revenue generated from sales of premium food and beverage, including high-margin alcohol, is embedded within the company-owned restaurant net revenue figure. The ONE Group Hospitality, Inc. (STKS) focuses on upscale and experiential dining, suggesting a high proportion of revenue from alcohol sales, though a specific dollar amount for this sub-segment is not separately itemized in the available guidance.

Revenue from F&B consulting and management fees from third-party venues is captured within the broader managed, franchise, and license fee category, which has the $14 million to $15 million projection for the full year 2025.

Key drivers contributing to the company-owned revenue include:

• STK brand transaction growth.
• Performance of acquired brands like Benihana.
• Comparable sales trends across the portfolio.