The ONE Group Hospitality, Inc. (STKS): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at The ONE Group Hospitality, Inc. (STKS) right now, and honestly, the strategy is a classic case of premium focus meeting portfolio discipline as we head into late 2025. I've seen this play before: you lean hard into what works-the upscale 'Vibe Dining' experience anchored by STK-while making the tough calls, like closing six underperforming Grill locations, to clear the deck for 5 to 7 new venues this fiscal year. The financials back this up: they are projecting GAAP revenue between $\mathbf{\$820}$ million and $\mathbf{\$825}$ million, even with comparable sales softening to negative $\mathbf{3\%}$ to negative $\mathbf{2\%}$, which tells me the premium pricing is holding, supported by a loyalty base over $\mathbf{6.5}$ million strong. Let's dive into the specifics of their Product, Place, Promotion, and Price to see exactly how they plan to hit that $\mathbf{\$95}$ million to $\mathbf{\$100}$ million Adjusted EBITDA target.

The ONE Group Hospitality, Inc. (STKS) - Marketing Mix: Product

The product element for The ONE Group Hospitality, Inc. centers on delivering an integrated, high-energy hospitality experience, which the company defines as Vibe Dining. This concept blends upscale cuisine with a sophisticated, high-energy ambiance, setting it apart from more traditional competitors. This operating philosophy guides the development and design of all its venues, from the signature white horn wall and vibrant neon signs at STK to the interactive teppanyaki stations at Benihana.

The portfolio is anchored by four primary restaurant brands, alongside its management services arm. As of March 10, 2025, The ONE Group Hospitality, Inc. operated, managed, licensed, or franchised a total of 166 venues globally. The breakdown of these core concepts was:

• STK Steakhouse: 30 locations.
• Benihana: 84 locations.
• Kona Grill: 27 locations.
• RA Sushi: 16 locations.
• F&B Venues in Hotels/Casinos: 9 venues across four hotels and casinos in the U.S. and Europe.

The company is actively managing its portfolio; for instance, during the fourth quarter of 2025, one RA Sushi restaurant was closed and converted into an STK restaurant.

The performance metrics for the core brands provide insight into product strength. For owned and managed STK restaurants open at least 24 months in 2024, the average domestic restaurant revenues reached $15.5 million, with an average check per person of $127. The restaurant-level EBITDA margin for STK was reported at 17.7%. Benihana, which became the largest revenue contributor post-acquisition, operates 86 locations and achieved a restaurant-level EBITDA margin of 20.1%. Kona Grill, with 27 U.S. locations, typically sees restaurant margins hovering around 9-12%.

Culinary innovation is ongoing, particularly within the flagship concepts. STK continues to feature its premium offerings, including cuts of Wagyu from around the globe and signature items like the legendary Lil' BRG Sliders. While specific financial data for a new premium Wagyu and seafood holiday menu is not yet public, the company's overall consolidated comparable sales for the third quarter of 2025 decreased by 5.9%, indicating market pressure on the existing product mix. This pressure is reflected in company-owned restaurant operating expenses rising to 67.6% of net revenue in Q3 2025, compared to 66.2% the prior year.

The ONE Hospitality segment is the turnkey product offering for third-party venues. This business develops, manages, and operates premier restaurants and comprehensive food and beverage services for high-end hotels and casinos in the U.S. and Europe. Clients include operators of global hospitality brands such as the W Hotel, ME Hotel, Curio by Hilton, and Hippodrome Casino. This segment provides a crucial asset-light growth avenue, as the company plans to open 5 to 7 new venues in total for fiscal year 2025.

The overall product strategy is geared toward scale, with The ONE Group Hospitality, Inc. projecting total GAAP revenues between $820 million and $825 million for the full fiscal year 2025, despite the comparable sales decline.

The ONE Group Hospitality, Inc. (STKS) - Marketing Mix: Place

The ONE Group Hospitality, Inc. deploys a distribution strategy focused on placing its concepts in high-visibility, high-traffic, and affluent areas globally. This involves a mix of company-owned, managed, and franchised units to maximize market penetration and maintain an asset-light trajectory.

Focus on high-end, destination locations in major US, European, and Middle Eastern metropolitan cities.

• STK Steakhouse features restaurants in major metropolitan cities across the U.S., Europe, and the Middle East.
• As of September 28, 2025, The ONE Group Hospitality, Inc. operated, managed, franchised or licensed a total of 157 venues.

Portfolio optimization for 2025 includes closing six underperforming Grill locations.

The ONE Group Hospitality, Inc. executed a strategic portfolio review, specifically targeting the Grill brand for optimization. This involved closing 6 underperforming locations: 5 in the second quarter and 1 in the third quarter of 2025.

Furthermore, the company plans to convert up to an additional 9 Grill units to either Benihana or STK formats by the end of 2026. The first conversion of an RA Sushi location to an STK opened in Scottsdale, Arizona, in October 2025.

Plan to open 5 to 7 new venues in the 2025 fiscal year, balancing owned and franchised units.

The ONE Group Hospitality, Inc. reiterated its plan to open between 5 to 7 new venues for the 2025 fiscal year. Year-to-date through Q3 2025, the company had opened 5 new venues: 4 company-owned and 1 franchised location.

• Owned Benihana in San Mateo, California (March 2025).
• Owned STK in Topanga, California (April 2025).
• Owned STK in Los Angeles, California (May 2025 - relocation).
• Franchised Benihana Express in Miami, Florida (June 2025).
• Owned STK conversion in Scottsdale, Arizona (October 2025).

Expanding asset-light footprint into non-traditional venues like 3 professional sports stadiums.

The asset-light strategy is supported by expanding concepts into non-traditional venues. Benihana currently operates in 3 professional sports stadiums, generating 9 million fan impressions annually, with more airport and arena opportunities under discussion. The long-term goal is for franchise license and managed locations to represent over 60% of the total footprint.

Relocations, like STK Los Angeles, are a key strategy to unlock stronger returns in existing markets.

Strategic relocations are used to increase capacity and enhance returns in established markets. The longstanding STK Los Angeles restaurant relocated to a new venue at 1100 Glendon in Westwood in May 2025, offering increased capacity over the former W Hotel location. The former STK Los Angeles location was reopened as Samurai Steakhouse, which The ONE Group continues to operate. A Kona Grill relocation in San Antonio is still planned for the fourth quarter of 2025.

The ONE Group Hospitality, Inc. (STKS) - Marketing Mix: Promotion

Promotion encompasses all the activities and tactics a company employs to communicate about its product to the target audience, aiming to increase awareness, interest, and desire, and ultimately drive purchases. This can include advertising, sales promotions, public relations, direct marketing, and social media engagement. Effective promotion strategies ensure that the right messages are delivered through the most suitable channels to reach the target audience, persuasively conveying the product's benefits and differentiators.

The ONE Group Hospitality, Inc. (STKS) heavily leans on its owned customer base for repeat business, a critical focus given the consolidated comparable sales decline of 5.9% reported in the third quarter of 2025. The primary engine for this is the loyalty initiative.

The 'Friends with Benefits' loyalty program has reached over 6.5 million members as of the third quarter of 2025. This program is a powerhouse for driving repeat business, evidenced by the addition of over 200,000 new members in that single quarter alone. Newly enrolled guests are demonstrating the most repeat participation within the program.

The objectives for this best-in-class program are clear:

• Maximize membership size by converting members from other TOG marketing programs.
• Drive organic sign-ups through increased awareness and engagement.
• Increase member engagement within the program to strengthen brand connection and repeat visits.

Targeted grassroots marketing and digital engagement are key to driving guest frequency. The digital component is seeing direct investment and enhancement. Digital enhancements across brand websites, including Benihana, STK, Kona Grill, and RA Sushi, feature fresh, mobile-optimized designs. These upgrades are specifically designed to improve both traffic and conversion rates.

These digital improvements, paired with the loyalty platform, position The ONE Group Hospitality, Inc. to compete effectively as national chains ramp up promotional activity. This proactive digital and loyalty focus is a defintely necessary response to the competitive promotional environment.

Loyalty members receive tangible, exclusive rewards designed to encourage immediate and future visits. These include an instant free appetizer upon sign-up and a $50 birthday reward. Members earn 1 point for every dollar spent across participating brands like STK, Kona Grill, and Benihana, which can be redeemed for Dining Dollars.

The performance metrics related to these promotional efforts in late 2025 are summarized below:

Furthermore, The ONE Group Hospitality, Inc. introduced a new premium holiday menu focused on Wagyu and premium seafood to align with selective diners' choices, which is another direct promotional tactic for the fourth quarter.

The ONE Group Hospitality, Inc. (STKS) - Marketing Mix: Price

You're looking at how The ONE Group Hospitality, Inc. (STKS) sets the price for its upscale and experiential dining concepts like STK and Benihana, especially given the recent economic headwinds. Price here is about capturing the perceived value of their premium offerings while staying competitive.

The core pricing strategy is premium, which supports what management cites as STK's industry-leading unit economics of approximately $11 million in annual revenue per unit. This premium positioning is crucial for maintaining brand equity across their portfolio.

To navigate shifts in consumer spending, The ONE Group Hospitality, Inc. is actively employing strategic pricing and value-driven menu adjustments. For instance, following the third quarter of 2025, management noted that strategic pricing adjustments contributed to sequential traffic improvements, with the traffic decline narrowing to 6.9% in Q3 2025 from 7.5% in Q2 2025. Furthermore, initiatives like a new premium holiday menu were mentioned as part of the strategy to engage customers.

Here's a look at the key financial targets that frame the pricing environment for the full fiscal year 2025:

The pricing strategy must balance this premium perception with the reality of the market. The anticipated consolidated comparable sales decline of negative 3% to negative 2% for fiscal year 2025 suggests that while the core customer base remains, there is pressure on overall volume or check size that necessitates careful menu engineering.

Consider the context from the third quarter of 2025, which informs the full-year outlook:

• Total consolidated GAAP revenues were $180.2 million.
• Consolidated Comparable Sales decreased by 5.9% year-over-year.
• Restaurant Operating Profit margin was 11.3% of company-owned restaurant net revenue.
• The company is working to improve operational efficiency, such as reducing table turn times at Benihana locations from 120 to 90 minutes, which helps maximize revenue capture from existing covers.

The goal is to ensure that the price charged reflects the high-energy, social experience The ONE Group Hospitality, Inc. brands aim to deliver. Finance: draft sensitivity analysis on a 1% price increase vs. a 1% comparable sales improvement by next Tuesday.