The ONE Group Hospitality Sees Big Opportunity for Benihana Express

The ONE Group Hospitality is actively expanding its Benihana Express concept, leveraging insights from its recent acquisition of a Miami location. CEO Manny Hilario noted that the Miami restaurant generates around $1.2 million in annual revenue within an 800- to 1,000-square-foot space, significantly benefiting from lower food and labor costs, which run at 20% and 25%, respectively. The development costs for new locations are estimated at approximately $500 per square foot.

The shift towards Benihana Express represents a strategic departure from the traditional Benihana format, which relies on more extensive space and specialized staffing for its teppanyaki offerings. Hilario emphasized the concept's versatility in delivering recognizable menu favorites in a convenient, take-out format. He remarked, “Our positioning of the concept is that we can bring the great craveable food of the Benihana model, which we all get a lot of great feedback from customers on particularly the fried rice and some of the items that we have on the menu,” highlighting customer satisfaction.

While The ONE Group did not disclose a specific target for the total U.S. unit count of Benihana Express, Hilario referred to the opportunity as significant, given the smaller footprint and the simplified staffing model. Currently, a new company-owned restaurant is under construction in Denver, alongside a licensed location in the Florida Keys, both expected to open by the end of the year. Future franchise agreements will require a 6 percent royalty along with an additional 2 percent for marketing contributions.

The foundation laid so far—including branding, prototype development, and operational models—positions The ONE Group effectively to attract new franchisees, as interest in the concept has begun to grow. Additionally, the overall performance of Benihana, which recorded a same-store sales increase of 0.8 percent in Q2 with expanding restaurant-level margins, suggests a solid operational base for this expansion.

Looking ahead, the overall pace of Benihana Express’s development may depend on the ability of The ONE Group to efficiently onboard and support new franchisees, building on a healthy performance from its traditional restaurant business.