What are the four reportable operating segments that Benihana identified after the reorganization in 2019?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company has identified its reportable operating segments as follows:
- STK. The STK segment consists of the results of operations from STK restaurant locations, competing in the full-service dining industry, as well as management, license and incentive fee revenue generated from the STK brand and pre-opening expenses associated with new restaurants.
- Kona Grill. The Kona Grill segment includes the results of operations of Kona Grill restaurant locations and pre-opening expenses associated with new restaurants.
- ONE Hospitality. The ONE Hospitality segment is composed of the management, license and incentive fee revenue and results of operations generated from the Company's other brands and venue concepts, not including STK or Kona Grill, which include Bao Yum, Heliot, Hideout, Radio and Rivershore Bar & Grill. Additionally, this segment includes the results of operations generated from F&B hospitality management agreements with hotels, casinos and other high-end locations.
- Corporate. The Corporate segment consists of the following: general and administrative costs, stock-based compensation, lease termination expenses, transaction costs, COVID-19 related expenses and other income and expenses. This segment also includes STK Meat Market, an ecommerce platform that offers signature steak cuts nationwide, and revenue generated from gift card programs. The Corporate segment's total assets primarily include cash and cash equivalents, the Kona Grill tradename, and deferred tax assets.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, following a reorganization in 2019, Benihana identifies four reportable operating segments. These segments provide a breakdown of the company's business activities for financial reporting and management purposes. Understanding these segments can give a prospective franchisee insight into the different facets of Benihana's overall business model.
The first segment is STK, which includes the operations of STK restaurant locations. This segment also accounts for management, license, and incentive fee revenue generated from the STK brand, including pre-opening expenses for new restaurants. The second segment is Kona Grill, which focuses on the operations of Kona Grill restaurant locations, including pre-opening expenses for new restaurants.
The third segment is ONE Hospitality, which includes revenue and operations from other brands and venue concepts excluding STK and Kona Grill. These include Bao Yum, Heliot, Hideout, Radio, and Rivershore Bar & Grill. This segment also covers food and beverage hospitality management agreements with hotels, casinos, and other high-end locations.
Finally, the Corporate segment covers general and administrative costs, stock-based compensation, lease termination expenses, transaction costs, COVID-19 related expenses, and other income and expenses. This segment also includes STK Meat Market, an e-commerce platform, revenue from gift card programs, cash and cash equivalents, the Kona Grill tradename, and deferred tax assets.