What was the net income attributable to The ONE Group Hospitality, Inc., which includes Benihana, in 2023?

According to Benihana's 2024 Franchise Disclosure Document, the net income attributable to The ONE Group Hospitality, Inc. was $4,718,000 in 2023. This is a decrease compared to 2022, when the net income attributable to The ONE Group Hospitality, Inc. was $13,534,000.

This net income figure is a key indicator of the financial performance of Benihana's parent company. Prospective franchisees should note this decrease in net income when evaluating the overall financial health and stability of the Benihana franchise system. While a decrease in net income does not automatically indicate financial instability, it is a point that potential franchisees should investigate further.

Understanding the factors that contributed to this change is crucial. As stated in the FDD, the decrease in operating income was due to higher pre-opening expenses, increased depreciation expense, and higher labor costs. Franchisees should inquire about Benihana's strategies for managing these costs and improving net income in the future.