What revenue is included in the Benihana ONE Hospitality segment?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Our reportable operating segments are 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 operations of STK restaurant locations.
- Kona Grill. The Kona Grill segment includes the results of operations of Kona Grill restaurant locations.
- ONE Hospitality. The ONE Hospitality segment is comprised of the management, license and incentive fee revenue and results of operations generated from our other brands and venue concepts, which include ANGEL, Bao Yum, Heliot, Hideout, Marconi, 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.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the ONE Hospitality segment includes several revenue streams. It is composed of management, license, and incentive fee revenue, as well as results of operations from other brands and venue concepts, excluding STK and Kona Grill. These other brands include ANGEL, Bao Yum, Heliot, Hideout, Marconi, Radio and Rivershore Bar & Grill.
Additionally, the ONE Hospitality segment incorporates revenue from food and beverage (F&B) hospitality management agreements with hotels, casinos, and other high-end locations. This means that Benihana generates revenue by managing and operating food and beverage services in these venues, adding another layer to the segment's financial performance.
For a prospective Benihana franchisee, understanding the composition of the ONE Hospitality segment is crucial because it highlights the diverse revenue streams beyond the core STK and Kona Grill brands. This segment showcases Benihana's ability to leverage its expertise in hospitality management across various types of venues, potentially offering franchisees insights into additional business opportunities or management strategies that could be applied to their own operations.