About The ONE Group Hospitality

The ONE Group Hospitality, Inc., a restaurant company, develops, owns and operates, manages and licenses upscale and polished casual, high-energy restaurants and lounges and provides turn-key food and beverage (F&B) services and consulting service for hospitality venues, including hotels, casinos and other high-end locations. The company’s primary restaurant brands are STK, a multi-unit steakhouse concept that combines a high-energy, social atmosphere with the quality and service of a traditional upscale steakhouse, and Kona Grill, a polished casual bar-centric grill concept featuring American favorites, award-winning sushi, and specialty cocktails in a polished casual atmosphere. The company’s F&B hospitality management services are marketed as ONE Hospitality and include developing, managing and operating restaurants, bars, rooftop lounges, pools, banqueting and catering facilities, private dining rooms, room service and mini bars tailored to the specific needs of high-end hotels and casinos. The company also provides hospitality advisory and consulting services to certain clients. The company’s F&B hospitality clients operate global hospitality brands, such as the W Hotel, ME Hotel, Hippodrome Casino, and Curio Collection by Hilton. The company owns, operates, manages or licenses STKs and Kona Grills venues in major metropolitan cities in North America, Europe and the Middle East and F&B venues in hotels and casinos in the United States and Europe. The company intends to open to new venues in 2023, including a Kona Grill restaurant in Columbus, OH which opened in January 2023. The company’s owned STK restaurants (Charlotte, NC; Boston, MA; and Washington D.C.) and Kona Grill restaurants (Riverton, UT and Phoenix, AZ) are under construction. Segments The company operates through STK, Kona Grill, and ONE Hospitality segments. STK This 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 under development. STK is a global steakhouse restaurant concept with locations in major metropolitan cities. STK blends the modern steakhouse and a chic lounge, offering a high-energy, fine dining experience in a social atmosphere with the quality and service of a traditional upscale steakhouse. Each STK location features a large, open restaurant and bar area with a DJ playing music throughout the restaurant, offering the company’s customers a high-energy, fun ‘destination’ environment that encourages social interaction. The company’s menu provides a variety of portion sizes and signature options to appeal to a broad customer demographic. The company operates owned, managed and licensed STK restaurants in North America, Europe and the Middle East. The company’s STK restaurants average approximately 10,000 square feet, and it typically targets locations that range in size from 8,000 to 10,000 square feet. The company focuses on expanding its global STK footprint. The company has identified over 75 additional major metropolitan areas across the globe. Kona Grill This segment includes the results of operations of Kona Grill restaurant locations. Kona Grill is a bar-centric grill concept featuring American favorites, steaks, seafood, award-winning sushi, and specialty cocktails in a polished casual atmosphere. Kona Grill offers freshly prepared food and attentive service in an upscale, contemporary ambiance. The diverse menu is complemented by a full-service bar offering a broad assortment of wines, craft cocktails, and beers. The company owns and operates Kona Grill restaurants within 17 states in the United States. Its Kona Grill restaurants average approximately 7,000 to 8,000 square feet. ONE Hospitality This segment consists of the management, license and incentive fee revenue and results of operations generated from the company’s 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. The company’s ONE Hospitality platform consists of its F&B hospitality management and consulting agreements with hotels, casinos, and other high-end locations, as well as its other brands and venue concepts, which are described as follows: F&B Services: The company’s F&B services for hospitality venues provide attractive and comprehensive tailored food and beverage solutions to its hospitality clients. The company’s fee-based hospitality food and beverage solutions include developing, managing and operating restaurants, bars, rooftops, pools, banquet and catering services, private dining rooms, in-room dining services and mini bars on a contract basis. The company operates venues pursuant to F&B hospitality management agreements with hotels and casinos in the United States and in Europe. ANGEL: ANGEL Rooftop bar and Dining is a sophisticated Southern-Mediterranean restaurant with two indoor and outdoor bars, a floral garden patio, and a plunge pool located within the Hotel Calimala in Florence, Italy. Bao Yum: A fast-casual concept that offers a whimsical twist on classic bao. Bao Yum serves breakfast, lunch, dinner and dessert bao along with a variety of salads, soups, sandwiches and snacks. Bao Yum operates within the Westminster Curio Hotel in London and in Austin, Texas through a licensing agreement with Reef Kitchens. Heliot: Heliot Steak House is an award-winning steakhouse and bar within the Hippodrome Casino in London that offers impressive views of the main casino gambling floor. Hideout: The Hideout by STK is an outdoor, poolside restaurant and bar within the W Hotel in Westwood, California, which complements the company’s owned STK and F&B hospitality services also offered within the W Hotel in Westwood. Radio: Radio Rooftop is a premier rooftop restaurant and lounge bar concept boasting striking city views with a signature location on top of the ME Milan hotel. Rivershore Bar & Grill: Rivershore Bar & Grill celebrates the end of the Oregon Trail with a beautiful river view, American favorites and friendly, professional service in Oregon City, Oregon. The company’s F&B hospitality contracts generate revenues for it through management fees, which are typically calculated as a percentage of the operation’s revenues, and it earns additional milestone and incentive fees based on the operation’s profitability. The company continues to receive inbound inquiries regarding new opportunities globally, and it continues to work with existing hospitality clients to identify and develop additional opportunities in their venues. The company exercised its option to renew the management agreement with ME London to manage STK, Radio, Marconi and in-room dining. Effective January 1, 2023, ME London elected not to renew Radio, Marconi and in-room dining per the agreement. Therefore, the company will continue to manage the STK restaurant at ME London. Marketing Marketing functions include the use of the company’s websites, www.STKsteakhouse.com and www.KonaGrill.com, to facilitate online reservations, to-go/delivery orders and gift card sales to drive revenue. Competition The company experiences competition from a variety of sources, including upscale steakhouse chains, such as Ruth Chris, Del Frisco’s, Fleming’s, Mastro’s and The Capital Grille, local upscale steakhouses and polished casual chains, such as The Cheesecake Factory, Bonefish and BJ’s. There is also competition from other Vibe Dining restaurants, such as Nobu, Lavo and Tao and other high-end hospitality services companies, such as the Gerber Group, Lettuce Entertain You and ESquared Hospitality. Seasonality The company’s business is subject to fluctuations due to seasonality and adverse weather. Typically, the company’s fourth quarter (year ended December 31, 2022) has higher sales volumes than other quarters in the year. Intellectual Property The company owns the U.S. federal registration rights to STK, Kona Grill, and several related word marks and design marks related to its brands. History The ONE Group Hospitality, Inc. was founded in 2004.