The ONE Group Reports 3.3% Revenue Decline in Q2 2026, Plans Expansion

The ONE Group Hospitality, Inc. reported a decrease in total revenues for the second quarter of 2026, with figures dropping to $200.5 million, down 3.3% from $207.4 million in the same period last year. The decline is attributed primarily to the closure of certain restaurants as part of a strategic optimization of the Grill Concepts portfolio. For the six-month period ending June 28, 2026, total revenues also fell by 1.2% to $413.3 million compared to $418.5 million in the prior year. Despite the revenue decline, the company achieved an operating income of $6.6 million for the second quarter, a significant increase from $0.7 million in the same quarter of 2025.

The company’s owned restaurant net revenue decreased by 3.2% to $197.3 million for the three months ended June 28, 2026, primarily due to reduced sales from Grill Concepts restaurants that were closed or converted. However, the company reported an increase in comparable restaurant sales of 0.9% during the same period. The management, license, franchise, and incentive fee revenue also saw a decline, dropping to $3.2 million from $3.5 million year-over-year, largely due to the exit from a management agreement in Scottsdale, Arizona.

Operationally, the company reported a restaurant operating profit of $32.4 million for the second quarter, reflecting a 3.8% increase from the previous year. This improvement was driven by lower food and beverage costs, which decreased by 10.9% to $38.5 million, and a reduction in owned restaurant operating expenses. The company’s general and administrative expenses rose by 19.7% to $14.0 million, influenced by inflationary pressures and investments in technology. The net loss attributable to The ONE Group was $2.1 million for the quarter, a notable improvement from a loss of $10.1 million in the same quarter of 2025.

In terms of strategic developments, The ONE Group has been actively expanding its footprint, with plans to open six to ten new venues in 2026. Recent openings include a new STK restaurant in Phoenix, Arizona, and a Benihana restaurant in Riverton, Utah. The company is also converting existing locations, such as a franchised Benihana restaurant to a company-owned format. As of June 28, 2026, The ONE Group operated 158 venues globally, including 32 STKs and 86 Benihanas, with ongoing efforts to optimize its restaurant portfolio.

Looking ahead, The ONE Group aims to prioritize capital-efficient growth, focusing on locations that require lower initial investments. The company plans to convert additional Grill Concepts locations to Benihana or STK formats, which are expected to be accretive to EBITDA. With a current cash position of $6.4 million and available credit of $28.7 million, The ONE Group is positioned to support its operational and expansion plans in the coming months.