Benihana's owner bets on a fast-casual offshoot

Benihana Express is a counter-service version of the teppanyaki concept. | Photo: Shutterstock

Benihana owner The One Group has big plans for a smaller version of the teppanyaki concept.

The company is working to expand Benihana Express, a fast-casual offshoot that will focus on speed and convenience rather than experiential, sit-down dining. There is more of an emphasis on bowls and handhelds, such as hibachi burritos. And unlike a regular Benihana, there will be no teppanyaki tables, where chefs cook on a big griddle in front of seated customers.

Instead, visitors will order at the counter. The company also expects Benihana Express to tap into demand for takeout, which already makes up a "significant" amount of Benihana’s business, said One Group CEO Manny Hilario during an earnings call Thursday.

An Express prototype in Miami is pacing at about $1.8 million in annual sales. The company recently opened a second, in Denver, and has plans for a third, in Topanga Mall in Canoga Park, California. A franchised location with a drive-thru is expected to open in the Florida Keys by the end of the year.

Each Express measures around 800 to 1,000 square feet, and costs about $400 to $500 per square foot to build. Food costs are around 20% of sales, while labor is around 25%.

Hilario said the company has seen strong franchisee interest in the brand. “As a result, we have decided in the near term to defer any other license activities to focus on Benihana Express,” he said.

It’s a different approach for Denver-based The One Group, which is known for upscale, atmospheric full-service brands like STK and Kona Grill. It acquired Benihana in 2024 to expand its portfolio, and the chain has performed well recently. In the third quarter, same-store sales rose 0.7%, while traffic was up 2.7%, outpacing One's other brands in the quarter.

A Benihana meal can be a lengthy experience. Table turns averaged 105 minutes in the third quarter, and the company is working to get that down to 90. It believes there is demand for Benihana in an even faster format.

Recasting a full-service brand as a fast casual is far from a slam dunk. Chains such as Red Robin, Outback Steakhouse, IHOP, and P.F. Chang’s have tried their own versions, but have had limited success.

Buffalo Wild Wings Go, an off-premise-focused riff on Buffalo Wild Wings, has been a notable exception.

But The One Group likes what it has seen so far from Benihana Express.

“All the feedback we've gotten from consumers through all the dry runs and everything we've done with it is very, very positive,” Hilario said. “People love getting their Benihana fix on the go, which is the same great food from Benihana, and getting it at counter service. So we've been very, very pleased with that.”

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.