Kona Grill

Kona Grill's roots lay in Sushi on Shea, a Scottsdale, Arizona, sushi concept opened in 1994. Michael McDermott developed the broader Kona Grill format by adding substantially more American menu items and emphasizing a contemporary restaurant environment. The first Kona Grill opened on September 18, 1998, at Scottsdale Fashion Square. The resulting concept was designed to occupy the middle and upper-middle portion of the casual-dining market, combining American food, sushi, cocktails, and a modern atmosphere with Hawaiian-inspired visual and culinary cues. McDermott sold Sushi on Shea in 2002 and focused on growing Kona Grill. The company expanded its domestic restaurant base during the 2000s and became publicly traded on August 16, 2005, through an initial public offering on the NASDAQ. The offering was priced at $11 per share and raised $28.8 million. By December 31, 2005, Kona Grill had nine restaurants, giving the company a larger base from which to pursue national expansion. Growth continued into the 2010s. By 2014, Kona Grill had 26 restaurants across 17 states. The company reported same-store sales growth in 14 of the previous 15 quarters, including a 6.2 percent increase, and characterized its performance as ranking in the top quartile of the casual-dining segment. The brand's format depended on menu breadth: guests could choose from conventional American dishes, sushi, and cocktails, allowing restaurants to serve different occasions and preferences under one brand. Kona Grill began international franchising in 2017. Its first international franchise location opened at Fashion Drive in Monterrey, Mexico, in August. A Dubai, United Arab Emirates, location followed at Al Seef in November, and a Vaughan, Ontario, location opened in December. Reference material later described the company as operating approximately 40 restaurants in 23 U.S. states, in addition to three international franchise locations, although the chain's footprint was affected by subsequent closures and restructuring. The company's financial position deteriorated in 2019. On March 4, it retained Piper Jaffray to investigate a merger or sale. Shawn Hassel joined the board on March 21 as chair of the Strategic Alternatives Committee, and Executive Chairman Berke Bakay resigned on March 27. Kona Grill filed for Chapter 11 bankruptcy protection on April 30. Restaurant closures were reported in several markets, including Arizona, Texas, Hawaii, Puerto Rico, and Virginia. The bankruptcy process led to the sale of 24 polished-casual restaurants to Williston Holding for $20.3 million after approval by a federal bankruptcy court. Separate reference material identifies a $25 million acquisition by STK Parent, associated with One Hospitality Group, in 2019. These transactions and the restructuring created ambiguity about the legal and operating continuity of the original public company versus the continuing restaurant brand. The supplied material does not establish a definitive current store count or operating status, so Kona Grill is best documented as a brand with a disrupted corporate history and an unresolved present status.

• 2019

  Chapter 11 filing and restructuring

  [1]Kona Grillen.wikipedia.org

  The company explores a sale, files for Chapter 11, closes multiple locations, and undergoes restaurant-asset transactions.

• 2017

  International franchising begins

  [1]Kona Grillen.wikipedia.org

  Kona Grill opens its first international franchise restaurant in Monterrey, followed by locations in Dubai and Vaughan.

• 2014

  Chain reaches 26 restaurants

  [1]Kona Grillen.wikipedia.org

  The company reports 26 restaurants in 17 states and strong same-store sales performance.

• 2005

  Initial public offering

  [1]Kona Grillen.wikipedia.org

  Kona Grill goes public on the NASDAQ at $11 per share and raises $28.8 million.

• 2002

  Founder sells Sushi on Shea

  [1]Kona Grillen.wikipedia.org

  Michael McDermott sells the predecessor sushi concept to concentrate on Kona Grill's expansion.

• 1998

  First Kona Grill opens

  [1]Kona Grillen.wikipedia.org

  The first Kona Grill opens at Scottsdale Fashion Square on September 18.

• 1994

  Sushi on Shea opens in Scottsdale

  [1]Kona Grillen.wikipedia.org

  The sushi restaurant that preceded Kona Grill opens in Scottsdale, Arizona.

Polished-casual, contemporary dining that combines American cuisine with sushi and cocktails in a Hawaiian-influenced setting.

• Restaurant menu · 1998

  American cuisine

  Kona Grill's American menu formed the broad base of its casual-dining proposition. The concept was deliberately created with more American-themed offerings than its Sushi on Shea predecessor, allowing the restaurants to serve guests looking for familiar entrées, appetizers, and shareable dishes alongside the brand's sushi selection.

• Restaurant menu · 1998

  Sushi and sashimi

  Sushi was central to Kona Grill's identity and connected the chain to its predecessor, Sushi on Shea. Restaurants incorporated a sushi-bar offering into a wider American casual-dining format, helping the brand differentiate itself from conventional casual restaurants while retaining a broad menu suitable for groups with different tastes.

• Beverage program · 1998

  Cocktails

  Cocktails and other bar offerings complemented Kona Grill's food menu and contemporary restaurant environment. The beverage program supported the brand's positioning as a polished-casual venue suitable for dining, social occasions, and evening visits.

• 2019

  Search for a merger or saleM&A

  Background

  Kona Grill faced financial and operational pressure and evaluated alternatives for the company.

  Action taken

  The company hired Piper Jaffray to seek a merger or sale.

  Aftermath

  The strategic review was followed by a Chapter 11 filing and the sale of restaurant assets.

  Source

• 2019

  Chapter 11 restructuringOther

  Background

  The company entered bankruptcy protection after pursuing a sale or merger and experiencing restaurant closures.

  Action taken

  Kona Grill filed for Chapter 11 on April 30 and proceeded with the sale of restaurant assets.

  Aftermath

  A bankruptcy court approved the sale of 24 restaurants to Williston Holding for $20.3 million.

  Restaurant asset sale price. $20.3 million (2019)

  Source

• 2017

  International franchise expansionStrategy

  Background

  After building a domestic restaurant network, Kona Grill sought growth through franchised locations outside the United States.

  Action taken

  The brand opened franchise restaurants in Monterrey, Dubai, and Vaughan during 2017.

  Aftermath

  Reference material described three international franchise locations alongside the U.S. restaurant network.

  Source

• 2005

  Public offering to fund expansionOther

  Background

  Kona Grill had expanded beyond its initial Scottsdale base and sought public-market capital to support its restaurant growth.

  Action taken

  The company completed an IPO on the NASDAQ at $11 per share and raised $28.8 million.

  Aftermath

  The restaurant base reached nine locations by the end of 2005.

  IPO proceeds. $28.8 million raised (August 16, 2005)

  Source

• 2019.10.07

  Reported2019.10.07

  One Group completes acquisition of Kona Grill[3]One Group完成对Kona Grill的收购nrn.com

  One Group Hospitality and its affiliates completed the bankruptcy court purchase of Kona Grill, acquiring 24 domestic restaurants and franchise rights for one international location in Dubai for $25 million in cash and assuming about $11 million in working capital liabilities.

Read more

1. 1Kona Grillen.wikipedia.org
2. 2Restaurant Business coverage of Williston Holdings' Kona Grill purchaserestaurantbusinessonline.com
3. 3One Group完成对Kona Grill的收购nrn.com