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New American Gone but not forgotten Downtown & 5th Ave 1998–2024

Kona Grill: The Fashion Square Original That Went National (1998–2024)

Kona Grill was born at Scottsdale Fashion Square on September 18, 1998, grew into a NASDAQ-listed national chain on macadamia nut chicken and mall sushi, and quietly closed its original location in April 2024 after a 25-year run.

Illustration of Kona Grill (the original), new american in Downtown & 5th Ave, Scottsdale, Arizona

The 30-second version

  • Kona Grill opened September 18, 1998 at Scottsdale Fashion Square, founded by Michael McDermott as an evolution of his 1994 Scottsdale restaurant Sushi on Shea.
  • Its sushi-plus-American-grill menu — macadamia nut chicken as the flagship — defined a whole era of upscale mall dining.
  • The company went public on NASDAQ in 2005 and expanded nationwide from its Scottsdale roots.
  • After a 2019 bankruptcy, The ONE Group acquired the chain for $25 million; the brand survived and continues elsewhere in the Valley.
  • The original Fashion Square location closed quietly in April 2024 when its lease expired, ending 25 years at the mall where it all began.

Ran

1998–2024

Where

7014 E Camelback Rd, Scottsdale Fashion Square, Scottsdale, AZ 85251

Price

$$$$

Order this

Macadamia nut chicken

Born

Sept 18, 1998, at the mall

Peak

NASDAQ-listed national chain

What was the original Kona Grill?

Before “born in Scottsdale, scaled to the nation” became the city’s signature restaurant export model, one glossy room at the mall wrote the playbook in real time.

Kona Grill opened at Scottsdale Fashion Square on September 18, 1998, the creation of restaurateur Michael McDermott — an evolution of Sushi on Shea, the neighborhood sushi spot he’d launched in 1994. The insight was almost embarrassingly simple: put a real sushi bar and an American grill in the same stylish room, park it where the shoppers already are, and let everyone at the table win. Dad gets a steak, mom gets sashimi, the kids get macadamia nut chicken — the shoyu-cream-sauced flagship that would headline the menu for a quarter century.

It worked so well it left Scottsdale. The company went public on NASDAQ in 2005 and multiplied across the country, making Kona Grill one of the first concepts to prove that Scottsdale’s mall-adjacent, sushi-friendly, happy-hour-driven dining formula was a national product. The later chapters were rockier — bankruptcy in 2019, a $25 million rescue by The ONE Group — but the brand survived.

The original didn’t, quite. In April 2024, with its lease expiring and Fashion Square’s energy long since migrated to the luxury wing, the first Kona Grill closed without ceremony — no farewell tour, just a dark storefront where a 25-year run began and ended. The chain carries on elsewhere. The mall where it was born moved on to fancier tenants that, in a real sense, it helped teach the way.

The formula that fed the 2000s

Kona Grill’s menu was a peace treaty. Every table in America contains competing appetites, and the sushi-plus-grill format resolved them in one order: spicy tuna rolls next to burgers, pad thai next to pizzas, and the macadamia nut chicken as the universal crowd-pleaser — crusted, pan-fried, sauced in shoyu cream, the dish regulars ordered on their first visit in 1999 and their last in 2024. Purists sniffed at a menu that broad. Families, first dates, and shopping parties filled the room for 25 years.

Happy hour was the real engine. The big central bar ran discounted sushi and appetizers into the early evening, catching the after-work and after-shopping waves, and for a generation of Scottsdale twenty-and-thirty-somethings it was a default meeting spot — affordable enough for Tuesday, polished enough to feel like an occasion. Much of the chain’s national success was simply this bar, franchised.

The mall location was strategy, not compromise. Fashion Square in 1998 was ascending toward retail dominance, and Kona Grill positioned itself as the built-in reward: valet-adjacent, patio on Camelback, visible from the parking structure. Dinner-and-a-movie, engagement-ring-then-celebrate, teenage birthday upgrade — the restaurant was woven into two decades of the mall’s rituals.

And the room aged the way chains age. Corporate redesigns came and went; the menu ballooned, slimmed, ballooned again through the public-company years. Regulars learned to ignore the churn and order the constants: the chicken, a couple of rolls, whatever the happy-hour sheet blessed. By the final decade the original had become something poignant — a 1998 idea of upscale-casual, still executing faithfully, while the city’s dining ambitions sprinted past it a hundred yards away.

Born at the mall, buried by the mall

Kona Grill’s arc is a clean core sample of Scottsdale dining history. It begins in the same civic moment that produced P.F. Chang’s, which had launched at Fashion Square in 1993 and was busy proving a Scottsdale mall restaurant could become a national brand. McDermott’s Sushi on Shea success plus that proof equaled Kona Grill: sushi mainstreamed, mall-sited, scale-ready. Alongside P.F. Chang’s original and the first RA Sushi — another Scottsdale-born, nationally scaled sushi concept of the same vintage — it made 1990s Scottsdale, improbably, one of America’s great incubators of chain-restaurant ideas.

The 2005 NASDAQ listing was the high-water mark of that incubator era’s confidence, and the 2019 bankruptcy its cautionary epilogue: overexpansion into weaker malls nationwide did what overexpansion does. The ONE Group’s $25 million acquisition saved the brand, but the center of gravity had left Scottsdale long before.

The quiet April 2024 closing of the original carries the real historical weight. Fashion Square had spent the 2010s reinventing its dining from mall-adjacent to destination-luxury — Nobu, Ocean 44, Toca Madera, even the ill-fated Francine — a wing whose entire premise Kona Grill had helped establish: that people come to this mall to eat. The founder generation’s reward was a lease expiration. No plaque marks the spot where a NASDAQ company was born between a department store and a parking garage.

Honest assessment: Kona Grill was never anyone’s best meal, and that was never the assignment. It democratized sushi for a suburban generation, perfected the happy-hour social contract, and proved — twice over, birth and death — that Scottsdale’s dining story is inseparable from its retail story. Twenty-five years at one address is a monument in this city. Pour out a shoyu cream sauce for the original.

The Kona Grill (the original) timeline

  1. 1994

    Michael McDermott opens Sushi on Shea in Scottsdale, the neighborhood sushi restaurant whose success seeds a bigger idea.

  2. 1998

    Kona Grill opens September 18 at Scottsdale Fashion Square — sushi bar plus American grill in one glossy room, an instant fit for the booming mall.

  3. 2005

    Kona Grill goes public on NASDAQ, and the Scottsdale-born concept scales into a national chain through the 2000s and 2010s.

  4. 2019

    Overexpansion catches up: the company files for bankruptcy and is acquired by The ONE Group for $25 million, which stabilizes the brand.

  5. 2024

    The original Fashion Square location closes quietly in April as its lease expires, ending a 25-year run at the mall where the brand began; the chain lives on elsewhere.

Questions people actually ask

Why did the original Kona Grill at Fashion Square close?

The original location closed in April 2024 when its lease at Scottsdale Fashion Square expired — a quiet business decision rather than a dramatic failure. By then the mall's dining energy had shifted to its luxury wing, and the 25-year-old flagship's chapter simply ended.

Is Kona Grill still in business?

Yes — the chain survived its 2019 bankruptcy through a $25 million acquisition by The ONE Group and continues operating locations, including elsewhere in the Valley. Only the original Scottsdale Fashion Square restaurant is gone.

Who founded Kona Grill?

Michael McDermott, who opened it September 18, 1998 at Scottsdale Fashion Square as an evolution of his earlier Scottsdale restaurant, Sushi on Shea, which he'd started in 1994. The sushi-plus-grill hybrid became the template for a national chain.

What was Kona Grill known for?

Macadamia nut chicken was the signature dish for the brand's entire life, alongside a broad menu that put a full sushi bar next to American grill fare. That combination — sushi at the mall, cocktails after shopping — defined 2000s upscale-casual dining.

Was Kona Grill from Hawaii?

No — despite the name's island vibes, Kona Grill was born in Scottsdale, Arizona, and grew from a local sushi restaurant on Shea Boulevard into a NASDAQ-listed national company headquartered in the Valley.

Facts checked: September 5, 2026 • Curated by Matt Cheramie • A "Gone but not forgotten" entry: this restaurant has closed and is kept here as Scottsdale history.