Hi we try to to see if Watson can generate this feature : Given a list of words, build a categorical tree with a predefined branching factor. E.g., having a restaurant menu in a list, build a tree with at most 5 children at each parent node, where each node is a particular category. Does anyone knows if that is possible?
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Take a look at Watson Concept Insights. The related_concepts method is a close match to your requested feature.

chughts
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You could do that using Concept Expansion (see Has anyone heard about a replacement for the Concept Expansion service?)
But since this service is going to be closed, I suggest you to try Wordnet instead.