GEN Korean BBQ Sells 47 Restaurants to Chubby Group for $100 Million

GEN Restaurant Group has announced a significant deal to sell its 47 restaurant locations nationwide to Chubby Group, the operator behind wagyu chains Chubby Cattle and Mikiya Wagyu Shabu House, for $100 million. The transaction, which is pending regulatory approval and lease transfers, is expected to close within 30 days.

Under the terms of the agreement, Chubby Group will assume control of the GEN restaurants over the next 12 months. The new operator plans to introduce a menu with a greater emphasis on wagyu beef, while continuing to offer the core Korean BBQ experience that GEN is known for. GEN, which has 21 locations in California, anticipates that the sale will help alleviate approximately $160 million in restaurant lease liabilities and clear its outstanding debt.

Following the divestiture of its restaurant operations, GEN will re-focus its business strategy on its expanding Korean packaged-food division. This includes ready-to-cook marinated meats sold through major retailers like Costco and Albertsons. The company will retain ownership of the GEN brand name and will operate three restaurants for purposes of employee training, staffing, and product development.

Chubby Group, a rapidly growing entity in the Asian dining market, currently manages over 70 locations across more than 25 brands, including The X Pot and Niku X. The acquisition of GEN's restaurants will further solidify its presence. Some diners, like former GEN server Brandon Lee, have expressed anticipation for the change, viewing Chubby Group's offerings as a "more elegant and mature experience."

GEN Korean BBQ was founded in 2011 by two Korean immigrants in Los Angeles. Chubby Cattle and Mikiya Wagyu Shabu House each currently operate six locations in California.