Popular Korean BBQ chain sold for $100 million

Alabama Life & CultureGen Korean BBQ in Edison, NJLauren MusniBy Brandon Champion | bchampio@mlive.comA restaurant group has officially sold 47 Korean BBQ locations for $100 million.GEN Restaurant Group, which also is involved in consumer-packaged goods, announced the deal to sell the GEN Korean BBQ locations to Chubby Group on Wednesday. The transaction includes a four-phase, 12-month takeover schedule. Chubby will fund restaurant conversions and buildouts with GEN retaining operating profits until each takeover. GEN will remain publicly traded and retain full ownership of the GEN brand in stores. GEN will also retain approximately three restaurants to support training, staffing research and development. GEN leadership said previously that the sale monetizes its restaurant operations while eliminating long-term liabilities tied to the restaurant industry. Focusing GEN entirely on packaged goods, where revenue growth is accelerating rapidly, also requires less capital than restaurant expansion, David Kim, CEO and Chairman of GEN, said.“This transaction with Chubby is a major milestone for GEN as part of the company’s continued evolution into a premier Korean consumer-packaged goods platform,” Kim said. “This transaction would substantially reduce most of our liabilities on the balance sheet while giving GEN the option to participate in Chubby’s growth. “The term note receivable adds a meaningful asset to our balance sheet, and we expect its proceeds to allow us to eliminate our outstanding debt and strengthen our cash position. We are moving quickly toward closing and believe this is the right next step for GEN and our shareholders.” Gen’s products are sold through several retailers including Albertsons, Stater Brothers, Smart & Final, Save Mart, BevMo and regionally at Costco. The company has made proposals to BJ’s Wholesale Club, Walmart, cruise lines and wholesalers like Sysco’s.Meanwhile, Chubby Group is one of the fastest-growing Asian dining platforms in the United States. Founded in 2016 by Haibin Yang, David Zhao and Joyce Li, the company now operates more than 70 locations across 25+ brands, including Chubby Cattle, Wagyu House, The X Pot, NIKU X, Chubby Skewers, and Chubby Bowls. Chubby owns its supply chain, designs and builds its own stores, runs its own media arm, and connects every guest through the Chubby Club membership app. Chubby expects 2026 sales of $400 million systemwide and plans to open 30 additional restaurants by year-end. Chubby is also targeting one million Chubby Club members in 2026. “Acquiring these 47 restaurants gives Chubby an established, high-traffic platform to accelerate our national growth,” Zhao said. “GEN has built one of the leading Korean BBQ brands in the U.S. As we take over operations, we will build on the Korean BBQ experience these guests know with a wagyu-forward menu, and we are committed to completing this acquisition and executing a disciplined, phased transition.” Founded in 2011 by two Korean immigrants in Los Angeles, GEN’s locations utilize the interactive “grill at your table” format and feature an extensive menu of traditional Korean-inspired dishes.Brandon Champion is a National Trending Reporter for Advance Local based in Grand Rapids, Michigan. Focused on restaurants, food and retail as well as the outdoors including hunting, fishing and national parks....