A restaurant group is considering selling its 54 Korean BBQ locations for about $100 million.
GEN Restaurant Group, Inc., which also is involved in consumer-packaged goods, announced Monday that it received an offer from a nationwide restaurant operator to acquire its US restaurant operations.
The name of the buyer was not revealed but GEN appears to be seriously considering the proposal, which would shift the company’s focus from restaurants to packaged goods and retail.
“Receiving this proposal is a testament to the GEN brand and the value we have already built,” said David Kim, Chairman and Chief Executive Officer of GEN.
“Our Board of Directors, together with our financial and legal advisors, will carefully review and evaluate the proposal to determine the path that is in the best interests of the company and all its shareholders. We believe a transaction of this nature could make strategic sense.”
GEN leadership says the sale would monetize 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, Kim said.
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.
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“We believe that positions us well for the future,” he said. “The early response from the retail and other grocery customers has been significant, and we believe it gives GEN a compelling position in the category. We are also strengthening the organization around this. A transaction like this could allow us to dedicate our resources fully to the (CPG) business while strengthening our balance sheet through the sale of our restaurants.”
By the end of 2026, GEN is projected to have products in 1,500 to 2,000 locations across the United States. The company is estimating $35-$40 million in revenue over the next 12 months.
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.
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Dining and Cooking