Gen Korean BBQ will now operate under the Chubby Cattle Group. Photo courtesy of Gen Restaurants
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Gen Restaurant Group is getting out of the foodservice industry and selling all 47 Gen Korean restaurants in a $100 million transaction.
The deal was first announced in August, and the buyer has now been revealed to be Chubby Cattle Group, which owns and operates 70 locations of more than 25 Asian fine-dining, casual-dining, and fast-casual restaurant brands across the United States, including Chubby Cattle, NIKU X, Wagyu House, and The X Pot.
Gen Restaurant Group announced on Wednesday that the board approved the transaction and the company has signed a binding letter of intent to sell its U.S. restaurant operations, while maintaining the Gen brand and CPG business. Gen will also remain publicly traded.
“Securing a binding LOI with Chubby is a major milestone for Gen as part of the company’s continued evolution into a premier CPG brand,” David Kim, CEO and chairman of Gen, said in a statement. “We know Chubby through a partnership that is already delivering operating progress. This transaction would substantially reduce our restaurant lease obligations while giving Gen the option to participate in Chubby’s growth.”
Chubby Cattle Group was founded in 2016 by founders Harby Yang, David Zhao, and Joyce Li. The company recently completed a $500 million fundraising round and is targeting 100 restaurants by the end of 2026. Chubby owns its supply chain and designs and builds its own stores.
“Acquiring these 47 restaurants gives Chubby an established, high-traffic platform to accelerate our national growth,” Zhao said in a statement. “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.”
Gen will maintain ownership of three restaurants, including Cerritos, to support staff training and research and development.
The previously announced joint venture between Chubby and Gen, in which the latter will hold a 49% interest, is separate from this transaction.
The deal between Gen Restaurant Group and Chubby Cattle Group is expected to close within the next 30 days.
Contact Joanna at joanna.fantozzi@informa.com
Dining and Cooking