GEN Restaurant Group $100 Million Deal with Chubby Group for 47 Restaurants

GEN Restaurant Group $100 Million Deal with Chubby Group will transfer 47 US restaurants to a new operator. GEN Restaurant Group has entered into a binding letter of intent to sell operations at the restaurants for $100m. GEN is a Korean BBQ brand in the United States. The deal still needs definitive agreements and approvals.

GEN Restaurant Group $100 Million Deal with Chubby Group Explained

Under the deal, GEN will retain the GEN brand and its Korean consumer packaged goods business. The GEN board approved the proposal unanimously. The companies aim to complete the transaction within 30 days. Completion depends on definitive agreements, licence and lease transfers, and regulatory approvals.

Chubby Group will take over the 47 restaurants in four phases over 12 months. It will fund restaurant conversions and build outs. GEN will keep operating profits until each handover.

Debt Reduction and Balance Sheet Impact

The deal is expected to reduce GEN's roughly $160m in lease liabilities. It will also add a term note receivable to the balance sheet. GEN expects to eliminate its remaining debt after completion. It may use extra capital for growth investment, dividends or share repurchases.

After the transaction, GEN may convert any unpaid balance of the term note into Chubby Group equity. The conversion would be at a $1.5 billion valuation. This gives GEN the option to share in Chubby's growth.

GEN Shifts Focus to Consumer Packaged Goods

GEN was founded in 2011 by two Korean immigrants in Los Angeles. It has become one of the leading Korean BBQ restaurant industry USA brands. The company will remain publicly traded. It will keep about three restaurants for training, staffing and CPG research and development.

GEN plans to restructure its corporate operations to focus solely on the CPG business. Chairman and CEO David Kim called the deal a major milestone. He said it supports the company's evolution into a premier Korean consumer packaged goods platform. He added that the term note adds a meaningful asset and helps clear debt.

About Chubby Group and Its Growth Plans

Chubby Group was founded in 2016. It operates more than 70 locations across over 25 brands. These include Chubby Cattle, Wagyu House, The X Pot, NIKU X, Chubby Skewers and Chubby Bowls. The group expects system wide sales of $400m in 2026. It plans to open 30 more restaurants by year end.

The takeover of 47 sites would add scale to its portfolio. The phased handover over 12 months gives the group time to convert each location. It also lets GEN manage the transition step by step. Both companies say they are moving quickly toward closing.

Readers can find more details about the brand on the official GEN Korean BBQ website.

For more updates from the industry, read the latest restaurant news on Hospitality Career Profile. Stay tuned for more announcements on deals, openings and expansion plans across the hospitality sector.