The Korean BBQ chain GEN, originally from California, is gearing up to sell 47 of its restaurants in a significant $100 million deal. The new management is planning to revamp the menu.
GEN Restaurant Group has confirmed its agreement to transfer its restaurant operations to Chubby Group, known for its popular all-you-can-eat establishments like Chubby Cattle and Mikiya Wagyu Shabu House.
This deal, which was announced on Wednesday and is still pending closure, will allow Chubby to oversee the restaurants over the course of a year. They intend to focus more on wagyu dishes while keeping the essence of the GEN Korean BBQ experience intact.
GEN, boasting 21 locations in California, anticipates that this transaction will help reduce approximately $160 million in lease obligations and assist in tackling its existing debt.
Instead of continuing with restaurants, GEN plans to shift its focus toward its expanding Korean packaged food sector, which includes ready-to-cook marinated meats available at retailers like Costco and Albertsons.
The company will maintain ownership of the GEN brand and three locations for training employees, staffing purposes, and product development.
Chubby Group, which also manages Wagyu House, The X Pot, and Niku X, has established a strong presence in the Asian dining landscape, operating over 70 establishments across more than 25 brands.
A former Korean BBQ server, Brandon Lee, expressed support for the takeover, stating that Chubby Group presents a “more elegant and mature experience” in comparison to GEN.
“This change is certainly timely,” remarked Yeshin Kim, a UCLA student and a frequent visitor to Korean BBQ restaurants.
Founded in 2011 by two Korean immigrants in Los Angeles, GEN has expanded to a nationwide chain, with California remaining a key market.
Chubby Cattle and Mikiya Wagyu Shabu House each have six locations in California as well.
The companies are aiming to finalize the agreement within the next month, though this is contingent upon regulatory approvals and lease transfers.
