California-born Korean barbecue chain GEN is set to transfer control of 47 restaurants nationwide in a proposed $100 million deal, with the incoming operator planning to revamp the menu.
GEN Restaurant Group said it has agreed to sell its restaurant operations to Chubby Group, the company behind the all-you-can-eat wagyu brands Chubby Cattle and Mikiya Wagyu Shabu House.
Announced Wednesday, the transaction has not yet closed. If completed, Chubby Group would assume control of the restaurants over a 12-month period and introduce a menu with a stronger focus on wagyu while preserving the signature GEN Korean BBQ experience.
GEN operates 21 restaurants in California. The company expects the transaction to reduce its restaurant lease liabilities by roughly $160 million and help clear its outstanding debt.
The company intends to shift its focus away from restaurants and toward its expanding Korean packaged-food operation, including ready-to-cook marinated meats sold through retailers such as Costco and Albertsons.
GEN will continue to own its brand and retain three restaurants, which will be used for employee training, staffing and product development.
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Chubby Group also operates Wagyu House, The X Pot and Niku X. The company has grown into a significant force in the Asian dining sector, with more than 70 locations across over 25 brands.
Brandon Lee, a former Korean BBQ server, welcomed the proposed acquisition, telling the California Post that Chubby Group provides a “more elegant and mature experience” than GEN.
“It is the right time for a necessary change,” said Yeshin Kim, a UCLA student and frequent Korean BBQ customer.
Founded in Los Angeles in 2011 by two Korean immigrants, GEN has expanded into a nationwide restaurant chain, with California continuing to serve as one of its key markets.
Chubby Cattle and Mikiya Wagyu Shabu House each operate six locations in California.
The companies hope to complete the transaction within 30 days, but closing remains contingent on regulatory approvals and the transfer of restaurant leases.
