GEN Restaurant Group Sells 47 Locations to Chubby Cattle Group
Cerritos-based GEN Restaurant Group Inc. agreed to sell 47 restaurant operations to Chubby Cattle Group for $100 million, a transaction that reduces lease liabilities and pivots the Korean barbecue operator toward consumer packaged goods. The deal is slated to close within 30 days, setting off a 12-month restaurant transition period.
Under the agreement, New York-based Chubby Cattle will fund all conversions and buildouts for the acquired sites. These locations will rebrand either as “GEN X” concepts or under existing Chubby brands. GEN will retain operating profit for each restaurant until its official takeover date, with the first 12 locations scheduled to transfer by Nov. 1. GEN also sold four development sites to Chubby while keeping three core locations in Cerritos, Boston, and Hawaii to support research, development, staff training, and retail operations.
Retail Expansion Targets National Grocery Chains
With its lease liabilities reduced, GEN is directing its focus toward scaling its consumer packaged goods division. David Kim, co-founder, chair, and chief executive of GEN, pointed to a rising domestic demand for Korean cultural exports as the driver behind the retail push. Kim noted that consumers increasingly seek out Korean food, fashion, and sports alongside broader cultural experiences, creating a major market void in the United States.
Gen Korean restaurants will be sold to Chubby Cattle Group for $100M. The transaction — first announced in August — is moving forward, as Gen Restaurant Group transitions into the retail-only space. https://t.co/q14wrbtSA6
GEN launched its retail line last October across 30 Southern California grocery stores. The product lineup has since grown from ready-to-cook meats to include soju, snacks, and sauces. Distribution has expanded to more than 2,000 retail doors nationwide, including Albertson Cos. Inc., Costco Wholesale Corp., and Smart & Final Stores. To support this growth, the company recently hired East Coast executives.
According to GEN’s second-quarter financial report, consumer packaged goods revenue surged 341% compared to the first quarter, with June sales exceeding $2 million. The company projects a 12-month revenue run rate between $35 million and $45 million, targeting more than 8,000 additional retail locations.
Chubby Cattle Valuation and Membership Targets
The acquiring company brings substantial scale to the partnership. Operating as the parent to Chubby Cattle, Wagyu House, The X Pot, and NIKU X, the company recently raised $50 million in series A funding. Valued at $500 million, Chubby operates over 70 locations across more than 25 brands, generating $233 million in revenue in 2025. The company plans to expand its footprint to 100 restaurants and reach one million members in its loyalty program by 2026.
The transaction also grants GEN a $1.5 billion equity note and provides Chubby Cattle with a perpetual license to use the GEN brand name. Following the Oct. 14 sales announcement, GEN’s stock price climbed to a three-month peak of $2.53 per share before closing at $1.69 on Thursday.
Frequently Asked Questions About the GEN and Chubby Cattle Deal
What happens to the employees at the 47 restaurants being transferred?
Chubby Cattle Group is funding all restaurant conversions and buildouts during the 12-month takeover schedule. GEN retains operating profit for each location until the transition of that specific site is finalized.
Which GEN Restaurant Group locations are remaining with the company?
GEN is keeping three operational locations—its branches in Cerritos, Boston, and Hawaii—to focus on staff training, research and development, and consumer packaged goods operations.
How much revenue is the consumer packaged goods division generating?
GEN’s second-quarter financial report shows that retail revenue grew 341% since the first quarter, with June generating over $2 million. The company projects an annual revenue run rate of $35 million to $45 million over the next 12 months.