From Nation's Restaurant News · · 1m 50s
Gen Korean restaurants sold to Chubby Cattle Group for $100M
Gen Restaurant Group sells 47 Korean BBQ restaurants to Chubby Cattle Group for $100 million.
In brief
Gen Restaurant Group sells 47 Korean BBQ restaurants to Chubby Cattle Group for $100 million. Gen Restaurant Group is selling all 47 of its Gen Korean restaurants to Chubby Cattle Group for $100 million to focus on CPG business. Originally reported by Nation's Restaurant News.
Gen Restaurant Group sells 47 restaurants
Gen Restaurant Group is selling all 47 of its Gen Korean restaurants in a $100 million transaction to Chubby Cattle Group.
Chubby Cattle Group owns 70+ Asian brands
Chubby Cattle Group operates 70 locations across more than 25 Asian fine-dining, casual-dining, and fast-casual restaurant brands in the United States.
Gen maintains three restaurants
Gen will keep ownership of three restaurants, including Cerritos, for staff training and research and development.
Chubby targets 100 restaurants by 2026
Chubby Cattle Group recently completed a $500 million fundraising round and aims to reach 100 restaurants by the end of 2026.
Gen transitions to retail-only
Gen Restaurant Group is moving out of the foodservice industry to focus on its CPG business while remaining publicly traded.
Chubby's phased transition plan
Chubby will build on the Korean BBQ experience with a wagyu-forward menu during a disciplined, phased transition of operations.
Transaction expected to close soon
The deal between Gen Restaurant Group and Chubby Cattle Group is expected to close within the next 30 days.
Gen's CEO statement
David Kim, CEO and chairman of Gen, said securing a binding letter of intent with Chubby is a major milestone for Gen’s evolution into a premier CPG brand.
Chubby's CEO statement
Harby Yang, David Zhao, and Joyce Li founded Chubby Cattle Group in 2016 and will take over operations with a wagyu-forward menu.
Joint venture separate from sale
The previously announced joint venture between Chubby and Gen, where Gen holds a 49% interest, is separate from this transaction.
The bottom line
Gen Restaurant Group is selling all 47 of its Gen Korean restaurants to Chubby Cattle Group for $100 million to focus on CPG business.
