Cerritos-based Korean barbecue chain GEN Restaurant Group Inc. has agreed to sell 47 restaurant operations to Chubby Cattle Group for $100 million, freeing it from lease liabilities and firing up the grill in consumer packaged goods.
The deal is expected to close within the next 30 days for the two Asian restaurant groups. They announced a takeover schedule stretching over 12 months, aiming for the first 12 restaurants by Nov. 1 this year. Chubby will fund conversions and buildouts of the restaurants – rebranding as either a “GEN X” continuation of the Korean barbecue concept or one of the Chubby brands – while GEN retains operating profit until each takeover. GEN also sold four development sites to Chubby, though retaining three locations to focus on staff, research and development, and consumer packaged goods training. That includes its branches in Cerritos, Boston and Hawaii.
The transaction further gave GEN a $1.5 billion equity note and Chubby a perpetual license to use the GEN brand. As the parent to Chubby Cattle, Wagyu House, The X Pot and NIKU X, among others, the New York-based company recently raised $50 million in series A funding to support the expansion. It is currently valued at $500 million, operating over 70 locations and more than 25 brands that in 2025 generated $233 million in revenue. Its membership program is also due for an upgrade – Chubby shared plans to grow to 100 restaurants and a million members in 2026.
With its $160 million lease liabilities reduced, GEN is laser-focused on its consumer packaged goods business. The increased interest in Korean cultural exports – led by K-pop, of which Los Angeles has a substantial presence – means there is a large domestic market for Korean packaged goods, said David Kim, co-founder, chair and chief executive of GEN.
“Now there is a big void in the United States market,” Kim told the Business Journal. “As (Korean culture) was getting widely accepted throughout the United States, the consumers in the United States wanted to experience other than cultural (products), but even food and fashion and sports.”
Business shift
Going forward, Kim said, GEN would focus on getting its consumer packaged goods to major retail partners beyond the West Coast. Launched last October in 30 grocery stores in Southern California, the retail line has since expanded from ready-to-cook meats to Soju, snacks and sauces, among others.
Kim shared that the products have reached more than 2,000 doors across the country, including Albertson Cos. Inc., Costco Wholesale Corp. and Smart & Final Stores. GEN just hired executives on the East Coast to prepare for more national growth. According to the company’s second quarter financial report this year, the consumer packaged goods revenue grew 341% since the first quarter, with June alone generating over $2 million. The estimated 12-month revenue run is projected between $35 million to $45 million, targeting over 8,000 more retail locations.
“We haven’t even hit 1% of the market,” he said.
The Asian grocery landscape is also getting increased attention as the consumer becomes more discerning. L.A.’s celebrated chef Roy Choi, the mastermind behind the Kogi BBQ food truck, launched a collaboration with Target Corp. in May to bring Korean and other Asian flavors to customers. Chicago-based research firm Circana further affirmed the popularity of Asian packaged goods in retail, reporting more than $2.31 billion in grocery sales this year – a 47.1% boost from 2021.
After the sales announcement aired on Oct. 14, GEN’s stock prices hit its three-month peak at $2.53 per share, closing at $1.69 on Thursday.
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