Korean-founded GEN Korean BBQ chain is selling its operating rights for 47 restaurants across the United States for $100 million. Gen Restaurant Group plans to scale back its restaurant operations and focus on selling home-style Korean food products.
Gen Restaurant Group announced on the 14th that it agreed to sell the store operating rights to the Asian restaurant enterprise Chubby Group. The board of directors unanimously approved the sale plan, and both sides plan to finalize the transaction within 30 days.
The brand ownership and Nasdaq listing of GEN Korean BBQ will be maintained. The company will also directly operate about three stores dedicated to employee training and product development.
Chubby Group plans to take over the operating rights in four stages over the next 12 months to improve facilities and introduce wagyu-focused menus. Established in 2016, Chubby Group currently operates over 70 stores nationwide through more than 25 brands.
Gen Restaurant Group expects the sale to significantly reduce about $160 million in store lease-related debt and repay existing liabilities. Moving forward, the company will focus on its home-style Korean food business, including seasoned meats sold at Costco and Albertsons.
David Kim, Chairman and CEO, stated, Through this transaction, we will reduce financial burdens and focus on growth businesses.
GEN Korean BBQ was founded in Tustin in 2011 by Korean-American immigrants David Kim and Jae Chang. It grew into a nationwide chain through its all-you-can-eat model and went public on Nasdaq in 2023.
