GEN, the California-founded Korean barbecue chain, is set for a major ownership change, with 47 restaurants nationwide included in a proposed $100 million sale. The incoming operator also plans to give the menu a new direction.
GEN Restaurant Group said it has reached an agreement to sell its restaurant operations to Chubby Group, the company known for its all-you-can-eat wagyu concepts 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 add more wagyu-focused selections while preserving the signature GEN Korean BBQ format.
GEN operates 21 restaurants in California and expects the deal to reduce its restaurant lease obligations by roughly $160 million while helping the company wipe out its remaining debt.
After stepping back from restaurant operations, GEN intends to concentrate on its expanding Korean packaged-food division. Its products include ready-to-cook marinated meats sold at retailers including Costco and Albertsons.
The GEN brand will remain under the company’s ownership, along with three restaurants that will be used for employee training, staffing and new product development.
DISCOVER MORE: Air Force Member Killed in Alamodome Rappelling Ceremony
Chubby Group also owns or operates concepts such as Wagyu House, The X Pot and Niku X. The hospitality company has expanded into a sizable force in Asian dining, with more than 70 locations across over 25 brands.
Brandon Lee, a former Korean BBQ server, said he supports the proposed takeover. Speaking to the California Post, Lee described Chubby Group as offering a “more elegant and mature experience” than GEN.
“It is the right time for a necessary change,” said Yeshin Kim, a UCLA student and regular Korean BBQ customer.
Two Korean immigrants launched GEN in Los Angeles in 2011. Since then, the brand has grown into a national restaurant chain, with California continuing to serve as one of its key markets.
Chubby Cattle and Mikiya Wagyu Shabu House each have six California locations, giving the buyer an established presence in the state.
The companies hope to complete the transaction within 30 days, though final approval depends on regulatory clearance and the successful transfer of restaurant leases.