GEN Restaurant Group to sell operations to Chubby Group for $100M

GEN Restaurant Group has announced a $100 million deal to sell its restaurant operations to Chubby Group, the operator behind brands such as Chubby Cattle and Mikiya Wagyu Shabu House. The transaction involves 47 restaurant locations across the United States.

Under the terms of the agreement, Chubby Group will take control of the restaurants over a 12-month period. The new operator plans to introduce a menu more focused on Wagyu while maintaining the existing GEN Korean BBQ experience.

GEN Restaurant Group intends to use the transaction to eliminate outstanding debt and reduce approximately $160 million in restaurant lease liabilities. Following the sale, the company will pivot its focus toward its Korean packaged-food business, which includes selling marinated meats through retailers like Costco and Albertsons. GEN will retain ownership of the brand and will keep three locations for product development, staffing, and employee training.