GEN Restaurant Group has signed a binding letter of intent to sell the operations of 47 GEN Korean BBQ restaurants in the US to Chubby Group for $100m.
Why Chubby Group (Chubby Cattle) is buying GEN Restaurant Group (US restaurant operations)
GEN plans to restructure around its consumer packaged goods business, which launched in late 2025 and sells through retailers including Costco and Albertsons. Chubby founder David Zhao said the 47 restaurants would give the group an established, high-traffic platform to accelerate its national growth.
Deal terms and financing
GEN will receive a term note receivable, the proceeds of which it expects to eliminate its outstanding debt, and may convert any unpaid balance into Chubby Group equity at a $1.5bn valuation. Chubby will take over the restaurants in four phases over 12 months and fund conversions, while GEN keeps operating profits until each site transfers; GEN retains its brand, its CPG business and about three restaurants.
Regulatory approvals and timing
Closing, targeted within 30 days, is subject to definitive agreements, licence and lease transfers and regulatory approvals. GEN will remain publicly traded.
Market context
GEN disclosed in August that it had received a non-binding $100m approach from an unnamed nationwide restaurant operator. Chubby, founded in 2016, runs more than 70 locations across 25-plus brands including Chubby Cattle, Wagyu House and NIKU X; the two companies already have a joint venture covering five restaurants, which is not part of this deal.
