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California-born Korean BBQ giant GEN is preparing to hand over 47 restaurants across the country in a blockbuster $100 million deal – and its new operator is planning a menu shake up.
GEN Restaurant Group has announced that it had signed to sell its restaurant operations to Chubby Group, the company behind popular all-you-can-eat wagyu chains Chubby Cattle and Mikiya Wagyu Shabu House.
The deal, which has yet to close and was announced Wednesday, would see Chubby take control of the restaurants over 12 months, introducing a more wagyu-focused menu while retaining the GEN Korean BBQ experience.
GEN, which has 21 locations in California, expects the transaction to slash about $160 million in restaurant lease liabilities and help eliminate its outstanding debt.
Rather than restaurants, GEN plans to re-focus on its growing Korean packaged-food business, including ready-to-cook marinated meats sold through retailers such as Costco and Albertsons.
The company will retain ownership of the GEN brand and three restaurants for employee training, staffing and product development.
Chubby Group, which also operates Wagyu House, The X Pot and Niku X, has grown into a major player in the Asian dining market, operating more than 70 locations across over 25 brands.
Former Korean BBQ server Brandon Lee welcomed the proposed takeover, telling the California Post that Chubby Group offers a “more elegant and mature experience” than GEN.
“It is the right time for a necessary change,” added Yeshin Kim, a UCLA student and frequent Korean BBQ diner.
Founded in 2011 by two Korean immigrants in Los Angeles, GEN has grown into a nationwide restaurant chain, with California remaining a major market.
Chubby Cattle and Mikiya Wagyu Shabu House also each operate six locations in California.
The companies are aiming to finalize the deal within the next 30 days, although the deal is dependent on regulatory approvals and lease transfers.