Gen Restaurant Group has signed a binding letter of intent to sell 47 of its Gen Korean BBQ restaurants to Chubby Cattle Group for $100 million, according to an emailed press release.
When Gen announced earlier this year that it was mulling a sale of its restaurant business it possessed at least 54 locations.
Previously, Gen entered into a joint venture with Chubby Cattle Group that saw the latter take a 51% stake in five Gen locations, which switched to the Chubby Cattle Brand, according to Gen’s Q1 2026 earnings call transcript. In Q2, the brand divested six underperforming locations — four of which were transferred to the Chubby joint venture, per details in an August investor presentation.
Gen did not immediately respond to a request to clarify if it has closed any restaurants in the runup to the deal.
The 47-unit sale will be completed in four phases over 12 months. Chubby will use its own capital to fund restaurant conversions and buildouts. Gen will maintain operating profits until each takeover is completed.
Given that Gen will retain its consumer packaged goods business and its branding, it is likely Chubby will shift the locations to a new brand. The press release does not specifically state — and the companies did not immediately clarify — whether or to what brand the Gen restaurants will be converted.
After the deal is complete, Gen will restructure its corporate operations to focus exclusively on its CPG business. Selling the restaurants will “materially fortify GEN’s balance sheet through reduced liabilities including but not limited to lease liabilities,” per the press release.
Chubby is a multi-brand Asian restaurant group with about 70 open locations across 25 brands, including Chubby Cattle, NIKU X, Wagyu House and The X Pot, per the press release. The acquisition of dozens of Gen locations would substantially increase its footprint and growth. Chubby reported $233 million in revenue last year. Its goal is to reach 100 units this year.
