In its first full year as a public company, Gen Korean BBQ delivered.
It promised revenue ranging from $200 million to $205 million. It earned $208 million—its highest annual revenue in company history. For restaurant-level EBITDA, it estimated 17 to 18 percent for the year. It reached 17.7 percent. It also predicted total G&A expenses between $18 million and $19 million for the year before non-cash stock-based compensation. The brand ended the year at $18.3 million.
“Overall, 2024 marks a year of consistent progress toward our key growth objectives as reflected by exceeding our revenue projections and meeting our restaurant-level adjusted EBITDA margin goal for the year,” CEO David Kim said during the chain’s Q4 earnings call.
One of the few areas it fell short was restaurant development, opening six locations after guiding for 10 to 11 store debuts. However, much of this was out of Gen Korean BBQ’s control. Three restaurants were delayed by a month and ultimately opened in January due to issues with local and state government permitting. The restaurants were built and ready to open in December 2024, but couldn’t move forward. Effectively, Gen Korean was prepared to open nine venues in 2024.
“Our current restaurants have maintained steady profitability, with new restaurants driving consistent revenue growth in the fourth quarter benefiting as expected from the holiday season,” Kim said.
Gen Korean BBQ plans to significantly ramp up growth in 2025. It eyes $245 million to $250 million in revenue, 18 percent margin, and 10 to 13 restaurant openings, not counting the three opening in January. The brand is working off a pipeline of 13 leases signed or in the process of being finalized and another 16 leases in negotiation.
The chain has 49 restaurants systemwide after recent openings in Austin, San Antonio, and Cary, North Carolina, its 11th state. Gen Korean BBQ hopes to reach around 75 locations by the end of 2026.
The company’s strong free cash flow allowed it to self-fund approximately $18 million in new restaurant development costs in 2024. The brand wants new units to have a payback period of less than three years, which equals an ROI of 33 to 40 percent. These stores run from 4,700 to 12,000 square feet and are usually in high-activity commercial areas.
At Gen Korean BBQ, grills are embedded in the center of each table, allowing guests to cook a majority of food themselves. This reduces the need for chefs and servers inside restaurants. These stores also come with modern décor and Korean pop music.
International growth is coming soon as well. The brand aims to open at least two restaurants in South Korea this year, marking its first steps outside of the U.S.
Gen Korean BBQ’s same-store sales dropped 5.6 percent in 2024 year-over-year. To return to growth, it adjusted prices, enhanced training programs, added more premium drink options, and worked on incubator initiatives to boost awareness.
In Q4, the chain implemented a 3 percent increase in menu prices, which took effect across a majority of locations at the end of 2024. So far, the jump hasn’t impacted customer traffic. Gen Korean BBQ also saw increased premium menu sales in the fourth quarter.
As for its latest incubator initiative, Gen Korean BBQ launched gift cards at 78 Costco locations, all within a 5-mile radius of most of its restaurants. The gift cards have sold well, with Costco’s buying department saying Gen Korean BBQ is one of the best-selling restaurant gift cards ever. The chain plans to expand this initiative with other big box retailers in 2025.
Together, these strategies helped comps grow 1 percent in the first two months of this year.
“With strong demand for GEN Korean Barbeque and our growing brand strength backed by our robust balance sheet,” Kim said. “We believe we are well positioned to capitalize on our promising pipeline of new restaurants and achieve our growth targets, both in the United States as well as internationally.”
For the fourth quarter, revenue increased 21.2 percent to $54.7 million compared to $45.1 million in the fourth quarter of 2023. Restaurant-level adjusted EBITDA for Q4 increased 28 percent to $9.3 million or 17 percent of total revenue.
Gen Korean was founded by Kim and Jae Chang in 2011. The duo had been serving as co-CEOs until January when Chang stepped down from his position. Kim is now sole CEO of the company and also chairman of the board.
