GEN Korean BBQ has signed a binding letter of intent to sell operations at 47 U.S. restaurants to Chubby Cattle Group in a $100 million transaction that would effectively shift the publicly traded company away from restaurant operations and toward its growing CPG business.
The agreement, unanimously approved by GEN’s board of directors, calls for Chubby Cattle to take over the restaurants in four phases over 12 months. The companies are working to finalize the transaction within the next 30 days.
GEN will retain ownership of its Korean BBQ brand and its entire CPG business. The company also plans to keep approximately three restaurants, including its Cerritos, California, location, to support product development, training, and staffing.
Chubby Cattle will assume restaurant-level operating responsibilities and lease obligations as it takes over each location. The company plans to introduce wagyu-focused menus and fund restaurant conversions and buildouts using its own capital. The announcement does not specify whether all 47 restaurants will be rebranded under Chubby Cattle’s existing concepts.
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The transaction could substantially reduce GEN’s financial obligations. The company currently carries approximately $160 million in restaurant lease liabilities, which it expects to decrease as leases transfer to Chubby Cattle.
“Securing a binding LOI with Chubby is a major milestone for GEN as part of the Company’s continued evolution into a premier CPG brand,” GEN chairman and CEO David Kim said in a statement. “We know Chubby through a partnership that is already delivering operating progress. This transaction would substantially reduce our restaurant lease obligations while giving GEN the option to participate in Chubby’s growth. We are moving quickly toward closing and believe this is the right next step for GEN and our shareholders.”
Founded in 2016, Chubby Cattle operates more than 70 restaurants across over 25 brands, including Chubby Cattle, NIKU X, Wagyu House, and The X Pot. Its business spans fine dining, casual dining, and fast casual.
Chubby Cattle reported $233 million in revenue in 2025, more than 10 times its revenue in 2021. The company also recently completed a capital raise at a $500 million valuation and is targeting 100 operating restaurants and one million Chubby Club members in 2026.
The acquisition would give Chubby Cattle access to an established restaurant network and existing customer base as it expands its national presence.
“Acquiring these 47 restaurants gives Chubby an established, high-traffic platform to accelerate our national growth,” Chubby Cattle founder David Zhao said in a statement. “GEN has built one of the leading Korean BBQ brands in the U.S. As we take over operations, we will build on the Korean BBQ experience these guests know with a wagyu-forward menu, and we are committed to completing this acquisition and executing a disciplined, phased transition.”
Under the proposed transaction with Chubby Cattle, GEN will remain publicly traded, and its corporate infrastructure will be restructured to support the retail business. Senior staff will focus on expanding the company’s branded products rather than operating a national restaurant system.
The agreement builds on an existing relationship between the companies.
Earlier this year, GEN formed a joint venture with Chubby Cattle involving five restaurants that would transition to the Chubby Cattle brand. Under that arrangement, GEN retained a 49 percent ownership interest, with Chubby Cattle holding the remaining 51 percent and operating the restaurants. The joint venture is separate from the newly announced transaction and will not be included in the proposed sale.
GEN’s same-store sales declined 9.3 percent in the second quarter, and the company posted a net loss of $4.6 million, compared with a $1.7 million loss in the prior-year period. Total revenue increased 1.2 percent to $55.7 million, supported by CPG growth and new restaurant openings. The company had already begun reducing its restaurant footprint, exiting six underperforming locations during the quarter.
GEN’s growing retail business has become a major focus as restaurant performance has weakened.
Launched in late 2025, the CPG division includes frozen meats, beef jerky, snack chips, sauces, beverages, frozen sides, and GENJU-branded soju products. Earlier this year, the company reported a portfolio of 56 SKUs and distribution relationships with retailers including Costco, Albertsons, and BevMo.
GEN previously projected that its CPG products could reach 7,000 to 8,000 retail locations nationwide after 2027, potentially supporting an annual revenue run rate exceeding $100 million within three years.
