Genk (The Brussels Morning Newspaper) – October 19, 2026 – GEN Restaurant Group, Inc. has entered into a binding letter of intent to sell its U.S. restaurant operations to Chubby Group in a transaction valued at $100 million. Under the terms of the agreement, Chubby Group will assume management and lease obligations for 47 dining locations across the United States over a 12-month period. GEN Restaurant Group will maintain ownership of its corporate brand, retain three locations for operational testing, and pivot its focus entirely toward its consumer-packaged goods business.
CERRITOS, California — GEN Restaurant Group, Inc. (Nasdaq: GENK), the parent company of the GEN Korean BBQ House chain, has signed a binding letter of intent to sell the operational rights and lease commitments of 47 of its U.S. restaurant locations to Chubby Group for $100 million. The deal, which received unanimous approval from GEN’s board of directors, marks an operational shift that transitions the publicly traded company out of direct foodservice management and into a consumer-packaged goods (CPG) business model.
Under the terms specified in the agreement, the transaction will proceed in four phases over the next 12 months, with the initial operational handover of 12 restaurant locations targeted for completion by 1 November 2026. Both parties expect to sign definitive transaction documents and complete the closing conditions within 30 days.
Details of the $100 Million Transaction and Asset Reallocation
The $100 million transaction structure includes a combination of cash proceeds and a term note receivable. According to regulatory filings and corporate statements released by GEN Restaurant Group, the proceeds generated from the sale will be used to extinguish all outstanding corporate debt and improve cash reserves.
Furthermore, the operational transfer will remove approximately $160 million in long-term restaurant lease liabilities from GEN’s balance sheet. The company noted that remaining proceeds following debt repayment may be allocated toward CPG infrastructure, capital reinvestment, share buybacks, or dividend distributions to shareholders.
While Chubby Group takes over the operating responsibilities and property lease obligations for the 47 domestic dining venues, GEN Restaurant Group will retain full legal ownership of the core “GEN” trademark and brand identity. The agreement also permits GEN to keep full ownership of three specific brick-and-mortar restaurants—including its location in Cerritos, California, as well as two venues in South Korea—to serve as testing facilities for employee training, menu development, and CPG research.
“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,” said David Kim, Chief Executive Officer and Chairman of GEN Restaurant Group, in an official statement accompanying the release. Kim added that the transaction substantially decreases lease liabilities while establishing a financial platform to support CPG distribution.
Operational Transition and Brand Relaunch Strategy
As Chubby Group assumes control over the 47 dining sites across multiple states—including California, Texas, and Nevada—it plans to integrate the venues into its nationwide hospitality network. The buyer intends to gradually convert or rebrand the acquired properties. Planned updates include launching a concept designated as “GEN X,” described by the company as a wagyu-beef-focused adaptation of the existing Korean barbecue dining model, alongside expanding various proprietary dining concepts from Chubby Group’s brand portfolio.
Chubby Group, founded in 2016 by Harby Yang, David Zhao, and Joyce Li, operates more than 70 dining locations across North America representing over 25 distinct Asian dining brands, including Chubby Cattle, Wagyu House, The X Pot, NIKU X, Chubby Skewers, and Chubby Bowls. The acquisition of the GEN network expands Chubby Group’s physical infrastructure across high-traffic retail markets.
“GEN has built one of the leading Korean barbecue brands in the United States, and acquiring these 47 restaurants gives Chubby an established, high-traffic platform to accelerate our national growth,” said David Zhao, co-founder of Chubby Group.
The multi-stage transaction follows an earlier operational venture between the two companies established in April 2026, wherein GEN transferred operational oversight of four underperforming venues into a joint venture with Chubby Group, with GEN retaining a 49 percent equity stake. Corporate executives confirmed that the existing joint venture remains a separate legal entity and operates independently from the $100 million asset purchase agreement.
Strategic Pivot to Consumer Packaged Goods Market
The execution of the binding agreement completes a strategic evaluation initiated by GEN Restaurant Group’s leadership team. The company had previously disclosed in August 2026 that its board of directors had received an initial non-binding letter of intent to evaluate a total exit from direct restaurant operations amidst margin pressures and shifting consumer traffic in the casual dining segment.
Moving forward, GEN Restaurant Group’s corporate overhead structure and administrative operations will be reorganized to exclusively serve its CPG business. Senior management, including executive leadership and product developers, will transition their duties away from restaurant management to focus entirely on expanding wholesale food distribution.
GEN’s retail food sector expansion has centered on delivering pre-packaged, marinated Korean barbecue meats, sauces, and ready-to-cook meal kits directly to major commercial grocery chains and institutional dining partners. Prior to finalizing the agreement with Chubby Group, GEN had secured retail distribution contracts with major North American grocery partners, including supply commitments from over 100 Costco wholesale locations, as well as placements with Vallarta Supermarkets, Save Mart Supermarkets, Bristol Farms, Smart & Final, C&S Wholesale Grocers, and United Natural Foods, Inc.. The company has also expanded its products into non-traditional venues, such as collegiate dining facilities at the University of California, Los Angeles (UCLA), and sports venues including SoFi Stadium.
