Los Angeles – October 15, 2026 -- Chubby Group has closed a $50 million Series A led by Prysm Capital at a $500 million valuation and signed a letter of intent to acquire 47 U.S. GEN Korean BBQ restaurants and four development sites from GEN Restaurant Group (Nasdaq: GENK) in a transaction valued at up to $100 million.
The round is Chubby's first institutional funding. The restaurant operator behind Chubby Cattle, Wagyu House, The X Pot, NIKU X, Chubby Skewers and Chubby Bowls says the deal would make it one of the largest Asian dining groups in the U.S.
GEN deal includes $1.5 billion convertible note and perpetual brand license
GEN will hold a note convertible into Chubby Group equity at a $1.5 billion valuation as part of the consideration. Chubby will receive a perpetual license to the GEN brand. Closing remains subject to definitive agreements, license and lease transfers, and regulatory approvals.
Chubby will take over the restaurants in four phases over 12 months, with the first 12 locations targeted for November 1, 2026. Each site will be relaunched as GEN X, a wagyu-forward Korean BBQ format, or as one of the Chubby Club concepts. Chubby will fund the conversions from its own capital.
Chubby says former GEN sites have grown unit revenue up to 6x
Chubby has already converted former GEN sites, pairing its supply chain with refreshed interiors and upgraded culinary standards. It reports unit revenue growth of up to 6x and plans to apply the same playbook across all 47 restaurants.
The company buys whole cattle and whole chickens and runs direct seafood programs, processing and delivering through its own supply chain. It says using whole animals across more than 25 brands lowers costs. Chubby Club, its membership program, has approximately 450,000 members.
Series A funds supply chain growth and 30 openings planned for 2027
Proceeds will go toward supply chain expansion and new openings, including 30 new Mr. Chubby and Chubby Bowls locations in 2027. Until now, growth was financed by operating cash flow and capital from founders, local operating partners, supply chain partners and family offices. More than $90 million has been invested across restaurants and supply chain.
Matt Roberts, co-founder and partner at Prysm Capital, said Chubby grew from 20 to 70 locations while staying profitable. "They own everything from the supply chain to the in-house design to the loyalty program," he said.
Systemwide revenue climbs to $233 million in 2025, with $400 million projected for 2026
Chubby opened its first restaurant in 2016 and now operates more than 70 locations, targeting roughly 100 by year-end. Systemwide revenue grew from $1.5 million in 2016 to $233 million in 2025, and the company projects $400 million for full-year 2026.
Euromonitor International data cited by the company show sales at Asian full- and limited-service restaurants outside Asia-Pacific grew at an 11% compound annual rate from 2020 to 2025. The overall restaurant market grew at 7%.