Chubby Group, the parent company of Chubby Cattle and other Asian dining brands, has announced a US$50 million Series A led by Prysm Capital at a US$500 million valuation. The company also signed a letter of intent to acquire GEN Korean BBQ's 47 U.S. restaurants and four development sites from GEN Restaurant Group for up to US$100 million. The combined moves are expected to position Chubby Group as one of the largest Asian dining groups in the United States.
Supply Chain and Membership Model
Rather than purchasing cuts from distributors, Chubby buys whole cattle and whole chickens and operates direct seafood programs through its own supply chain. Using the whole animal across its more than 25 brands means higher quality ingredients at more affordable prices, from wagyu omakase to fast-casual bowls cooked in tallow from its own cattle program. Those efficiencies translate into greater value through Chubby Club, a membership ecosystem that brings benefits wherever members dine, including partner brands and at-home delivery.
GEN Korean BBQ Acquisition and Conversion Plan
Under the agreement, GEN will hold a note convertible into Chubby Group equity at a US$1.5 billion valuation, and Chubby will receive a perpetual license to the GEN brand. Chubby will take over the restaurants in four phases over 12 months, with the first 12 locations targeted for November 1, 2026. The restaurants will relaunch as GEN X, a wagyu-forward take on Korean BBQ, or as one of the Chubby Club concepts.
Funding Use and Proven Playbook
Chubby has already transformed former GEN sites, growing unit revenue up to 6 times by pairing its supply chain with elevated culinary standards, refreshed interiors, signature hospitality, and the Chubby Club experience. The Series A will fund supply chain expansion and openings, including plans for 30 new locations across Mr. Chubby and Chubby Bowls in 2027. To date, Chubby's growth has been supported by operating cash flow and capital from founders, local operating partners, supply chain partners, and family offices.
Leadership Commentary
David Zhao, co-founder of Chubby Group, said the company invests in better ingredients, hospitality, and value, and that Chubby Club members have become its biggest champions. He added that Prysm's investment and the GEN acquisition will let the group operate at a much bigger scale. Matt Roberts of Prysm Capital noted Chubby Group grew from 20 to 70 locations while staying profitable.
Growth and Market Momentum
Since opening its first restaurant in 2016, Chubby Group has grown to more than 70 locations, with plans to reach roughly 100 by year-end. Systemwide revenue has grown from US$1.5 million in 2016 to US$233 million in 2025, with US$400 million projected for full-year 2026. The company now serves approximately 450,000 Chubby Club members.
The group's expansion reflects strong momentum in Asian dining, with sales at Asian full- and limited-service restaurants outside Asia-Pacific growing at an 11% compound annual rate from 2020 to 2025, compared with 7% for the restaurant market overall. With its Series A funding and the planned GEN acquisition, Chubby Group expects to broaden its footprint and strengthen its supply chain advantages. The company plans to continue reinvesting efficiencies into the guest experience at a larger scale.