Restaurant operator Chubby Group has raised $50 million in Series A funding led by Prysm Capital at a $500 million valuation, alongside plans for a major expansion through acquisition.
The company has signed a letter of intent to acquire 47 GEN Korean BBQ restaurants and four development sites from publicly traded GEN Restaurant Group in a transaction valued at up to $100 million.
Co-founded by David Zhao and Harby Yang, Chubby operates Asian dining brands including Chubby Cattle, Wagyu House, The X Pot, NIKU X, Chubby Skewers and Chubby Bowls.
The company has grown to more than 70 locations, with reported systemwide revenue of $233 million in 2025 and a projection of $400 million for 2026. It also reports approximately 450,000 members in its Chubby Club loyalty ecosystem.
Unlike conventional restaurant groups that primarily expand through franchising, Chubby has invested in vertical integration. It operates direct sourcing programs, food supply-chain infrastructure, restaurant development capabilities and a shared membership platform.
The intended acquisition would accelerate that model. Chubby plans to integrate the GEN locations over four phases across 12 months, beginning with a targeted first group of 12 restaurants on November 1, 2026.
Some locations would be converted into GEN X, a wagyu-focused Korean BBQ concept, while others could adopt existing Chubby brands. The company says previous conversions of GEN locations increased unit revenue by as much as sixfold, although the announcement does not disclose the underlying restaurant-level financial details.
The transaction remains conditional on definitive agreements, regulatory approvals and the necessary license and lease transfers. It should not yet be treated as completed.
Chubby's growth strategy relies on improving restaurant economics through purchasing scale, shared infrastructure and repeat customer spending rather than simply opening more locations.
The immediate test will be operational integration. Converting dozens of restaurants requires capital, trained staff, consistent food quality and careful brand positioning. A larger network only creates value if the company can preserve margins and customer demand while absorbing the complexity of a substantially bigger business.