The agreement with GEN Restaurant Group and Chubby's first institutional funding round position it as one of the largest Asian dining groups in the U.S.
LOS ANGELES, Oct. 15, 2026 /PRNewswire/ -- Chubby Group, the company behind Chubby Cattle, Wagyu House, The X Pot, NIKU X, Chubby Skewers, and Chubby Bowls, has announced a $50 million Series A led by Prysm Capital at a $500 million valuation to fund the growth of the portfolio. The company also announced it signed a letter of intent to acquire GEN Korean BBQ's 47 U.S. restaurants and four development sites from GEN Restaurant Group (Nasdaq: GENK) in a transaction valued at up to $100 million. The acquisition is expected to significantly expand Chubby's reach and footprint, positioning it as one of the largest Asian dining groups in the U.S.
Chubby has already transformed former GEN sites, growing unit revenue up to 6x by pairing its supply chain with elevated culinary standards, refreshed interiors, signature hospitality, and the Chubby Club experience. It now plans to roll out that playbook across all 47 restaurants.
Quality at the Source
Rather than buying cuts from distributors, Chubby buys whole cattle and whole chickens and runs direct seafood programs, processing and delivering everything through its own supply chain. Using the whole animal across its 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 for guests through Chubby Club, a membership ecosystem that brings benefits wherever members dine—across Chubby and partner brands or at home through delivery.
"We've built Chubby by investing in better ingredients, hospitality and value for our guests, and our Chubby Club members have become our biggest champions," said David Zhao, co-founder of Chubby Group. "Prysm's investment and the addition of GEN's 47 restaurants to our ecosystem will let us do that at a much bigger scale and reinvest the efficiencies we gain in the guest experience."
Prysm Capital Leads First Institutional Round
The $50 million Series A, led by Prysm Capital, will fund expansion of Chubby's supply chain and new 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 its founders, local operating partners, supply chain partners, and family offices, with more than $90 million invested across its restaurants and supply chain.
"We've watched Chubby Group grow from 20 to 70 locations while staying profitable," said Matt Roberts, co-founder and partner at Prysm Capital. "They own everything from the supply chain to the in-house design to the loyalty program. Chubby Group turns this structural advantage into a fantastic experience at a great value for their customers, which is why they keep coming back. And now every additional restaurant expands this edge."
47 Restaurants, Four Phases, 12 Months
Chubby Group will acquire GEN Korean BBQ's 47 U.S. restaurants and four development sites from GEN Restaurant Group. Closing remains subject to definitive agreements, license and lease transfers, and regulatory approvals. As part of the consideration, GEN will hold a note convertible into Chubby Group equity at a $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. It plans to move the portfolio onto its supply chain and Chubby Club ecosystem, relaunching each restaurant as GEN X, a wagyu-forward take on the Korean BBQ guests already know, or as one of the Chubby Club concepts. Chubby will fund the conversions from its own capital.
From One Restaurant to More Than 70
Chubby's growth comes as Asian restaurants outpace the broader industry. Outside the Asia-Pacific region, sales at Asian full- and limited-service restaurants grew at an 11% compound annual rate from 2020 to 2025, compared with 7% for the restaurant market overall, according to Euromonitor International.
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 $1.5 million in 2016 to $233 million in 2025, with $400 million projected for full-year 2026. The company also serves approximately 450,000 Chubby Club members.
About Chubby Group
Chubby Group is a U.S.-based restaurant and hospitality company behind Chubby Cattle, Wagyu House, The X Pot, NIKU X, Chubby Skewers, and Chubby Bowls. Its vertically integrated platform combines direct sourcing and supply chain operations with restaurant development, brand services, and the Chubby Club membership program. Across its portfolio of Asian-inspired dining concepts, Chubby Group focuses on delivering premium ingredients, compelling value, and distinctive guest experiences. For more information, visit chubbygroup.com.
About Prysm Capital
Prysm Capital seeks to partner with disruptive, generational companies at the inflection point of accelerated growth. With offices in New York, San Francisco, and Princeton, Prysm provides flexible growth capital to founders building category-defining technology and consumer businesses, including Replit, Rivian, Island, FieldAI, Fanatics, Fireworks, HappyRobot, Clear Street, ALSO, and Mind Robotics. For more information, visit www.prysmcapital.com.
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SOURCE Chubby Group
