Fresh off a USD 50 million (EUR 45 million) Series A funding round and the acquisition of restaurant chain GEN Korean BBQ, Asian restaurant operating firm Chubby Group is set to expand its meat and seafood sourcing program.
Los Angeles, California, U.S.A.-based Chubby Group, which operates such restaurants as Chubby Cattle, Wagyu House, The X Pot, NIKU X, Chubby Skewers, and Chubby Bowls, said its recently completed Series A round, led by Prysm Capital, will fund the growth of the firm’s portfolio and places the group at USD 500 million (EUR 446 million) worth of post-money valuation.
Separately, the company signed a letter of intent to acquire GEN Korean BBQ's 47 U.S. restaurants, as well as four development sites from GEN Restaurant Group, in a transaction valued at up to USD 100 million (EUR 89 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.,” the company said.
To supply its growing array of restaurants, Chubby buys whole cattle and chicken and runs direct seafood sourcing programs through its own supply chain, rather than buying from middlemen distributors.
“Direct sourcing of meat and seafood is a key part of the Chubby Group’s operating model,” Chubby Group Co-Founder David Zhao told SeafoodSource. “Beyond the potential cost advantages, closer supplier relationships give us greater flexibility in product selection and help us align purchasing with our restaurants' needs.”
Additionally, managing its warehouse inventory on a first-in, first-out basis gives Chubby Group greater control over how long products remain in storage, helping the company maintain ingredient freshness and quality, Zhao explained.
The restaurant operator began gradually moving to direct sourcing about five years ago, and the move has generated several million dollars in savings compared with purchasing through U.S. importers, Zhao said, particularly pointing toward the company’s direct sourcing of Japanese wagyu as a prime example of this strategy.
“Cost savings matter, but our priority is delivering quality and value to our guests. Direct sourcing also gives us greater flexibility to select products that fit our menus and introduce new offerings,” he said.
Regarding seafood sourcing, Chubby identifies products through industry trade shows and visits to overseas markets, evaluating products based on seasonality, market pricing, anticipated demand, and total landed costs, including tariffs and freight.
“We also assess whether overseas suppliers offer products or processing capabilities that could benefit our restaurants,” Zhao said.
When the company purchases from fisheries and local fish markets at the point of origin, it works with local partners to handle export documentation and logistics as needed.
“These partners help suppliers that may not have export capabilities reach our restaurants, while we reduce purchasing layers on the U.S. distribution side,” Zhao said.
Chubby sources seafood both internationally and domestically. For instance, it buys Hokkaido hairy crab and king crab from local fish markets in Japan, as well as black cod directly from fishing boats in Alaska, which is then shipped by air.
“This is an ongoing program: Our team continually travels, tastes, and selects new products to bring seasonal specialties and distinctive seafood offerings to our guests throughout the year,” per Zhao.
With the acquisition of GEN Korean BBQ, the company will extend Chubby’s sourcing model across GEN restaurants as they join the group. Aiding in that transition is the fact GEN’s footprint already overlaps with Chubby infrastructure, as several GEN locations already purchase through Chubby, according to Zhao.
“We expect the additional purchasing volume to strengthen our sourcing capabilities and create further economies of scale. We also plan to enhance GEN’s menu with premium ingredients. Greater control over sourcing and the supply chain will help us deliver fresh, high-quality ingredients and a better dining experience for guests,” Zhao said.
While seafood currently represents a smaller share of Chubby’s volume than meat offerings such as wagyu, Zhao expects it to grow.
“We already source seafood directly, and our focus is on scaling that foundation.
We see opportunities to broaden seafood offerings across our restaurants, including GEN as its locations join the group,” Zhao said. “Our sourcing experience, together with frozen seafood’s longer shelf life and established cold chain, supports that expansion.”
Zhao confirmed Chubby Group has additional seafood-led brands in its sourcing pipeline, too, which the company expects to become another driver of growth moving forward.
