Gen Korean BBQ is one of several Korean barbecue concepts that made Technomic’s Top 500, highlighting growing consumer demand for the globally inspired cuisine. The Cerritos, Calif.-based concept, founded in 2011, debuted on Wall Street last year, offering 3.6 million shares at $12 each, and that deal likely fueled even stronger growth. Gen Korean BBQ ended 2023 with $181 million in sales, an increase of 10.6%.
According to co-CEO David Kim, this growth is mainly due to new restaurants. The company ended 2023 with 37 locations, a 19.4% increase from the previous year. So far this year, Gen has opened three new locations and plans to open up to nine in total. Kim said new restaurants typically mature quickly to average unit volume of $4 million to $5 million.
The company is using several levers to grow revenue, including affordable pricing, a full menu focused on proteins and its “cook it yourself” model, which adds an experiential component. Plus, being in this high-demand category has helped.
“We’ve seen substantial growth in interest in Asian concepts across the industry and an influx of loyalty from millennials and Gen Z who value unique and new flavor profiles and the ability to customize their dining experiences to their specific palates,” Kim said.
Gen has no plans to let up, but to use its growth momentum to expand into new markets and fill existing markets in places like Texas, New York, Hawaii and Florida. Once Gen reaches the eight to nine new locations it plans to add this year, it plans to add a dozen more next year and 15 new locations in 2026, for a total of more than 70 units by the end of 2026. New markets the company is eyeing in the near term include Oregon, Utah, North Carolina, Tennessee, Massachusetts, Colorado and Illinois.
“We are optimistic about our position as a growth company in the space and see long-term potential to exceed 250 restaurant openings across the United States,” Kim said.
It’s a dramatic shift from when Kim joined the company in 2011, and he’s not lost on him. He said the company originally catered to a primarily Asian demographic, but over the years, the diversity of its customer base has grown “tremendously.”
“The restaurant has evolved to be inclusive of all segments and ethnicities, with a particular focus on Hispanic communities. We believe this is largely due to our values-driven concept, as well as the evolution of social media and its ability to highlight exciting new trends and introduce people to new cuisines in an engaging and authentic way,” Kim said.
Gen has also been able to expand its customer base by maintaining stable prices and adding enhanced meals at “affordable rates” through its new “Premium Menu,” he adds.
“Since its inception, the company’s philosophy has been value-driven, which is our core DNA. There is no other casual table service concept where consumers can experience all the different proteins, from beef and pork to chicken and seafood, as well as delicious salad options, at a competitive price,” Kim said. “It is of the utmost importance that we continue to serve these customers despite inflation considerations.”
This proven strategy has paid off not only in terms of unit and sales growth, but also in terms of profits and margins, and it is a strategy that Gen will continue to follow for the foreseeable future.
“By taking the opposite approach to many of our competitors and choosing to deliver more value, we have continued to experience great success and increase our operating margins,” Kim said. “Gen has been profitable since inception and, to date in 2024, we have maintained a strong balance sheet with virtually no debt. We have consistently generated strong cash flow, allowing us to continue our unimpeded growth over the coming years.”
Contact Alicia Kelso at (protected email)
