Gen Korean BBQ is one of several Korean barbecue concepts making their way onto Technomic’s Top 500, underscoring a growing consumer demand for the globally-inspired cuisine. The Cerritos, Calif.-based concept, founded in 2011, made its debut on Wall Street last year, offering 3.6 million shares at $12 each, and the move likely fueled even more growth. Gen Korean BBQ finished 2023 with $181 million in sales, a 10.6% increase.
According to co-CEO David Kim, this growth was primarily driven by new restaurants; the company finished 2023 with 37 locations, a 19.4% increase year-over year. So far this year, Gen has opened three new locations, with plans to open as many as nine total. Kim said new restaurants typically mature quickly to average unit volumes of $4-$5 million.
The company pulls several levers to drive revenue, including offering value price points, an extensive protein-focused menu, and its “cook-it-yourself” model, which adds an experiential component. Also, being in that high-demand category has helped.
“We’ve seen substantial growth in interest for Asian concepts across the industry and an influx of loyalty from both millennials and Gen Z who value unique and new flavor profiles and the ability to customize their dining experiences to suit their specific palates,” Kim said.
Gen has no plans of taking its foot off the gas, using its growth momentum to expand into new markets and infill existing markets in places like Texas, New York, Hawaii, and Florida. Once Gen hits its anticipated eight to nine new locations this year, plans are to add up to a dozen more next year and 15 new locations in 2026 for a total of 70-plus units by the end of 2026. New markets in the company’s near-term sight include Oregon, Utah, North Carolina, Tennessee, Massachusetts, Colorado, and Illinois.
“We are bullish on our position as a growing company in the space and see a long-term potential to top over 250 restaurant openings across the U.S.,” Kim said.
This is a dramatically changing narrative from 2011, when Kim joined the company, and that is not lost on him. He said the company originally serviced a primarily Asian demographic, but over the years there has been “tremendous” growth in the diversity of its customer base.
“It has changed to include all segments and ethnicities, with particular interest form Hispanic communities. We believe that this is in large part fueled by our value-driven concept along with the evolution of social media and its ability to highlight new and exciting trends and expose people to new cuisines in an enticing and authentic way,” Kim said.
Gen has also been able to grow its customer base by maintaining stable pricing and adding meal upgrades at “affordable rates” via its new “Premium Menu,” he adds.
“From inception, the company’s philosophy has been to be value-driven, which is our core DNA. There is no other casual table-service concept where consumers can experience all different proteins, from beef and pork to chicken and seafood, along with delicious salad options, at a competitive price point,” Kim said. “It is of the utmost importance that we continue to serve these customers despite inflation-related considerations.”
This tried-and-true strategy has paid off not only in driving unit growth and sales, but also profits and margins, and it is one Gen will continue to follow for the foreseeable future.
“By taking the opposite approach of many of our contemporaries and choosing to bring more value, we’ve continued to see great success and increase our operating margins,” Kim said. “Gen has been profitable since its inception and, to date in 2024, we’ve maintained a strong balance sheet with almost no debt. We’ve always generated a strong cash flow, all of which has set us up for unimpeded, continued growth for the next several years.”
Contact Alicia Kelso at [email protected]