GEN Restaurant Group’s consumer packaged goods business is rapidly becoming a larger part of the company’s growth strategy, with CPG sales surging 341% sequentially as purchase commitments expand to more than 100 Costco warehouses nationwide.
GEN’s retail expansion now includes commitments from approximately 60 to 70 Costco warehouses in the Northwest, in addition to roughly 40 locations across Southern California and Hawaii. Together, that represents more than 100 of Costco’s approximately 633 U.S. warehouses, or more than 16% of its domestic footprint.
The company has also added distribution agreements with United Natural Foods and C&S Wholesale Grocers as it expands its ready-to-cook Korean BBQ products beyond restaurants and into mainstream grocery and warehouse channels.
GEN’s Northwest Costco expansion followed a roadshow program that generated stronger-than-expected consumer demand. The company said the 60 to 70 participating Northwest warehouses were expected to begin receiving GEN products in their freezer sections starting in August. GEN has said it ultimately expects its products could reach 30% to 40% of Costco’s U.S. warehouse footprint.
The CPG momentum is becoming especially important as GEN’s restaurant business remains under pressure. Total Q2 revenue increased 1.2% year-over-year to $55.7 million, with growth in the CPG division and contributions from newer restaurants partially offset by weaker comparable restaurant sales and the exit of six restaurants during the quarter.
Comparable restaurant sales declined 9.3% during Q2, compared with an 8.8% decline in Q1 2026 and a 7.2% decline in Q2 2025. Restaurant-Level Adjusted EBITDA declined to $6.3 million from $9 million, while companywide Adjusted EBITDA moved to a small loss from $1.9 million of positive Adjusted EBITDA a year earlier. Net loss widened to $4.6 million from $1.7 million.
GEN is considering an even more significant strategic shift toward CPG. The company received a non-binding letter of intent from a nationwide, multi-concept restaurant operator seeking to acquire its U.S. restaurant operations. Under the proposed structure, GEN would retain 100% of its rapidly growing CPG and retail operations, potentially transforming the company into a fully CPG-focused business.
GEN’s retail strategy builds on the brand awareness created through its restaurant footprint. Its ready-to-cook marinated meats use recipes and quality standards based on the company’s restaurant products, allowing consumers to recreate the GEN Korean BBQ experience at home.
KEY QUOTES:
“The level of response during the initial roadshow surprised us and reinforced our confidence in the strength of the GEN brand.”
David Kim, Chairman And Chief Executive Officer Of GEN Restaurant Group
