10-Q

ROC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-41727

GEN Restaurant Group, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	87-3424935
( State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
11480 South Street Suite 205 Cerritos, CA	90703
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (562) 356-9929

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common stock, par value $0.001 per share	GENK	The Nasdaq Stock Market LLC (The Nasdaq Global Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ ☐ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 29, 2024 the registrant had 4,862,230 shares of Class A common stock, $0.001 par value per share, outstanding and 27,886,912 shares of Class B common stock, $0.001 par value per share, outstanding.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Income Statements	2
	Condensed Consolidated Statements of Changes in Permanent Equity (Deficit)	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Unaudited Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	39
PART II.	OTHER INFORMATION	40
Item 1.	Legal Proceedings	40
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities Use of Proceeds and Issuer Purchases of Equity Securities	40
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	40
Item 6.	Exhibits	41
Signatures		42

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

GEN RESTAURANT GROUP, INC.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share information)	June 30, 2024		December 31, 2023
	(unaudited)
Current assets:
Cash and cash equivalents	$	29,229	$	32,631
Inventories		416		461
Prepaid expenses and other current assets		3,398		3,726
Total current assets		33,043		36,818
Equity method investment		—		523
Property and equipment, net		39,628		33,907
Goodwill		9,498		—
Operating lease assets		122,560		99,255
Deferred tax asset		13,184		12,618
Other assets		892		749
Total assets	$	218,805	$	183,870
Liabilities and equity
Current liabilities
Accounts payable		10,694		10,704
Accrued salaries and benefits		2,619		2,660
Accrued interest		76		42
Notes payable, current		3,206		165
Notes payable to related parties		310		1,197
Obligations under finance leases, current		56		125
Operating lease liabilities, current		4,516		4,535
Deferred Restaurant Revitalization Fund grant		3,806		3,806
Advances from members		—		2,704
Other current liabilities		6,046		5,366
Total current liabilities		31,329		31,304
Notes payable, net of current portion		4,425		4,547
Tax receivable agreement liability		584		—
Operating lease liabilities, net of current portion		135,071		110,501
Total liabilities		171,409		146,352
Commitments and contingencies (Note 11)
Mezzanine equity
EB-5 Members’ equity		1,500		1,500
Permanent equity
Class A common stock, $0.001 par value, 70,000,000 shares authorized,  4,749,551 shares issued and outstanding as of June 30, 2024 and 4,140,000 shares issued and outstanding as of December 31, 2023, respectively		4		4
Class B common stock, $0.001 par value, 50,000,000 shares authorized;   27,886,912 shares issued and outstanding as of June 30, 2024 and 28,141,566 shares issued and outstanding as of December 31, 2023, respectively		28		28
Additional paid-in capital		11,486		7,112
Retained Earnings		1,095		322
Non-controlling interest		33,283		28,552
Total permanent equity		45,896		36,018
Total liabilities and stockholders’ equity	$	218,805	$	183,870

See accompanying notes to condensed consolidated financial statements.

1

GEN RESTAURANT GROUP, INC

Condensed Consolidated Income Statements

	Three months ended June 30,						Six months ended June 30,
(in thousands, except per share amounts)	2024			2023			2024			2023
	(unaudited)						(unaudited)
Revenue	$	53,860		$	46,473		$	104,620		$	90,335
Restaurant operating expenses:
Food cost		17,700			14,786			34,668			29,091
Payroll and benefits		16,362			14,323			32,514			27,975
Occupancy expenses		4,389			3,673			8,682			7,104
Operating expenses		5,358			4,299			10,457			8,425
Depreciation and amortization		1,706			1,131			3,243			2,244
Pre-opening costs		1,645			881			3,547			1,400
Total restaurant operating expenses		47,160			39,093			93,111			76,239
General and administrative		5,058			1,958			9,731			4,013
Consulting fees - related party		—			1,445			—			2,325
Management fees		—			589			—			1,176
Depreciation and amortization - corporate		29			18			57			37
Total costs and expenses		52,247			43,103			102,899			83,790
Income from operations		1,613			3,370			1,721			6,545
Employee retention credits		200			1,318			200			2,483
Other income (loss)		—			(7	)		—			(7	)
Gain on remeasurement of previously held interest (see Note 3)		—			—			3,402			—
Interest income (expense), net		262			(207	)		538			(396	)
Equity in income (loss) of equity method investee		—			86			(17	)		467
Net income before income taxes		2,075			4,560			5,844			9,092
Provision for income taxes		(11	)		(96	)		(83	)		(96	)
Net income		2,064			4,464			5,761			8,996
Less: Net income attributable to noncontrolling interest		1,787			504			4,990			901
Net income attributable to GEN Restaurant Group, Inc.		277			3,960			771			8,095
Net income attributable to Class A common stock per share - basic and diluted (1)	$	277			—		$	771			—
Weighted-average shares of Class A common stock outstanding - basic (1)		4,572			4,249			4,446			4,249
Weighted-average shares of Class A common stock outstanding - diluted (2)		4,572			4,249			4,446			4,249
Net income per share of Class A common stock - basic (1)	$	0.06			—		$	0.17			—
Net income per share of Class A common stock - diluted (2)	$	0.06			—		$	0.17			—

(1) (2) Basic and diluted net income per share of Class A common stock is presented only for the period after the Company’s organization transactions.

See Note 1 for a description of the organizational transactions. See Note 15 for calculation of net income per share.

See accompanying notes to condensed consolidated financial statements.

2

GEN RESTAURANT GROUP, INC.

Condensed Consolidated Statements of Changes in Permanent Equity (Deficit)

(unaudited)

Six months ended June 30, 2024 and June 30, 2023

	Redeemable Class B Common			Members' equity			Class A Common Stock				Class B Common Stock				Additional paid-in			Accumulated		Non- Controlling			Stockholders' Equity/ Members' equity
(in thousands)	Units			(deficit)			Shares		Amount		Shares		Amount		capital			Deficit		Interest			(deficit)
Balance, December 31, 2022	$	-		$	(10,011	)			$	-			$	-	$	-				$	3,250		$	(6,761	)
Redemption of Class A and B common units																								-
Net income					4,134																397			4,531
Member distributions					(3,059	)																		(3,059	)
Balance, March 31, 2023	$	-		$	(8,936	)		-	$	-		-	$	-	$	-		$	-	$	3,647		$	(5,289	)
Activity prior to the initial public offering and related organizational transactions:
Net income prior to the organizational transactions					3,950																430			4,380
Conversion of related party loans to equity					871																			871
Member distributions					(23,410	)																		(23,410	)
Effects of initial public offering and related organization transactions:																								-
Effects of the organizational transactions		(23,447	)		27,525																(4,077	)		23,448
Issuance of Class A common stock in the IPO, net of underwriting discount								3,600,000		3						40,138								40,141
Issuance of Class A common stock to underwriters upon exercise of overallotment option								540,000		1						6,025								6,026
Issuance of Class B common stock in the IPO, net of underwriting discount												28,141,566		28		(28	)							-
Conversion of Class B common units into Class B Shares		23,447														(23,447	)							(23,447	)
Capitalization of initial public offering costs																(3,265	)							(3,265	)
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increase in tax basis																10,530								10,530
Activity subsequent to the initial public offering and related organizational transactions:
Net income																			11		74			85
NCI Adjustment																(26,351	)				26,351			-
Balance, June 30, 2023	$	-		$	-			4,140,000	$	4		28,141,566	$	28	$	3,602		$	11	$	26,425		$	30,070

	Redeemable Class B Common		Class A Common Stock				Class B Common Stock					Additional paid-in			Retained		Non- Controlling			Stockholders' Equity/ Members' equity
(in thousands)	Units		Shares		Amount		Shares			Amount		capital			Earnings		Interest
Balance, December 31, 2023	$	-		4,140,000	$	4		28,141,566		$	28	$	7,112		$	322	$	28,552		$	36,018
Net income																496		3,202			3,698
Stock-based compensation													759								759
Issuance of Class A common stock																					-
Adjustment to tax liabilities and assets under TRA													(113	)							(113	)
Shares issued upon RSU vesting				117,304
Exchange of noncontrolling interest for Class A common stock				254,654				(254,654	)				258					(258	)		-
Balance, March 31, 2024	$	-		4,511,958	$	4		27,886,912		$	28	$	8,016		$	818	$	31,496		$	40,362
Net income															$	277	$	1,787			2,064
Stock-based compensation												$	759							$	759
Issuance of Class A common stock				237,593									1,436								1,436
Contribution by shareholder in final IPO settlement													1,275								1,275
Balance, June 30, 2024	$	-		4,749,551	$	4		27,886,912		$	28	$	11,486		$	1,095	$	33,283		$	45,896

See accompanying notes to condensed consolidated financial statements.

3

GEN RESTAURANT GROUP, INC.

Condensed Consolidated Statements of Cash Flows

	For the six months ended June 30,
(in thousands)	2024			2023
	(unaudited)
Cash flows from operating activities
Net Income	$	5,761		$	8,996
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization		3,300			2,281
Equity in income of equity method investee, net of distributions		17			34
Gain on remeasurement of previously held interest		(3,402	)		—
Acquisition related costs		(370	)		—
Stock-based compensation		1,518			—
Amortization of operating lease assets		3,708			2,284
Interest income earned on Notes receivable from related party		(33	)		(116	)
Deferred tax benefit		(96	)		—
Changes in operating assets and liabilities:
Inventories		45			1,594
Prepaid expenses and other current assets		363			(390	)
Other assets		(167	)		(5	)
Accounts payable		165			(2,845	)
Accrued salaries and benefits		(41	)		121
Accrued interest		34			25
Other current liabilities		731			392
Operating lease liabilities		(2,463	)		(1,919	)
Income tax payable		—			96
Net cash provided by operating activities		9,070			10,548
Cash flows from investing activities
Proceeds from recovery of Notes receivable from related party		—			12,950
Advances made to related party		—			(2,100	)
Purchase of property and equipment		(8,407	)		(4,845	)
Acquisition of GKBH, net of cash acquired		(2,976	)		—
Net cash (used in) provided by investing activities		(11,383	)		6,005
Cash flows from financing activities
Proceeds from issuance of Class A common stock sold in IPO, net of underwriting discount		—			46,167
Payments to members for advances		(881	)		(2,000	)
Advance from members		—			485
Payments for deferred offering costs		(59	)		(398	)
Payments on PPP and EIDL loans		(46	)		(43	)
Payments on finance leases		(70	)		(102	)
Payments on third party loans		(33	)		(324	)
Payments on related party loans		—			(1,000	)
Payment on line of credit		—			(153	)
Proceeds from line of credit		—			1,100
Proceeds from third party loans		—			1,300
Proceeds from related party loans		—			500
Member distributions		—			(18,293	)
Net cash (used in) provided by financing activities		(1,089	)		27,239
Net increase in cash and cash equivalents		(3,402	)		43,792
Cash and cash equivalents at beginning of period		32,631			11,195
Cash and cash equivalents at end of the period	$	29,229		$	54,987
Supplemental disclosures of other cash flow information:
Cash paid for interest	$	71		$	558
Cash paid for taxes		—			—
Non-cash investing and financing activities:
Unpaid purchases of property and equipment		755			996
Unpaid deferred offering costs		66			2,867
Leased assets obtained in exchange for new operating lease liabilities		27,172			2,284
Distribution payable		—			8,176
Conversion of related party loans to equity		1,436			871
Issuance of promissory note for business acquisition		3,000			—
Contribution by shareholder in final IPO settlement		1,275			—

See accompanying notes to condensed consolidated financial statements.

4

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

(1)Organization and Description of Business

The accompanying consolidated financial statements represent the consolidated balance sheets, income statements, changes in permanent equity (deficit), and cash flows of GEN Restaurant Group, Inc and its consolidated subsidiaries (the “Company”). The Company operates restaurants which are located in California, Arizona, Hawaii, Nevada, New York, Washington, Florida, and Texas, specializing in a variety of special flavored meats for Korean barbeque.

The following tables lists the Company’s entities in operation as of June 30, 2024:

Name	Operating Name	State	Purpose
GEN Restaurant Group, LLC	GEN Tustin	CA	Restaurant
	GEN Huntington Beach	CA	Restaurant
	GEN Oxnard	CA	Restaurant
JC Group International Inc. (S Corp)	GEN Henderson	NV	Restaurant
	GEN West Covina	CA	Restaurant
	GEN Corona	CA	Restaurant
GEN Restaurant Investment, LLC	GEN Glendale	CA	Restaurant
GEN California, LLC	GEN Fullerton	CA	Restaurant
	GEN Mira Mesa	CA	Restaurant
GEN Arizona, LLC	GEN Tempe	AZ	Restaurant
GEN Chandler, LLC	GEN Chandler	AZ	Restaurant
GEN Nevada, LLC	GEN Sahara	NV	Restaurant
	GEN Miracle Mile	NV	Restaurant
GEN Alhambra, LLC	GEN Alhambra	CA	Restaurant
GEN Arlington, LP	GEN Arlington	TX	Restaurant
GEN Cerritos, LLC	GEN Cerritos	CA	Restaurant
GEN Cerritos II, LP	Gen Cerritos II	CA	Restaurant
GEN Torrance, LLC	GEN Torrance	CA	Restaurant
GEN Rancho Cucamonga, LP	GEN Rancho Cucamonga	CA	Restaurant
GEN San Jose, LP	GEN San Jose	CA	Restaurant
GEN Northridge, LP	GEN Northridge	CA	Restaurant
GEN Chino Hills, LP	GEN Chino Hills	CA	Restaurant
GEN Carrollton, LP	GEN Carrollton	TX	Restaurant
GEN Fort Lauderdale, LP	GEN Fort Lauderdale	FL	Restaurant
GEN Fremont, LP	GEN Fremont	CA	Restaurant
GEN Concord, LP	GEN Concord	CA	Restaurant
GEN Webster, LP	GEN Webster	TX	Restaurant
GEN Westgate, LP	GEN Westgate	CA	Restaurant
GEN Westheimer, LLC	GEN Westheimer	TX	Restaurant
GEN Manhattan NYU, LP	GEN Manhattan	NY	Restaurant
GEN Mountain View, LP	GEN Mountain View	CA	Restaurant
GKBH Restaurant, LLC	GEN Korean BBQ	HI	Restaurant
GEN Hawaii, LLC	Investment Company	HI	Management of GKBH
GEN Online, LLC	GEN Online	CA	Website sales
GEN Sacramento, LP	GEN Sacramento	CA	Restaurant
GEN Pearlridge, LLC	GEN Pearlridge	HI	Restaurant
GEN Kapolei, LP	GEN Kapolei	HI	Restaurant
GEN Frisco, LP	GEN Frisco	TX	Restaurant
GEN Houston, LLC	GEN Houston	TX	Restaurant
GEN Seattle, LP	GEN Seattle	WA	Restaurant
GEN Jacksonville, LP	GEN Jacksonville	FL	Restaurant
GEN Dallas, LP	GEN Dallas	TX	Restaurant
GEN Texas, LLC	Investment Company	TX	Management of GEN Houston and GEN Webster
GEN Master, LLC	Holding Company	NV	Management
GEN Restaurant Management, LLC	GRM	DE	Management

5

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

As of June 30, 2024, all of the above entities are collectively owned 100% by the controlling group. The Company had an equity method investment through GEN Hawaii, with a 50% ownership share of GKBH Restaurant, LLC (“GKBH”). On February 18, 2024, the Company purchased the other 50% of GKBH and other rights for a total purchase price of $6.0 million and the Company now controls 100% of GKBH. As of June 30, 2024 and December 31, 2023, there were 40 and 37 restaurants in operation, respectively.

During the second quarter of 2024, the Company signed leases for eight restaurants in Allston (Boston) MA, Cary, NC, El Paso, TX, Kona, HI, La Jolla (San Diego), CA, Nashville, TN, Tucson, AZ, and Waco, TX. As of June 30, 2024, the Company has sixteen signed leases for the development of new restaurants.

Organization

GEN Restaurant Group, Inc. (“GEN Inc.”) was formed as a Delaware corporation on October 28, 2021 and is based in Cerritos, California. As the managing member of Gen Restaurant Companies, LLC (the “Operating Company”), GEN Inc. operates and controls all the business and affairs of the Operating Company, and through the Operating Company and its consolidated subsidiaries, conducts its business. Unless the context otherwise requires, references to the “Company” refer to GEN Inc., and its consolidated subsidiaries, including the Operating Company.

On June 30, 2023 the Company completed an initial public offering (the “IPO”) of 4,140,000 shares of Class A common stock at $12 per share that generated aggregate net proceeds of $46.2 million.

(2)Basis of Presentation and Summary of Significant Accounting Policies

(a)Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company, collectively, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”). These unaudited condensed consolidated financial statements were prepared on the same basis as the audited consolidated financial statements, and, in the opinion of management, reflect all adjustments (all of which were considered of a normal recurring nature) considered necessary to present fairly the Company's financial results. The results of the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024 and for any other interim period or future year.

(b)Recent Accounting Pronouncements

The Company, as an emerging growth company, has elected to use the extended transition period which allows us to defer the adoption of new or revised standards. This allows the Company to adopt new or revised accounting standards as of the effective date for non-public business entities.

In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-01, “Leases (Topic 842): Common Control Arrangements”. The new guidance requires all lessees in a lease with a lessor under common control to amortize leasehold improvement over the useful life of the common control group and provides new guidance for recognizing a transfer of assets between entities under common control as an adjustment to equity when the lessee no longer controls the use of the underlying asset. This guidance is effective for fiscal years beginning after December 15, 2023. The adoption of this standard in the first quarter of 2024 did not have any material impact on our consolidated financial statements.

Accounting Standards Codification (“ASC”) Topic 320, “Investments-Debt Securities,” requires that an enterprise classify all debt securities as either held-to-maturity, trading, or available-for-sale. During the third quarter of 2023, the Company adopted ASC 320 and classified its U.S. Treasury and equivalent securities as held-to-maturity. Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity.

6

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 820): Improvements to Reportable Segment Disclosures” which provides guidance to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023. The Company is currently evaluating the impact of this standard on our consolidated financial statements and will adopt this pronouncement in the fourth quarter of 2024.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures,” which is effective for fiscal years beginning after December 31, 2024. The Company is evaluating the presentational effect that ASU 2023-09 will have on our consolidation financial statements.

(c)Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities in the accompanying unaudited condensed consolidated financial statements of the Company. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Annual Report.

(d)Goodwill

Goodwill is calculated under ASC 805-30-30, which represents the excess of the fair value of purchase consideration of an acquired business over the fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at a reporting unit level on an annual basis, or more frequently if circumstances change or an event occurs that would more likely than not reduce the fair value of the a reporting unit below its carrying amount.

(e)Business Combinations

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC Topic 805, “Business Combinations”. Under the acquisition method, we recognize 100% of the assets we acquire and liabilities we assume, regardless of the percentage we own, at their estimated fair values as of the date of acquisitions. Any excess of the purchase price over the fair value of the net assets and other identifiable intangible assets we acquire is recorded as goodwill. The assets we acquire, and liabilities we assume from contingencies, are recognized at fair value if we can readily determine the fair value during the measurement period. The operating results of the business the Company acquired are included in the consolidated statements of operations from the date of acquisition. Acquisition-related costs are expensed as incurred.

(f)Equity-Based Compensation

The Company accounts for equity-based compensation grants to employees in accordance with ASC Topic 718, “Stock Based Compensation”. The Company issued restricted stock units to its employees.

The Company estimates the fair value of the restricted stock units on the grant-date and recognizes the resulting fair value over the requisite service period. The fair value of each restricted stock unit or award is determined based upon the value of the common stock granted. The Company has elected to treat stock-based awards with graded vesting schedules and time-based service conditions as a single award and recognizes stock-based compensation on a straight-line basis over the requisite service period. Forfeitures are accounted for as they occur.

(g)Cash and Cash Equivalents

The Company and its related entities consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. As of June 30, 2024 and December 31, 2023, cash and cash equivalents consisted principally of cash, money market accounts and short-term investments. Short-term investments are classified as available for sale, which are carried at fair value, with changes in fair value reported in earnings. Cash equivalents also include credit card transactions in transit.

As of June 30, 2024 and December 31, 2023, there were deposits in excess of federally insured amounts of $3.9 million and $8.8 million, respectively.

7

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

	Carrying Value/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value as of June 30, 2024
(in thousands)
Money Market Accounts (included in cash and cash equivalents)	$	3,475	$	—	$	—	$	3,475
U.S. Treasury Securities (included in cash and cash equivalents)	$	20,000	$	858	$	—	$	20,858
	$	23,475	$	858	$	—	$	24,333
Represent money market accounts. Excludes $4.9 million of cash and cash equivalents at June 30, 2024.

(h)Concentration Risk

The Company relies on third parties for specified food products and supplies. In instances where these parties fail to perform their obligation, the Company may be unable to find alternative suppliers.

The Company relies on Sysco Los Angeles, Inc., or Sysco, an unrelated third-party, for a significant portion of its food supplies. During the fourth quarter of 2023, the Company entered into an agreement with Sysco to purchase certain food supplies. For the three and six months ended June 30, 2023, the Company did not purchase from Sysco. For the three and six months ended June 30, 2024 Sysco accounted for approximately 74.0% and 73.3% of total food costs, respectively.

The Company previously relied on U.S. Foods, an unrelated third-party for a significant portion of its food products. For the six months ending June 30, 2024, the Company did not purchase from U.S. Foods. For the three months ended June 30, 2023, U.S. Foods account for approximately 50.6% of total food costs. For the six months ended June 30, 2023, U.S. Foods accounted for approximately 46.3% of total food costs.

The Company relies on Pacific Global Distribution, Inc. (“PGD”), which provides restaurant supplies such as tableware, napkins, soda, and sauces. PGD is owned by a related party. For the three months ended June 30, 2024 and June 30, 2023, PGD accounted for approximately 3.7% and 13.9% of total operating expenses, respectively. For the six months ended June 30, 2024 and 2023, PGD accounted for approximately 4.1% and 16.4% of total operating expenses, respectively.

The Company previously relied on Wise Universal, Inc. (“Wise”), an entity 60% owned by a related party, for food supplies for 13 restaurants. For the three months and six months ended June 30, 2024 the Company did not purchase from Wise. For the three months and six months ended June 30, 2023, Wise accounted for approximately 22.6% and 23.7% of total food supplies, respectively.

(i)Inventories

Inventories consist principally of food and beverages and are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method (FIFO) for all inventories.

(j)Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, “Revenue from Contracts with Customers.” Revenue from the operation of the restaurants is recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale.

(k)Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Property and equipment under finance leases are stated at the present value of minimum lease payments.

8

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

The estimated useful service lives are as follows:

Equipment	5 - 7 Years
Furniture and fixtures	5 - 7 Years
Leasehold improvements	Shorter of useful life or remaining lease term

The Company capitalizes certain costs in conjunction with improvements to specific sites for planned future restaurants and in conjunction with construction of new restaurants. The Company and its related entities did not capitalize any internal costs related to site preparation and construction activities during the six months ended June 30, 2024 and June 30, 2023 as any amounts were deemed immaterial.

(l)Other Assets and Other Current Liabilities

Other assets as of June 30, 2024 and December 31, 2023 consist of the following:

(in thousands)	June 30, 2024		December 31, 2023
Other Assets
Security Deposits	$	667	$	534
Liquor Licenses		225		215
Total Other Assets	$	892	$	749

Other Current Liabilities as of June 30, 2024 and December 31, 2023 consist of the following:

(in thousands)	June 30, 2024		December 31, 2023
Other Current Liabilities
Sales tax payable	$	1,512	$	1,447
Accrued percentage rent		1,154		1,163
Misc. accrued expenses		3,380		2,756
Total Other Current Liabilities	$	6,046	$	5,366

(m)Advances from members

Advances from members consist of funding received from member owners. During the six months ended June 30, 2024, the Company satisfied $2.7 million of advances from members through cash payments of $864 thousand, the issuance of Class A common stock valued at $550 thousand, and offsets against $1.3 million of advances to satisfy certain costs incurred by the Company relating to the restructuring transaction in connection with the IPO. As of June 30, 2024, the balance was $0 and as of December 31, 2023 the balance was $2.7 million.

(n)Pre-Opening Costs

Pre-opening costs, incurred in connection with the opening of new restaurants, are expensed as incurred. Pre-opening costs were $1.6 million and $0.9 million for the three months ended June 30, 2024 and June 30, 2023, respectively, and $3.5 million and $1.4 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

(o)Income Taxes

Deferred tax assets are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets of a change in tax rates is recognized in income in the period that includes the enactment date.

9

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

The Company recognizes positions taken or expected to be taken in a tax return in accordance with existing accounting guidance on income taxes which prescribes a recognition threshold and measurement process. Under GAAP, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest and penalties on tax liabilities, if any, would be recorded in interest expense and other expense, respectively.

In assessing the realizability of deferred tax assets, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.

(p)Long-Lived Assets

Long-lived assets are reviewed quarterly for impairment and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long- lived asset or asset group to be tested for possible impairment, undiscounted cash flows expected to be generated by that asset or asset group are compared to its carrying amount. If the carrying amount of the long-lived asset or asset group is not expected to be recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. We assessed our long-lived assets for potential impairment with the result that no impairment charges were recorded in any of the periods presented.

(q)Interest Income/Expense

A reconciliation of total interest cost to interest income/expense as reported in the condensed consolidated income statement for the three and six months ended June 30, 2024 and June 30, 2023 is as follows:

	Three months ended						Six months ended
(in thousands)	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Interest expense	$	90		$	301		$	177		$	557
Interest income		(352	)		(94	)		(715	)		(161	)
Interest (income) expense, net	$	(262	)	$	207		$	(538	)	$	396

(r)Liquor Licenses

Liquor licenses are deemed to have indefinite useful lives and are quantitatively tested on an annual basis for impairment. Liquor licenses are included in other assets in the accompanying balance sheets.

(s)Sales Taxes

Sales taxes are imposed by state, county, and city governmental authorities, collected from customers and remitted to the appropriate governmental agency. The Company’s policy is to record the sales taxes collected as a liability on the books and then remove the liability when the sales tax is remitted. There is no impact on the condensed consolidated income statements as restaurant sales are recorded net of sales tax.

(t)Advertising Costs

Advertising costs are expensed as incurred and are included in General and Administrative costs in the accompanying condensed consolidated income statements. The Company incurred approximately $77 thousand and $54 thousand in advertising expenses for the three months ended June 30, 2024 and June 30, 2023, respectively. The Company incurred approximately $90 thousand in advertising expenses for both the six month periods ended June 30, 2024 and 2023, respectively.

10

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

(u)Risks and Uncertainties.

Management continues to evaluate the potential impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s future financial position and the results of its operations, the specific impact is not readily determinable as of the date of these unaudited condensed financial statements. The unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

(v)Restaurant Revitalization Fund

Several of the Company’s restaurants received, between May and August 2021, a total of approximately $16.8 million from the Restaurant Revitalization Fund (“RRF”). The RRF funds must be used for specific purposes, and the Company was required to provide use of funds validation on an annual basis through March 2023. During the year ended December 31, 2021, the Company recognized approximately $13.0 million as RRF grant income and had deferred the remaining balance of $3.8 million. No RRF grant income was recognized during the six months ended June 30, 2024 and June 30, 2023.

(w)Employee Retention Credits

In March 2020, the Coronavirus Aid, Relief, and Economic Security Act was signed into law, providing numerous tax provisions and other stimulus measures, including the Employee Retention Credit (“ERC”), a refundable tax credit against certain employment taxes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021 extended and expanded the availability of the ERC. We qualified for the ERC in the first and second quarters of 2019, second and fourth quarters of 2020 and first, second and third quarters of 2021. During the three months ended June 30, 2024 and June 30, 2023, we recorded an aggregate benefit of $200 thousand and $1.3 million, respectively, in our condensed consolidated income statements to reflect the ERC. During the six months ended June 30, 2024 and 2023, the Company recorded an aggregate benefit of $200 thousand and $2.5 million, respectively, in our condensed consolidated income statements to reflect the ERC.

(x) Deferred Offering Costs

The Company capitalized certain legal, accounting, and other third-party fees that were directly attributable to GEN Inc.’s IPO. Following the successful consummation of the IPO in June 2023, deferred offering costs of approximately $3.3 million were recorded in the Company’s stockholders’ equity as a reduction of additional paid-in capital. The Company had no remaining deferred offering costs assets at June 30, 2024.

(y) Net Income Per Share

Basic net income per share is computed by dividing net income attributable to the Company by the weighted-average number of shares outstanding during the period. Diluted net income per share is computed by giving effect to all potential weighted-average dilutive shares including stock options, restricted stock units, dividend equivalent units, restricted stock awards, and Class B Common Units exchangeable for shares of Class A common stock for the periods after the closing of the IPO on June 30, 2023. The dilutive effect of outstanding awards, if any, is reflected in diluted earnings per share by application of the treasury stock method or if-converted method, as applicable. See “Note 15—Net Income per Share.”

(3)Business Combinations

On February 18, 2024, we acquired the remaining 50% interest in GKBH, which was previously accounted for under the equity method. GKBH has been consolidated in our consolidated financial statements commencing February 18, 2024, the date of acquisition. The purchase price for the acquisition was allocated based on estimates of the fair value of the net assets acquired at the acquisition date, with the excess allocated to goodwill. The total consideration for the acquisition consisted of $6.0 million, payable in cash. During the three months ended March 31, 2024, we recognized approximately $370 thousand in acquisition-related costs, which were included within “Gain on remeasurement of previously held interest” in our condensed consolidated income statements.

The following table summarizes the fair value of GKBH’s assets and liabilities at the acquisition date, and the resulting goodwill.

11

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

(in thousands)
Purchase price of 50% interest in GKBH	$	6,000
Acquisition-date fair value of previously held interest (Level 2)		4,286
Fair value of GKBH at acquisition date		10,286

(in thousands)
Cash	$	24
Accounts Receivable		96
Inventories		22
Prepaid and Other assets		118
Deposits		67
Property and equipment		745
Operating lease right-of use assets		3,851
Liabilities assumed		(4,135	)
Total identifiable net assets	$	788
Goodwill		9,498
	$	10,286

Goodwill is calculated as the excess of the purchase price over the net assets acquired. The Company expects that a portion of the goodwill balance to be deductible for tax purposes over a period of 15 years. Goodwill is primarily attributed to growth and efficiency opportunities, expected synergies from combining the operations with the Company, and the assembled workforce.

The following table presents unaudited consolidated pro forma results as if the acquisition of GKBH had occurred on January 1, 2023.

	Three months ended June 30,				For the six months ended June 30,
(in thousands, except per share data)	2024		2023		2024		2023
Revenue	$	53,860	$	48,413	$	106,449	$	94,104
Net income before taxes		2,075		7,678		2,828		12,590
Earnings per common share:
Basic	$	0.06	$	-	$	0.08	$	-
Diluted	$	0.06	$	-	$	0.08	$	-

The unaudited pro forma financial information reflects the acquisition of GKBH by the application of pro forma adjustments to the Company’s historical financial statements as if the acquisition had occurred on January 1, 2023. The unaudited pro forma financial information should not be considered indicative of actual results that would have been achieved had the acquisition of GKBH actually been consummated on the date indicated and does not purport to be indicative of the Company’s future financial position or results of operations. There were no material nonrecurring pro forma adjustments directly attributable to the acquisition included within the unaudited pro forma financial information.

The fair value of the previously held noncontrolling interest was determined based on the fair value of total consideration transferred and application of a discount for lack of control, which was determined using historical market data on control premiums and other industry data.

(4)Fair Value of Financial Instruments

The Company's financial instruments consist of cash and cash equivalents and investments. The carrying amounts reported in the accompanying condensed consolidated balance sheets for cash and cash equivalents approximate fair value because of the short-term maturity of those instruments. Fair value measurements are classified and disclosed in one of the following three categories:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

12

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets of liabilities.

As of June 30, 2024, all of the Company's financial assets that were subject to fair value measurement were valued using observable inputs. The Company's financial assets valued based on Level 1 inputs consist of cash and money market funds and U.S. treasury securities.

			Fair Value Measurements at June 30, 2024
(in thousands)	Total		Level 1		Level 2		Level 3
Money Market Account (included in Cash and Cash Equivalents)	$	3,475	$	3,475	$	—	$	—
U.S. Treasury Securities (included in Cash and Cash Equivalents)	$	20,858	$	20,858	$	—	$	—
			Fair Value Measurements at December 31, 2023
Money Market Account (included in Cash and Cash Equivalents)	$	9,079	$	9,079	$	—	$	—
U.S. Treasury Securities (included in Cash and Cash Equivalents)	$	20,322	$	20,322	$	—	$	—

(5)Property and Equipment, Net

The costs and related accumulated depreciation and amortization of major classes of property:

(in thousands)	June 30, 2024			December 31, 2023
Equipment		14,331			12,387
Furniture and fixtures		6,104			5,467
Leasehold improvements		49,613			43,022
Other assets		414			414
Construction in progress		4,743			4,894
	$	75,205		$	66,184
Less accumulated depreciation and amortization		(35,577	)		(32,277	)
Property and Equipment, Net	$	39,628		$	33,907

The construction in progress balance on June 30, 2024 and December 31, 2023 is related to new restaurants being developed for openings expected in 2024 and 2025.

Total depreciation and amortization for the three months ended June 30, 2024 and June 30, 2023 was $1.7 million and $1.1 million, respectively, of which $5 thousand and $61 thousand for those periods were related to assets acquired under a finance lease.

Total depreciation and amortization for the six months ended June 30, 2024 and June 30, 2023 was $3.3 million and $2.3 million, respectively, of which $36 thousand and $89 thousand for those periods were related to assets acquired under a finance lease.

(6)Equity Method Investment

On April 1, 2016, GEN Hawaii made an investment of $200 thousand for a 50% interest in GKBH, which operates a GEN restaurant in Hawaii. The Company accounted for this investment as an equity method investment since the Company did not control major operational and financial decisions, which required consent from the previous co-owner.

13

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

On February 18, 2024, the Company purchased the remaining 50% membership interest for a total purchase price of $6.0 million and controls 100% of GKBH as of the acquisition date. See (Note 3. Business Combinations.)

Prior to the purchase of the remaining 50% membership interest in GKBH, during the six months ended June 30, 2024, and June 30, 2023, the Company received distributions of $0 thousand and $500 thousand, respectively, from GKBH.

A summary of the GKBH financial position as of December 31, 2023 and results of operations for the three and six months ended June 30, 2023 is as follows (unaudited):

(in thousands)	December 31, 2023
Current assets		808
Noncurrent assets		2,290
Current liabilities		972
Noncurrent liabilities		1,064

	Three months ended		Six months ended
(in thousands)	June 30, 2023		June 30, 2023
Net sales or gross revenue		1,940		3,769
Operating income		1,309		2,542
Net income		172		933
Net income attributable to the entity		86		467

(7)Line of Credit

During March 2022 the Company entered into a line of credit for $8.0 million with Pacific City Bank (“PCB”). The line of credit matured on September 3, 2023, and bore interest at a variable interest rate which was defined as the Wall Street Journal Prime Rate plus 1.75%, resulting in an interest rate of 10.25% on August 16, 2023, when paid in full. On August 16, 2023, the Company repaid in full the obligation under the line of credit plus accrued interest.

On September 29, 2023, the Company entered into a new line of credit agreement for $20.0 million with PCB. The line of credit matures on September 25, 2024, and bears interest at a variable rate per annum equal to The Wall Street Journal Prime Rate, plus 0.25% resulting in a rate of 8.75% as of June 30, 2024. The available balance was $20.0 million at June 30, 2024 and December 31, 2023 with no draw against the line of credit.

(8)Notes Payable

Note Payable to WDI

On February 18, 2024, the Company finalized an agreement with WDI International, Inc. (“WDI”), to acquire the remaining 50% ownership stake in GKBH, along with securing rights for participation in upcoming restaurant ventures in Hawaii, at a valuation of $6.0 million. Subsequently, on the same date, the Company disbursed $3.0 million in cash and committed to a promissory note amounting to $3.0 million as per the terms of the agreement. The note is non-interest bearing and is due August 16, 2024.

Notes Payable to Bank

On September 13, 2017, the Company and a commercial bank entered into a loan agreement in the amount of $3.0 million with a maturity date of September 15, 2024, at an interest rate of 6.00%. On August 16, 2023, the Company paid the outstanding balance plus accrued interest in full.

During the first quarter of 2023, the Company and a commercial bank entered into a loan agreement in the amount of $1.3 million with a maturity date of February 6, 2030, at a variable interest rate which is defined as the Wall Street Journal Prime Rate plus 1.00%, resulting in an interest rate of 9.25% as of August 16, 2023. Principal and interest payments were due monthly and commenced in March 2023. On August 16, 2023, the Company paid the outstanding balance plus accrued interest in full.

Economic Injury Disaster Loan (“EIDL”)

14

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

On July 1, 2020, the Company executed the standard loan documents for restaurants required for securing EIDL from the United States Small Business Administration under its Economic Injury Disaster Loan assistance program. This assistance was sought in light of the impact of the COVID-19 pandemic on the Company’s business.

As of both June 30, 2024 and December 31, 2023, the total principal amount of the EIDLs was $4.4 million, and the proceeds were used for working capital purposes. Interest on the EIDLs accrues at 3.75% per annum and installment payments, including principal and interest, are due monthly beginning twelve months from the date of each loan. The balance of principal and interest is payable over thirty years from the date of the promissory note.

Note Payable to Landlord

In August 2017, GEN Fremont entered into a note agreement with a landlord. The Company is making equal monthly payments on this note which has a July 2027 maturity date, with an interest rate of 8.00% per annum. As of June 30, 2024 and December 31, 2023, the loan balance outstanding was $238 thousand and $271 thousand, respectively.

Total Obligations of Notes Payable

The aggregate maturities of all third party notes payable as of June 30, 2024:

(in thousands)
2024 - remaining	$	3,149
2025		179
2026		189
2027		146
2028		117
Thereafter		3,851
	$	7,631
Less current portion of notes payable		(3,206	)
Long term portion	$	4,425

(9)Related Party Notes Payable

During 2022, the member owners loaned $1.9 million to the Company for the construction and pre-opening costs at the new GEN Webster restaurant location. As of June 30, 2024, the loan balance outstanding was $310 thousand. The loan bears interest of 3.00% per year and matures on November 25, 2024.

In December 2022, the member owners loaned an additional $500 thousand to the Company for construction and pre-opening costs. The loan has a variable interest rate which is defined as the Wall Street Journal Prime Rate plus 1.75%, resulting in an interest rate of 9.25% at December 31, 2022. During January 2023, the Company repaid $500 thousand towards the Note Payable – related party. During March 2023, the member owner loaned another $500 thousand to the Company of which $150 thousand was repaid prior to the IPO transaction, and as part of the IPO transaction, the remaining loan balance was repaid in full and immediately contributed to owners’ equity.

The aggregate maturities of notes payable to related parties as of June 30, 2024, are as follows:

(in thousands)
Total related party notes payable	$	310
Less current portion of notes payable:	$	(310	)
Notes Payable, net of current portion:	$	-

Interest expense incurred for the related party debt was $25 thousand and $45 thousand for the three months ended June 30, 2024 and June 30, 2023, respectively.

15

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

Interest expense incurred for the related party debt was $50 thousand and $68 thousand for the six months ended June 30, 2024 and June 30, 2023, respectively.

Issuance of Common Stock for Repayment of Notes Payable to Related Parties and Advances from Members

During the second quarter of 2024, the Company satisfied $2.7 million of notes payable to related parties and advances from members through cash payments of $864 thousand, the issuance of Class A common stock valued at $550 thousand, and offset against $1.3 million of advances to satisfy certain costs incurred by the Company relating to the restructuring transaction in connection with the IPO.

(10)Leases

At inception of a contract, the Company assesses whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by the Company. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). The Company has operating and finance leases for its corporate office, restaurant locations, office equipment and kitchen equipment. The leases have remaining lease terms of less than 1 year to up to 25 years, including options to extend many of the leases. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease.

Operating leases are accounted for on the balance sheet with the lease assets and liabilities recognized in “Operating lease assets”, “Operating lease liabilities, current” and “Operating lease liabilities, net of current portion”. Finance lease liabilities are recognized on the balance sheet in “Obligations under finance leases, current” and “Obligations under finance leases, net of current portion”.

Lease assets and liabilities are recognized at the lease commencement date. All lease liabilities are measured at the present value of the lease payments not yet paid. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates corresponding to the maturities of the leases. We estimate this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment. Operating lease assets are initially measured based on the lease liability, adjusted for initial direct costs, prepaid or deferred rent, and lease incentives. The operating lease liabilities are subsequently measured at the carrying amount of the lease liability adjusted for initial direct costs, prepaid or accrued lease payments, and lease incentives.

The following table summarizes the operating and finance lease activities to the income statement and balance sheet for the three months ended June 30, 2024 and 2023 and the six months ended June 30, 2024 and 2023:

(in thousands)		Three months ended June 30,				Six months ended June 30,
Operating lease cost	Classification	2024		2023		2024		2023
Operating lease cost	Occupancy and related expenses, and General and administrative expenses	$	2,988	$	2,253	$	5,747	$	4,443
Variable lease cost	Occupancy and related expenses, and General and administrative expenses		1,401		1,420		2,935		2,661
Total operating lease cost		$	4,389	$	3,673	$	8,682	$	7,104

Supplemental balance sheet information related to leases:
Operating leases (in thousands)	June 30, 2024		December 31, 2023
Operating lease assets	$	122,560	$	99,255
Operating lease liabilities, current		4,516		4,535
Operating lease liabilities, net of current portion		135,071		110,501
Total operating lease liabilities	$	139,587	$	115,036

16

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

Finance lease assets, net (in thousands)	June 30, 2024			December 31, 2023
Property and equipment	$	444		$	902
Accumulated depreciation		(442	)		(861	)
Property and equipment, net	$	2		$	41

Finance lease liabilities (in thousands)	June 30, 2024		December 31, 2023
Obligations under finance leases, current	$	56	$	125
Obligations under finance leases, net of current portion		—		—
Total finance lease liabilities	$	56	$	125

	June 30, 2024
Weighted-Average Remaining Lease Term (Years)
Operating leases		15.2
Finance leases		0.4
Weighted-Average Discount Rate
Operating leases		6.71	%
Finance leases		7.45	%

Maturities of lease liabilities as of June 30, 2024:

	Operating Leases			Finance Leases
(in thousands)
2024 - remaining	$	6,050		$	57
2025		13,680			—
2026		14,121			—
2027		14,434			—
2028		14,655			—
Thereafter		172,398			—
Total undiscounted lease payments	$	235,338		$	57
Present value discount/interest		(95,751	)		(1	)
Present value		139,587			56
Lease liabilities, current		4,516			56
Lease liabilities, net of current		135,071			—
Total operating lease liability	$	139,587		$	56

As of June 30, 2024, the Company had additional operating leases related to new restaurants the Company has not yet taken possession of that will total $50.0 million in future lease payment commitments. These operating leases are expected to commence later in fiscal year 2024 and in fiscal year 2025 will have lease terms, including option periods, of 10 to 25 years.

The Company is obligated under finance leases covering certain property and equipment that expire at various dates during the next 2 years. On June 30, 2024 and June 30, 2023 the gross amounts of property and equipment and related accumulated depreciation and amortization recorded under finance leases were as follows:

(in thousands)	June 30, 2024			June 30, 2023
Property and equipment		444			902
Less accumulated depreciation and amortization		(442	)		(804	)
Property and equipment, net	$	2		$	98

Amortization of assets held under finance leases is included with depreciation expense in the condensed consolidated income statement.

17

GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

(11)Commitments and Contingencies

(a)Commitments

On November 23, 2016, pursuant to the U.S. government’s Immigrant Investor Program, commonly known as the EB-5 program (the “EB-5 Program”), Gen Restaurant Investment, LLC entered into an operating agreement with an investor (the “EB-5 Investor”). Under the terms and conditions of the EB-5 program, the Company is subject to certain job creation requirements.

As part of the EB-5 Program operating agreement, Gen Restaurant Investment, LLC issued 3 units of Series II Preferred Member Interest in exchange for a 30% interest and received $1.5 million, recorded as equity. Five years from the date of issue, (the “Conversion Date”), or after approval of the l-829 petition to USCIS, the EB-5 Investor has the option to convert the Series II Units into Series I Units. If the EB-5 Investor does not exercise the conversion option, the Company may exercise its call option to purchase the EB-5 Investor’s interests for the fair market value. If approval of the preferred member's I-526 immigration application is denied, the Company is required to repurchase the preferred member's units for $1.5 million.

Accordingly, this has been presented as mezzanine equity, not permanent equity, in the accompanying condensed consolidated balance sheets.

(b)Contingencies

The Company and its related entities are involved in various claims and legal actions arising in the ordinary course of business. The outcomes of these actions are not predictable but the Company does not believe that the ultimate resolution of these other actions will have a material adverse effect on its financial position, results of operations, liquidity, or capital resources. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims, could materially and adversely affect its business, financial condition, results of operations or cash flows.

The Company is a party to several lawsuits brought in Los Angeles County, California by ex-employees alleging labor law violations. The Company plans to continue to defend against these claims and does not expect the outcome of these lawsuits to have a material impact on the financial statements of the Company.

(12)Income Taxes

Income Taxes, General

As a result of the IPO and the related transactions, the Company owns a portion of the common units of the Operating Company, which is treated as a partnership for U.S. federal, and most applicable state and local income tax purposes. As a partnership, the Operating Company is generally not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by the Operating Company is passed through to and included in the taxable income or loss of its members in accordance with the terms of the Operating Agreement. The Company is subject to U.S. federal, state and local income taxes based on its share of the Operating Company’s pass-through taxable income.

The effective tax rate differs from the statutory tax rate primarily due to the Operating Company’s pass-through structure for U.S. income tax purposes.

For the six months ended June 30, 2024, the Company did not have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties.

For the three months ended June 30, 2024, the Company recorded an income tax expense of $11 thousand. The Company’s effective income tax rate before discrete items for the three months ended June 30, 2024 was 1.13%.

For the six months ended June 30, 2024, the Company recorded an income tax expense of $83 thousand. The Company’s effective income tax rate before discrete items for the six months ended June 30, 2024 was 1.34%.

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GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

During the three and six months ended June 30, 2024 and 2023, respectively, management performed an assessment of the realizability of our deferred tax assets based upon which management determined that it is not more likely than not that the results of operations will generate sufficient taxable income to realize portions of the net operating loss benefits. Consequently, we established a full valuation allowance against our deferred tax assets and reflected a carrying balance of $0 as of June 30, 2024 and December 31, 2023, respectively. In the event that management determines that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, an adjustment to the valuation allowance will be made, which would reduce the provision for income taxes.

Uncertain Tax Positions

For the three and six months ended June 30, 2024 and 2023, respectively, we did not have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties. The Company is subject to audit examination for federal and state purposes for the years 2018 - 2022.
 

Tax Receivable Agreement (“TRA”)

Gen, Inc. entered into the TRA with the Operating Company and each of the members of the Operating Company (the “Members”) that provides for the payment by Gen Inc. to the Members of 85% of the amount of tax benefits, if any, that the Company may actually realize (or in some circumstances is deemed to realize) as a result of (i) increases in tax basis resulting from any future redemptions that are funded by Gen Inc. or exchanges of Class A Common Units described above in “Note 1—Organization and Description of Business” and (ii) certain other tax benefits attributable to payments made under the TRA.

The annual tax benefits are computed by calculating the income taxes due, including such tax benefits, and the income taxes due without such benefits. The Operating Company expects to benefit from the remaining 15% of any tax benefits that it may actually realize. The TRA payments are not conditioned upon any continued ownership interest in the Operating Company. The rights of each noncontrolling interest holder under the TRA are assignable to transferees of its interest in the Operating Company. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the amount and timing of the taxable income the Operating Company generates each year and the applicable tax rate.

As of June 30, 2024, the Company had a liability related to its projected obligations under the TRA of $584 thousand, which is reflected on the Company’s condensed consolidated balance sheet in “Tax receivable agreement liability”. During the six months ended June 30, 2024, Gen Inc. did not make any payments to members of the Operating Company pursuant to the TRA.

(13)Non-Controlling Interest

As discussed in “Note 1 – Organization and Description of Business,” the Company consolidates the financial results of the Operating Company and reports a non-controlling interest related to the Class B Common Units held by non-controlling interest holders on its consolidated financial statements.

As of June 30, 2024, the Company owned 14.6% of the economic interests in the Operating Company, with the remaining 85.4% of the economic interest owned by non-controlling interest holders. The non-controlling interests on the accompanying condensed consolidated income statement represents the portion of the income attributable to the economic interests in the Operating Company held by the non-controlling holders of Class B Common Units calculated based on the weighted-average non-controlling interests’ ownership during the periods presented.

(14)Other Related-Party Transactions

The Company purchased approximately $189 thousand and $528 thousand for the three months ended June 30, 2024 and June 30, 2023, respectively, of supplies from Pacific Global (“PGD”), which is 100% owned by Mr. Jae Chang, our Co-Chief Executive Officer and Mr. Chang's direct family. The Company purchased approximately $424 thousand and $1.3 million of supplies from PGD for the six months ended June 30, 2024 and June 30, 2023, respectively.

In 2016, the Company entered into a management agreement with JL Restaurant Management, Inc., a third party which shares offices with Mr. Jae Chang, our Co-Chief Executive Officer. Pursuant to the agreement, the Company paid approximately $0.5 million

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GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

during the three months ended June 30, 2023 and $1.1 million during the six months ended June 30, 2023. Following the IPO this management agreement was terminated effective July 1, 2023.

The Company purchased $2.8 million of food from Wise Universal Inc., an affiliate 60% owned by Mr. Chang for the three months ended June 30, 2023. The Company purchased approximately $6.4 million of food from Wise for the six months ended June 30, 2023. No purchases were made from Wise in 2024.

On August 29, 2014, the Company entered into a consulting agreement (the “Consulting Agreement”) with Ignite Enterprise, LLC, (“Ignite”), 100% owned by Mr. David Kim, our Co-Chief Executive Officer, which provides for annual fees of up to 25% of gross revenue in exchange for various consulting services. The Company paid $1.4 million for the three months ended June 30, 2023, and paid approximately $2.3 million for the six months ended June 30, 2023. Following the IPO this agreement was terminated effective July 1, 2023.

As of December 31, 2023, GEN Mountain View had a related party account payable to a company owned by Mr. David Kim for purchases of fixed assets during 2018. During the three and six months ended June 30, 2024, GEN Mountain View paid $48 thousand and $80 thousand, respectively, towards this payable. The balance at June 30, 2024 was $72 thousand.

(15)Net Income per Share

Basic net income per share of Class A common stock is computed by dividing net income attributable to GEN Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted net income per share of Class A common stock is computed by dividing net income attributable to GEN Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. Diluted net income per share for any periods for which loss per share is presented is the same as basic net income per share as the inclusion of potentially issuable shares would be antidilutive.

Prior to the amendment and restatement of the Operating Company’s LLC Agreement in connection with the IPO, the Operating Company’s membership interests were defined solely as percentage interests as the LLC Agreement did not define a number of membership units outstanding or authorized. As a result, a calculation of basic and diluted earnings per unit for the three and six months ended June 30, 2023 was not presented in the accompanying condensed consolidated unaudited financial statements as a denominator to the calculation could not be determined.

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GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

A calculation of the numerator and denominator used in the calculation of basic and diluted net income per share of Class A common stock is as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share data)	2024		2023		2024		2023
Numerator:
Net income	$	2,064	$	85	$	5,761	$	85
Less: Net income attributable to non-controlling interest		1,787		74		4,990		74
Net income attributable to Class A common stockholders	$	277	$	11	$	771	$	11
Denominator:
Weighted-average shares of Class A common stock outstanding - basic		4,572		4,249		4,446		4,249
Weighted-average shares of Class A common stock outstanding - diluted		4,572		4,249		4,446		4,249
Net income per share of Class A common stock - basic	$	0.06	$	—	$	0.17	$	—
Net income per share of Class A common stock - basic and diluted	$	0.06	$	—	$	0.17	$	—

For the three and six months ended June 30, 2024, 27,886,912 shares of Class B common stock was excluded from the weighted-average in the computation of diluted net income per share of Class A common stock because the effect would have been anti-dilutive.

Shares of Class B common stock do not share in the earnings or losses of GEN Inc. and are therefore not participating securities. Separate calculations of basic and diluted net income per share for Class B common stock has not been presented.

(16)Stock-Based Compensation

In connection with the IPO, the Company granted restricted stock units (“RSUs”) to certain team members that generally vest on the five year anniversary of the grant date, or over a five year period with vesting of 20% each year. The non-employee directors of the Company received RSUs that vest on the first anniversary of the grant date, subject to the grantee's continued service through the vesting period, or upon termination from the Board of Directors for any reason other than for cause, a pro rated portion of the shares vest on the termination date. The total stock based compensation for the three and six months ended June 30, 2024 was $759 thousand and $1.5 million, respectively, and is included in general and administrative expenses.

	Number of RSUs
RSUs	(Thousands)
Non-vested as December 31, 2023		1,209
Granted		-
Vested		(117	)
Canceled		-
Non-vested as of June 30, 2024		1,092

The aggregate fair value of the RSU's granted during the year ended December 31, 2023 was $14.6 million. The unrecognized stock-based compensation of $11.5 million as of June 30, 2024, will be recognized through July 2028. The Company issued 372,600 (or 9% of the shares of common stock sold in the offering) warrants in connection with the IPO transaction to the underwriters. The warrants expire five years after the effective date of the registration and can be exercised on a cashless basis. As a result, the conversion of some or all of the warrants may dilute the ownership interests of existing shareholders.

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GEN RESTAURANT GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

June 30, 2024 and 2023

(17)Subsequent Events

The Company and its related parties evaluated subsequent events from the balance sheet date through July 31, 2024, the date at which the condensed consolidated financial statements were issued.

Note Payable

During the month of July 2024 the Company entered a new loan document with Pacific City Bank in the amount of $3,000,000, the loan matures during July 2026, and bears interest at 8.75%.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following management’s discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and related notes of GEN Restaurant Group, Inc., included in Part I, Item 1 of this Quarterly Report on Form 10-Q, and with the audited consolidated financial statements and related notes, which are included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”), filed with the Securities and Exchange Commission (the “SEC”). The terms “we”, “our”, and “us” as used herein refer to GEN Restaurant Group, LLC (the “Operating Company”) and its consolidated subsidiaries prior to our IPO and reorganization transactions completed in June 2023 that are described in this Form 10-Q (the “Transactions”), and to GEN Restaurant Group, Inc. and its consolidated subsidiaries, including the Operating Company, following the Transactions.

This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. All statements other than statements of historical fact contained in this Quarterly Report, including, without limitation, statements regarding our future results of operations or financial condition, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “consider,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the Annual Report, and in our subsequent filings with the SEC, which are available on the SEC's website at www.sec.gov. The forward-looking statements made in this Quarterly Report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements to reflect future events or circumstances, new information, or the occurrence of unanticipated events, except as required by law.

Overview

GEN Restaurant Group is an Asian casual dining restaurant concept that offers an extensive menu of traditional Korean and Korean-American food, including high-quality meats, poultry, and seafood, all at a superior value. Founded in 2011 by two Korean immigrants, since the opening of our first restaurant in September 2011 we have grown to 40 company-owned restaurants located in California, Arizona, Hawaii, Nevada, Texas, New York, Washington and Florida. Our restaurants have modern décor, lively Korean pop music playing in the background and embedded grills in the center of each table. We believe we offer our customers a unique dining experience in which guests cook the majority of the food themselves, reducing the need for chefs and servers and providing a similar customer experience across the restaurants.

We expect to continue growing our number of restaurants in the future. Our new restaurants have generated average payback periods of approximately 1.4 years prior to the IPO. The projected payback periods for new restaurants range from 2.0 to 2.5 years. Restaurants range in size from 4,500 to 12,000 square feet, and are typically located in high-activity commercial areas.

Business Trends

Our long-term growth strategy is to continue to open new restaurants in locations that we believe will achieve profitability levels consistent with our pre-pandemic experience. During 2023, we opened six new restaurants and through June 2024, we opened three restaurants in Seattle, WA, Dallas, TX, and Jacksonville, FL. As of June 30, 2024 we have sixteen new restaurant locations with leases that have been signed, including eight leases signed during the second quarter of 2024. These locations are in El Paso, TX, La Jolla (San Diego), CA, Waco, TX, Kona, HI, Allston (Boston), MA, Cary, NC, Nashville, TN and Tucson, AZ. We currently expect to open seven to eight additional restaurants during 2024.

Recent Events Concerning Our Financial Position

We have received approximately $16.8 million in Restaurant Revitalization Fund, or RRF, grants. These grants were recognized as income as the money was spent, with $13.0 million recorded as income as of December 31, 2021, and $3.8 million was deferred as of December 31, 2023 and June 30, 2024. During the year ended December 31, 2022 we received $2.6 million in additional Economic Injury Disaster Loans, or “EIDLs”. There are no additional EIDLs expected. The EIDLs mature in 2050 and 2051, and

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carry an interest rate of 3.75%. The range of monthly payments under the EIDLs are from $700 to $9,770. As of June 30, 2024, the balance outstanding on the EIDLs was approximately $4.4 million.

On September 29, 2023, the Company entered into a $20 million line of credit with a bank. The line of credit matures on September 25, 2024 and bears interest at a variable rate per annum equal to 8.75% as of June 30, 2024. No amounts have been borrowed under the line of credit as of June 30, 2024 and December 31, 2023.

We assessed our long-lived assets for potential impairment each quarter with the result that no impairment charges were recorded in any of the periods presented.

Key Performance Indicators

In assessing the performance of our business, we consider a variety of financial and performance measures. The key measures for determining how our business is performing include Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Restaurant-Level Adjusted EBITDA, Restaurant-Level Adjusted EBITDA Margin, Average Unit Volumes, comparable restaurant sales growth, the number of restaurant openings and revenue per square foot.

Net Income Margin

Net Income Margin is net income measured under GAAP divided by revenue.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA represents net income excluding interest expense, net, income taxes, depreciation and amortization, stock-based compensation, consulting fees paid to a related party, gain on extinguishments of debt, RRF grants, employee retention credits, litigation accruals, aborted deferred IPO costs written off, non-cash lease expense and non-cash lease expense included in pre-opening costs. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. For a discussion of why we consider these measures to be useful and their material risks and limitations, see “Non-GAAP Financial Measures.”

Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin

Restaurant-Level Adjusted EBITDA is Income from operations plus adjustments to add-back the following expenses: depreciation and amortization, pre-opening costs, general and administrative expenses, related party consulting fees, management fees and non-cash lease expense. Non-cash items such as charges for asset impairments and asset disposals are not included in Restaurant-Level Adjusted EBITDA. Restaurant-Level Adjusted EBITDA Margin is the calculation of Restaurant-Level Adjusted EBITDA divided by revenue. For a discussion of why we consider these measures to be useful and their material risks and limitations, see “Non-GAAP Financial Measures.”

Average Unit Volume

“Average Unit Volume” or “AUV” means the average annual restaurant sales for all restaurants open for a full 12 months before the end of the period measured. AUV is calculated by dividing annual revenue for the year presented for all such restaurants by the total number of restaurants in that base. This measurement allows management to assess changes in consumer spending patterns at our restaurants and the overall performance of our restaurant base.

The following table shows the AUV for the twelve months ended June 30, 2024 and June 30, 2023 :

	Twelve months ended June 30,
	2024		2023
(in thousands)
Average Unit Volume	$	5,706	$	5,981

Comparable Restaurant Sales Growth

Comparable restaurant sales growth refers to the change in year-over-year sales for the comparable restaurant base. We include restaurants in the comparable restaurant base that have been in operation for at least 12 full months prior to the accounting period presented. Once a restaurant has been open 12 full months, it must have had continuous operations during both the current period and

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the prior year period being measured to remain a comparable restaurant. If operations were to be substantially impacted by unusual events that closed the location or significantly changed its capacity, that location is excluded from the comparable sales calculation until it has been operating continuously under normal conditions for both the current period and the prior year comparison period.

	Three months ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Comparable restaurant sales change (%)		-5.6	%		1.4	%		-3.8	%	N/A
Comparable restaurant base		33			28			33		N/A

Since opening new restaurants is expected to be a significant component of our sales growth, comparable restaurant sales growth is only one measure of how we evaluate our performance.

Number of Restaurant Openings

The number of restaurant openings reflects the number of restaurants opened during a particular reporting period. Before we open new restaurants, we incur pre-opening costs. New restaurants may not be profitable, and their sales performance may not follow historical patterns. The number and timing of restaurant openings has had, and is expected to continue to have, an impact on our results of operations. We temporarily stopped opening new restaurants in 2021 and 2020 due to the COVID-19 pandemic, but began openings again in 2022. The following table shows the change in our restaurant base for the six months ended June 30, 2024 and June 30, 2023:

	Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Restaurant activity
Beginning of period		39		31		37		31
Openings		1		3		3		3
Closings		—		—		—		—
End of period		40		34		40		34

Revenue Per Square Foot

Revenue per square foot means the restaurant sales for all restaurants opened a full 12 months before the end of the twelve month period measured divided by the average square footage of such restaurants. This measurement allows management to assess the effectiveness of our approach to real estate selection and the overall performance of our restaurant base. The following table shows the revenue per square foot for the twelve month periods ended June 30, 2024 and June 30, 2023:

	Twelve Months Ended June 30,
	2024		2023
Revenue per square foot	$	841	$	897

Components of Results of Operations

Revenues. Revenues represent sales of food and beverages in restaurants and, to a minor extent, through our online portal. Restaurant revenues in a given period are directly impacted by the number of restaurants we operate, menu pricing, the number of customers visiting and comparable restaurant sales growth.

Food costs. Food costs are variable in nature, change with sales volume and are influenced by menu mix and subject to increases or decreases based upon fluctuations in commodity costs. Another important factor causing fluctuations in food costs includes restaurant management of food waste. Food costs are a substantial expense and are expected to grow proportionally as our sales grow.

Payroll and benefits. Payroll and benefits include all restaurant-level management and hourly labor costs, including wages, employee benefits and payroll taxes. Similar to the food costs that we incur, labor and related expenses at our restaurants are expected to grow proportionally as our sales grow. Factors that influence fluctuations in our labor and related expenses include the volume of sales at our restaurants, minimum wage and payroll tax legislation, payroll rate increases due to labor shortages or inflationary pressures, the frequency and severity of workers’ compensation claims, and healthcare costs.

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Occupancy expenses. Occupancy expenses include rent, common area maintenance and taxes for all restaurant locations, but exclude any related pre-opening costs.

Operating expenses. Operating expenses include supplies, utilities, repairs and maintenance, and other costs incurred directly at the restaurant level.

Depreciation and amortization expenses. Depreciation and amortization expenses are periodic non-cash charges at our restaurants that consist of depreciation of fixed assets, including equipment, software and capitalized leasehold improvements. Depreciation is determined using the straight-line method over the assets’ estimated useful lives, ranging from five to ten years.

Pre-opening costs. Pre-opening costs include pre-opening period rent, maintenance, taxes, payroll and benefits costs, advertising and other expenses directly incurred by the new restaurant until the date of the restaurant opening. Pre-opening costs can fluctuate significantly from period to period, based on the number and timing of restaurant openings.

General and administrative expenses. General and administrative expenses include expenses associated with corporate management supervisory functions that support the operations of existing restaurants and development of new restaurants, including compensation and benefits, stock-based compensation, travel expenses, legal and professional fees, marketing costs, information systems, corporate office rent and other related corporate costs. General and administrative expenses are expected to grow as our sales grow, including incremental legal, accounting, insurance and other expenses incurred as a public company including becoming compliant with the requirements of Sarbanes-Oxley and addressing our internal control weaknesses through implementing new accounting systems and hiring additional staff.

Consulting fees — related party. Consulting fees include expenses paid to a related party entity, which provided for annual fees of up to 25% of gross revenue in exchange for various consulting services. The related party is 100% owned by an executive officer, the services were for 21 of the restaurants, and such consulting fees were only paid to the extent we had adequate resources. Following the effective date of our IPO, these consulting fees were eliminated as services transitioned to us, although corporate general and administrative expenses increased correspondingly.

Management fees. Management fees include expenses paid to a related third-party entity, which provided fixed fees for 12 restaurants and a percentage of gross revenue for one restaurant in exchange for management services. Following the IPO, management fees were eliminated and corporate general and administrative expenses increased correspondingly.

Depreciation and amortization - corporate. These are periodic non-cash charges at the corporate level that consist of depreciation of fixed assets, including equipment, information systems software and capitalized leasehold improvements, if any. Depreciation is determined using the straight-line method over the assets’ estimated useful lives, ranging from five to seven years.

Employee retention credits. Employee retention credits include refundable credits recognized under the provisions of the CARES Act and extension thereof. During the three months ended June 30, 2024 and June 30, 2023, $0.2 million and $1.3 million respectively, of these credits were received and recorded.

Other income (loss). Other gain (loss) consists of one-time legal accruals and other miscellaneous items.

Gain on remeasurement of previously held interest. This reflects the business acquisition of GKBH (a restaurant in Hawaii) during the first quarter of 2024.

Interest income (expense), net. Interest expense includes cash and non-cash charges related to our debt outstanding and finance lease obligations. Interest income reflects income earned on deposits and notes receivable.

Equity in income (loss) of equity method investee. Equity in income (loss) of equity method investee reflected our 50% ownership in GKBH that was accounted for using the equity method until the date of acquisition on February 18, 2024.

Provision for income taxes. Represents federal, state, and local current and deferred income tax expense.

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Results of Operations for the three months ended June 30, 2024 and June 30, 2023

The following table presents selected comparative results of operations for the three months ended June 30, 2024 and June 30, 2023. Our financial results for these periods are not necessarily indicative of the financial results that we will achieve in future periods.

	Three months ended June 30,						Increase/(decrease)
(amounts in thousands)	2024			2023			Amount			%
Revenue	$	53,860		$	46,473		$	7,387			15.9	%
Restaurant operating expenses:
Food cost		17,700			14,786			2,914			19.7	%
Payroll and benefits		16,362			14,323			2,039			14.2	%
Occupancy expenses		4,389			3,673			716			19.5	%
Operating expenses		5,358			4,299			1,059			24.6	%
Depreciation and amortization		1,706			1,131			575			50.8	%
Pre-opening costs		1,645			881			764			86.7	%
Total restaurant operating expenses		47,160			39,093			8,067			20.6	%
General and administrative		5,058			1,958			3,100			158.3	%
Consulting fees - related party		—			1,445			(1,445	)		(100.0	)%
Management fees		—			589			(589	)		(100.0	)%
Depreciation and amortization - corporate		29			18			11			61.1	%
Total costs and expenses		52,247			43,103			9,144			21.2	%
Income from operations		1,613			3,370			(1,757	)		(52.1	)%
Employee retention credits		200			1,318			(1,118	)		(84.8	)%
Other income (loss)		—			(7	)		7			(100.0	)%
Interest income (expense), net		262			(207	)		469			(226.6	)%
Equity in income (loss) of equity method investee		—			86			(86	)		(100.0	)%
Net Income before income taxes		2,075			4,560			(2,485	)		(54.5	)%
Provision for income taxes		(11	)		(96	)		85			(88.5	)%
Net income		2,064			4,464			(2,400	)		(53.8	)%
Net Income attributable to noncontrolling interest		1,787			504			1,283			254.6	%
Net income attributable to GEN Restaurant Group, Inc.	$	277		$	3,960		$	(3,683	)		(93.0	)%

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	% of Revenue
	Three months ended June 30,
	2024			2023
Revenue		100.0	%		100.0	%
Restaurant operating expenses:
Food cost		32.9	%		31.8	%
Payroll and benefits		30.4	%		30.8	%
Occupancy expenses		8.1	%		7.9	%
Operating expenses		9.9	%		9.3	%
Depreciation and amortization		3.2	%		2.4	%
Pre-opening costs		3.1	%		1.9	%
Total restaurant operating expenses		87.6	%		84.1	%
General and administrative		9.4	%		4.2	%
Consulting fees - related party		0.0	%		3.1	%
Management fees		0.0	%		1.3	%
Depreciation and amortization - corporate		0.1	%		0.0	%
Total costs and expenses		97.0	%		92.7	%
Income from operations		3.0	%		7.3	%
Employee retention credits		0.4	%		2.8	%
Other income (loss)		0.0	%		(0.0	)%
Interest income (expense), net		0.5	%		(0.4	)%
Equity in income (loss) of equity method investee		0.0	%		0.2	%
Net Income before income taxes		3.9	%		9.8	%
Provision for income taxes		(0.0	)%		(0.2	)%
Net income		3.8	%		9.6	%
Net Income attributable to noncontrolling interest		3.3	%		1.1	%
Net income attributable to GEN Restaurant Group, Inc.		0.5	%		8.5	%

Revenues. Revenues were $53.9 million for the three months ended June 30, 2024, compared to $46.5 million for the three months ended June 30, 2023, an increase of $7.4 million, or 15.9%. This reflects revenue increases due to having 40 restaurants open in the three months ended June 30, 2024 compared to 34 restaurants open in the three months ended June 30, 2023

Food costs. Food costs were $17.7 million for the three months ended June 30, 2024, compared to $14.8 million for the three months ended June 30, 2023, an increase of $2.9 million, or 19.7%. The increase in food costs reflects more restaurants in operation and inflationary cost increases. As a percentage of revenue, food costs increased from 31.8% to 32.9%.

Payroll and benefits. Payroll and benefits costs were $16.4 million for the three months ended June 30, 2024, compared to $14.3 million for the three months ended June 30, 2023, an increase of $2.0 million, or 14.2%. The increase in payroll and benefits costs reflects the staffing needed to support the higher customer volumes from new restaurants as well as inflationary payroll increases. As a percentage of revenue, payroll and benefits costs decreased slightly from 30.8% to 30.4%.

Occupancy expenses. Occupancy expenses were $4.4 million for the three months ended June 30, 2024 compared to $3.7 million for the three months ended June 30, 2023, an increase of $0.7 million, or 19.5%. The increase in occupancy expenses reflects the addition of six new locations. As a percentage of revenue, occupancy expenses were 8.1% in the three months ended June 30, 2024 compared to 7.9% in the three months ended June 30, 2023.

Operating expenses. Operating expenses were $5.4 million for the three months ended June 30, 2024 compared to $4.3 million for the three months ended June 30, 2023, an increase of $1.1 million, or 24.6%, as expenses increased to support the revenue growth and reflected inflationary cost increases. As a percentage of revenue, operating expenses were 9.9% in the three months ended June 30, 2024 and 9.3% in the three months ended June 30, 2023.

Depreciation and amortization expenses. Depreciation and amortization expenses were $1.7 million for the three months ended June 30, 2024 and $1.1 million for the three months ended June 30, 2023. As a percentage of revenue, depreciation and amortization expenses at the restaurant-level were 3.2% during the three months ended June 30, 2024 and 2.4% during the three months ended June 30, 2023, with the increase related to more restaurants in operation.

Pre-opening costs. Pre-opening costs were $1.6 million for the three months ended June 30, 2024 compared to $0.9 million for the three months ended June 30, 2023. This increase was due to more restaurants under development in 2024 than in 2023.

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General and administrative expenses. General and administrative expenses were $5.1 million for the three months ended June 30, 2024 compared to $2.0 million for the three months ended June 30, 2023, an increase of $3.1 million, or 158.3%. As a percentage of revenue, general and administrative expenses increased from 4.2% for the three months ended June 30, 2023 to 9.4% for the three months ended June 30, 2024 as costs shifted post-IPO from consulting and management fees previously paid to related parties and additional costs were incurred to operate as a public company.

Consulting fees - related party. Consulting fees were $0 for the three months ended June 30, 2024 compared to $1.4 million for the three months ended June 30, 2023. These fees were eliminated following the IPO.

Management Fees. We did not incur management fees during the three months ended June 30, 2024 compared to $0.6 million for the three months ended June 30, 2023. This includes expenses paid to a related third-party entity, which consisted of fixed fees for twelve restaurants and a percentage of gross revenue for one restaurant in exchange for management services. These fees were eliminated following the IPO.

Employee retention credits. During the three months ended June 30, 2024, we received approximately $0.2 million in employee retention credits from the IRS, compared to $1.3 million received in the three months ended June 30, 2023.

Other income (loss). These were immaterial amounts in the three months ended June 30, 2024 and 2023.

Interest income (expense), net. During the three months ended June 30, 2024, interest income (expense), net was $262 thousand in income compared to $207 thousand in expense during the three months ended June 30, 2023. The increase in net interest income was primarily due to the interest income earned on the proceeds from the IPO transaction.

Equity in income (loss) of equity method investee. We did not have equity in income (loss) of equity method investee during the three months ended June 30, 2024, but we had $86 thousand during the three months ended June 30, 2023. During February 2024, the remaining ownership interest in GKBH was acquired and operations were consolidated as of the date of acquisition, February 18, 2024.

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Results of Operations for the six months ended June 30, 2024 and June 30, 2023

	Six Months Ended June 30,						Increase/(decrease)
(amounts in thousands)	2024			2023			Amount			%
Revenue	$	104,620		$	90,335		$	14,285			15.8	%
Restaurant operating expenses:
Food cost		34,668			29,091			5,577			19.2	%
Payroll and benefits		32,514			27,975			4,539			16.2	%
Occupancy expenses		8,682			7,104			1,578			22.2	%
Operating expenses		10,457			8,425			2,032			24.1	%
Depreciation and amortization		3,243			2,244			999			44.5	%
Pre-opening costs		3,547			1,400			2,147			153.4	%
Total restaurant operating expenses		93,111			76,239			16,872			22.1	%
General and administrative		9,731			4,013			5,718			142.5	%
Consulting fees - related party		—			2,325			(2,325	)		(100.0	)%
Management fees		—			1,176			(1,176	)		(100.0	)%
Depreciation and amortization - corporate		57			37			20			54.1	%
Total costs and expenses		102,899			83,790			19,109			22.8	%
Income from operations		1,721			6,545			(4,824	)		(73.7	)%
Employee retention credits		200			2,483			(2,283	)		(91.9	)%
Other income (loss)		—			(7	)		7			(100.0	)%
Gain on remeasurement of previously held interest		3,402			—			3,402			100.0	%
Interest income (expense), net		538			(396	)		934			(235.9	)%
Equity in income (loss) of equity method investee		(17	)		467			(484	)		(103.6	)%
Income before income taxes		5,844			9,092			(3,248	)		(35.7	)%
Provision for income taxes		(83	)		(96	)		13			(13.5	)%
Net income		5,761			8,996			(3,235	)		(36.0	)%
Net Income attributable to noncontrolling interest		4,990			901			4,089			453.8	%
Net income attributable to GEN Restaurant Group, Inc.	$	771		$	8,095		$	(7,324	)		(90.5	)%

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	% of Revenue
	Six Months Ended June 30,
	2024			2023
Revenue		100.0	%		100.0	%
Restaurant operating expenses:
Food cost		33.1	%		32.2	%
Payroll and benefits		31.1	%		31.0	%
Occupancy expenses		8.3	%		7.9	%
Operating expenses		10.0	%		9.3	%
Depreciation and amortization		3.1	%		2.5	%
Pre-opening costs		3.4	%		1.5	%
Total restaurant operating expenses		89.0	%		84.4	%
General and administrative		9.3	%		4.4	%
Consulting fees - related party		—			2.6	%
Management fees		—			1.3	%
Depreciation and amortization - corporate		0.1	%		0.0	%
Total costs and expenses		98.4	%		92.8	%
Income from operations		1.6	%		7.2	%
Employee retention credits		0.2	%		2.7	%
Other income (loss)		0.0	%		(0.0	)%
Gain on remeasurement of previously held interest		3.3	%		(0.0	)%
Interest income (expense), net		0.5	%		(0.4	)%
Equity in income of equity method investee		0.0	%		0.5	%
Income before income taxes		5.6	%		10.1	%
Provision for income taxes		(0.1	)%		(0.1	)%
Net income		5.5	%		10.0	%
Net Income attributable to noncontrolling interest		4.8	%		1.0	%
Net income attributable to GEN Restaurant Group, Inc.		0.7	%		9.0	%

Revenues. Revenues were $104.6 million for the six months ended June 30, 2024, compared to $90.3 million for the six months ended June 30, 2023, an increase of $14.3 million, or 15.8%. This reflects revenue increases due to having 40 restaurants open in the six months ended June 30, 2024 compared to 34 restaurants open in the six months ended June 30, 2023.

Food costs. Food costs were $34.7 million for the six months ended June 30, 2024, compared to $29.1 million for the six months ended June 30, 2023, an increase of $5.6 million, or 19.2%. The increase in food costs reflects more restaurants in operation and inflationary cost increases. As a percentage of revenue, food costs increased from 32.2% to 33.1%.

Payroll and benefits. Payroll and benefits costs were $32.5 million for the six months ended June 30, 2024, compared to $28.0 million for the six months ended June 30, 2023, an increase of $4.5 million, or 16.2%. The increase in payroll and benefits costs reflects the staffing needed to support the higher customer volumes from new restaurants as well as inflationary payroll increases. As a percentage of revenue, payroll and benefits costs increased slightly from 31.0% to 31.1%.

Occupancy expenses. Occupancy expenses were $8.7 million for the six months ended June 30, 2024, compared to $7.1 million for the six months ended June 30, 2023, an increase of $1.6 million, or 22.2%. The increase in occupancy expenses reflects the addition of eight new locations. As a percentage of revenue, occupancy expenses were 8.3% in the six months ended June 30, 2024 compared to 7.9% in the six months ended June 30, 2023.

Operating expenses. Operating expenses were $10.5 million for the six months ended June 30, 2024 compared to $8.4 million for the six months ended June 30, 2023, an increase of $2.0 million, or 24.1%, as expenses increased to support the revenue growth and reflected inflationary cost increases. As a percentage of revenue, operating expenses were 10.0% in the six months ended June 30, 2024 and 9.3% in the six months ended June 30, 2023.

Depreciation and amortization expenses. Depreciation and amortization expenses were $3.2 million for the six months ended June 30, 2024 and $2.2 million for the six months ended June 30, 2023. As a percentage of revenue, depreciation and amortization expenses at the restaurant-level were 3.1% during the six months ended June 30, 2024 and 2.5% during the six months ended June 30, 2023, with the increase related to more restaurants in operation.

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Pre-opening costs. Pre-opening costs were $3.5 million for the six months ended June 30, 2024 compared to $1.4 million for the six months ended June 30, 2023. This increase was due to more restaurants under development in 2024 than in 2023.

General and administrative expenses. General and administrative expenses were $9.7 million for the six months ended June 30, 2024 compared to $4.0 million for the six months ended June 30, 2023, an increase of $5.7 million, or 142.5%. As a percentage of revenue, general and administrative expenses increased from 4.4% for the six months ended June 30, 2023 to 9.3% for the six months ended June 30, 2024 as costs shifted post-IPO from consulting and management fees previously paid to related parties and additional costs were incurred to operate as a public company.

Consulting fees - related party. We did not incur consulting fees-related party during the six months ended June 30, 2024 compared to $2.3 million for the six months ended June 30, 2023. These fees were eliminated following the IPO.

Management Fees. We did not incur management fees for the six months ended June 30, 2024, compared to $1.2 million for the six months ended June 30, 2023. This includes expenses paid to a related third-party entity, which consisted of fixed fees for twelve restaurants and a percentage of gross revenue for one restaurant in exchange for management services. These fees were eliminated following the IPO.

Employee retention credits. During the six months ended June 30, 2024, we received approximately $0.2 million in employee retention credits from the IRS, compared to $2.5 million received in the six months ended June 30, 2023.

Other income (loss). These were immaterial amounts in the six months ended June 30, 2024 and 2023.

Gain on remeasurement of previously held interest. This reflects the business acquisition of GKBH (a restaurant in Hawaii) during the first quarter of 2024.

Interest income (expense), net. During the six months ended June 30, 2024 interest income (expense), net was $0.5 million of income compared to $0.4 million of expense during the six months ended June 30, 2023. The increase in net interest income was primarily due to the interest income earned on the proceeds from the IPO transaction.

Equity in income (loss) of equity method investee. We did not have equity in income of equity method investee during the six months ended June 30, 2024, compared to $467 thousand during the six months ended June 30, 2023. During February 2024, the remaining ownership interest in GKBH was acquired and operations were consolidated as of the date of acquisition, February 18, 2024.

Non-GAAP Financial Measures

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA represents net income excluding interest expense, income taxes, depreciation and amortization, and we also exclude non-recurring items and certain other non-cash items, such as gain on extinguishment of debt, stock-based compensation expense, RRF grants, consulting fees paid to a related party, employee retention credits, litigation accruals, aborted deferred IPO costs written off, non-cash lease expense and non-cash lease expense related to pre-opening costs. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results, as these measures depict normal recurring cash operating expenses essential to supporting the operations of our company. We expect Adjusted EBITDA to increase with the number of new restaurants we open and with comparable restaurant sales growth.

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The following table reconciles net income to Adjusted EBITDA for the three and six months ended June 30, 2024 and June 30, 2023.

(amounts in thousands)	Three months ended June 30,						Six months ended June 30,
	2024			2023			2024			2023
EBITDA:
Net income	$	2,064		$	4,464		$	5,761		$	8,996
Net Income Margin		3.8	%		9.6	%		5.5	%		10.0	%
Interest income (expense), net		(262	)		207			(538	)		396
Provision for income taxes		11			96			83			96
Depreciation and amortization		1,735			1,149			3,300			2,281
EBITDA	$	3,548		$	5,916		$	8,606		$	11,769
EBITDA Margin		6.6	%		12.7	%		8.2	%		13.0	%
Adjustments to EBITDA:
EBITDA	$	3,548		$	5,916		$	8,606		$	11,769
Stock-based compensation expense (1)		759			—			1,518			—
Consulting fees - related party (2)		—			1,445			—			2,325
Employee retention credits (3)		(200	)		(1,318	)		(200	)		(2,483	)
Non-cash lease expense (4)		192			99			376			159
Non-cash lease expense related to pre-opening costs (5)		576			206			941			426
Adjusted EBITDA	$	4,875		$	6,348		$	11,241		$	12,196
Adjusted EBITDA Margin		9.1	%		13.7	%		10.7	%		13.5	%

(1)Stock-based compensation expense: During the first quarter and second quarter of 2024 we incurred expenses related to the granting of Restricted Stock Units (“RSUs”) to employees.

(2)Consulting fees—related party: These costs ended following the completion of the IPO.

(3)Employee retention credits: These are refundable credits recognized under the provisions of the CARES Act.

(4)Non-cash lease expense: This reflects the extent to which lease expense is greater than or less than contractual rent.

(5)Non-cash lease expense related to pre-opening costs: Cost for restaurants in development in which the lease expense is greater than the contractual rent.

Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin

We define Restaurant-Level Adjusted EBITDA as Income from operations plus adjustments to add-back the following expenses: depreciation and amortization, pre-opening costs, general and administrative expense, related party consulting fees, management fees and non-cash lease expense. We define Restaurant-Level Adjusted EBITDA Margin as Restaurant-Level Adjusted EBITDA divided by revenue.

As with Adjusted EBITDA and Adjusted EBITDA Margin, we believe that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results, as these measures depict normal, recurring cash operating expenses essential to supporting the operations of our restaurants. We expect Restaurant-Level Adjusted EBITDA to increase in proportion to the number of new restaurants we open and with our comparable restaurant sales growth.

However, you should be aware that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are financial measures that are not indicative of overall results for our company, and Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin do not accrue directly to the benefit of stockholders because of corporate-level and non-cash expenses excluded from such measures.

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The following table reconciles Income from Operations to Restaurant-Level Adjusted EBITDA for the three and six months ended June 30, 2024 and June 30, 2023:

(amounts in thousands)	Three months ended June 30,						Six months ended June 30,
	2024			2023			2024			2023
Income from Operations	$	1,613		$	3,370		$	1,721		$	6,545
Income Margin from Operations		3.0	%		7.3	%		1.6	%		7.2	%
Depreciation and amortization		1,735			1,149			3,300			2,281
Pre-opening costs		1,645			881			3,547			1,400
General and administrative		5,058			1,958			9,731			4,013
Consulting fees - related party		—			1,445			—			2,325
Management Fees		—			589			—			1,176
Non-cash lease expense		192			99			376			159
Restaurant-Level Adjusted EBITDA	$	10,243		$	9,491		$	18,675		$	17,899
Restaurant-Level Adjusted EBITDA Margin		19.0	%		20.4	%		17.9	%		19.8	%

Adjusted EBITDA, Adjusted EBITDA Margin, Restaurant-Level Adjusted EBITDA, and Restaurant-Level Adjusted EBITDA Margin are non-GAAP measures intended as supplemental measures of our performance and are neither required by, nor presented in accordance with GAAP. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of Adjusted EBITDA, Adjusted EBITDA Margin, Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin may not be comparable to other similarly titled measures presented by other companies, because all companies may not calculate Adjusted EBITDA, Adjusted EBITDA Margin, Restaurant-Level Adjusted EBITDA, and Restaurant-Level Adjusted EBITDA Margin in the same fashion. These non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP.

Liquidity and Capital Resources

As of June 30, 2024 we had $29.2 million of cash and $1.7 million of working capital, which is calculated as current assets minus current liabilities, compared with $32.6 million in cash and $5.5 million of working capital as of December 31, 2023. On June 30, 2023, we completed the IPO of 4,140,000 shares of Class A common stock. The public offering prices of the shares sold in the IPO was $12.00 per share, resulting in aggregate net proceeds to us of approximately $46.2 million after deducting the underwriting discounts and commission and offering expenses payable by us.

Our primary uses of cash are for operational expenditures and capital investments, including new restaurants, costs incurred for restaurant remodels and restaurant equipment and fixtures. There is no guarantee that if we need to raise any additional capital that we will be able to do so.

Prior to the IPO certain companies within GEN Restaurant Group made distributions to their members, which impacted our cash position upon completion of the IPO. The operating agreements of most of the companies within GEN Restaurant Group, as separate private entities prior to the Transactions, mandate annual or quarterly distributions of available cash and/or tax distributions in an amount sufficient to allow members to pay taxes on income allocated to them. We determined the amount of these distributions based on the operating cash flow of each such entity.

We believe that cash provided by operating activities and cash on hand will be sufficient to fund our lease obligations, capital expenditures and working capital needs for at least the next 12 months.

Upon consummation of the IPO, GEN Inc. became a holding company with no operations of its own. Accordingly, GEN Inc. is dependent on distributions from GEN LLC to pay its taxes, its obligations under the Tax Receivable Agreement and other expenses.

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In connection with the Transactions, certain members of GEN LLC received the right to receive future payments pursuant to the Tax Receivable Agreement. The amount payable under the Tax Receivable Agreement will be based on an annual calculation of the reduction in our U.S. federal, state and local taxes resulting from the utilization of certain tax benefits resulting from sales and exchanges by certain members of GEN LLC. We expect that payments that we may be required to make under the Tax Receivable Agreement may be substantial. Assuming no material changes in the relevant tax law and that we earn sufficient taxable income to realize all tax benefits that are subject to the Tax Receivable Agreement, we expect that the reduction in tax payments for us associated with the federal, state and local tax benefits described above would aggregate to approximately $117.2 million through 2037. Under such scenario we would be required to pay certain members of GEN LLC 85% of such amount, or approximately $99.6 million through 2037.

The actual amounts may materially differ from these hypothetical amounts as potential future reductions in tax payments for us and Tax Receivable Agreement payments by us will be calculated using prevailing tax rates applicable to us over the life of the Tax Receivable Agreement and will be dependent on us generating sufficient future taxable income to realize the benefit.

We cannot reasonably estimate future annual payments under the Tax Receivable Agreement given the difficulty in determining those estimates as they are dependent on a number of factors, including the extent of exchanges by continuing GEN LLC unitholders, the associated fair value of the underlying GEN LLC units at the time of those exchanges, the tax rates applicable, our future income, and the associated tax benefits that might be realized that would trigger a Tax Receivable Agreement payment requirement.

However, a significant portion of any potential future payments under the Tax Receivable Agreement is anticipated to be payable over 15 years, consistent with the period over which the associated tax deductions would be realized by GEN Inc., assuming GEN LLC generates sufficient income to utilize the deductions. If sufficient income is not generated by GEN LLC, the associated taxable income of GEN Inc. will be impacted and the associated tax benefits to be realized will be limited, thereby similarly reducing the associated Tax Receivable Agreement payments to be made. Given the length of time over which payments would be payable, the impact to liquidity in any single year may be greatly reduced.

Summary of Cash Flows

Our primary sources of liquidity are operating cash flows, cash on hand and debt borrowings. We use these sources to fund expenditures for new restaurant openings, reinvest in our existing restaurants, and increase our working capital. Our working capital position benefits from the fact that we generally collect cash from sales to guests the same day, or in the case of credit or debit card transactions, within several days of the related sale, and we typically have at least 30 days to pay our vendors.

The following table summarizes our cash flows for the periods presented:

	Six months ended June 30,
	2024			2023
(amounts in thousands)
Summary of Cash Flows
Net cash provided by operating activities	$	9,070		$	10,548
Net cash (used in) provided by investing activities		(11,383	)		6,005
Net cash (used in) provided by financing activities		(1,089	)		27,239

Cash Provided by Operating Activities

Net cash provided by operating activities during the six months ended June 30, 2024 was $9.1 million, the result of net income of 5.7 million, adjusted by non-cash charges of depreciation and amortization of $3.3 million, amortization of operating lease assets of $3.7 million, stock-based compensation of $1.5 million and a reduction related to the gain on the acquisition of the remaining ownership interest in GKBH. The net cash outflows from changes in operating assets and liabilities were collectively a decrease of $1.3 million.

Net cash provided by operating activities during the six months ended June 30, 2023 was $10.5 million, the result of net income of $9.0 million, adjusted by non-cash charges of depreciation and amortization of $2.3 million, and amortization of operating lease assets of $2.3 million, and net cash outflows of approximately $2.9 million from changes in operating assets and liabilities. The net cash outflows from changes in operating assets and liabilities were primarily the result of an increase in accounts payable of $2.8 million.

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Cash (Used in) Provided by Investing Activities

Net cash used in investing activities during the six months ended June 30, 2024 was $11.4 million, reflecting $8.4 million for the purchase of property and equipment and a $3.0 million payment for the acquisition of the remaining ownership interest in GKBH.

Net cash provided in investing activities during the six months ended June 30, 2023 was $6.0 million, reflecting $10.8 million in net payments from a related party, partially offset by $4.8 million for the purchase of property and equipment.

Cash Flows (Used in) Provided by Financing Activities

Net cash used in financing activities during the six months ended June 30, 2024 was $1.1 million, primarily due to payments to members for advances of $0.9 million.

Net cash provided by financing activities during the six months ended June 30, 2023 was $27.2 million, primarily due to $46.2 million in proceeds from the issuance of Class A common stock issued in the IPO transaction, offset by $18.3 million in member distributions.

Contractual Obligations

The following table presents our commitments and contractual obligations as of June 30, 2024:

	Payments Due by Period as of June 30, 2024
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
	(amounts in thousands)
Operating lease payments (1)	$	235,338	$	6,050	$	27,801	$	29,089	$	172,398
Finance lease payments (2)		56		56		0		—
Notes payable (3)		7,631		3,149		368		263		3,851
Notes payable interest (4)		2,874		141		344		313		2,076
Notes payable - related party (5)		310		310		—		—		—
Notes payable - related party interest (6)		127		127		—		—		—
Total Contractual obligations	$	246,336	$	9,833	$	28,513	$	29,665	$	178,325

(1)Represents future minimum lease payments for our restaurant operations and corporate office. Operating lease payments exclude contingent rent payments that may be due under certain of our leases based on a percentage of sales in excess of specified thresholds. See “Note 10—Leases” to the financial statements in this Quarterly Report for further details.

(2)Reflects the principal and interest payments during the lease terms. Refer to “Note 10—Leases” to the financial statements included in this Quarterly Report.

(3)Reflects the principal payment on third party notes. Refer to “Note 8—Notes Payable” to the financial statements included in this Quarterly Report.

(4)Interest related to notes payable through maturity dates. Refer to “Note 8—Notes Payable” to the financial statements included in this Quarterly Report.

(5)Reflects the principal payment on related party notes. Refer to “Note 9—Related Party Notes Payable” to the financial statements included in this Quarterly Report.

(6)Interest relates to the notes payable to related party through maturity dates. Refer to “Note 9— Related Party Notes Payable” to the financial statements included in this Quarterly Report.

Off-Balance Sheet Arrangements

As of June 30, 2024 and December 31, 2023 we did not have any material off-balance sheet arrangements.

Critical Accounting Estimates

Our discussion and analysis of operating results and financial condition are based upon our financial statements. The preparation of our financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, expenses and related disclosures of contingent assets and liabilities. We base our estimates on past

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experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis.

Our critical accounting policies are those that materially affect our financial statements and involve subjective or complex judgments by management. Although these estimates are based on management’s best knowledge of current events and actions that may impact us in the future, actual results may be materially different from the estimates. We believe the following critical accounting policies are affected by significant judgments and estimates used in the preparation of our financial statements and that the judgments and estimates are reasonable.

Operating and Finance Leases

Our office leases provide for fixed minimum rent payments. Our restaurant leases provide for fixed minimum rent payments and some require additional contingent rent payments based upon sales in excess of specified thresholds. When achievement of such sales thresholds is deemed probable, contingent rent is accrued in proportion to the sales recognized in the period. For operating leases that include free-rent periods and rent escalation clauses, we recognize rent expense based on the straight-line method. For the purpose of calculating rent expenses under the straight-line method, the lease term commences on the date we obtain control of the property. Lease incentives used to fund leasehold improvements are recognized when earned and reduce the operating right-of-use asset related to the lease. These are amortized through the operating right-of-use asset as reductions of expense over the lease term. Restaurant lease expense is included in occupancy expenses, while office lease expense is included in general and administrative expenses on the accompanying financial statements.

We currently lease all of our restaurant locations, corporate office, and some of the equipment used in our restaurants. On January 1, 2022, we adopted ASU 2016-02, Leases (Topic 842), or “Topic 842”, using a modified retrospective approach. See "Note 10—Leases" to the financial statements. At commencement of the lease, we determine the appropriate classification as an operating lease or a finance lease. All of our restaurant and office leases are classified as operating leases and some of our equipment leases are classified as finance leases.

Assets we acquired under finance lease arrangements are recorded at the lower of the present value of future minimum lease payments or fair value of the assets at the inception of the lease. Finance lease assets are amortized over the shorter of the useful life of the assets or the lease term, and the amortization expense is included in depreciation and amortization on the accompanying financial statements.

Impairment of Long-Lived Assets

We assess potential impairments of our long-lived assets, which includes property and equipment and operating lease right-of-use assets, in accordance with the provisions of Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, 360—Property, Plant and Equipment. An impairment test is performed on a quarterly basis or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. In determining the recoverability of the asset value, an analysis is performed at the individual restaurant level. Assets are grouped at the individual restaurant-level for purposes of the impairment assessment because a restaurant represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated forecasted restaurant cash flows expected to be generated by the asset group. Factors considered by us in estimating future cash flows include, but are not limited to: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of the acquired assets; and significant negative industry or economic trends. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset.

No impairment loss was recognized during any of the periods presented.

37

Emerging Growth Company Status

We are an “emerging growth company,” as defined in the JOBS Act, and we have taken advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies.” We may take advantage of these exemptions until we are no longer an “emerging growth company.” Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. We have elected to use the extended transition period for complying with new or revised accounting standards and as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates. We may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of our IPO or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company if we have more than $1.235 billion in annual revenue, we have more than $700.0 million in market value of our stock held by non-affiliates or we issue more than $1.0 billion of non-convertible debt securities over a three-year period.

Recently Adopted Accounting Pronouncements

Please see “Note 2 - Basis of Presentation and Summary of Significant Accounting Policies” to the financial statements included in this Quarterly Report.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Commodity and Food Price Risks

Our profitability is dependent on, among other things, our ability to anticipate and react to changes in the costs of key operating resources, including food and beverage and other commodities. We have been able to partially offset cost increases that have resulted from a number of factors, including market conditions, shortages or interruptions in supply due to weather or other conditions beyond our control and governmental regulations and inflation, by increasing our menu prices as well as making other operational adjustments that increase productivity. However, substantial increases in costs and expenses could impact our operating results to the extent that such increases cannot be offset by menu price increases or operational adjustments.

Inflation Risk

The primary areas where inflation impacts our operations are food, beverage, labor and energy costs. Our restaurant operations are subject to federal and state minimum wage and other laws governing such matters as working conditions, overtime and tip credits. Significant numbers of our restaurant personnel are paid at rates related to the federal and/or state minimum wage and, accordingly, increases in the minimum wage increase our labor costs. To the extent permitted by competition and the economy, we have mitigated increased costs by increasing menu prices and may continue to do so if deemed necessary in future years. Substantial increases in costs and expenses could impact our operating results to the extent such increases cannot be passed through to our guests. Historically, until 2022, inflation has not had a material effect on our results of operations. Severe increases in inflation, however, could affect the global and U.S. economies and could have an adverse impact on our business, financial condition or results of operations.

While we have been able to partially offset inflation and other changes in the costs of core operating resources by gradually increasing menu prices, coupled with more efficient purchasing practices, productivity improvements and greater economies of scale, there can be no assurance that we will be able to continue to do so in the future. From time to time, competitive conditions could limit our menu pricing flexibility. In addition, macroeconomic conditions could make additional menu price increases imprudent. There can be no assurance that future cost increases can be offset by increased menu prices or that increased menu prices will be fully absorbed by our guests without any resulting change to their visit frequencies or purchasing patterns. In addition, there can be no assurance that we will generate sales growth in an amount sufficient to offset inflationary or other cost pressures.

38

Interest Rate Risk

The Company is exposed to market interest rates reflected in the line of credit which bears an interest rate at the Wall Street Journal Prime Rate plus 0.25%.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Our management carried out an evaluation, under the supervision and with the participation of our Chief Executive Officers and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined by Rule 13a-15(e) of the Exchange Act) as of the end of period covered by this Quarterly Report on Form 10-Q.

Based on this evaluation, our Chief Executive Officers and Chief Financial Officer have concluded that as of June 30, 2024, due to material weaknesses in internal control over financial reporting, that our disclosure controls and procedures were not effective in ensuring that the information required to be disclosed in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities Exchange Commission and is accumulated and communicated to our management, including our Chief Executive Officers and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. The material weaknesses related to (a) a lack of adequate and timely review of accounts and reconciliations by management, primarily due to a large number of accounting journal entries across GEN Restaurant Group's operating entities resulting in material audit adjustments and significant post-closing adjustments and (b) an inadequate design of our information technology controls and inadequate access by members of our finance team, primarily due to our accounting system's open architecture and a lack of segregation of duties within our finance team.

39

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

We are subject to various legal proceedings and claims that arise in the ordinary course of our business. Although the outcome of these and other claims cannot be predicted with certainty, we do not believe the ultimate resolution of the current matters will have a material adverse effect on our business, financial condition, results of operations or cash flows. See “Note 11 - Commitments and Contingencies” to the financial statements in this Quarterly Report for further details.

Item 1A. Risk Factors.

Not applicable.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.

Not applicable.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information

(a) None.

(b) Not applicable.

(c) None

40

Item 6. Exhibits.

Furnish the exhibits required by Item 601 of Regulation S-K (§ 229.601 of this chapter).

Exhibit Number	Description
31.1*	Certification of Principal Executive Officers Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Principal Executive Officers Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

41

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GEN Restaurant Group, Inc.
Date: July 31, 2024	By:	/s/ David Kim
		David Kim
		Co-Chief Executive Officer
		(Principal Executive Officer)
Date: July 31 , 2024	By:	/s/ Jae Chang
		Jae Chang
		Co-Chief Executive Officer
		(Principal Executive Officer)
Date: July 31, 2024	By:	/s/ Thomas V. Croal
		Thomas Croal
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

42

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David Kim and Jae Chang, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of GEN Restaurant Group, Inc;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)(Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313);

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 31, 2024	By:	/s/ David Kim
		David Kim
		Co-Chief Executive Officer
Date: July 31, 2024	By:	/s/ Jae Chang
		Jae Chang
		Co-Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas V. Croal, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of GEN Restaurant Group, Inc;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)(Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313);

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 31, 2024	By:	/s/ Thomas V. Croal
		Thomas V. Croal
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of GEN Restaurant Group, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: July 31, 2024	By:	/s/ David Kim
		David Kim
		Co-Chief Executive Officer
Date: July 31, 2024	By:	/s/ Jae Chang
		Jae Chang
		Co-Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of GEN Restaurant Group, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: July 31, 2024	By:	/s/ Thomas V. Croal
		Thomas V. Croal
		Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Jul. 29, 2024
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2024
Document Quarterly Report	true
Document Transition Report	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Registrant Name	GEN Restaurant Group, Inc.
Entity Central Index Key	0001891856
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Interactive Data Current	Yes
Securities Act File Number	001-41727
Entity Tax Identification Number	87-3424935
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	11480 South Street Suite 205
Entity Address, City or Town	Cerritos
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90703
City Area Code	(562)
Local Phone Number	356-9929
Title of 12(b) Security	Class A Common stock,par value $0.001 per share
Trading Symbol	GENK
Security Exchange Name	NASDAQ
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,862,230
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		27,886,912

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 29,229	$ 32,631
Inventories	416	461
Prepaid expenses and other current assets	3,398	3,726
Total current assets	33,043	36,818
Equity method investment	0	523
Property and equipment, net	39,628	33,907
Goodwill	9,498	0
Operating lease assets	122,560	99,255
Deferred tax asset	13,184	12,618
Other assets	892	749
Total assets	218,805	183,870
Current liabilities
Accounts payable	10,694	10,704
Accrued salaries and benefits	2,619	2,660
Accrued interest	76	42
Obligations under finance leases, current	56	125
Operating lease liabilities, current	4,516	4,535
Deferred Restaurant Revitalization Fund grant	3,806	3,806
Advances from members	0	2,704
Other current liabilities	6,046	5,366
Total current liabilities	31,329	31,304
Tax receivable agreement liability	584	0
Operating lease liabilities, net of current portion	135,071	110,501
Total liabilities	171,409	146,352
Commitments and contingencies (Note 11)
Mezzanine equity
EB-5 Members' equity	1,500	1,500
Permanent equity
Additional paid-in capital	11,486	7,112
Retained Earnings	1,095	322
Non-controlling interest	33,283	28,552
Total permanent equity	45,896	36,018
Total liabilities and stockholders' equity	218,805	183,870
Related Party
Current liabilities
Notes payable, current	310	1,197
Non-related Party
Current liabilities
Notes payable, current	3,206	165
Notes payable, net of current portion	4,425	4,547
Class A Common Stock
Permanent equity
Common stock	4	4
Class B Common Stock
Permanent equity
Common stock	$ 28	$ 28

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Class A Common Stock
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	4,749,551	4,140,000
Common stock, shares outstanding	4,749,551	4,140,000
Class B Common Stock
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	27,886,912	28,141,566
Common stock, shares outstanding	27,886,912	28,141,566

XML

Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue	$ 53,860	$ 46,473	$ 104,620	$ 90,335
Restaurant operating expenses:
Food cost	17,700	14,786	34,668	29,091
Payroll and benefits	16,362	14,323	32,514	27,975
Occupancy expenses	4,389	3,673	8,682	7,104
Operating expenses	5,358	4,299	10,457	8,425
Depreciation and amortization	1,706	1,131	3,243	2,244
Pre-opening costs	1,645	881	3,547	1,400
Total restaurant operating expenses	47,160	39,093	93,111	76,239
General and administrative	5,058	1,958	9,731	4,013
Consulting fees - related party		1,445		2,325
Management fees		589		1,176
Depreciation and amortization - corporate	29	18	57	37
Total costs and expenses	52,247	43,103	102,899	83,790
Income from operations	1,613	3,370	1,721	6,545
Employee retention credits	200	1,318	200	2,483
Other income (loss)		(7)		(7)
Gain on remeasurement of previously held interest (see Note 3)			3,402
Interest income (expense), net	262	(207)	538	(396)
Equity in income (loss) of equity method investee		86	(17)	467
Net income before income taxes	2,075	4,560	5,844	9,092
Provision for income taxes	(11)	(96)	(83)	(96)
Net income	2,064	4,464	5,761	8,996
Less: Net income attributable to noncontrolling interest	1,787	504	4,990	901
Net income attributable to GEN Restaurant Group, Inc.	277	$ 3,960	771	$ 8,095
Net income attributable to Class A common stock per share - basic	277		771
Net income attributable to Class A common stock per share - diluted	$ 277		$ 771
Weighted-average shares of Class A common stock outstanding - basic	4,572	4,249	4,446	4,249
Weighted-average shares of Class A common stock outstanding - diluted	4,572	4,249	4,446	4,249
Net income per share of Class A common stock - basic	$ 0.06		$ 0.17
Net income per share of Class A common stock - diluted	$ 0.06		$ 0.17

XML

Condensed Consolidated Statements of Changes in Permanent Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Class A Common Stock	Class A Common Stock IPO	Redeemable Class B Common Units	Members' equity (deficit)	Common Stock Class A Common Stock	Common Stock Class A Common Stock IPO	Common Stock Class B Common Stock	Common Stock Class B Common Stock IPO	Additional paid-in capital	Additional paid-in capital Class A Common Stock	Additional paid-in capital Class A Common Stock IPO	Additional paid-in capital Class B Common Stock IPO	Accumulated Deficit Retained Earnings	Non-Controlling Interest
Beginning Balance at Dec. 31, 2022	$ (6,761)				$ (10,011)										$ 3,250
Net income	4,531				4,134										397
Distributions	(3,059)				(3,059)
Ending Balance at Mar. 31, 2023	(5,289)				(8,936)										3,647
Beginning Balance at Dec. 31, 2022	(6,761)				(10,011)										3,250
Net income	8,996	$ 85
Ending Balance at Jun. 30, 2023	30,070					$ 4		$ 28		$ 3,602				$ 11	26,425
Ending Balance, Shares at Jun. 30, 2023						4,140,000		28,141,566
Beginning Balance at Mar. 31, 2023	(5,289)				(8,936)										3,647
Net income	4,464	85
Net income prior to the organizational transactions	4,380				3,950										430
Conversion of related party loans to equity	871				871
Distributions	(23,410)				(23,410)
Effects of the organizational transactions	23,448			$ (23,447)	$ 27,525										(4,077)
Issuance of common stock			$ 40,141				$ 3		$ 28			$ 40,138	$ (28)
Issuance of common stock (in shares)							3,600,000		28,141,566
Issuance of Class A common stock to underwriters upon exercise of overallotment option		6,026				$ 1					$ 6,025
Issuance of Class A common stock to underwriters upon exercise of overallotment option, Shares						540,000
Conversion of Class B common units into Class B Shares	(23,447)			$ 23,447						(23,447)
Capitalization of initial public offering costs	(3,265)									(3,265)
Adjustment to tax liabilities and assets under TRA	10,530									10,530
Net income	85													11	74
NCI Adjustment										(26,351)					26,351
Ending Balance at Jun. 30, 2023	30,070					$ 4		$ 28		3,602				11	26,425
Ending Balance, Shares at Jun. 30, 2023						4,140,000		28,141,566
Beginning Balance at Dec. 31, 2023	36,018					$ 4		$ 28		7,112				322	28,552
Beginning Balance, Shares at Dec. 31, 2023						4,140,000		28,141,566
Net income	3,698													496	3,202
Stock-based compensation	759									759
Adjustment to tax liabilities and assets under TRA	(113)									(113)
Shares issued upon RSU vesting						117,304
Exchange of noncontrolling interest for Class A common stock										258					(258)
Exchange of noncontrolling interest for Class A common stock, Shares						254,654		(254,654)
Ending Balance at Mar. 31, 2024	40,362					$ 4		$ 28		8,016				818	31,496
Ending Balance, Shares at Mar. 31, 2024						4,511,958		27,886,912
Beginning Balance at Dec. 31, 2023	36,018					$ 4		$ 28		7,112				322	28,552
Beginning Balance, Shares at Dec. 31, 2023						4,140,000		28,141,566
Net income	5,761	5,761
Ending Balance at Jun. 30, 2024	45,896					$ 4		$ 28		11,486				1,095	33,283
Ending Balance, Shares at Jun. 30, 2024						4,749,551		27,886,912
Beginning Balance at Mar. 31, 2024	40,362					$ 4		$ 28		8,016				818	31,496
Beginning Balance, Shares at Mar. 31, 2024						4,511,958		27,886,912
Net income	2,064	2,064												277	1,787
Issuance of common stock		$ 1,436									$ 1,436
Issuance of common stock (in shares)						237,593
Stock-based compensation	759									759
Contribution by shareholder in final IPO settlement	1,275									1,275
Ending Balance at Jun. 30, 2024	$ 45,896					$ 4		$ 28		$ 11,486				$ 1,095	$ 33,283
Ending Balance, Shares at Jun. 30, 2024						4,749,551		27,886,912

XML

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net income	$ 5,761,000	$ 8,996,000
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization	3,300,000	2,281,000
Equity in income of equity method investee, net of distributions	17,000	34,000
Gain on remeasurement of previously held interest	(3,402,000)
Acquisition related costs	(370,000)
Stock-based compensation	1,518,000
Amortization of operating lease assets	3,708,000	2,284,000
Interest income earned on Notes receivable from related party	(33,000)	(116,000)
Deferred tax benefit	(96,000)
Changes in operating assets and liabilities:
Inventories	45,000	1,594,000
Prepaid expenses and other current assets	363,000	(390,000)
Other assets	(167,000)	(5,000)
Accounts payable	165,000	(2,845,000)
Accrued salaries and benefits	(41,000)	121,000
Accrued interest	34,000	25,000
Other current liabilities	731,000	392,000
Operating lease liabilities	(2,463,000)	(1,919,000)
Income tax payable		96,000
Net cash provided by operating activities	9,070,000	10,548,000
Cash flows from investing activities
Proceeds from recovery of Notes receivable from related party		12,950,000
Advances made to related party		(2,100,000)
Purchase of property and equipment	(8,407,000)	(4,845,000)
Acquisition of GKBH, net of cash acquired	(2,976,000)
Net cash (used in) provided by investing activities	(11,383,000)	6,005,000
Cash flows from financing activities
Proceeds from issuance of Class A common stock sold in IPO, net of underwriting discount		46,167,000
Payments to members for advances	(881,000)	(2,000,000)
Advances from members		485,000
Payments for deferred offering costs	(59,000)	(398,000)
Payments on PPP and EIDL loans	(46,000)	(43,000)
Payments on finance leases	(70,000)	(102,000)
Payments on third party loans	(33,000)	(324,000)
Payments on related party loans		(1,000,000)
Payments on line of credit		(153,000)
Proceeds from line of credit	0	1,100,000
Proceeds from third party loans		1,300,000
Proceeds from related party loans		500,000
Member distributions		(18,293,000)
Net cash (used in) provided by financing activities	(1,089,000)	27,239,000
Net increase in cash and cash equivalents	(3,402,000)	43,792,000
Cash and cash equivalents at beginning of period	32,631,000	11,195,000
Cash and cash equivalents at end of period	29,229,000	54,987,000
Supplemental disclosures of other cash flow information:
Cash paid for interest	71,000	558,000
Non-cash investing and financing activities:
Unpaid purchases of property and equipment	755,000	996,000
Unpaid deferred offering costs	66,000	2,867,000
Leased assets obtained in exchange for new operating lease liabilities	27,172,000	2,284,000
Distributions payable		8,176,000
Conversion of related party loans to equity	1,436,000	$ 871,000
Issuance of promissory note for business acquisition	3,000,000
Contribution by shareholder in final IPO settlement	$ 1,275,000

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Organization and Description of Business

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

(1)Organization and Description of Business

The accompanying consolidated financial statements represent the consolidated balance sheets, income statements, changes in permanent equity (deficit), and cash flows of GEN Restaurant Group, Inc and its consolidated subsidiaries (the “Company”). The Company operates restaurants which are located in California, Arizona, Hawaii, Nevada, New York, Washington, Florida, and Texas, specializing in a variety of special flavored meats for Korean barbeque.

The following tables lists the Company’s entities in operation as of June 30, 2024:

Name	Operating Name	State	Purpose
GEN Restaurant Group, LLC	GEN Tustin	CA	Restaurant
	GEN Huntington Beach	CA	Restaurant
	GEN Oxnard	CA	Restaurant
JC Group International Inc. (S Corp)	GEN Henderson	NV	Restaurant
	GEN West Covina	CA	Restaurant
	GEN Corona	CA	Restaurant
GEN Restaurant Investment, LLC	GEN Glendale	CA	Restaurant
GEN California, LLC	GEN Fullerton	CA	Restaurant
	GEN Mira Mesa	CA	Restaurant
GEN Arizona, LLC	GEN Tempe	AZ	Restaurant
GEN Chandler, LLC	GEN Chandler	AZ	Restaurant
GEN Nevada, LLC	GEN Sahara	NV	Restaurant
	GEN Miracle Mile	NV	Restaurant
GEN Alhambra, LLC	GEN Alhambra	CA	Restaurant
GEN Arlington, LP	GEN Arlington	TX	Restaurant
GEN Cerritos, LLC	GEN Cerritos	CA	Restaurant
GEN Cerritos II, LP	Gen Cerritos II	CA	Restaurant
GEN Torrance, LLC	GEN Torrance	CA	Restaurant
GEN Rancho Cucamonga, LP	GEN Rancho Cucamonga	CA	Restaurant
GEN San Jose, LP	GEN San Jose	CA	Restaurant
GEN Northridge, LP	GEN Northridge	CA	Restaurant
GEN Chino Hills, LP	GEN Chino Hills	CA	Restaurant
GEN Carrollton, LP	GEN Carrollton	TX	Restaurant
GEN Fort Lauderdale, LP	GEN Fort Lauderdale	FL	Restaurant
GEN Fremont, LP	GEN Fremont	CA	Restaurant
GEN Concord, LP	GEN Concord	CA	Restaurant
GEN Webster, LP	GEN Webster	TX	Restaurant
GEN Westgate, LP	GEN Westgate	CA	Restaurant
GEN Westheimer, LLC	GEN Westheimer	TX	Restaurant
GEN Manhattan NYU, LP	GEN Manhattan	NY	Restaurant
GEN Mountain View, LP	GEN Mountain View	CA	Restaurant
GKBH Restaurant, LLC	GEN Korean BBQ	HI	Restaurant
GEN Hawaii, LLC	Investment Company	HI	Management of GKBH
GEN Online, LLC	GEN Online	CA	Website sales
GEN Sacramento, LP	GEN Sacramento	CA	Restaurant
GEN Pearlridge, LLC	GEN Pearlridge	HI	Restaurant
GEN Kapolei, LP	GEN Kapolei	HI	Restaurant
GEN Frisco, LP	GEN Frisco	TX	Restaurant
GEN Houston, LLC	GEN Houston	TX	Restaurant
GEN Seattle, LP	GEN Seattle	WA	Restaurant
GEN Jacksonville, LP	GEN Jacksonville	FL	Restaurant
GEN Dallas, LP	GEN Dallas	TX	Restaurant
GEN Texas, LLC	Investment Company	TX	Management of GEN Houston and GEN Webster
GEN Master, LLC	Holding Company	NV	Management
GEN Restaurant Management, LLC	GRM	DE	Management

As of June 30, 2024, all of the above entities are collectively owned 100% by the controlling group. The Company had an equity method investment through GEN Hawaii, with a 50% ownership share of GKBH Restaurant, LLC (“GKBH”). On February 18, 2024, the Company purchased the other 50% of GKBH and other rights for a total purchase price of $6.0 million and the Company now controls 100% of GKBH. As of June 30, 2024 and December 31, 2023, there were 40 and 37 restaurants in operation, respectively.

During the second quarter of 2024, the Company signed leases for eight restaurants in Allston (Boston) MA, Cary, NC, El Paso, TX, Kona, HI, La Jolla (San Diego), CA, Nashville, TN, Tucson, AZ, and Waco, TX. As of June 30, 2024, the Company has sixteen signed leases for the development of new restaurants.

Organization

GEN Restaurant Group, Inc. (“GEN Inc.”) was formed as a Delaware corporation on October 28, 2021 and is based in Cerritos, California. As the managing member of Gen Restaurant Companies, LLC (the “Operating Company”), GEN Inc. operates and controls all the business and affairs of the Operating Company, and through the Operating Company and its consolidated subsidiaries, conducts its business. Unless the context otherwise requires, references to the “Company” refer to GEN Inc., and its consolidated subsidiaries, including the Operating Company.

On June 30, 2023 the Company completed an initial public offering (the “IPO”) of 4,140,000 shares of Class A common stock at $12 per share that generated aggregate net proceeds of $46.2 million.

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

(2)Basis of Presentation and Summary of Significant Accounting Policies

(a)Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company, collectively, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”). These unaudited condensed consolidated financial statements were prepared on the same basis as the audited consolidated financial statements, and, in the opinion of management, reflect all adjustments (all of which were considered of a normal recurring nature) considered necessary to present fairly the Company's financial results. The results of the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024 and for any other interim period or future year.

(b)Recent Accounting Pronouncements

The Company, as an emerging growth company, has elected to use the extended transition period which allows us to defer the adoption of new or revised standards. This allows the Company to adopt new or revised accounting standards as of the effective date for non-public business entities.

In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-01, “Leases (Topic 842): Common Control Arrangements”. The new guidance requires all lessees in a lease with a lessor under common control to amortize leasehold improvement over the useful life of the common control group and provides new guidance for recognizing a transfer of assets between entities under common control as an adjustment to equity when the lessee no longer controls the use of the underlying asset. This guidance is effective for fiscal years beginning after December 15, 2023. The adoption of this standard in the first quarter of 2024 did not have any material impact on our consolidated financial statements.

Accounting Standards Codification (“ASC”) Topic 320, “Investments-Debt Securities,” requires that an enterprise classify all debt securities as either held-to-maturity, trading, or available-for-sale. During the third quarter of 2023, the Company adopted ASC 320 and classified its U.S. Treasury and equivalent securities as held-to-maturity. Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 820): Improvements to Reportable Segment Disclosures” which provides guidance to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023. The Company is currently evaluating the impact of this standard on our consolidated financial statements and will adopt this pronouncement in the fourth quarter of 2024.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures,” which is effective for fiscal years beginning after December 31, 2024. The Company is evaluating the presentational effect that ASU 2023-09 will have on our consolidation financial statements.

(c)Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities in the accompanying unaudited condensed consolidated financial statements of the Company. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Annual Report.

(d)Goodwill

Goodwill is calculated under ASC 805-30-30, which represents the excess of the fair value of purchase consideration of an acquired business over the fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at a reporting unit level on an annual basis, or more frequently if circumstances change or an event occurs that would more likely than not reduce the fair value of the a reporting unit below its carrying amount.

(e)Business Combinations

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC Topic 805, “Business Combinations”. Under the acquisition method, we recognize 100% of the assets we acquire and liabilities we assume, regardless of the percentage we own, at their estimated fair values as of the date of acquisitions. Any excess of the purchase price over the fair value of the net assets and other identifiable intangible assets we acquire is recorded as goodwill. The assets we acquire, and liabilities we assume from contingencies, are recognized at fair value if we can readily determine the fair value during the measurement period. The operating results of the business the Company acquired are included in the consolidated statements of operations from the date of acquisition. Acquisition-related costs are expensed as incurred.

(f)Equity-Based Compensation

The Company accounts for equity-based compensation grants to employees in accordance with ASC Topic 718, “Stock Based Compensation”. The Company issued restricted stock units to its employees.

The Company estimates the fair value of the restricted stock units on the grant-date and recognizes the resulting fair value over the requisite service period. The fair value of each restricted stock unit or award is determined based upon the value of the common stock granted. The Company has elected to treat stock-based awards with graded vesting schedules and time-based service conditions as a single award and recognizes stock-based compensation on a straight-line basis over the requisite service period. Forfeitures are accounted for as they occur.

(g)Cash and Cash Equivalents

The Company and its related entities consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. As of June 30, 2024 and December 31, 2023, cash and cash equivalents consisted principally of cash, money market accounts and short-term investments. Short-term investments are classified as available for sale, which are carried at fair value, with changes in fair value reported in earnings. Cash equivalents also include credit card transactions in transit.

As of June 30, 2024 and December 31, 2023, there were deposits in excess of federally insured amounts of $3.9 million and $8.8 million, respectively.

	Carrying Value/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value as of June 30, 2024
(in thousands)
Money Market Accounts (included in cash and cash equivalents)	$	3,475	$	—	$	—	$	3,475
U.S. Treasury Securities (included in cash and cash equivalents)	$	20,000	$	858	$	—	$	20,858
	$	23,475	$	858	$	—	$	24,333
Represent money market accounts. Excludes $4.9 million of cash and cash equivalents at June 30, 2024.

(h)Concentration Risk

The Company relies on third parties for specified food products and supplies. In instances where these parties fail to perform their obligation, the Company may be unable to find alternative suppliers.

The Company relies on Sysco Los Angeles, Inc., or Sysco, an unrelated third-party, for a significant portion of its food supplies. During the fourth quarter of 2023, the Company entered into an agreement with Sysco to purchase certain food supplies. For the three and six months ended June 30, 2023, the Company did not purchase from Sysco. For the three and six months ended June 30, 2024 Sysco accounted for approximately 74.0% and 73.3% of total food costs, respectively.

The Company previously relied on U.S. Foods, an unrelated third-party for a significant portion of its food products. For the six months ending June 30, 2024, the Company did not purchase from U.S. Foods. For the three months ended June 30, 2023, U.S. Foods account for approximately 50.6% of total food costs. For the six months ended June 30, 2023, U.S. Foods accounted for approximately 46.3% of total food costs.

The Company relies on Pacific Global Distribution, Inc. (“PGD”), which provides restaurant supplies such as tableware, napkins, soda, and sauces. PGD is owned by a related party. For the three months ended June 30, 2024 and June 30, 2023, PGD accounted for approximately 3.7% and 13.9% of total operating expenses, respectively. For the six months ended June 30, 2024 and 2023, PGD accounted for approximately 4.1% and 16.4% of total operating expenses, respectively.

The Company previously relied on Wise Universal, Inc. (“Wise”), an entity 60% owned by a related party, for food supplies for 13 restaurants. For the three months and six months ended June 30, 2024 the Company did not purchase from Wise. For the three months and six months ended June 30, 2023, Wise accounted for approximately 22.6% and 23.7% of total food supplies, respectively.

(i)Inventories

Inventories consist principally of food and beverages and are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method (FIFO) for all inventories.

(j)Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, “Revenue from Contracts with Customers.” Revenue from the operation of the restaurants is recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale.

(k)Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Property and equipment under finance leases are stated at the present value of minimum lease payments.

The estimated useful service lives are as follows:

Equipment	5 - 7 Years
Furniture and fixtures	5 - 7 Years
Leasehold improvements	Shorter of useful life or remaining lease term

The Company capitalizes certain costs in conjunction with improvements to specific sites for planned future restaurants and in conjunction with construction of new restaurants. The Company and its related entities did not capitalize any internal costs related to site preparation and construction activities during the six months ended June 30, 2024 and June 30, 2023 as any amounts were deemed immaterial.

(l)Other Assets and Other Current Liabilities

Other assets as of June 30, 2024 and December 31, 2023 consist of the following:

(in thousands)	June 30, 2024		December 31, 2023
Other Assets
Security Deposits	$	667	$	534
Liquor Licenses		225		215
Total Other Assets	$	892	$	749

Other Current Liabilities as of June 30, 2024 and December 31, 2023 consist of the following:

(in thousands)	June 30, 2024		December 31, 2023
Other Current Liabilities
Sales tax payable	$	1,512	$	1,447
Accrued percentage rent		1,154		1,163
Misc. accrued expenses		3,380		2,756
Total Other Current Liabilities	$	6,046	$	5,366

(m)Advances from members

Advances from members consist of funding received from member owners. During the six months ended June 30, 2024, the Company satisfied $2.7 million of advances from members through cash payments of $864 thousand, the issuance of Class A common stock valued at $550 thousand, and offsets against $1.3 million of advances to satisfy certain costs incurred by the Company relating to the restructuring transaction in connection with the IPO. As of June 30, 2024, the balance was $0 and as of December 31, 2023 the balance was $2.7 million.

(n)Pre-Opening Costs

Pre-opening costs, incurred in connection with the opening of new restaurants, are expensed as incurred. Pre-opening costs were $1.6 million and $0.9 million for the three months ended June 30, 2024 and June 30, 2023, respectively, and $3.5 million and $1.4 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

(o)Income Taxes

Deferred tax assets are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company recognizes positions taken or expected to be taken in a tax return in accordance with existing accounting guidance on income taxes which prescribes a recognition threshold and measurement process. Under GAAP, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest and penalties on tax liabilities, if any, would be recorded in interest expense and other expense, respectively.

In assessing the realizability of deferred tax assets, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.

(p)Long-Lived Assets

Long-lived assets are reviewed quarterly for impairment and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long- lived asset or asset group to be tested for possible impairment, undiscounted cash flows expected to be generated by that asset or asset group are compared to its carrying amount. If the carrying amount of the long-lived asset or asset group is not expected to be recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. We assessed our long-lived assets for potential impairment with the result that no impairment charges were recorded in any of the periods presented.

(q)Interest Income/Expense

A reconciliation of total interest cost to interest income/expense as reported in the condensed consolidated income statement for the three and six months ended June 30, 2024 and June 30, 2023 is as follows:

	Three months ended						Six months ended
(in thousands)	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Interest expense	$	90		$	301		$	177		$	557
Interest income		(352	)		(94	)		(715	)		(161	)
Interest (income) expense, net	$	(262	)	$	207		$	(538	)	$	396

(r)Liquor Licenses

Liquor licenses are deemed to have indefinite useful lives and are quantitatively tested on an annual basis for impairment. Liquor licenses are included in other assets in the accompanying balance sheets.

(s)Sales Taxes

Sales taxes are imposed by state, county, and city governmental authorities, collected from customers and remitted to the appropriate governmental agency. The Company’s policy is to record the sales taxes collected as a liability on the books and then remove the liability when the sales tax is remitted. There is no impact on the condensed consolidated income statements as restaurant sales are recorded net of sales tax.

(t)Advertising Costs

Advertising costs are expensed as incurred and are included in General and Administrative costs in the accompanying condensed consolidated income statements. The Company incurred approximately $77 thousand and $54 thousand in advertising expenses for the three months ended June 30, 2024 and June 30, 2023, respectively. The Company incurred approximately $90 thousand in advertising expenses for both the six month periods ended June 30, 2024 and 2023, respectively.

(u)Risks and Uncertainties.

Management continues to evaluate the potential impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s future financial position and the results of its operations, the specific impact is not readily determinable as of the date of these unaudited condensed financial statements. The unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

(v)Restaurant Revitalization Fund

Several of the Company’s restaurants received, between May and August 2021, a total of approximately $16.8 million from the Restaurant Revitalization Fund (“RRF”). The RRF funds must be used for specific purposes, and the Company was required to provide use of funds validation on an annual basis through March 2023. During the year ended December 31, 2021, the Company recognized approximately $13.0 million as RRF grant income and had deferred the remaining balance of $3.8 million. No RRF grant income was recognized during the six months ended June 30, 2024 and June 30, 2023.

(w)Employee Retention Credits

In March 2020, the Coronavirus Aid, Relief, and Economic Security Act was signed into law, providing numerous tax provisions and other stimulus measures, including the Employee Retention Credit (“ERC”), a refundable tax credit against certain employment taxes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021 extended and expanded the availability of the ERC. We qualified for the ERC in the first and second quarters of 2019, second and fourth quarters of 2020 and first, second and third quarters of 2021. During the three months ended June 30, 2024 and June 30, 2023, we recorded an aggregate benefit of $200 thousand and $1.3 million, respectively, in our condensed consolidated income statements to reflect the ERC. During the six months ended June 30, 2024 and 2023, the Company recorded an aggregate benefit of $200 thousand and $2.5 million, respectively, in our condensed consolidated income statements to reflect the ERC.

(x) Deferred Offering Costs

The Company capitalized certain legal, accounting, and other third-party fees that were directly attributable to GEN Inc.’s IPO. Following the successful consummation of the IPO in June 2023, deferred offering costs of approximately $3.3 million were recorded in the Company’s stockholders’ equity as a reduction of additional paid-in capital. The Company had no remaining deferred offering costs assets at June 30, 2024.

(y) Net Income Per Share

Basic net income per share is computed by dividing net income attributable to the Company by the weighted-average number of shares outstanding during the period. Diluted net income per share is computed by giving effect to all potential weighted-average dilutive shares including stock options, restricted stock units, dividend equivalent units, restricted stock awards, and Class B Common Units exchangeable for shares of Class A common stock for the periods after the closing of the IPO on June 30, 2023. The dilutive effect of outstanding awards, if any, is reflected in diluted earnings per share by application of the treasury stock method or if-converted method, as applicable. See “Note 15—Net Income per Share.”

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Business Combinations

6 Months Ended

Jun. 30, 2024

Business Combinations [Abstract]

Business Combinations

(3)Business Combinations

On February 18, 2024, we acquired the remaining 50% interest in GKBH, which was previously accounted for under the equity method. GKBH has been consolidated in our consolidated financial statements commencing February 18, 2024, the date of acquisition. The purchase price for the acquisition was allocated based on estimates of the fair value of the net assets acquired at the acquisition date, with the excess allocated to goodwill. The total consideration for the acquisition consisted of $6.0 million, payable in cash. During the three months ended March 31, 2024, we recognized approximately $370 thousand in acquisition-related costs, which were included within “Gain on remeasurement of previously held interest” in our condensed consolidated income statements.

The following table summarizes the fair value of GKBH’s assets and liabilities at the acquisition date, and the resulting goodwill.

(in thousands)
Purchase price of 50% interest in GKBH	$	6,000
Acquisition-date fair value of previously held interest (Level 2)		4,286
Fair value of GKBH at acquisition date		10,286

(in thousands)
Cash	$	24
Accounts Receivable		96
Inventories		22
Prepaid and Other assets		118
Deposits		67
Property and equipment		745
Operating lease right-of use assets		3,851
Liabilities assumed		(4,135	)
Total identifiable net assets	$	788
Goodwill		9,498
	$	10,286

Goodwill is calculated as the excess of the purchase price over the net assets acquired. The Company expects that a portion of the goodwill balance to be deductible for tax purposes over a period of 15 years. Goodwill is primarily attributed to growth and efficiency opportunities, expected synergies from combining the operations with the Company, and the assembled workforce.

The following table presents unaudited consolidated pro forma results as if the acquisition of GKBH had occurred on January 1, 2023.

	Three months ended June 30,				For the six months ended June 30,
(in thousands, except per share data)	2024		2023		2024		2023
Revenue	$	53,860	$	48,413	$	106,449	$	94,104
Net income before taxes		2,075		7,678		2,828		12,590
Earnings per common share:
Basic	$	0.06	$	-	$	0.08	$	-
Diluted	$	0.06	$	-	$	0.08	$	-

The unaudited pro forma financial information reflects the acquisition of GKBH by the application of pro forma adjustments to the Company’s historical financial statements as if the acquisition had occurred on January 1, 2023. The unaudited pro forma financial information should not be considered indicative of actual results that would have been achieved had the acquisition of GKBH actually been consummated on the date indicated and does not purport to be indicative of the Company’s future financial position or results of operations. There were no material nonrecurring pro forma adjustments directly attributable to the acquisition included within the unaudited pro forma financial information.

The fair value of the previously held noncontrolling interest was determined based on the fair value of total consideration transferred and application of a discount for lack of control, which was determined using historical market data on control premiums and other industry data.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

(4)Fair Value of Financial Instruments

The Company's financial instruments consist of cash and cash equivalents and investments. The carrying amounts reported in the accompanying condensed consolidated balance sheets for cash and cash equivalents approximate fair value because of the short-term maturity of those instruments. Fair value measurements are classified and disclosed in one of the following three categories:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets of liabilities.

As of June 30, 2024, all of the Company's financial assets that were subject to fair value measurement were valued using observable inputs. The Company's financial assets valued based on Level 1 inputs consist of cash and money market funds and U.S. treasury securities.

			Fair Value Measurements at June 30, 2024
(in thousands)	Total		Level 1		Level 2		Level 3
Money Market Account (included in Cash and Cash Equivalents)	$	3,475	$	3,475	$	—	$	—
U.S. Treasury Securities (included in Cash and Cash Equivalents)	$	20,858	$	20,858	$	—	$	—
			Fair Value Measurements at December 31, 2023
Money Market Account (included in Cash and Cash Equivalents)	$	9,079	$	9,079	$	—	$	—
U.S. Treasury Securities (included in Cash and Cash Equivalents)	$	20,322	$	20,322	$	—	$	—

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Property and Equipment, Net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

(5)Property and Equipment, Net

The costs and related accumulated depreciation and amortization of major classes of property:

(in thousands)	June 30, 2024			December 31, 2023
Equipment		14,331			12,387
Furniture and fixtures		6,104			5,467
Leasehold improvements		49,613			43,022
Other assets		414			414
Construction in progress		4,743			4,894
	$	75,205		$	66,184
Less accumulated depreciation and amortization		(35,577	)		(32,277	)
Property and Equipment, Net	$	39,628		$	33,907

The construction in progress balance on June 30, 2024 and December 31, 2023 is related to new restaurants being developed for openings expected in 2024 and 2025.

Total depreciation and amortization for the three months ended June 30, 2024 and June 30, 2023 was $1.7 million and $1.1 million, respectively, of which $5 thousand and $61 thousand for those periods were related to assets acquired under a finance lease.

Total depreciation and amortization for the six months ended June 30, 2024 and June 30, 2023 was $3.3 million and $2.3 million, respectively, of which $36 thousand and $89 thousand for those periods were related to assets acquired under a finance lease.

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Equity Method Investment

6 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investment

(6)Equity Method Investment

On April 1, 2016, GEN Hawaii made an investment of $200 thousand for a 50% interest in GKBH, which operates a GEN restaurant in Hawaii. The Company accounted for this investment as an equity method investment since the Company did not control major operational and financial decisions, which required consent from the previous co-owner.

On February 18, 2024, the Company purchased the remaining 50% membership interest for a total purchase price of $6.0 million and controls 100% of GKBH as of the acquisition date. See (Note 3. Business Combinations.)

Prior to the purchase of the remaining 50% membership interest in GKBH, during the six months ended June 30, 2024, and June 30, 2023, the Company received distributions of $0 thousand and $500 thousand, respectively, from GKBH.

A summary of the GKBH financial position as of December 31, 2023 and results of operations for the three and six months ended June 30, 2023 is as follows (unaudited):

(in thousands)	December 31, 2023
Current assets		808
Noncurrent assets		2,290
Current liabilities		972
Noncurrent liabilities		1,064

	Three months ended		Six months ended
(in thousands)	June 30, 2023		June 30, 2023
Net sales or gross revenue		1,940		3,769
Operating income		1,309		2,542
Net income		172		933
Net income attributable to the entity		86		467

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Line of Credit

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Line of Credit

(7)Line of Credit

During March 2022 the Company entered into a line of credit for $8.0 million with Pacific City Bank (“PCB”). The line of credit matured on September 3, 2023, and bore interest at a variable interest rate which was defined as the Wall Street Journal Prime Rate plus 1.75%, resulting in an interest rate of 10.25% on August 16, 2023, when paid in full. On August 16, 2023, the Company repaid in full the obligation under the line of credit plus accrued interest.

On September 29, 2023, the Company entered into a new line of credit agreement for $20.0 million with PCB. The line of credit matures on September 25, 2024, and bears interest at a variable rate per annum equal to The Wall Street Journal Prime Rate, plus 0.25% resulting in a rate of 8.75% as of June 30, 2024. The available balance was $20.0 million at June 30, 2024 and December 31, 2023 with no draw against the line of credit.

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Notes Payable

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Notes Payable

(8)Notes Payable

Note Payable to WDI

On February 18, 2024, the Company finalized an agreement with WDI International, Inc. (“WDI”), to acquire the remaining 50% ownership stake in GKBH, along with securing rights for participation in upcoming restaurant ventures in Hawaii, at a valuation of $6.0 million. Subsequently, on the same date, the Company disbursed $3.0 million in cash and committed to a promissory note amounting to $3.0 million as per the terms of the agreement. The note is non-interest bearing and is due August 16, 2024.

Notes Payable to Bank

On September 13, 2017, the Company and a commercial bank entered into a loan agreement in the amount of $3.0 million with a maturity date of September 15, 2024, at an interest rate of 6.00%. On August 16, 2023, the Company paid the outstanding balance plus accrued interest in full.

During the first quarter of 2023, the Company and a commercial bank entered into a loan agreement in the amount of $1.3 million with a maturity date of February 6, 2030, at a variable interest rate which is defined as the Wall Street Journal Prime Rate plus 1.00%, resulting in an interest rate of 9.25% as of August 16, 2023. Principal and interest payments were due monthly and commenced in March 2023. On August 16, 2023, the Company paid the outstanding balance plus accrued interest in full.

Economic Injury Disaster Loan (“EIDL”)

On July 1, 2020, the Company executed the standard loan documents for restaurants required for securing EIDL from the United States Small Business Administration under its Economic Injury Disaster Loan assistance program. This assistance was sought in light of the impact of the COVID-19 pandemic on the Company’s business.

As of both June 30, 2024 and December 31, 2023, the total principal amount of the EIDLs was $4.4 million, and the proceeds were used for working capital purposes. Interest on the EIDLs accrues at 3.75% per annum and installment payments, including principal and interest, are due monthly beginning twelve months from the date of each loan. The balance of principal and interest is payable over thirty years from the date of the promissory note.

Note Payable to Landlord

In August 2017, GEN Fremont entered into a note agreement with a landlord. The Company is making equal monthly payments on this note which has a July 2027 maturity date, with an interest rate of 8.00% per annum. As of June 30, 2024 and December 31, 2023, the loan balance outstanding was $238 thousand and $271 thousand, respectively.

Total Obligations of Notes Payable

The aggregate maturities of all third party notes payable as of June 30, 2024:

(in thousands)
2024 - remaining	$	3,149
2025		179
2026		189
2027		146
2028		117
Thereafter		3,851
	$	7,631
Less current portion of notes payable		(3,206	)
Long term portion	$	4,425

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Related Party Notes Payable

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Related Party Notes Payable

(9)Related Party Notes Payable

During 2022, the member owners loaned $1.9 million to the Company for the construction and pre-opening costs at the new GEN Webster restaurant location. As of June 30, 2024, the loan balance outstanding was $310 thousand. The loan bears interest of 3.00% per year and matures on November 25, 2024.

In December 2022, the member owners loaned an additional $500 thousand to the Company for construction and pre-opening costs. The loan has a variable interest rate which is defined as the Wall Street Journal Prime Rate plus 1.75%, resulting in an interest rate of 9.25% at December 31, 2022. During January 2023, the Company repaid $500 thousand towards the Note Payable – related party. During March 2023, the member owner loaned another $500 thousand to the Company of which $150 thousand was repaid prior to the IPO transaction, and as part of the IPO transaction, the remaining loan balance was repaid in full and immediately contributed to owners’ equity.

The aggregate maturities of notes payable to related parties as of June 30, 2024, are as follows:

(in thousands)
Total related party notes payable	$	310
Less current portion of notes payable:	$	(310	)
Notes Payable, net of current portion:	$	-

Interest expense incurred for the related party debt was $25 thousand and $45 thousand for the three months ended June 30, 2024 and June 30, 2023, respectively.

Interest expense incurred for the related party debt was $50 thousand and $68 thousand for the six months ended June 30, 2024 and June 30, 2023, respectively.

Issuance of Common Stock for Repayment of Notes Payable to Related Parties and Advances from Members

During the second quarter of 2024, the Company satisfied $2.7 million of notes payable to related parties and advances from members through cash payments of $864 thousand, the issuance of Class A common stock valued at $550 thousand, and offset against $1.3 million of advances to satisfy certain costs incurred by the Company relating to the restructuring transaction in connection with the IPO.

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Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

(10)Leases

At inception of a contract, the Company assesses whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by the Company. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). The Company has operating and finance leases for its corporate office, restaurant locations, office equipment and kitchen equipment. The leases have remaining lease terms of less than 1 year to up to 25 years, including options to extend many of the leases. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease.

Operating leases are accounted for on the balance sheet with the lease assets and liabilities recognized in “Operating lease assets”, “Operating lease liabilities, current” and “Operating lease liabilities, net of current portion”. Finance lease liabilities are recognized on the balance sheet in “Obligations under finance leases, current” and “Obligations under finance leases, net of current portion”.

Lease assets and liabilities are recognized at the lease commencement date. All lease liabilities are measured at the present value of the lease payments not yet paid. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates corresponding to the maturities of the leases. We estimate this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment. Operating lease assets are initially measured based on the lease liability, adjusted for initial direct costs, prepaid or deferred rent, and lease incentives. The operating lease liabilities are subsequently measured at the carrying amount of the lease liability adjusted for initial direct costs, prepaid or accrued lease payments, and lease incentives.

The following table summarizes the operating and finance lease activities to the income statement and balance sheet for the three months ended June 30, 2024 and 2023 and the six months ended June 30, 2024 and 2023:

(in thousands)		Three months ended June 30,				Six months ended June 30,
Operating lease cost	Classification	2024		2023		2024		2023
Operating lease cost	Occupancy and related expenses, and General and administrative expenses	$	2,988	$	2,253	$	5,747	$	4,443
Variable lease cost	Occupancy and related expenses, and General and administrative expenses		1,401		1,420		2,935		2,661
Total operating lease cost		$	4,389	$	3,673	$	8,682	$	7,104

Supplemental balance sheet information related to leases:
Operating leases (in thousands)	June 30, 2024		December 31, 2023
Operating lease assets	$	122,560	$	99,255
Operating lease liabilities, current		4,516		4,535
Operating lease liabilities, net of current portion		135,071		110,501
Total operating lease liabilities	$	139,587	$	115,036

Finance lease assets, net (in thousands)	June 30, 2024			December 31, 2023
Property and equipment	$	444		$	902
Accumulated depreciation		(442	)		(861	)
Property and equipment, net	$	2		$	41

Finance lease liabilities (in thousands)	June 30, 2024		December 31, 2023
Obligations under finance leases, current	$	56	$	125
Obligations under finance leases, net of current portion		—		—
Total finance lease liabilities	$	56	$	125

	June 30, 2024
Weighted-Average Remaining Lease Term (Years)
Operating leases		15.2
Finance leases		0.4
Weighted-Average Discount Rate
Operating leases		6.71	%
Finance leases		7.45	%

Maturities of lease liabilities as of June 30, 2024:

	Operating Leases			Finance Leases
(in thousands)
2024 - remaining	$	6,050		$	57
2025		13,680			—
2026		14,121			—
2027		14,434			—
2028		14,655			—
Thereafter		172,398			—
Total undiscounted lease payments	$	235,338		$	57
Present value discount/interest		(95,751	)		(1	)
Present value		139,587			56
Lease liabilities, current		4,516			56
Lease liabilities, net of current		135,071			—
Total operating lease liability	$	139,587		$	56

As of June 30, 2024, the Company had additional operating leases related to new restaurants the Company has not yet taken possession of that will total $50.0 million in future lease payment commitments. These operating leases are expected to commence later in fiscal year 2024 and in fiscal year 2025 will have lease terms, including option periods, of 10 to 25 years.

The Company is obligated under finance leases covering certain property and equipment that expire at various dates during the next 2 years. On June 30, 2024 and June 30, 2023 the gross amounts of property and equipment and related accumulated depreciation and amortization recorded under finance leases were as follows:

(in thousands)	June 30, 2024			June 30, 2023
Property and equipment		444			902
Less accumulated depreciation and amortization		(442	)		(804	)
Property and equipment, net	$	2		$	98

Amortization of assets held under finance leases is included with depreciation expense in the condensed consolidated income statement.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(11)Commitments and Contingencies

(a)Commitments

On November 23, 2016, pursuant to the U.S. government’s Immigrant Investor Program, commonly known as the EB-5 program (the “EB-5 Program”), Gen Restaurant Investment, LLC entered into an operating agreement with an investor (the “EB-5 Investor”). Under the terms and conditions of the EB-5 program, the Company is subject to certain job creation requirements.

As part of the EB-5 Program operating agreement, Gen Restaurant Investment, LLC issued 3 units of Series II Preferred Member Interest in exchange for a 30% interest and received $1.5 million, recorded as equity. Five years from the date of issue, (the “Conversion Date”), or after approval of the l-829 petition to USCIS, the EB-5 Investor has the option to convert the Series II Units into Series I Units. If the EB-5 Investor does not exercise the conversion option, the Company may exercise its call option to purchase the EB-5 Investor’s interests for the fair market value. If approval of the preferred member's I-526 immigration application is denied, the Company is required to repurchase the preferred member's units for $1.5 million.

Accordingly, this has been presented as mezzanine equity, not permanent equity, in the accompanying condensed consolidated balance sheets.

(b)Contingencies

The Company and its related entities are involved in various claims and legal actions arising in the ordinary course of business. The outcomes of these actions are not predictable but the Company does not believe that the ultimate resolution of these other actions will have a material adverse effect on its financial position, results of operations, liquidity, or capital resources. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims, could materially and adversely affect its business, financial condition, results of operations or cash flows.

The Company is a party to several lawsuits brought in Los Angeles County, California by ex-employees alleging labor law violations. The Company plans to continue to defend against these claims and does not expect the outcome of these lawsuits to have a material impact on the financial statements of the Company.

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Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

(12)Income Taxes

Income Taxes, General

As a result of the IPO and the related transactions, the Company owns a portion of the common units of the Operating Company, which is treated as a partnership for U.S. federal, and most applicable state and local income tax purposes. As a partnership, the Operating Company is generally not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by the Operating Company is passed through to and included in the taxable income or loss of its members in accordance with the terms of the Operating Agreement. The Company is subject to U.S. federal, state and local income taxes based on its share of the Operating Company’s pass-through taxable income.

The effective tax rate differs from the statutory tax rate primarily due to the Operating Company’s pass-through structure for U.S. income tax purposes.

For the six months ended June 30, 2024, the Company did not have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties.

For the three months ended June 30, 2024, the Company recorded an income tax expense of $11 thousand. The Company’s effective income tax rate before discrete items for the three months ended June 30, 2024 was 1.13%.

For the six months ended June 30, 2024, the Company recorded an income tax expense of $83 thousand. The Company’s effective income tax rate before discrete items for the six months ended June 30, 2024 was 1.34%.

During the three and six months ended June 30, 2024 and 2023, respectively, management performed an assessment of the realizability of our deferred tax assets based upon which management determined that it is not more likely than not that the results of operations will generate sufficient taxable income to realize portions of the net operating loss benefits. Consequently, we established a full valuation allowance against our deferred tax assets and reflected a carrying balance of $0 as of June 30, 2024 and December 31, 2023, respectively. In the event that management determines that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, an adjustment to the valuation allowance will be made, which would reduce the provision for income taxes.

Uncertain Tax Positions

For the three and six months ended June 30, 2024 and 2023, respectively, we did not have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties. The Company is subject to audit examination for federal and state purposes for the years 2018 - 2022.
 

Tax Receivable Agreement (“TRA”)

Gen, Inc. entered into the TRA with the Operating Company and each of the members of the Operating Company (the “Members”) that provides for the payment by Gen Inc. to the Members of 85% of the amount of tax benefits, if any, that the Company may actually realize (or in some circumstances is deemed to realize) as a result of (i) increases in tax basis resulting from any future redemptions that are funded by Gen Inc. or exchanges of Class A Common Units described above in “Note 1—Organization and Description of Business” and (ii) certain other tax benefits attributable to payments made under the TRA.

The annual tax benefits are computed by calculating the income taxes due, including such tax benefits, and the income taxes due without such benefits. The Operating Company expects to benefit from the remaining 15% of any tax benefits that it may actually realize. The TRA payments are not conditioned upon any continued ownership interest in the Operating Company. The rights of each noncontrolling interest holder under the TRA are assignable to transferees of its interest in the Operating Company. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the amount and timing of the taxable income the Operating Company generates each year and the applicable tax rate.

As of June 30, 2024, the Company had a liability related to its projected obligations under the TRA of $584 thousand, which is reflected on the Company’s condensed consolidated balance sheet in “Tax receivable agreement liability”. During the six months ended June 30, 2024, Gen Inc. did not make any payments to members of the Operating Company pursuant to the TRA.

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Non-controlling Interest

6 Months Ended

Jun. 30, 2024

Noncontrolling Interest [Abstract]

Non-Controlling Interest

(13)Non-Controlling Interest

As discussed in “Note 1 – Organization and Description of Business,” the Company consolidates the financial results of the Operating Company and reports a non-controlling interest related to the Class B Common Units held by non-controlling interest holders on its consolidated financial statements.

As of June 30, 2024, the Company owned 14.6% of the economic interests in the Operating Company, with the remaining 85.4% of the economic interest owned by non-controlling interest holders. The non-controlling interests on the accompanying condensed consolidated income statement represents the portion of the income attributable to the economic interests in the Operating Company held by the non-controlling holders of Class B Common Units calculated based on the weighted-average non-controlling interests’ ownership during the periods presented.

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Other Related-Party Transactions

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Other Related-Party Transactions

(14)Other Related-Party Transactions

The Company purchased approximately $189 thousand and $528 thousand for the three months ended June 30, 2024 and June 30, 2023, respectively, of supplies from Pacific Global (“PGD”), which is 100% owned by Mr. Jae Chang, our Co-Chief Executive Officer and Mr. Chang's direct family. The Company purchased approximately $424 thousand and $1.3 million of supplies from PGD for the six months ended June 30, 2024 and June 30, 2023, respectively.

In 2016, the Company entered into a management agreement with JL Restaurant Management, Inc., a third party which shares offices with Mr. Jae Chang, our Co-Chief Executive Officer. Pursuant to the agreement, the Company paid approximately $0.5 million

during the three months ended June 30, 2023 and $1.1 million during the six months ended June 30, 2023. Following the IPO this management agreement was terminated effective July 1, 2023.

The Company purchased $2.8 million of food from Wise Universal Inc., an affiliate 60% owned by Mr. Chang for the three months ended June 30, 2023. The Company purchased approximately $6.4 million of food from Wise for the six months ended June 30, 2023. No purchases were made from Wise in 2024.

On August 29, 2014, the Company entered into a consulting agreement (the “Consulting Agreement”) with Ignite Enterprise, LLC, (“Ignite”), 100% owned by Mr. David Kim, our Co-Chief Executive Officer, which provides for annual fees of up to 25% of gross revenue in exchange for various consulting services. The Company paid $1.4 million for the three months ended June 30, 2023, and paid approximately $2.3 million for the six months ended June 30, 2023. Following the IPO this agreement was terminated effective July 1, 2023.

As of December 31, 2023, GEN Mountain View had a related party account payable to a company owned by Mr. David Kim for purchases of fixed assets during 2018. During the three and six months ended June 30, 2024, GEN Mountain View paid $48 thousand and $80 thousand, respectively, towards this payable. The balance at June 30, 2024 was $72 thousand.

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Net Income Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Net Income Per Share

(15)Net Income per Share

Basic net income per share of Class A common stock is computed by dividing net income attributable to GEN Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted net income per share of Class A common stock is computed by dividing net income attributable to GEN Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. Diluted net income per share for any periods for which loss per share is presented is the same as basic net income per share as the inclusion of potentially issuable shares would be antidilutive.

Prior to the amendment and restatement of the Operating Company’s LLC Agreement in connection with the IPO, the Operating Company’s membership interests were defined solely as percentage interests as the LLC Agreement did not define a number of membership units outstanding or authorized. As a result, a calculation of basic and diluted earnings per unit for the three and six months ended June 30, 2023 was not presented in the accompanying condensed consolidated unaudited financial statements as a denominator to the calculation could not be determined.

A calculation of the numerator and denominator used in the calculation of basic and diluted net income per share of Class A common stock is as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share data)	2024		2023		2024		2023
Numerator:
Net income	$	2,064	$	85	$	5,761	$	85
Less: Net income attributable to non-controlling interest		1,787		74		4,990		74
Net income attributable to Class A common stockholders	$	277	$	11	$	771	$	11
Denominator:
Weighted-average shares of Class A common stock outstanding - basic		4,572		4,249		4,446		4,249
Weighted-average shares of Class A common stock outstanding - diluted		4,572		4,249		4,446		4,249
Net income per share of Class A common stock - basic	$	0.06	$	—	$	0.17	$	—
Net income per share of Class A common stock - basic and diluted	$	0.06	$	—	$	0.17	$	—

For the three and six months ended June 30, 2024, 27,886,912 shares of Class B common stock was excluded from the weighted-average in the computation of diluted net income per share of Class A common stock because the effect would have been anti-dilutive.

Shares of Class B common stock do not share in the earnings or losses of GEN Inc. and are therefore not participating securities. Separate calculations of basic and diluted net income per share for Class B common stock has not been presented.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

(16)Stock-Based Compensation

In connection with the IPO, the Company granted restricted stock units (“RSUs”) to certain team members that generally vest on the five year anniversary of the grant date, or over a five year period with vesting of 20% each year. The non-employee directors of the Company received RSUs that vest on the first anniversary of the grant date, subject to the grantee's continued service through the vesting period, or upon termination from the Board of Directors for any reason other than for cause, a pro rated portion of the shares vest on the termination date. The total stock based compensation for the three and six months ended June 30, 2024 was $759 thousand and $1.5 million, respectively, and is included in general and administrative expenses.

	Number of RSUs
RSUs	(Thousands)
Non-vested as December 31, 2023		1,209
Granted		-
Vested		(117	)
Canceled		-
Non-vested as of June 30, 2024		1,092

The aggregate fair value of the RSU's granted during the year ended December 31, 2023 was $14.6 million. The unrecognized stock-based compensation of $11.5 million as of June 30, 2024, will be recognized through July 2028. The Company issued 372,600 (or 9% of the shares of common stock sold in the offering) warrants in connection with the IPO transaction to the underwriters. The warrants expire five years after the effective date of the registration and can be exercised on a cashless basis. As a result, the conversion of some or all of the warrants may dilute the ownership interests of existing shareholders.

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Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

(17)Subsequent Events

The Company and its related parties evaluated subsequent events from the balance sheet date through July 31, 2024, the date at which the condensed consolidated financial statements were issued.

Note Payable

During the month of July 2024 the Company entered a new loan document with Pacific City Bank in the amount of $3,000,000, the loan matures during July 2026, and bears interest at 8.75%.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

(a)Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company, collectively, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”). These unaudited condensed consolidated financial statements were prepared on the same basis as the audited consolidated financial statements, and, in the opinion of management, reflect all adjustments (all of which were considered of a normal recurring nature) considered necessary to present fairly the Company's financial results. The results of the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024 and for any other interim period or future year.

Recent Accounting Pronouncements

(b)Recent Accounting Pronouncements

The Company, as an emerging growth company, has elected to use the extended transition period which allows us to defer the adoption of new or revised standards. This allows the Company to adopt new or revised accounting standards as of the effective date for non-public business entities.

In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-01, “Leases (Topic 842): Common Control Arrangements”. The new guidance requires all lessees in a lease with a lessor under common control to amortize leasehold improvement over the useful life of the common control group and provides new guidance for recognizing a transfer of assets between entities under common control as an adjustment to equity when the lessee no longer controls the use of the underlying asset. This guidance is effective for fiscal years beginning after December 15, 2023. The adoption of this standard in the first quarter of 2024 did not have any material impact on our consolidated financial statements.

Accounting Standards Codification (“ASC”) Topic 320, “Investments-Debt Securities,” requires that an enterprise classify all debt securities as either held-to-maturity, trading, or available-for-sale. During the third quarter of 2023, the Company adopted ASC 320 and classified its U.S. Treasury and equivalent securities as held-to-maturity. Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 820): Improvements to Reportable Segment Disclosures” which provides guidance to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023. The Company is currently evaluating the impact of this standard on our consolidated financial statements and will adopt this pronouncement in the fourth quarter of 2024.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures,” which is effective for fiscal years beginning after December 31, 2024. The Company is evaluating the presentational effect that ASU 2023-09 will have on our consolidation financial statements.

Use of Estimates

(c)Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities in the accompanying unaudited condensed consolidated financial statements of the Company. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Annual Report.

Goodwill

(d)Goodwill

Goodwill is calculated under ASC 805-30-30, which represents the excess of the fair value of purchase consideration of an acquired business over the fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at a reporting unit level on an annual basis, or more frequently if circumstances change or an event occurs that would more likely than not reduce the fair value of the a reporting unit below its carrying amount.

Business Combinations

(e)Business Combinations

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC Topic 805, “Business Combinations”. Under the acquisition method, we recognize 100% of the assets we acquire and liabilities we assume, regardless of the percentage we own, at their estimated fair values as of the date of acquisitions. Any excess of the purchase price over the fair value of the net assets and other identifiable intangible assets we acquire is recorded as goodwill. The assets we acquire, and liabilities we assume from contingencies, are recognized at fair value if we can readily determine the fair value during the measurement period. The operating results of the business the Company acquired are included in the consolidated statements of operations from the date of acquisition. Acquisition-related costs are expensed as incurred.

Equity-Based Compensation

(f)Equity-Based Compensation

The Company accounts for equity-based compensation grants to employees in accordance with ASC Topic 718, “Stock Based Compensation”. The Company issued restricted stock units to its employees.

The Company estimates the fair value of the restricted stock units on the grant-date and recognizes the resulting fair value over the requisite service period. The fair value of each restricted stock unit or award is determined based upon the value of the common stock granted. The Company has elected to treat stock-based awards with graded vesting schedules and time-based service conditions as a single award and recognizes stock-based compensation on a straight-line basis over the requisite service period. Forfeitures are accounted for as they occur.

Cash and Cash Equivalents

(g)Cash and Cash Equivalents

The Company and its related entities consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. As of June 30, 2024 and December 31, 2023, cash and cash equivalents consisted principally of cash, money market accounts and short-term investments. Short-term investments are classified as available for sale, which are carried at fair value, with changes in fair value reported in earnings. Cash equivalents also include credit card transactions in transit.

As of June 30, 2024 and December 31, 2023, there were deposits in excess of federally insured amounts of $3.9 million and $8.8 million, respectively.

	Carrying Value/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value as of June 30, 2024
(in thousands)
Money Market Accounts (included in cash and cash equivalents)	$	3,475	$	—	$	—	$	3,475
U.S. Treasury Securities (included in cash and cash equivalents)	$	20,000	$	858	$	—	$	20,858
	$	23,475	$	858	$	—	$	24,333
Represent money market accounts. Excludes $4.9 million of cash and cash equivalents at June 30, 2024.

Concentration Risk

(h)Concentration Risk

The Company relies on third parties for specified food products and supplies. In instances where these parties fail to perform their obligation, the Company may be unable to find alternative suppliers.

The Company relies on Sysco Los Angeles, Inc., or Sysco, an unrelated third-party, for a significant portion of its food supplies. During the fourth quarter of 2023, the Company entered into an agreement with Sysco to purchase certain food supplies. For the three and six months ended June 30, 2023, the Company did not purchase from Sysco. For the three and six months ended June 30, 2024 Sysco accounted for approximately 74.0% and 73.3% of total food costs, respectively.

The Company previously relied on U.S. Foods, an unrelated third-party for a significant portion of its food products. For the six months ending June 30, 2024, the Company did not purchase from U.S. Foods. For the three months ended June 30, 2023, U.S. Foods account for approximately 50.6% of total food costs. For the six months ended June 30, 2023, U.S. Foods accounted for approximately 46.3% of total food costs.

The Company relies on Pacific Global Distribution, Inc. (“PGD”), which provides restaurant supplies such as tableware, napkins, soda, and sauces. PGD is owned by a related party. For the three months ended June 30, 2024 and June 30, 2023, PGD accounted for approximately 3.7% and 13.9% of total operating expenses, respectively. For the six months ended June 30, 2024 and 2023, PGD accounted for approximately 4.1% and 16.4% of total operating expenses, respectively.

The Company previously relied on Wise Universal, Inc. (“Wise”), an entity 60% owned by a related party, for food supplies for 13 restaurants. For the three months and six months ended June 30, 2024 the Company did not purchase from Wise. For the three months and six months ended June 30, 2023, Wise accounted for approximately 22.6% and 23.7% of total food supplies, respectively.

Inventories

(i)Inventories

Inventories consist principally of food and beverages and are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method (FIFO) for all inventories.

Revenue Recognition

(j)Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, “Revenue from Contracts with Customers.” Revenue from the operation of the restaurants is recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale.

Property and Equipment

(k)Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Property and equipment under finance leases are stated at the present value of minimum lease payments.

The estimated useful service lives are as follows:

Equipment	5 - 7 Years
Furniture and fixtures	5 - 7 Years
Leasehold improvements	Shorter of useful life or remaining lease term

The Company capitalizes certain costs in conjunction with improvements to specific sites for planned future restaurants and in conjunction with construction of new restaurants. The Company and its related entities did not capitalize any internal costs related to site preparation and construction activities during the six months ended June 30, 2024 and June 30, 2023 as any amounts were deemed immaterial.

Other Assets and Other Current Liabilities

(l)Other Assets and Other Current Liabilities

Other assets as of June 30, 2024 and December 31, 2023 consist of the following:

(in thousands)	June 30, 2024		December 31, 2023
Other Assets
Security Deposits	$	667	$	534
Liquor Licenses		225		215
Total Other Assets	$	892	$	749

Other Current Liabilities as of June 30, 2024 and December 31, 2023 consist of the following:

(in thousands)	June 30, 2024		December 31, 2023
Other Current Liabilities
Sales tax payable	$	1,512	$	1,447
Accrued percentage rent		1,154		1,163
Misc. accrued expenses		3,380		2,756
Total Other Current Liabilities	$	6,046	$	5,366

Advances from Members

(m)Advances from members

Advances from members consist of funding received from member owners. During the six months ended June 30, 2024, the Company satisfied $2.7 million of advances from members through cash payments of $864 thousand, the issuance of Class A common stock valued at $550 thousand, and offsets against $1.3 million of advances to satisfy certain costs incurred by the Company relating to the restructuring transaction in connection with the IPO. As of June 30, 2024, the balance was $0 and as of December 31, 2023 the balance was $2.7 million.

Pre-Opening Costs

(n)Pre-Opening Costs

Pre-opening costs, incurred in connection with the opening of new restaurants, are expensed as incurred. Pre-opening costs were $1.6 million and $0.9 million for the three months ended June 30, 2024 and June 30, 2023, respectively, and $3.5 million and $1.4 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

Income Taxes

(o)Income Taxes

Deferred tax assets are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company recognizes positions taken or expected to be taken in a tax return in accordance with existing accounting guidance on income taxes which prescribes a recognition threshold and measurement process. Under GAAP, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest and penalties on tax liabilities, if any, would be recorded in interest expense and other expense, respectively.

In assessing the realizability of deferred tax assets, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.

Long-Lived Assets

(p)Long-Lived Assets

Long-lived assets are reviewed quarterly for impairment and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long- lived asset or asset group to be tested for possible impairment, undiscounted cash flows expected to be generated by that asset or asset group are compared to its carrying amount. If the carrying amount of the long-lived asset or asset group is not expected to be recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. We assessed our long-lived assets for potential impairment with the result that no impairment charges were recorded in any of the periods presented.

Interest Income/Expense

(q)Interest Income/Expense

A reconciliation of total interest cost to interest income/expense as reported in the condensed consolidated income statement for the three and six months ended June 30, 2024 and June 30, 2023 is as follows:

	Three months ended						Six months ended
(in thousands)	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Interest expense	$	90		$	301		$	177		$	557
Interest income		(352	)		(94	)		(715	)		(161	)
Interest (income) expense, net	$	(262	)	$	207		$	(538	)	$	396

Liquor Licenses

(r)Liquor Licenses

Liquor licenses are deemed to have indefinite useful lives and are quantitatively tested on an annual basis for impairment. Liquor licenses are included in other assets in the accompanying balance sheets.

Sales Taxes

(s)Sales Taxes

Sales taxes are imposed by state, county, and city governmental authorities, collected from customers and remitted to the appropriate governmental agency. The Company’s policy is to record the sales taxes collected as a liability on the books and then remove the liability when the sales tax is remitted. There is no impact on the condensed consolidated income statements as restaurant sales are recorded net of sales tax.

Advertising Costs

(t)Advertising Costs

Advertising costs are expensed as incurred and are included in General and Administrative costs in the accompanying condensed consolidated income statements. The Company incurred approximately $77 thousand and $54 thousand in advertising expenses for the three months ended June 30, 2024 and June 30, 2023, respectively. The Company incurred approximately $90 thousand in advertising expenses for both the six month periods ended June 30, 2024 and 2023, respectively.

Risks and Uncertainties

(u)Risks and Uncertainties.

Management continues to evaluate the potential impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s future financial position and the results of its operations, the specific impact is not readily determinable as of the date of these unaudited condensed financial statements. The unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Restaurant Revitalization Fund

(v)Restaurant Revitalization Fund

Several of the Company’s restaurants received, between May and August 2021, a total of approximately $16.8 million from the Restaurant Revitalization Fund (“RRF”). The RRF funds must be used for specific purposes, and the Company was required to provide use of funds validation on an annual basis through March 2023. During the year ended December 31, 2021, the Company recognized approximately $13.0 million as RRF grant income and had deferred the remaining balance of $3.8 million. No RRF grant income was recognized during the six months ended June 30, 2024 and June 30, 2023.

Employee Retention Credits

(w)Employee Retention Credits

In March 2020, the Coronavirus Aid, Relief, and Economic Security Act was signed into law, providing numerous tax provisions and other stimulus measures, including the Employee Retention Credit (“ERC”), a refundable tax credit against certain employment taxes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021 extended and expanded the availability of the ERC. We qualified for the ERC in the first and second quarters of 2019, second and fourth quarters of 2020 and first, second and third quarters of 2021. During the three months ended June 30, 2024 and June 30, 2023, we recorded an aggregate benefit of $200 thousand and $1.3 million, respectively, in our condensed consolidated income statements to reflect the ERC. During the six months ended June 30, 2024 and 2023, the Company recorded an aggregate benefit of $200 thousand and $2.5 million, respectively, in our condensed consolidated income statements to reflect the ERC.

Deferred Offering Costs

(x) Deferred Offering Costs

The Company capitalized certain legal, accounting, and other third-party fees that were directly attributable to GEN Inc.’s IPO. Following the successful consummation of the IPO in June 2023, deferred offering costs of approximately $3.3 million were recorded in the Company’s stockholders’ equity as a reduction of additional paid-in capital. The Company had no remaining deferred offering costs assets at June 30, 2024.

Net Income Per Share

(y) Net Income Per Share

Basic net income per share is computed by dividing net income attributable to the Company by the weighted-average number of shares outstanding during the period. Diluted net income per share is computed by giving effect to all potential weighted-average dilutive shares including stock options, restricted stock units, dividend equivalent units, restricted stock awards, and Class B Common Units exchangeable for shares of Class A common stock for the periods after the closing of the IPO on June 30, 2023. The dilutive effect of outstanding awards, if any, is reflected in diluted earnings per share by application of the treasury stock method or if-converted method, as applicable. See “Note 15—Net Income per Share.”

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Organization and Description of Business (Tables)

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of List of Entities in Operation

The following tables lists the Company’s entities in operation as of June 30, 2024:

Name	Operating Name	State	Purpose
GEN Restaurant Group, LLC	GEN Tustin	CA	Restaurant
	GEN Huntington Beach	CA	Restaurant
	GEN Oxnard	CA	Restaurant
JC Group International Inc. (S Corp)	GEN Henderson	NV	Restaurant
	GEN West Covina	CA	Restaurant
	GEN Corona	CA	Restaurant
GEN Restaurant Investment, LLC	GEN Glendale	CA	Restaurant
GEN California, LLC	GEN Fullerton	CA	Restaurant
	GEN Mira Mesa	CA	Restaurant
GEN Arizona, LLC	GEN Tempe	AZ	Restaurant
GEN Chandler, LLC	GEN Chandler	AZ	Restaurant
GEN Nevada, LLC	GEN Sahara	NV	Restaurant
	GEN Miracle Mile	NV	Restaurant
GEN Alhambra, LLC	GEN Alhambra	CA	Restaurant
GEN Arlington, LP	GEN Arlington	TX	Restaurant
GEN Cerritos, LLC	GEN Cerritos	CA	Restaurant
GEN Cerritos II, LP	Gen Cerritos II	CA	Restaurant
GEN Torrance, LLC	GEN Torrance	CA	Restaurant
GEN Rancho Cucamonga, LP	GEN Rancho Cucamonga	CA	Restaurant
GEN San Jose, LP	GEN San Jose	CA	Restaurant
GEN Northridge, LP	GEN Northridge	CA	Restaurant
GEN Chino Hills, LP	GEN Chino Hills	CA	Restaurant
GEN Carrollton, LP	GEN Carrollton	TX	Restaurant
GEN Fort Lauderdale, LP	GEN Fort Lauderdale	FL	Restaurant
GEN Fremont, LP	GEN Fremont	CA	Restaurant
GEN Concord, LP	GEN Concord	CA	Restaurant
GEN Webster, LP	GEN Webster	TX	Restaurant
GEN Westgate, LP	GEN Westgate	CA	Restaurant
GEN Westheimer, LLC	GEN Westheimer	TX	Restaurant
GEN Manhattan NYU, LP	GEN Manhattan	NY	Restaurant
GEN Mountain View, LP	GEN Mountain View	CA	Restaurant
GKBH Restaurant, LLC	GEN Korean BBQ	HI	Restaurant
GEN Hawaii, LLC	Investment Company	HI	Management of GKBH
GEN Online, LLC	GEN Online	CA	Website sales
GEN Sacramento, LP	GEN Sacramento	CA	Restaurant
GEN Pearlridge, LLC	GEN Pearlridge	HI	Restaurant
GEN Kapolei, LP	GEN Kapolei	HI	Restaurant
GEN Frisco, LP	GEN Frisco	TX	Restaurant
GEN Houston, LLC	GEN Houston	TX	Restaurant
GEN Seattle, LP	GEN Seattle	WA	Restaurant
GEN Jacksonville, LP	GEN Jacksonville	FL	Restaurant
GEN Dallas, LP	GEN Dallas	TX	Restaurant
GEN Texas, LLC	Investment Company	TX	Management of GEN Houston and GEN Webster
GEN Master, LLC	Holding Company	NV	Management
GEN Restaurant Management, LLC	GRM	DE	Management

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Basis of Presentation and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of Investments in Debt Securities

	Carrying Value/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value as of June 30, 2024
(in thousands)
Money Market Accounts (included in cash and cash equivalents)	$	3,475	$	—	$	—	$	3,475
U.S. Treasury Securities (included in cash and cash equivalents)	$	20,000	$	858	$	—	$	20,858
	$	23,475	$	858	$	—	$	24,333
Represent money market accounts. Excludes $4.9 million of cash and cash equivalents at June 30, 2024.

Estimated Useful Service Lives

The estimated useful service lives are as follows:

Equipment	5 - 7 Years
Furniture and fixtures	5 - 7 Years
Leasehold improvements	Shorter of useful life or remaining lease term

Other Assets and Other Current Liabilities

Other assets as of June 30, 2024 and December 31, 2023 consist of the following:

(in thousands)	June 30, 2024		December 31, 2023
Other Assets
Security Deposits	$	667	$	534
Liquor Licenses		225		215
Total Other Assets	$	892	$	749

Other Current Liabilities as of June 30, 2024 and December 31, 2023 consist of the following:

(in thousands)	June 30, 2024		December 31, 2023
Other Current Liabilities
Sales tax payable	$	1,512	$	1,447
Accrued percentage rent		1,154		1,163
Misc. accrued expenses		3,380		2,756
Total Other Current Liabilities	$	6,046	$	5,366

Reconciliation of Total Interest Cost to Interest Income/Expense

A reconciliation of total interest cost to interest income/expense as reported in the condensed consolidated income statement for the three and six months ended June 30, 2024 and June 30, 2023 is as follows:

	Three months ended						Six months ended
(in thousands)	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Interest expense	$	90		$	301		$	177		$	557
Interest income		(352	)		(94	)		(715	)		(161	)
Interest (income) expense, net	$	(262	)	$	207		$	(538	)	$	396

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Business Combinations (Tables)

6 Months Ended

Jun. 30, 2024

Business Combinations [Abstract]

Summary of Fair Value of GKBH's Assets and Liabilities at Acquisition Date and Resulting Goodwill

The following table summarizes the fair value of GKBH’s assets and liabilities at the acquisition date, and the resulting goodwill.

(in thousands)
Purchase price of 50% interest in GKBH	$	6,000
Acquisition-date fair value of previously held interest (Level 2)		4,286
Fair value of GKBH at acquisition date		10,286

(in thousands)
Cash	$	24
Accounts Receivable		96
Inventories		22
Prepaid and Other assets		118
Deposits		67
Property and equipment		745
Operating lease right-of use assets		3,851
Liabilities assumed		(4,135	)
Total identifiable net assets	$	788
Goodwill		9,498
	$	10,286

Unaudited Consolidated Pro Forma Results

The following table presents unaudited consolidated pro forma results as if the acquisition of GKBH had occurred on January 1, 2023.

	Three months ended June 30,				For the six months ended June 30,
(in thousands, except per share data)	2024		2023		2024		2023
Revenue	$	53,860	$	48,413	$	106,449	$	94,104
Net income before taxes		2,075		7,678		2,828		12,590
Earnings per common share:
Basic	$	0.06	$	-	$	0.08	$	-
Diluted	$	0.06	$	-	$	0.08	$	-

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Summay of Financial Assets to Fair Value Measurement Valued Using Observable Inputs

As of June 30, 2024, all of the Company's financial assets that were subject to fair value measurement were valued using observable inputs. The Company's financial assets valued based on Level 1 inputs consist of cash and money market funds and U.S. treasury securities.

			Fair Value Measurements at June 30, 2024
(in thousands)	Total		Level 1		Level 2		Level 3
Money Market Account (included in Cash and Cash Equivalents)	$	3,475	$	3,475	$	—	$	—
U.S. Treasury Securities (included in Cash and Cash Equivalents)	$	20,858	$	20,858	$	—	$	—
			Fair Value Measurements at December 31, 2023
Money Market Account (included in Cash and Cash Equivalents)	$	9,079	$	9,079	$	—	$	—
U.S. Treasury Securities (included in Cash and Cash Equivalents)	$	20,322	$	20,322	$	—	$	—

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Property and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Summary of Costs and Related Accumulated Depreciation and Amortization

The costs and related accumulated depreciation and amortization of major classes of property:

(in thousands)	June 30, 2024			December 31, 2023
Equipment		14,331			12,387
Furniture and fixtures		6,104			5,467
Leasehold improvements		49,613			43,022
Other assets		414			414
Construction in progress		4,743			4,894
	$	75,205		$	66,184
Less accumulated depreciation and amortization		(35,577	)		(32,277	)
Property and Equipment, Net	$	39,628		$	33,907

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Equity Method Investment (Tables)

6 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Summary of GKBH financial position and results of operations

A summary of the GKBH financial position as of December 31, 2023 and results of operations for the three and six months ended June 30, 2023 is as follows (unaudited):

(in thousands)	December 31, 2023
Current assets		808
Noncurrent assets		2,290
Current liabilities		972
Noncurrent liabilities		1,064

	Three months ended		Six months ended
(in thousands)	June 30, 2023		June 30, 2023
Net sales or gross revenue		1,940		3,769
Operating income		1,309		2,542
Net income		172		933
Net income attributable to the entity		86		467

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Notes Payable (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Aggregate Maturities of Notes Payable

The aggregate maturities of all third party notes payable as of June 30, 2024:

(in thousands)
2024 - remaining	$	3,149
2025		179
2026		189
2027		146
2028		117
Thereafter		3,851
	$	7,631
Less current portion of notes payable		(3,206	)
Long term portion	$	4,425

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Related Party Notes Payable (Tables)

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Schedule of Aggregate Maturities of Notes Payable to Related Parties

The aggregate maturities of notes payable to related parties as of June 30, 2024, are as follows:

(in thousands)
Total related party notes payable	$	310
Less current portion of notes payable:	$	(310	)
Notes Payable, net of current portion:	$	-

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Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Summary of Operating and Finance Lease Activities

The following table summarizes the operating and finance lease activities to the income statement and balance sheet for the three months ended June 30, 2024 and 2023 and the six months ended June 30, 2024 and 2023:

(in thousands)		Three months ended June 30,				Six months ended June 30,
Operating lease cost	Classification	2024		2023		2024		2023
Operating lease cost	Occupancy and related expenses, and General and administrative expenses	$	2,988	$	2,253	$	5,747	$	4,443
Variable lease cost	Occupancy and related expenses, and General and administrative expenses		1,401		1,420		2,935		2,661
Total operating lease cost		$	4,389	$	3,673	$	8,682	$	7,104

Supplemental balance sheet information related to leases:
Operating leases (in thousands)	June 30, 2024		December 31, 2023
Operating lease assets	$	122,560	$	99,255
Operating lease liabilities, current		4,516		4,535
Operating lease liabilities, net of current portion		135,071		110,501
Total operating lease liabilities	$	139,587	$	115,036

Finance lease assets, net (in thousands)	June 30, 2024			December 31, 2023
Property and equipment	$	444		$	902
Accumulated depreciation		(442	)		(861	)
Property and equipment, net	$	2		$	41

Finance lease liabilities (in thousands)	June 30, 2024		December 31, 2023
Obligations under finance leases, current	$	56	$	125
Obligations under finance leases, net of current portion		—		—
Total finance lease liabilities	$	56	$	125

	June 30, 2024
Weighted-Average Remaining Lease Term (Years)
Operating leases		15.2
Finance leases		0.4
Weighted-Average Discount Rate
Operating leases		6.71	%
Finance leases		7.45	%

Schedule Maturities of Lease Liabilities

Maturities of lease liabilities as of June 30, 2024:

	Operating Leases			Finance Leases
(in thousands)
2024 - remaining	$	6,050		$	57
2025		13,680			—
2026		14,121			—
2027		14,434			—
2028		14,655			—
Thereafter		172,398			—
Total undiscounted lease payments	$	235,338		$	57
Present value discount/interest		(95,751	)		(1	)
Present value		139,587			56
Lease liabilities, current		4,516			56
Lease liabilities, net of current		135,071			—
Total operating lease liability	$	139,587		$	56

Gross Amounts of Property and Equipment and Related Accumulated Depreciation and Amortization Recorded under Finance Leases

On June 30, 2024 and June 30, 2023 the gross amounts of property and equipment and related accumulated depreciation and amortization recorded under finance leases were as follows:

(in thousands)	June 30, 2024			June 30, 2023
Property and equipment		444			902
Less accumulated depreciation and amortization		(442	)		(804	)
Property and equipment, net	$	2		$	98

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Net Income Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Calculation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income Per Share

A calculation of the numerator and denominator used in the calculation of basic and diluted net income per share of Class A common stock is as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share data)	2024		2023		2024		2023
Numerator:
Net income	$	2,064	$	85	$	5,761	$	85
Less: Net income attributable to non-controlling interest		1,787		74		4,990		74
Net income attributable to Class A common stockholders	$	277	$	11	$	771	$	11
Denominator:
Weighted-average shares of Class A common stock outstanding - basic		4,572		4,249		4,446		4,249
Weighted-average shares of Class A common stock outstanding - diluted		4,572		4,249		4,446		4,249
Net income per share of Class A common stock - basic	$	0.06	$	—	$	0.17	$	—
Net income per share of Class A common stock - basic and diluted	$	0.06	$	—	$	0.17	$	—

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Restricted Stock Unit Awards Activity

	Number of RSUs
RSUs	(Thousands)
Non-vested as December 31, 2023		1,209
Granted		-
Vested		(117	)
Canceled		-
Non-vested as of June 30, 2024		1,092

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Organization and Description of Business - Additional Information (Details) $ / shares in Units, $ in Thousands		6 Months Ended
	Feb. 18, 2024 USD ($)	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2024 Restaurants $ / shares	Dec. 31, 2023 Restaurants $ / shares	Apr. 01, 2016
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of restaurants | Restaurants			40	37
Proceeds from the issuance of class A common stock		$ 46,167
Class A Common Stock
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, par value | $ / shares			$ 0.001	$ 0.001
Class A Common Stock | IPO
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Stock issued price per share | $ / shares		$ 12
Proceeds from the issuance of class A common stock		$ 46,200
Number of shares issued | shares		4,140,000
Class B Common Stock
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, par value | $ / shares			$ 0.001	$ 0.001
GEN LLC
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Subsidiary, Ownership Percentage, Parent			14.60%
GEN LLC | GKBH Restaurant, LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Subsidiary, Ownership Percentage, Parent	100.00%				50.00%
Total purchase price	$ 6,000
GEN Hawaii, LLC [Member] | GKBH Restaurant, LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Subsidiary, Ownership Percentage, Parent	100.00%
Equity investment ownership percentage	50.00%
Total purchase price	$ 6,000
Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term			25 years
Minimum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term			10 years

XML

Organization and Description of Business - Summary of List of Entities in Operation (Details)	6 Months Ended
	Jun. 30, 2024
GEN Tustin [Member] | GEN Restaurant Group LLC [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Huntington Beach [Member] | GEN Restaurant Group LLC [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Oxnard [Member] | GEN Restaurant Group LLC [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Henderson [Member] | JC Group International Inc. (S Corp) [Member] | NV
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN West Covina [Member] | JC Group International Inc. (S Corp) [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Corona [Member] | JC Group International Inc. (S Corp) [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Glendale [Member] | GEN Restaurant Investment LLC [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Fullerton [Member] | GEN California LLC [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Mira Mesa [Member] | GEN California LLC [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Tempe [Member] | GEN Arizona LLC [Member] | AZ
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Chandler [Member] | GEN Chandler LLC [Member] | AZ
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Sahara [Member] | GEN Nevada LLC [Member] | NV
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Miracle Mile [Member] | GEN Nevada LLC [Member] | NV
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Alhambra [Member] | GEN Alhambra LLC [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Arlington [Member] | GEN Arlington, LP [Member] | TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Cerritos [Member] | GEN Cerritos LLC [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
Gen Cerritos II [Member] | GEN Cerritos II LP [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Torrance [Member] | GEN Torrance LLC [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Rancho Cucamonga [Member] | GEN Rancho Cucamonga LP [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN San Jose [Member] | GEN San Jose LP [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Northridge [Member] | GEN Northridge LP [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Chino Hills [Member] | GEN Chino Hills LP [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Carrollton [Member] | GEN Carrollton LP [Member] | TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Fort Lauderdale [Member] | GEN Fort Lauderdale LP [Member] | FL
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Fremont [Member] | GEN Fremont LP [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Concord [Member] | GEN Concord, LP [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Webster [Member] | GEN Webster, LP [Member] | TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Westgate [Member] | GEN Westgate, LP [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Westheimer [Member] | GEN Westheimer, LLC [Member] | TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Manhattan [Member] | GEN Manhattan NYU, LP [Member] | NY
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Mountain View [Member] | GEN Mountain View, LP [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Korean BBQ [Member] | GKBH Restaurant, LLC [Member] | HI
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
Investment Company [Member] | GEN Hawaii, LLC [Member] | HI
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Management of GKBH
Investment Company [Member] | GEN Texas, LLC [Member] | TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Management of GEN Houston and GEN Webster
GEN Online [Member] | GEN Online, LLC [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Website sales
GEN Sacramento [Member] | GEN Sacramento, LP [Member] | CA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Pearlridge [Member] | GEN Pearlridge, LLC [Member] | HI
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Kapolei [Member] | GEN Kapolei, LP [Member] | HI
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Frisco [Member] | GEN Frisco, LP [Member] | TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Houston [Member] | GEN Houston, LLC [Member] | TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
Gen Seattle [Member] | Gen Seattle, LP [Member] | WA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Jacksonville [Member] | GEN Jacksonville, LP [Member] | FL
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
GEN Dallas [Member] | GEN Dallas, LP [Member] | TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Restaurant
Holding Company [Member] | GEN Master, LLC [Member] | NV
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Management
GRM [Member] | GEN Restaurant Management, LLC [Member] | DE
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purpose	Management

XML

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended		4 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2024 USD ($) Restaurants	Jun. 30, 2023 USD ($)	Aug. 31, 2021 USD ($)	Jun. 30, 2024 USD ($) Restaurants	Jun. 30, 2023 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2023 USD ($) Restaurants
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deposits in excess of federally insured amount	$ 3,900,000			$ 3,900,000			$ 8,800,000
Related party ownership percentage				60.00%
Number of restaurants | Restaurants	40			40			37
Advances from members repaid	$ 2,700,000			$ 2,700,000
Advance from members balance	0			0			$ 2,700,000
Pre-opening costs	$ 1,645,000	$ 881,000		$ 3,547,000	$ 1,400,000
Tax benefit	1.13%			1.34%
Impairment charges				$ 0
Advertising expense	$ 77,000	54,000		90,000	90,000
Restaurant revitalization fund received			$ 16,800,000
Restaurant revitalization fund grant income				0	0	$ 13,000,000
Restaurant revitalization fund grant income deferred						$ 3,800,000
Employee retention credits	200,000	$ 1,318,000		200,000	$ 2,483,000
Deferred offering costs	0			0
Cash
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Advances from members repaid	864,000			864,000
IPO
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Advances from members repaid	1,300,000			1,300,000
Deferred offering costs	$ 3,300,000			$ 3,300,000
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Tax benefit				50.00%
Sysco Los Angels, Inc
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percent of food cost	74.00%			73.30%
U S Foods
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percent of food cost		50.60%			46.30%
Pacific Global Distribution Inc
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating expenses concentration risk percent	3.70%	13.90%		4.10%	16.40%
Wise Universal, Inc
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percent of food supplies		22.60%			23.70%
Number of restaurants | Restaurants	13			13
Class A Common Stock
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Advances from members repaid	$ 550,000			$ 550,000
Accounting Standards Update 2023-01 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true			true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Mar. 31, 2024			Mar. 31, 2024
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true			true

XML

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Investments in Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Held-to-Maturity Securities [Line Items]
Cash and Cash Equivalents, Carrying Value/Amortized Cost	$ 29,229	$ 32,631
Investments, Carrying Value/Amortized Cost	23,475
Investments, Gross Unrealized Gains	858
Investments, Fair Value	24,333
U.S. Treasury Securities (included in cash and cash equivalents)
Schedule of Held-to-Maturity Securities [Line Items]
Investments, Carrying Value/Amortized Cost	20,000
Investments, Gross Unrealized Gains	858
Investments, Fair Value	20,858
Money Market Accounts (included in cash and cash equivalents)
Schedule of Held-to-Maturity Securities [Line Items]
Cash and Cash Equivalents, Carrying Value/Amortized Cost	3,475
Cash and Cash Equivalents, Fair Value	$ 3,475

XML

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Investments in Debt Securities (Parenthetical) (Details) $ in Millions	Jun. 30, 2024 USD ($)
Accounting Policies [Abstract]
Cash and cash equivalents of money market accounts	$ 4.9

XML

Basis of Presentation and Summary of Significant Accounting Policies - Estimated Useful Service Lives (Details)	6 Months Ended
	Jun. 30, 2024
Equipment [Member] | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Equipment [Member] | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Furniture and Fixtures [Member] | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Furniture and Fixtures [Member] | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful life description	Shorter of useful life or remaining lease term

XML

Basis of Presentation and Summary of Significant Accounting Policies - Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Other assets	$ 892	$ 749
Security Deposits
Property, Plant and Equipment [Line Items]
Other assets	667	534
Liquor Licenses
Property, Plant and Equipment [Line Items]
Other assets	$ 225	$ 215

XML

Basis of Presentation and Summary of Significant Accounting Policies - Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other Current Liabilities [Line Items]
Other current liabilities	$ 6,046	$ 5,366
Sales Tax Payable
Other Current Liabilities [Line Items]
Other current liabilities	1,512	1,447
Accrued Percentage Rent
Other Current Liabilities [Line Items]
Other current liabilities	1,154	1,163
Misc. Accrued Expenses
Other Current Liabilities [Line Items]
Other current liabilities	$ 3,380	$ 2,756

XML

Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation of Total Interest Cost to Interest Income/Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Interest expense	$ 90	$ 301	$ 177	$ 557
Interest income	(352)	(94)	(715)	(161)
Interest (income) expense, net	$ (262)	$ 207	$ (538)	$ 396

XML

Business Combinations - Additional Information (Details) - GKBH Acquisition [Member] $ in Thousands	Feb. 18, 2024 USD ($)
Business Acquisition [Line Items]
Remaining ownership percentage acquired	50.00%
Total purchase price	$ 6,000
Acquisition-related costs	$ 370
Goodwill balance, expected tax deductible period	15 years

XML

Business Combinations - Summary of Fair Value of GKBH's Assets and Liabilities at Acquisition Date and Resulting Goodwill (Details) - USD ($) $ in Thousands	Feb. 18, 2024	Jun. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 9,498	$ 0
GKBH Acquisition [Member]
Business Acquisition [Line Items]
Purchase price of 50% interest in GKBH	$ 6,000
Acquisition-date fair value of previously held interest (Level 2)	4,286
Fair value of GKBH at acquisition date	10,286
Cash	24
Accounts Receivable	96
Inventories	22
Prepaid and Other assets	118
Deposits	67
Property and equipment	745
Operating lease right-of use assets	3,851
Liabilities assumed	(4,135)
Total identifiable net assets	788
Goodwill	9,498
Asset, liabilities and goodwill,Total	$ 10,286

XML

Business Combinations - Summary of Fair Value of GKBH's Assets and Liabilities at Acquisition Date and Resulting Goodwill (Parenthetical) (Details)	Feb. 18, 2024
GKBH Acquisition [Member]
Business Acquisition [Line Items]
Remaining ownership percentage acquired	50.00%

XML

Business Combinations - Unaudited Consolidated Pro Forma Results (Details) - GKBH Acquisition [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Business Acquisition [Line Items]
Revenue	$ 53,860	$ 48,413	$ 106,449	$ 94,104
Net income before taxes	$ 2,075	$ 7,678	$ 2,828	$ 12,590
Earnings per common share: Basic	$ 0.06		$ 0.08
Earnings per common share: Diluted	$ 0.06		$ 0.08

XML

Fair Value of Financial Instruments - Summay of Financial Assets to Fair Value Measurement Valued Using Observable Inputs (Details) - Fair Value Recurring - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
U.S. Treasury Securities (included in Cash and Cash Equivalents)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	$ 20,858	$ 20,322
Money Market Accounts (included in Cash and Cash Equivalents)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	3,475	9,079
Level 1 | U.S. Treasury Securities (included in Cash and Cash Equivalents)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	20,858	20,322
Level 1 | Money Market Accounts (included in Cash and Cash Equivalents)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	$ 3,475	$ 9,079

XML

Property and Equipment, Net - Summary of Costs and Related Accumulated Depreciation and Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 75,205	$ 66,184
Less accumulated depreciation and amortization	(35,577)	(32,277)
Property and equipment, net	39,628	33,907
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	14,331	12,387
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,104	5,467
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	49,613	43,022
Other Assets
Property, Plant and Equipment [Line Items]
Property and equipment, gross	414	414
Construction in Progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,743	$ 4,894

XML

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 1,700	$ 1,100	$ 3,300	$ 2,281
Depreciation and amortization related to finance lease	$ 5	$ 61	$ 36	$ 89

XML

Equity Method Investment - Additional Information (Details) - USD ($) $ in Thousands		6 Months Ended
	Feb. 18, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Apr. 01, 2016
Schedule of Equity Method Investments [Line Items]
Investment		$ 0		$ 523
GEN LLC
Schedule of Equity Method Investments [Line Items]
Ownership interest		14.60%
GKBH
Schedule of Equity Method Investments [Line Items]
Distributions received from GKBH		$ 0	$ 500
Investment					$ 200
Percentage of remaining purchased membership interest		50.00%
GKBH | GEN LLC
Schedule of Equity Method Investments [Line Items]
Ownership interest	100.00%				50.00%
Total purchase price	$ 6,000
Percentage of remaining purchased membership interest	50.00%

XML

Equity Method Investment - Summary of GKBH financial position and results of operations (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]
Current assets	$ 33,043				$ 33,043		$ 36,818
Current liabilities	31,329				31,329		31,304
Operating income	1,613		$ 3,370		1,721	$ 6,545
Net income	2,064	$ 3,698	4,464	$ 4,531	5,761	8,996
Net income attributable to the entity	$ 277		3,960		$ 771	8,095
GKBH
Schedule of Equity Method Investments [Line Items]
Current assets							808
Noncurrent assets							2,290
Current liabilities							972
Noncurrent liabilities							$ 1,064
Net sales or gross revenue			1,940			3,769
Operating income			1,309			2,542
Net income			172			933
Net income attributable to the entity			$ 86			$ 467

XML

Line of Credit - Additional Information (Details) - USD ($)		1 Months Ended	6 Months Ended
	Sep. 29, 2023	Mar. 31, 2022	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Aug. 16, 2023
Line of Credit Facility [Line Items]
Line of credit matured	Sep. 25, 2024		Sep. 03, 2023
Interest rate, paid						10.25%
Interest rate			8.75%
Line of credit facility remaining borrowing capacity			$ 20,000,000		$ 20,000,000
Drawings against line of credit			$ 0	$ 1,100,000
Line of Credit | Wall Street Journal Prime Rate
Line of Credit Facility [Line Items]
Interest rate	0.25%		1.75%
Pacific City Bank
Line of Credit Facility [Line Items]
New line of credit	$ 20,000,000	$ 8,000,000

XML

Notes Payable - Additional Information (Details) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended	6 Months Ended
	Feb. 18, 2024	Sep. 13, 2017	Aug. 31, 2017	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Aug. 16, 2023
Notes Payable [Line item]
Promissory note					$ 3,000
Loan agreement, balance					7,631
Economic Injury Disaster Loan
Notes Payable [Line item]
Loan agreement					$ 4,400		$ 4,400
Loan agreement, interest rate					3.75%
Loan agreement, frequency of payment					monthly
Loan, payment period					30 years
Notes Payable to Bank | Commercial Bank Loan Agreement One
Notes Payable [Line item]
Loan agreement		$ 3,000
Loan agreement, maturity date		Sep. 15, 2024
Loan agreement, interest rate		6.00%
Notes Payable to Bank | Commercial Bank Loan Agreement Two
Notes Payable [Line item]
Loan agreement				$ 1,300
Loan agreement, maturity date				Feb. 06, 2030
Loan agreement, interest rate								9.25%
Loan agreement, frequency of payment					monthly
Notes Payable to Bank | Commercial Bank Loan Agreement Two | Wall Street Journal Prime Rate
Notes Payable [Line item]
Loan agreement, variable interest rate						1.00%
Note Payable to Landlord
Notes Payable [Line item]
Loan agreement, interest rate			8.00%
Loan agreement, balance					$ 238		$ 271
Debt instrument maturity month and year			2027-07
Note Payable to WDI International, Inc
Notes Payable [Line item]
Loan agreement	$ 6,000
Disbursed cash	3,000
Promissory note	$ 3,000
Note Payable to WDI International, Inc | GKBH
Notes Payable [Line item]
Remaining equity investment ownership percentage	50.00%

XML

Notes Payable - Aggregate Maturities of Notes Payable (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Maturities of Long-Term Debt [Abstract]
2024 - remaining	$ 3,149
2025	179
2026	189
2027	146
2028	117
Thereafter	3,851
Long term debt	7,631
Less current portion of notes payable	(3,206)
Long term portion	$ 4,425

XML

Related Party Notes Payable - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Jan. 31, 2023	Dec. 31, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2022
Related Party Notes Payable [Line Item]
Proceeds from related party loans							$ 500
Interest expense				$ 90	$ 301	$ 177	557
Advances from members repaid				2,700		2,700
Cash
Related Party Notes Payable [Line Item]
Advances from members repaid				864		864
Advances from members paid				864		864
Class A Common Stock
Related Party Notes Payable [Line Item]
Advances from members repaid				550		550
Advances from members paid				550		550
IPO
Related Party Notes Payable [Line Item]
Advances from members repaid				1,300		1,300
Advances from members paid				1,300		1,300
Related Party
Related Party Notes Payable [Line Item]
Loan agreement, interest rate			9.25%					9.25%
Proceeds from related party loans	$ 500		$ 500
Repayment of notes payable	$ 150	$ 500
Interest expense				25	$ 45	50	$ 68
Related Party | Wall Street Journal Prime Rate
Related Party Notes Payable [Line Item]
Interest rate								1.75%
Related Party | GEN Webster
Related Party Notes Payable [Line Item]
Loan agreement, maturity date								Nov. 25, 2024
Notes payable				$ 310		$ 310
Proceeds from related party loans								$ 1,900
Loan interest			3.00%					3.00%

XML

Related Party Notes Payable - Schedule of Aggregate Maturities of Notes Payable to Related Parties (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Related Party Transaction [Line Items]
Total related party notes payable	$ 7,631
Less current portion of notes payable	(3,206)
Notes Payable, net of current portion	4,425
Related Party
Related Party Transaction [Line Items]
Total related party notes payable	310
Less current portion of notes payable	(310)
Notes Payable, net of current portion	$ 0

XML

Leases - Summary of Operating Lease Activity to the Income Statement - Operating Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lessee, Lease, Description [Line Items]
Total operating lease cost	$ 4,389	$ 3,673	$ 8,682	$ 7,104
Occupancy and Related Expenses, and General and Administrative Expenses
Lessee, Lease, Description [Line Items]
Operating lease cost	2,988	2,253	5,747	4,443
Variable lease cost	$ 1,401	$ 1,420	$ 2,935	$ 2,661

XML

Leases - Summary of Operating Lease Activity to the Balance Sheet Statement - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Operating lease assets	$ 122,560	$ 99,255
Operating lease liabilities, current	4,516	4,535
Operating lease liabilities, net of current portion	135,071	110,501
Total operating lease liabilities	$ 139,587	$ 115,036

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Leases - Summary of Finance Lease Activity to the Balance Sheet Statement - Finance Lease Assets, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract]
Property and equipment	$ 444	$ 902	$ 902
Accumulated depreciation	(442)	(861)	(804)
Property and equipment, net	$ 2	$ 41	$ 98

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Leases - Summary of Finance Lease Activity to the Balance Sheet Statement - Finance Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Obligations under finance leases, current	$ 56	$ 125
Obligations under finance leases, net of current portion	0	0
Total finance lease liabilities	$ 56	$ 125

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Leases - Summary of Operating and Finance Lease Activity to the Income Statement and Balance sheet- Weighted Average Remaining Lease Term and Discount Rate (Details)	Jun. 30, 2024
Leases [Abstract]
Operating leases, Weighted Average Remaining Lease Term (Years)	15 years 2 months 12 days
Finance leases, Weighted Average Remaining Lease Term (Years)	4 months 24 days
Operating leases, Weighted Average Discount Rate	6.71%
Finance leases, Weighted Average Discount Rate	7.45%

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Leases - Schedule Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]
2024 (remaining months)	$ 6,050
2025	13,680
2026	14,121
2027	14,434
2028	14,655
Thereafter	172,398
Total undiscounted lease payments	235,338
Present value discount/interest	(95,751)
Present value	139,587
Lease liabilities, current	4,516	$ 4,535
Lease liabilities, net of current	135,071	110,501
Total operating lease liabilities	139,587	115,036
Finance Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]
2024 - remaining	57
2025	0
2026	0
2027	0
2028	0
Thereafter	0
Total undiscounted lease payments	57
Present value discount/interest	(1)
Present value	56
Lease liabilities, current	56	125
Lease liabilities, net of current	0	0
Total finance lease liabilities	$ 56	$ 125

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Leases - Additional Information (Details) $ in Millions	Jun. 30, 2024 USD ($)
Lessee, Lease, Description [Line Items]
Additional operating leases	$ 50.0
Finance lease expiry	2 years
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	25 years
Lease term	25 years
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms	1 year
Lease term	10 years

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Leases - Gross Amounts of Property and Equipment and Related Accumulated Depreciation and Amortization Recorded under Finance Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract]
Property and equipment	$ 444	$ 902	$ 902
Less accumulated depreciation and amortization	(442)	(861)	(804)
Property and equipment, net	$ 2	$ 41	$ 98

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Commitments and Contingencies - Additional Information (Details) - Investment Banking $ in Millions	Oct. 14, 2022 USD ($)
Loss Contingencies [Line Items]
Percentage of interest	30.00%
Equity	$ 1.5
Repurchase preferred member's units	$ 1.5

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Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0	$ 0	$ 0	$ 0
Income tax expense	$ 11,000	$ 96,000	83,000	$ 96,000
Interest or penalties			$ 0
Percentage of tax benefits due to equity owners	85.00%		85.00%
Tax receivable agreement percentage of tax benefits remaining realize			15.00%
Deferred tax assets	$ 0		$ 0		$ 0
Tax receivable agreement liability	$ 584,000		584,000		$ 0
Tax receivable agreement payments			$ 0
Effective income tax rates	1.13%		1.34%

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Non-controlling Interest - Additional Information (Details) - GEN LLC	Jun. 30, 2024
Noncontrolling Interest [Line Items]
Economic interest owned by operating company	14.60%
Economic interest owned by non-controlling interest holders	85.40%

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Other Related-Party Transactions - Additional Information (Details) - USD ($)		3 Months Ended		6 Months Ended
	Aug. 29, 2014	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
Deferred offering costs		$ 0		$ 0
Payment towards accounts payable		48,000		80,000
Pacific Global (PGD)
Related Party Transaction [Line Items]
Purchases of company		189,000	$ 528,000	$ 424,000	$ 1,300,000
Other related party transactions ownership percentage rate				100.00%
JL Restaurant Management, Inc
Related Party Transaction [Line Items]
Payments to third party			500,000		1,100,000
Wise Universal, Inc
Related Party Transaction [Line Items]
Purchases of company			$ 2,800,000	$ 0	6,400,000
Other related party transactions ownership percentage rate			60.00%
Ignite
Related Party Transaction [Line Items]
Payments to third party			$ 1,400,000		$ 2,300,000
Other related party transactions ownership percentage rate	100.00%
Ignite | Maximum
Related Party Transaction [Line Items]
Annual fees of gross revenue for consulting services percentage	25.00%
Related Party
Related Party Transaction [Line Items]
Accounts payable for purchases		72,000		72,000
IPO
Related Party Transaction [Line Items]
Deferred offering costs		$ 3,300,000		$ 3,300,000

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Net Income Per Share - Calculation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share Disclosure [Line Items]
Net income	$ 2,064	$ 3,698	$ 4,464	$ 4,531	$ 5,761	$ 8,996
Less: Net income attributable to non-controlling interest	1,787		$ 504		4,990	$ 901
Net income attributable to Class A common stockholders	$ 277				$ 771
Weighted average number of shares outstanding basic	4,572		4,249		4,446	4,249
Weighted average number of shares outstanding diluted	4,572		4,249		4,446	4,249
Net income per share basic	$ 0.06				$ 0.17
Net income per share diluted	$ 0.06				$ 0.17
Class A Common Stock
Earnings Per Share Disclosure [Line Items]
Net income	$ 2,064		$ 85		$ 5,761	$ 85
Less: Net income attributable to non-controlling interest	1,787		74		4,990	74
Net income attributable to Class A common stockholders	$ 277		$ 11		$ 771	$ 11
Weighted average number of shares outstanding basic	4,572		4,249		4,446	4,249
Weighted average number of shares outstanding diluted	4,572		4,249		4,446	4,249
Net income per share basic	$ 0.06				$ 0.17
Net income per share diluted	$ 0.06				$ 0.17

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Net Income Per Share - Additional Information (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average shares, common stock options excluded	27,886,912	27,886,912

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Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
General and Administrative Expenses
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock based compensation expense	$ 759	$ 1,500
RSU
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period		5 years
Aggregate fair value of RSU's granted			$ 14,600
Unrecognized stock-based compensation	$ 11,500	$ 11,500
RSU | Over a Five Year
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period		5 years
Vesting rights percentage		20.00%
Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of stock converted as warrants	372,600	372,600
Percentage of stock issued to underwriter as warrant		9.00%
Warrants expire term	5 years	5 years

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Stock-Based Compensation - Summary of Restricted Stock Unit Awards Activity (Details) - RSU shares in Thousands	6 Months Ended
	Jun. 30, 2024 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Non-vested as December 31, 2023	1,209
Vested	(117)
Non-vested as of June 30, 2024	1,092

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Subsequent Events - Additional Information (Details) - Subsequent Event [Member] - Notes Payable to Pacific City Bank [Member]	1 Months Ended
	Jul. 31, 2024 USD ($)
Subsequent Event [Line Items]
Loan agreement	$ 3,000,000
Debt instrument maturity month and year	2026-07
Loan agreement, interest rate	8.75%