Document and Entity Information
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 $0.001 per share | |
Trading Symbol | GENK | |
Security Exchange Name | NASDAQ | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,862,230 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 27,886,912 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ 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 |
Condensed Consolidated Balanc_2
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 |
Condensed Consolidated Income S
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 |
Condensed Consolidated Statemen
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 |
Condensed Consolidated Statem_2
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 |
Organization and Description of
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 wer e 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. |
Basis of Presentation and Summa
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 Pronouncement s 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 Gross Gross Fair Value (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, December 31, 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, December 31, 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 wer e $ 1.6 mill ion 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, June 30, June 30, June 30, 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 approximatel y $ 3.3 m illion 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 outstandin g 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.” |
Business Combinations
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 approximate ly $ 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. |
Fair Value of Financial Instrum
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 $ — $ — |
Property and Equipment, Net
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, December 31, 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. |
Equity Method Investment
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, Current assets 808 Noncurrent assets 2,290 Current liabilities 972 Noncurrent liabilities 1,064 Three months ended Six months ended (in thousands) June 30, June 30, 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 |
Line of Credit
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 %, re sulting 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. |
Notes Payable
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 |
Related Party Notes Payable
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. T he loan bears interest of 3.00 % per yea r 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 d ebt 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. |
Leases
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. |
Commitments and Contingencies
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. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (12) Income Taxes Income Taxes, General A s 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 no t 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 no t 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 no t make any payments to members of the Operating Company pursuant to the TRA. |
Non-controlling Interest
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. |
Other Related-Party Transaction
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 approximate ly $ 424 thousand a nd $ 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 approximatel y $ 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 approxi mately $ 6.4 m illion 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 rev enue 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 m illion 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. |
Net Income Per Share
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. |
Stock-Based Compensation
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. |
Subsequent Events
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 %. |
Basis of Presentation and Sum_2
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 Pronouncement s 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 Gross Gross Fair Value (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, December 31, 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, December 31, 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 wer e $ 1.6 mill ion 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, June 30, June 30, June 30, 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 approximatel y $ 3.3 m illion 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 outstandin g 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.” |
Organization and Description _2
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 |
Basis of Presentation and Sum_3
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 Gross Gross Fair Value (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, December 31, 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, December 31, 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, June 30, June 30, June 30, Interest expense $ 90 $ 301 $ 177 $ 557 Interest income ( 352 ) ( 94 ) ( 715 ) ( 161 ) Interest (income) expense, net $ ( 262 ) $ 207 $ ( 538 ) $ 396 |
Business Combinations (Tables)
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 $ - |
Fair Value of Financial Instr_2
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 $ — $ — |
Property and Equipment, Net (Ta
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, December 31, 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 |
Equity Method Investment (Table
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, Current assets 808 Noncurrent assets 2,290 Current liabilities 972 Noncurrent liabilities 1,064 Three months ended Six months ended (in thousands) June 30, June 30, 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 |
Notes Payable (Tables)
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 |
Related Party Notes Payable (Ta
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: $ - |
Leases (Tables)
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 |
Net Income Per Share (Tables)
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 $ — |
Stock-Based Compensation (Table
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 |
Organization and Description _3
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% | 50% | |||
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% | ||||
Equity investment ownership percentage | 50% | ||||
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 |
Organization and Description _4
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 |
Basis of Presentation and Sum_4
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% | ||||||
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% | ||||||
Sysco Los Angels, Inc | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Percent of food cost | 74% | 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 |
Basis of Presentation and Sum_5
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 |
Basis of Presentation and Sum_6
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 |
Basis of Presentation and Sum_7
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 |
Basis of Presentation and Sum_8
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 |
Basis of Presentation and Sum_9
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 |
Basis of Presentation and Su_10
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 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - GKBH Acquisition [Member] $ in Thousands | Feb. 18, 2024 USD ($) |
Business Acquisition [Line Items] | |
Remaining ownership percentage acquired | 50% |
Total purchase price | $ 6,000 |
Acquisition-related costs | $ 370 |
Goodwill balance, expected tax deductible period | 15 years |
Business Combinations - Summary
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 |
Business Combinations - Summa_2
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% |
Business Combinations - Unaudit
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 |
Fair Value of Financial Instr_3
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 |
Property and Equipment, Net - S
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 |
Property and Equipment, Net - A
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 |
Equity Method Investment - Addi
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% | ||||
GKBH | GEN LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest | 100% | 50% | |||
Total purchase price | $ 6,000 | ||||
Percentage of remaining purchased membership interest | 50% |
Equity Method Investment - Summ
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 |
Line of Credit - Additional Inf
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 |
Notes Payable - Additional Info
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% | |||||||
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% | |||||||
Note Payable to Landlord | ||||||||
Notes Payable [Line item] | ||||||||
Loan agreement, interest rate | 8% | |||||||
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% |
Notes Payable - Aggregate Matur
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 |
Related Party Notes Payable - A
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% | 3% |
Related Party Notes Payable - S
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 |
Leases - Summary of Operating L
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 |
Leases - Summary of Operating_2
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 |
Leases - Summary of Finance Lea
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 |
Leases - Summary of Finance L_2
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 |
Leases - Summary of Operating a
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% |
Leases - Schedule Maturities of
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 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Lessee, Lease, Description [Line Items] | |
Additional operating leases | $ 50 |
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 |
Leases - Gross Amounts of Prope
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 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Investment Banking $ in Millions | Oct. 14, 2022 USD ($) |
Loss Contingencies [Line Items] | |
Percentage of interest | 30% |
Equity | $ 1.5 |
Repurchase preferred member's units | $ 1.5 |
Income Taxes - Additional Infor
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% | 85% | |||
Tax receivable agreement percentage of tax benefits remaining realize | 15% | ||||
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% |
Non-controlling Interest - Addi
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% |
Other Related-Party Transacti_2
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% | ||||
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% | ||||
Ignite | |||||
Related Party Transaction [Line Items] | |||||
Payments to third party | $ 1,400,000 | $ 2,300,000 | |||
Other related party transactions ownership percentage rate | 100% | ||||
Ignite | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Annual fees of gross revenue for consulting services percentage | 25% | ||||
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 |
Net Income Per Share - Calculat
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 |
Net Income Per Share - Addition
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 |
Stock-Based Compensation - Addi
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% | ||
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% | ||
Warrants expire term | 5 years | 5 years |
Stock-Based Compensation - Summ
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 |
Subsequent Events - Additional
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% |