0000950170-24-059545 | 10-Q | XBRL Viewer

(in thousands)

Total related party notes payable

Less current portion of notes payable:

Notes Payable, net of current portion:

Print Document

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Investments in Debt Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Held-to-Maturity Securities [Line Items]
Cash and Cash Equivalents, Carrying Value/Amortized Cost	$ 28,122	$ 32,631
Investments, Carrying Value/Amortized Cost	25,087
Investments, Gross Unrealized Gains	592
Investments, Fair Value	25,679
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	592
Investments, Fair Value	20,592
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	5,087
Cash and Cash Equivalents, Fair Value	$ 5,087

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 5
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
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-Section 50
-Paragraph 5
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 5
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
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-Subparagraph (f)(2)
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5A

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5A
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5A

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5A
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5A

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 5B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
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-Section 50
-Paragraph 5B
-Subparagraph (b)
-Publisher FASB
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Section 50
-Paragraph 5B
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

+ Details

Equity Method Investment - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended
	Feb. 18, 2024	Mar. 31, 2024	Mar. 31, 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		13.90%
GKBH
Schedule of Equity Method Investments [Line Items]
Distributions received from GKBH		$ 0	$ 350
Investment					$ 200
GKBH \| GEN LLC
Schedule of Equity Method Investments [Line Items]
Ownership interest	100.00%				50.00%
Total purchase price	$ 6,000
Percentage of remaining purchased membership interest	50.00%

Notes Payable (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Aggregate Maturities of Notes Payable

The aggregate maturities of all third party notes payable as of March 31, 2024:


(in thousands)
2024 - remaining	$	3,129
2025		179
2026		189
2027		163
2028		117
Thereafter		3,897
	$	7,674
Less current portion of notes payable		(3,252	)
Long term portion	$	4,422

Property and Equipment, Net - Summary of Costs and Related Accumulated Depreciation and Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 72,555	$ 66,184
Less accumulated depreciation and amortization	(35,417)	(32,277)
Property and equipment, net	37,138	33,907
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	13,799	12,387
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,093	5,467
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	48,602	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	$ 3,647	$ 4,894

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 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:


	For the year ended
(in thousands)	March 31, 2024			December 31, 2023
Equipment		13,799			12,387
Furniture and fixtures		6,093			5,467
Leasehold improvements		48,602			43,022
Other assets		414			414
Construction in progress		3,647			4,894
	$	72,555		$	66,184
Less accumulated depreciation and amortization		(35,417	)		(32,277	)
Property and Equipment, Net	$	37,138		$	33,907

Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 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 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 (“SEC”) 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 Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”). The 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 normal recurring nature) considered necessary to present fairly the Company's financial results. The results of the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024 and for any other interim period or future year.

(b)

Recent Accounting Pronouncements

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

In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-01, Leases (Topic 842): Common Control Arrangements. The new guidance requires all lessees in a lease with a lessor under common control to amortize leasehold improvement over the useful life of the common control group and provides new guidance for

recognizing a transfer of assets between entities under common control as an adjustment to equity when the lessee no longer controls the use of the underlying asset. This guidance is effective for fiscal years beginning after December 15, 2023. The adoption of this standard in the first quarter of 2024 did not have any material impact on our consolidated financial statements.

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 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. The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP and applicable rules, and regulations of the SEC 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 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” (“ASC 805”). 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 of equity awards 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 March 31, 2024 and December 31, 2023, cash and cash equivalents consist principally of cash, money market accounts and short-term investments. Short-term investments are classified as available for sale securities, 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 March 31, 2024 and December 31, 2023, there were deposits in excess of federally insured amounts of $5.0 million and $8.8 million, respectively.


	Carrying Value/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value as of March 31, 2024
(in thousands)
Money Market Accounts (included in cash and cash equivalents)	$	5,087	$	—	$	—	$	5,087
U.S. Treasury Securities (included in cash and cash equivalents)	$	20,000	$	592	$	—	$	20,592
	$	25,087	$	592	$	—	$	25,679
Represent money market accounts. Excludes $2.4 million of cash and cash equivalents at March 31, 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, 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 Los Angeles, Inc., or Sysco, to purchase certain food supplies. For the three months ended March 31, 2024 and March 31, 2023, Sysco accounted for approximately 35.2% and 0% 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 three months ended March 31, 2024, the Company did not purchase from U.S. Foods. For the three months ended March 31, 2023, U.S. Foods accounted for approximately 52.2% 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 March 31, 2024 and March 31, 2023, PGD accounted for approximately 0.5% and 22.3% 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 ended March 31, 2024 the Company did not purchase from Wise. For the three months ended March 31, 2023,Wise accounted for approximately and 27.8% of total food supplies.

(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 Accounting Standards Codification 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.

Sales tax amounts collected from customers are remitted to governmental authorities and are excluded from revenue.

(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 and its related entities capitalize certain costs in conjunction with improvements to specific sites for planned future restaurants. The Company and its related entities also capitalize certain costs, including interest, in conjunction with constructing new restaurants. These costs are included in property and equipment and are amortized over the shorter of the life of the related leasehold improvements or the remaining lease term. Costs related to abandoned sites and other site selection costs that cannot be identified with specific restaurants are charged to general and administrative expenses in the accompanying condensed consolidated income statements. The Company and its related entities did not capitalize any internal costs related to site preparation and construction activities during the three months ended March 31, 2024 and March 31, 2023 as any amounts were deemed immaterial.

(l)

Other Assets and Other Current Liabilities

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


(in thousands)	March 31, 2024		December 31, 2023
Other Assets
Security Deposits	$	636	$	534
Liquor Licenses		224		215
Total Other Assets	$	860	$	749

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


(in thousands)	March 31, 2024		December 31, 2023
Other Current Liabilities
Sales tax payable	$	1,680	$	1,447
Accrued percentage rent		918		1,163
Deferred offering costs		118		125
Misc. accrued expenses		2,899		2,631
Total Other Current Liabilities	$	5,615	$	5,366

(m)

Advances from members

Advances from members consist of funding received from member owners. During the first quarter of 2024, the Company re-paid a member $864 thousand. As of March 31, 2024, the balance was $1.8 million and as of December 31, 2023, the balance was $2.7 million.

(n)

Pre-Opening Costs

Pre-opening costs, incurred in connection with the opening of new restaurants, are expensed as incurred. Pre-opening costs were $1.9 million and $519 thousand for the three months ended March 31, 2024 and March 31, 2023, respectively.

(o)

Income Taxes

Prior to the IPO, the Company and its related entities were organized as limited liability companies or limited partnerships and are treated as pass-through entities for federal and state income tax purposes. As the Company and its related entities have elected to

be treated as partnerships for income tax purposes and are not subject to federal or state income taxes, income or loss is included in the tax returns of the members or the partners of the Company and its related entities based on their respective shares.

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 non-interest 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, such as property and equipment owned, 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 months ended March 31, 2024 and March 31, 2023 is as follows:


	Three months ended
(in thousands)	March 31, 2024			March 31, 2023
Interest expense		87			256
Interest income		(363	)		(67	)
Interest (income) expense, net	$	(276	)	$	189

(r)

Liquor Licenses

Liquor licenses are deemed to have indefinite useful lives and are qualitatively 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 $104 thousand and $33 thousand in advertising expenses for the three months ended March 31, 2024 and March 31, 2023, respectively.

(u)

Risks and Uncertainties.

We have been subject to continued risks and uncertainties as a result of the outbreak of, and local, state and federal governmental responses to, the COVID-19 pandemic which was declared a National Public Health Emergency in March 2020. We experienced significant disruptions to our business as suggested and mandated social distancing and shelter-in-place orders led to the temporary closure of all of our restaurants. In the second quarter of fiscal 2020, certain jurisdictions began allowing the reopening of restaurants. By the end of the first quarter of 2022 all of our restaurants were operating at full capacity with no capacity restrictions remaining. We cannot predict whether COVID-19 outbreaks will reoccur or whether variants will spike, what additional restrictions may be enacted, to what extent we can maintain sales volumes during or following any resumption of mandated social distancing protocols or vaccination or mask mandates and what long-lasting effects the COVID-19 pandemic may have on the restaurant industry as a whole. The ongoing effects of the COVID-19 pandemic, including, but not limited to, labor-related impacts, supply chain disruptions and changes in consumer behavior, will determine the continued significance of the impact of the COVID-19 pandemic to our operating results and financial position.

The Company has experienced, and in the future may experience, inflation related to its purchase of certain food supplies that the Company needs to operate its business. This price volatility could potentially have a material impact on the Company’s financial condition and/or its results of operations. In order to mitigate price volatility, the Company monitors cost fluctuations and may adjust its menu prices accordingly. The Company’s ability to compensate for higher costs through increased menu pricing may be limited by the competitive environment in which the Company operates.

(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. The Company accounted for the RRF funds as a government grant and has recognized the amounts as income as related expenses were incurred. 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 three months ended March 31, 2024 and March 31, 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 March 31, 2024 and March 31, 2023, we recorded an aggregate benefit of $0 and $1.2 million, respectively, in our condensed consolidated income statements to reflect the ERC.

(x) Deferred Offering Costs

The Company capitalized certain legal, accounting, and other third-party fees that were directly attributable to GEN Inc’s IPO. Following the successful consummation of the IPO in June 2023, deferred offering costs of approximately $3.3 million were recorded in the Company’s stockholders’ equity as a reduction of additional paid-in capital. The Company had no remaining deferred offering costs assets at March 31, 2024.

(y) Net Income Per Share

Basic net income per share is computed by dividing net income attributable to the Company by the weighted-average number of shares outstanding during the period. Diluted net income per share is computed by giving effect to all potential weighted-average

dilutive shares including stock options, restricted stock units, dividend equivalent units, restricted stock awards, and Class B Common Units exchangeable for shares of Class A common stock for the periods after the closing of the IPO on June 30, 2023. The dilutive effect of outstanding awards, if any, is reflected in diluted earnings per share by application of the treasury stock method or if-converted method, as applicable. See “Note 15—Net Income per Share.”

Basis of Presentation and Summary of Significant Accounting Policies - Estimated Useful Service Lives (Details)	3 Months Ended
	Mar. 31, 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

Business Combinations

3 Months Ended

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

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


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


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

Goodwill		9,498
	$	10,286

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

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


	Three months ended March 31,
(in thousands, except per share data)	2024			2023
	(unaudited)
Revenue		51,669			45,691
Net income before taxes		733			7,943

Earnings per common stock:					—
Basic	$	(0.61	)	$	-
Diluted	$	(0.61	)	$	-

The unaudited pro forma financial information reflects the acquisition of the 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.

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023
General and Administrative Expenses
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock based compensation expense		$ 759
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		$ 12,200
RSU \| Over a Five Year
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period	5 years
Vesting rights percentage	20.00%
Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of stock converted as warrants	372,600
Percentage of stock issued to underwriter as warrant	9.00%
Warrants expire term	5 years

Leases - Summary of Finance Lease Activity to the Balance Sheet Statement - Finance Lease Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract]
Property and equipment	$ 902	$ 902	$ 905
Accumulated depreciation	(896)	(861)	(776)
Property and equipment, net	$ 6	$ 41	$ 129

Stock-Based Compensation - Summary of Restricted Stock Unit Awards Activity (Details) - RSU shares in Thousands	3 Months Ended
	Mar. 31, 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 March 31, 2023	1,092

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

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

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Schedule of Investments in Debt Securities


	Carrying Value/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value as of March 31, 2024
(in thousands)
Money Market Accounts (included in cash and cash equivalents)	$	5,087	$	—	$	—	$	5,087
U.S. Treasury Securities (included in cash and cash equivalents)	$	20,000	$	592	$	—	$	20,592
	$	25,087	$	592	$	—	$	25,679
Represent money market accounts. Excludes $2.4 million of cash and cash equivalents at March 31, 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 March 31, 2024 and December 31, 2023 consist of the following:


(in thousands)	March 31, 2024		December 31, 2023
Other Assets
Security Deposits	$	636	$	534
Liquor Licenses		224		215
Total Other Assets	$	860	$	749

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


(in thousands)	March 31, 2024		December 31, 2023
Other Current Liabilities
Sales tax payable	$	1,680	$	1,447
Accrued percentage rent		918		1,163
Deferred offering costs		118		125
Misc. accrued expenses		2,899		2,631
Total Other Current Liabilities	$	5,615	$	5,366

Reconciliation of Total Interest Cost to Interest Income/Expense


	Three months ended
(in thousands)	March 31, 2024			March 31, 2023
Interest expense		87			256
Interest income		(363	)		(67	)
Interest (income) expense, net	$	(276	)	$	189

- Definition

Tabular disclosure of information about investment in debt security measured at amortized cost (held-to-maturity).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Notes Receivable from Related Party - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Related Party Transaction [Line Items]
Interest income earned from related parties	$ 363	$ 67

- Definition

Amount of operating interest income, including, but not limited to, amortization and accretion of premiums and discounts on securities.

+ References + Details

Fair Value of Financial Instruments - Summay of Financial Assets to Fair Value Measurement Valued Using Observable Inputs (Details) - Fair Value Recurring - USD ($) $ in Thousands	Mar. 31, 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	$ 20,592	$ 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	5,087	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	20,592	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	$ 5,087	$ 9,079

Leases - Summary of Operating and Finance Lease Activity to the Income Statement and Balance sheet- Weighted Average Remaining Lease Term and Discount Rate (Details)	Mar. 31, 2024
Leases [Abstract]
Operating leases, Weighted Average Remaining Lease Term (Years)	15 years 6 months
Finance leases, Weighted Average Remaining Lease Term (Years)	7 months 6 days
Operating leases, Weighted Average Discount Rate	6.67%
Finance leases, Weighted Average Discount Rate	7.46%

Leases - Gross Amounts of Property and Equipment and Related Accumulated Depreciation and Amortization Recorded under Finance Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract]
Property and equipment	$ 902	$ 902	$ 905
Less accumulated depreciation and amortization	(896)	(861)	(776)
Property and equipment, net	$ 6	$ 41	$ 129

Line of Credit

3 Months Ended

Mar. 31, 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”). These funds were used to pay off related party loans payable. The line of credit matured on September 3, 2023, and bore interest at a variable interest rate which was defined as the Wall Street Journal Prime Rate plus 1.75%, resulting in an interest rate of 10.25% on August 16, 2023, when paid in full. Only interest payments were due monthly with the principal balance to be paid in one payment at the maturity date. On August 16, 2023, the Company repaid in full the obligation under the line of credit plus accrued interest of $29 thousand. The balance as of March 31, 2024 and December 31, 2023 was $0.

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 an initial rate of 8.750%. The available balance is $20.0 million at March 31, 2024, with no draw against the line of credit.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Basis of Presentation and Summary of Significant Accounting Policies - Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Other Current Liabilities [Line Items]
Other current liabilities	$ 5,615	$ 5,366
Sales Tax Payable
Other Current Liabilities [Line Items]
Other current liabilities	1,680	1,447
Accrued Percentage Rent
Other Current Liabilities [Line Items]
Other current liabilities	918	1,163
Deferred Offering Costs
Other Current Liabilities [Line Items]
Other current liabilities	118	125
Misc. Accrued Expenses
Other Current Liabilities [Line Items]
Other current liabilities	$ 2,899	$ 2,631

Notes Payable - Aggregate Maturities of Notes Payable (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Maturities of Long-Term Debt [Abstract]
2024 - remaining	$ 3,129
2025	179
2026	189
2027	163
2028	117
Thereafter	3,897
Long term debt	7,674
Less current portion of notes payable	(3,252)
Long term portion	$ 4,422

Leases - Summary of Operating Lease Activity to the Income Statement - Operating Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Lessee, Lease, Description [Line Items]
Total operating lease cost	$ 4,391	$ 3,432
Occupancy and Related Expenses, and General and Administrative Expenses
Lessee, Lease, Description [Line Items]
Operating lease cost	2,760	2,099
Variable lease cost	$ 1,631	$ 1,333

Related Party Notes Payable - Schedule of Aggregate Maturities of Notes Payable from Related Parties (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Related Party Transaction [Line Items]
Total related party notes payable	$ 7,674
Less current portion of notes payable	(3,252)
Notes Payable, net of current portion	4,422
Related Party
Related Party Transaction [Line Items]
Total related party notes payable	1,197
Less current portion of notes payable	(1,197)
Notes Payable, net of current portion	$ 0

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

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

Related Party Notes Payable (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Aggregate Maturities of Notes Payable from Related Parties

The aggregate maturities of notes payable from related parties as of March 31, 2024, are as follows:

Notes Payable

3 Months Ended

Mar. 31, 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 a 50% ownership stake in GKBH Restaurants, 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 September 2, 2020, the loan was amended for the amount of the balloon payment due on September 15, 2024. The Company pays $44 thousand each month and will pay one last payment estimated at $263 thousand due on September 15, 2024. Interest on this loan is computed on a 365/360 basis, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days in the monthly period. This calculation method results in a slightly higher effective interest rate than the numeric interest rate originally stated. This note is guaranteed by six of the Company’s entities and is cross guaranteed by related party entities. On August 16, 2023, the Company paid the outstanding balance plus accrued interest in full. The balance at both March 31, 2024 and December 31, 2023 was $0.

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 (the “SBA”) 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 March 31, 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 March 31, 2024 and December 31, 2023, the loan balance outstanding was $254 thousand and $271 thousand, respectively.

Total Obligations of Notes Payable

The aggregate maturities of all third party notes payable as of March 31, 2024:


(in thousands)
2024 - remaining	$	3,129
2025		179
2026		189
2027		163
2028		117
Thereafter		3,897
	$	7,674
Less current portion of notes payable		(3,252	)
Long term portion	$	4,422

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income	$ 3,698	$ 4,531
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization	1,566	1,131
Equity in income of equity method investee, net of distributions	17	(31)
Gain on remeasurement of previously held interest	(3,402)
Acquisition related costs	(370)
Stock-based compensation	759
Amortization Of Operating Lease Assets	1,304	1,140
Interest income earned on Notes receivable from related party	(17)	(47)
Changes in operating assets and liabilities:
Inventories	(13)	1,198
Prepaid expenses and other current assets	(109)	(146)
Other assets	(136)	(3)
Accounts payable	1,985	(3,020)
Accrued salaries and benefits	(1,135)	(1,143)
Accrued interest	15	24
Other current liabilities	249	117
Operating lease liabilities	(790)	(961)
Deferred tax asset	(107)
Net cash provided by operating activities	3,514	2,790
Cash flows from investing activities
Advances made to related party		(2,100)
Purchase of property and equipment	(4,100)	(2,808)
Acquisition of GKBH, net of cash acquired	(2,976)
Net cash (used in) investing activities	(7,076)	(4,908)
Cash flows from financing activities
Payments to members for advances	(864)
Advances from members		2,989
Payments for deferred offering costs	(7)
Payments on PPP and EIDL loans	(22)	(22)
Payments on finance leases	(37)	(51)
Payments on third party loans	(17)	(156)
Payments on related party loans		(650)
Payments on line of credit		(153)
Proceeds from third party loans		1,300
Proceeds from related party loans		500
Member distributions		(3,059)
Net cash (used in) provided by financing activities	(947)	698
Net increase in cash and cash equivalents	(4,509)	(1,420)
Cash and cash equivalents at beginning of year	32,631	11,195
Cash and cash equivalents at end of year	28,122	9,775
Supplemental disclosures of other cash flow information:
Cash paid for interest	70	76
Non-cash investing and financing activities:
Unpaid purchases of property and equipment	837	381
Receivable for member contributions		60
Unpaid deferred offering cost	118	$ 137
Leased assets obtained in exchange for new operating lease liabilities	23,421
Issuance of promissory note for business acquisition	$ 3,000

Related Party Notes Payable - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended		12 Months Ended
	Mar. 31, 2023	Jan. 31, 2023	Dec. 31, 2022	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2022
Related Party Notes Payable [Line Item]
Proceeds from related party loans					$ 500
Interest expense				$ 87	256
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	$ 23
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				$ 1,200
Proceeds from related party loans						$ 1,900
Loan interest			3.00%			3.00%

Related Party Notes Payable

3 Months Ended

Mar. 31, 2024

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 March 31, 2024, the loan balance outstanding was $1.2 million. The loan bears interest of 3.00% per year and matures on November 25, 2024.

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

The aggregate maturities of notes payable from related parties as of March 31, 2024, are as follows:

Interest expense incurred for the related party debt was $25 thousand and $23 thousand for the three months ended March 31, 2024 and March 31, 2023, respectively.

Leases - Summary of Finance Lease Activity to the Balance Sheet Statement - Finance Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Obligations under finance leases, current	$ 88	$ 124
Obligations under finance leases, net of current portion	0	1
Total finance lease liabilities	$ 88	$ 125

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 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 March 31, 2024		1,092

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 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 March 31, 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. The Company's financial assets based on Level 1 inputs consist of U.S. treasury securities.


			Fair Value Measurements at March 31, 2024
(in thousands)	Total		Level 1		Level 2		Level 3
Money Market Account (included Cash and Cash Equivalents)	$	5,087	$	5,087	$	—	$	—
U.S. Treasury Securities (included in cash and cash equivalents)	$	20,592	$	20,592	$	—	$	—

			Fair Value Measurements at December 31, 2023
Money Market Account (included Cash and Cash Equivalents)	$	9,079	$	9,079	$	—	$	—
U.S. Treasury Securities (included in cash and cash equivalents)	$	20,322	$	20,322	$	—	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Investments in Debt Securities (Parenthetical) (Details) $ in Millions	Mar. 31, 2024 USD ($)
Accounting Policies [Abstract]
Cash and cash equivalents of money market accounts	$ 2.4

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	Mar. 31, 2024
Business Acquisition [Line Items]
Goodwill		$ 9,498
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

Organization and Description of Business (Tables)

3 Months Ended

Mar. 31, 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 March 31, 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 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

Stock-Based Compensation

3 Months Ended

Mar. 31, 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 months ended March 31, 2024 was $759 thousand, 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 March 31, 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 $12.2 million as of March 31, 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.

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 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:



(in thousands, except per share data)	March 31, 2024
Numerator:
Net income	$	3,698
Less: Net income attributable to non-controlling interest		3,202
Net income attributable to Class A common stockholders	$	496
Denominator:
Weighted-average shares of Class A common stock outstanding - basic		4,324
Weighted-average shares of Class A common stock outstanding - diluted		4,324

Net income per share of Class A common stock - basic	$	0.11
Net income per share of Class A common stock - basic and diluted	$	0.11

Equity Method Investment

3 Months Ended

Mar. 31, 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 investments as an equity method investment since the Company did not control major operational and financial decisions, which require consent from the other 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 Acquisition.)

Prior to the purchase of GKBH, the following was recognized: during the three months ended March 31, 2024, and March 31, 2023, the Company received distributions of $0 thousand and $350 thousand, respectively, from GKBH.

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


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


	Three months ended
(in thousands)	March 31, 2023
Net sales or gross revenue		1,829
Operating income		1,233
Net income		761
Net income attributable to the entity		381

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
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share Disclosure [Line Items]
Net income	$ 3,698	$ 4,531
Less: Net income attributable to non-controlling interest	3,202	$ 397
Net income attributable to Class A common stockholders	$ 496
Weighted average number of shares outstanding basic	4,324
Weighted average number of shares outstanding diluted	4,324
Net income per share basic	$ 0.11
Net income per share diluted	$ 0.11
Class A Common Stock
Earnings Per Share Disclosure [Line Items]
Net income	$ 3,698
Less: Net income attributable to non-controlling interest	3,202
Net income attributable to Class A common stockholders	$ 496
Weighted average number of shares outstanding basic	4,324
Weighted average number of shares outstanding diluted	4,324
Net income per share basic	$ 0.11
Net income per share diluted	$ 0.11

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482635/260-10-55-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (a)
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+ Details

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
	Mar. 31, 2024	Mar. 31, 2023
Accounting Policies [Abstract]
Interest expense	$ 87	$ 256
Interest income	(363)	(67)
Interest (income) expense, net	$ (276)	$ 189

- Definition

Amount of the cost of borrowed funds accounted for as interest expense.

+ References + Details

- Definition

Amount of operating interest income, including, but not limited to, amortization and accretion of premiums and discounts on securities.

+ References + Details

Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue	$ 50,760	$ 43,862
Restaurant operating expenses:
Food cost	16,968	14,305
Payroll and benefits	16,152	13,652
Occupancy expenses	4,293	3,432
Operating expenses	5,098	4,126
Depreciation and amortization	1,537	1,113
Pre-opening costs	1,901	519
Total restaurant operating expenses	45,949	37,147
General and administrative	4,674	2,055
Consulting fees - related party		880
Management fees		588
Depreciation and amortization - corporate	29	18
Total costs and expenses	50,652	40,688
Income from operations	108	3,174
Employee retention credits	0	1,165
Gain on remeasurement of previously held interest (see Note 3)	3,402
Interest income (expense), net	276	(189)
Equity in income (loss) of equity method investee	(17)	381
Net income before income taxes	3,769	4,531
Provision for income taxes	(71)
Net income	3,698	4,531
Less: Net income attributable to noncontrolling interest	3,202	397
Net income attributable to GEN Restaurant Group, Inc.	496	$ 4,134
Net income attributable to Class A common stock per share - basic	496
Net income attributable to Class A common stock per share - diluted	$ 496
Weighted-average shares of Class A common stock outstanding - basic	4,324
Weighted-average shares of Class A common stock outstanding - diluted	4,324
Net income per share of Class A common stock - basic	$ 0.11
Net income per share of Class A common stock - diluted	$ 0.11

Non-controlling Interest - Additional Information (Details) - GEN LLC	Mar. 31, 2024
Noncontrolling Interest [Line Items]
Economic interest owned by operating company	13.90%
Economic interest owned by non-controlling interest holders	86.10%

Leases - Summary of Operating Lease Activity to the Balance Sheet Statement - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Operating lease assets	$ 121,369	$ 99,255
Operating lease liabilities, current	4,113	4,535
Operating lease liabilities, net of current portion	133,552	110,501
Total operating lease liabilities	$ 137,665	$ 115,036

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

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of Presentation

(a)

Basis of Presentation

Recently Adopted Accounting Pronouncements

(b)

Recent Accounting Pronouncements

Use of Estimates

(c)

Use of Estimates

Goodwill

(d)

Goodwill

Business Combinations

(e)

Business Combinations

Equity-Based Compensation

(f)

Equity-Based Compensation

Cash and Cash Equivalents

(g)

Cash and Cash Equivalents

As of March 31, 2024 and December 31, 2023, there were deposits in excess of federally insured amounts of $5.0 million and $8.8 million, respectively.


	Carrying Value/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value as of March 31, 2024
(in thousands)
Money Market Accounts (included in cash and cash equivalents)	$	5,087	$	—	$	—	$	5,087
U.S. Treasury Securities (included in cash and cash equivalents)	$	20,000	$	592	$	—	$	20,592
	$	25,087	$	592	$	—	$	25,679
Represent money market accounts. Excludes $2.4 million of cash and cash equivalents at March 31, 2024.

Concentration Risk

(h)

Concentration Risk

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

Sales tax amounts collected from customers are remitted to governmental authorities and are excluded from revenue.

Property and Equipment

(k)

Property and Equipment

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

(l)

Other Assets and Other Current Liabilities

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


(in thousands)	March 31, 2024		December 31, 2023
Other Assets
Security Deposits	$	636	$	534
Liquor Licenses		224		215
Total Other Assets	$	860	$	749

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


(in thousands)	March 31, 2024		December 31, 2023
Other Current Liabilities
Sales tax payable	$	1,680	$	1,447
Accrued percentage rent		918		1,163
Deferred offering costs		118		125
Misc. accrued expenses		2,899		2,631
Total Other Current Liabilities	$	5,615	$	5,366

Advances from Members

(m)

Advances from members

Pre-Opening Costs

(n)

Pre-Opening Costs

Income Taxes

(o)

Income Taxes

Long-Lived Assets

(p)

Long-Lived Assets

Interest Income/Expense

(q)

Interest Income/Expense


	Three months ended
(in thousands)	March 31, 2024			March 31, 2023
Interest expense		87			256
Interest income		(363	)		(67	)
Interest (income) expense, net	$	(276	)	$	189

Liquor Licenses

(r)

Liquor Licenses

Sales Taxes

(s)

Sales Taxes

Advertising Costs

(t)

Advertising Costs

Risks and Uncertainties

(u)

Risks and Uncertainties.

Restaurant Revitalization Fund

(v)

Restaurant Revitalization Fund

Employee Retention Credits

(w)

Employee Retention Credits

Deferred Offering Costs

(x) Deferred Offering Costs

Net Income Per Share

(y) Net Income Per Share

Net Income Per Share

3 Months Ended

Mar. 31, 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 months ended March 31, 2023 was not presented in the accompanying condensed consolidated unaudited financial statements as a denominator to the calculation could not be determined. The basic and diluted net income per share for the three months ended March 31, 2024 represents the period from January 1, 2024 through March 31, 2024.

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:



(in thousands, except per share data)	March 31, 2024
Numerator:
Net income	$	3,698
Less: Net income attributable to non-controlling interest		3,202
Net income attributable to Class A common stockholders	$	496
Denominator:
Weighted-average shares of Class A common stock outstanding - basic		4,324
Weighted-average shares of Class A common stock outstanding - diluted		4,324

Net income per share of Class A common stock - basic	$	0.11
Net income per share of Class A common stock - basic and diluted	$	0.11

For the three months ended March 31, 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.

Basis of Presentation and Summary of Significant Accounting Policies - Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Other assets	$ 860	$ 749
Security Deposits
Property, Plant and Equipment [Line Items]
Other assets	636	534
Liquor Licenses
Property, Plant and Equipment [Line Items]
Other assets	$ 224	$ 215

Organization and Description of Business - Summary of List of Entities in Operation (Details)	3 Months Ended
	Mar. 31, 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 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

Property and Equipment, Net

3 Months Ended

Mar. 31, 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:


	For the year ended
(in thousands)	March 31, 2024			December 31, 2023
Equipment		13,799			12,387
Furniture and fixtures		6,093			5,467
Leasehold improvements		48,602			43,022
Other assets		414			414
Construction in progress		3,647			4,894
	$	72,555		$	66,184
Less accumulated depreciation and amortization		(35,417	)		(32,277	)
Property and Equipment, Net	$	37,138		$	33,907

The construction in progress balance on March 31, 2024 and December 31, 2023 is related to new stores being developed for

openings expected in 2024.

Total depreciation and amortization for the three months ended March 31, 2024 and March 31, 2023 was $1.6 million and $1.1 million, respectively, of which $31 thousand and $62 thousand for those periods were related to assets acquired under a finance lease.

Equity Method Investment (Tables)

3 Months Ended

Mar. 31, 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 months ended March 31, 2023 is as follows (unaudited):


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


	Three months ended
(in thousands)	March 31, 2023
Net sales or gross revenue		1,829
Operating income		1,233
Net income		761
Net income attributable to the entity		381

Non-controlling Interest

3 Months Ended

Mar. 31, 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 statements.

As of March 31, 2024, the Company owned 13.9% of the economic interests in the Operating Company, with the remaining 86.1% 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.

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 28,122	$ 32,631
Inventories	474	461
Prepaid expenses and other current assets	3,854	3,726
Total current assets	32,450	36,818
Equity method investment	0	523
Property and equipment, net	37,138	33,907
Goodwill	9,498
Operating lease assets	121,369	99,255
Deferred tax asset	13,196	12,618
Other assets	860	749
Total assets	214,511	183,870
Current liabilities
Accounts payable	12,597	10,704
Accrued salaries and benefits	1,525	2,660
Accrued interest	57	42
Obligations under finance leases, current	88	124
Operating lease liabilities, current	4,113	4,535
Deferred Restaurant Revitalization Fund grant	3,806	3,806
Advances from members	1,841	2,704
Other current liabilities	5,615	5,366
Total current liabilities	34,091	31,303
Tax receivable agreement liability	584	0
Obligations under finance leases, net of current portion	0	1
Operating lease liabilities, net of current portion	133,552	110,501
Total liabilities	172,649	146,352
Commitments and contingencies (Note 11)
Mezzanine equity
EB-5 Members' equity	1,500	1,500
Permanent equity
Additional paid-in capital	8,016	7,112
Retained Earnings	818	322
Non-controlling interest	31,496	28,552
Total permanent equity	40,362	36,018
Total liabilities and stockholders' equity	214,511	183,870
Related Party
Current liabilities
Notes payable, current	1,197	1,197
Non-related Party
Current liabilities
Notes payable, current	3,252	165
Notes payable, net of current portion	4,422	4,547
Class A Common Stock
Permanent equity
Common stock	4	4
Class B Common Stock
Permanent equity
Common stock	$ 28	$ 28

Other Related-Party Transactions

3 Months Ended

Mar. 31, 2024

Other Related-Party Transactions

(14)

Other Related-Party Transactions

The Company purchased approximately $0.8 million for the three months ended March 31, 2023, 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. Outstanding obligations for supply purchases from PGD of approximately $140 thousand were included in accounts payable as of March 31, 2023. Following the IPO on June 27, 2023 the agreement with PGD was terminated.

In 2016, the Company entered into a management agreement with JL Restaurant Management, Inc (formerly known as J&J Management Group, Inc.), a third party which shares offices with Mr. Jae Chang, our Co-Chief Executive Officer. Pursuant to the agreement, the Company paid $0 and approximately $0.6 million during the three months ended March 31, 2024, and March 31, 2023, respectively. As of March 31, 2024 and March 31, 2023, included in accounts payable were payments due for obligations for management services provided by JL Restaurant Management, Inc. of $0 and $78 thousand, respectively. Following the IPO on June 27, 2023 this management agreement was terminated.

The Company purchased food from Wise Universal Inc., an affiliate 60% owned by Mr. Chang for $0 for the three months ended March 31, 2024 and $3.5 million for three months ended March 31, 2023. As of March 31, 2024 and March 31, 2023, included in accounts payable were outstanding obligations for food purchases from Wise of approximately $0 and $420 thousand, respectively.

On August 29, 2014, the Company entered into a consulting agreement (the “Consulting Agreement”) with Ignite Enterprise, LLC, (“Ignite”), 100% owned by Mr. David Kim, our Co-Chief Executive Officer, which provides for annual fees of up to 25% of gross revenue in exchange for various consulting services. The Company paid $0 and approximately $880 thousand for the three months ended March 31, 2024, and March 31, 2023, respectively, to Ignite for consulting services. Following the IPO on June 27, 2023 this agreement was terminated.

During the three months ended March 31, 2024 and March 31, 2023, the Company paid $0 and approximately $100 thousand to Fast Fabrications, LLC (“Fast Fabrications”), for services related to restaurant interior construction. Fast Fabrications is an affiliate that is 100% owned by an employee of the Company.

As of December 31, 2021, the Company had notes receivable from Ignite and A/R Put-Forever, LP (100% owned by David Kim) totaling $21.5 million with interest accruing at 2.5% per annum. The $13.0 million was collected during the three months ending March 31, 2022. During the month of January 2022, the Company received $320 thousand from its partners. The remaining balance of approximately $13.0 million was repaid in full and immediately distributed to owner’s equity as part of the IPO transaction during June 2023.

As of December 31, 2023, GEN Mountain View had a related party account payable to a company owned by Mr. David Kim of approximately $152 thousand for purchases of fixed assets during 2018. During the three months ended March 31, 2024, GEN Mountain View paid $32 thousand towards this payable. The balance at March 31, 2024 was $120 thousand.

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

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Condensed Consolidated Statements of Changes in Permanent Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Class A Common Stock	Members' equity (deficit)	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional paid-in capital	Retained Earnings	Non-Controlling Interest
Beginning Balance at Dec. 31, 2022	$ (6,761)		$ (10,011)					$ 3,250
Distributions	(3,059)		(3,059)
Net income	4,531		4,134					397
Ending Balance at Mar. 31, 2023	(5,289)		$ (8,936)					3,647
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	$ 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

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

+ Details

- Definition

Amount of equity (deficit) attributable to parent and noncontrolling interest. Excludes temporary equity.

+ References

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+ Details

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	Apr. 24, 2024
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Quarterly Report	true
Document Transition Report	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
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		4,511,958
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		27,886,912

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, 2024	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2023	Aug. 16, 2023
Notes Payable [Line item]
Promissory note				$ 3,000
Loan agreement, balance				7,674
Economic Injury Disaster Loan
Notes Payable [Line item]
Loan agreement				$ 4,400			$ 4,400
Loan agreement, interest rate				3.75%
Loan agreement, frequency of payment				monthly
Loan, payment period				30 years
Notes Payable to Bank \| Commercial Bank Loan Agreement One
Notes Payable [Line item]
Loan agreement		$ 3,000
Loan agreement, maturity date		Sep. 15, 2024
Loan agreement, interest rate		6.00%
Loan agreement, monthly balloon payment				$ 44
Loan agreement, frequency of payment				month
Loan agreement, last payment estimated, balloon payment				$ 263
Interest rate, terms				Interest on this loan is computed on a 365/360 basis, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days in the monthly period. This calculation method results in a slightly higher effective interest rate than the numeric interest rate originally stated.
Loan agreement, balance				$ 0			0
Date of loan amended for balloon payment				Sep. 02, 2020
Notes Payable to Bank \| Commercial Bank Loan Agreement Two
Notes Payable [Line item]
Loan agreement					$ 1,300
Loan agreement, maturity date					Feb. 06, 2030
Loan agreement, interest rate								9.25%
Loan agreement, frequency of payment				monthly
Notes Payable to Bank \| Commercial Bank Loan Agreement Two \| Wall Street Journal Prime Rate
Notes Payable [Line item]
Loan agreement, variable interest rate						1.00%
Note Payable to Landlord
Notes Payable [Line item]
Loan agreement, interest rate			8.00%
Loan agreement, balance				$ 254			$ 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]
Equity investment ownership percentage	50.00%

Business Combinations - Unaudited Consolidated Pro Forma Results (Details) - GKBH Acquisition [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Business Acquisition [Line Items]
Revenue	$ 51,669	$ 45,691
Net income before taxes	$ 733	$ 7,943
Earnings per common stock: Basic	$ (0.61)
Earnings per common stock: Diluted	$ (0.61)

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

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


			Fair Value Measurements at March 31, 2024
(in thousands)	Total		Level 1		Level 2		Level 3
Money Market Account (included Cash and Cash Equivalents)	$	5,087	$	5,087	$	—	$	—
U.S. Treasury Securities (included in cash and cash equivalents)	$	20,592	$	20,592	$	—	$	—

			Fair Value Measurements at December 31, 2023
Money Market Account (included 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 - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 1,566	$ 1,131
Depreciation and amortization related to finance lease	$ 31	$ 62

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

Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

(12)

Income Taxes

As a result of the IPO and the 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 three months ended March 31, 2024, the Company did not have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties.

For the three months ended March 31, 2024, the Company recorded an income tax expense of $71 thousand. The Company’s effective income tax rate before discrete items for the three months ended March 31, 2024 was 1.85%.

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 March 31, 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 three months ended March 31, 2024, Gen Inc. did not make any payments to members of the Operating Company pursuant to the TRA.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent Events

(17)

Subsequent Events

The Company and its related parties evaluated subsequent events from the balance sheet date through May 14, 2024, the date at which the condensed consolidated financial statements were issued.

Store Opening

On April 12, 2024, the Company opened a new restaurant in Jacksonville, Florida.

Leases (Tables)

3 Months Ended

Mar. 31, 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 March 31, 2024 and the three months ended March 31, 2023:


(in thousands)		Three months ended March 31,
Operating lease cost	Classification	2024		2023
Operating lease cost	Occupancy and related expenses, and General and administrative expenses	$	2,760	$	2,099
Variable lease cost	Occupancy and related expenses, and General and administrative expenses		1,631		1,333
Total operating lease cost		$	4,391	$	3,432


Supplemental balance sheet information related to leases:
Operating leases	March 31, 2024		December 31, 2023
Operating lease assets	$	121,369	$	99,255
Operating lease liabilities, current		4,113		4,535
Operating lease liabilities, net of current portion		133,552		110,501
Total operating lease liabilities	$	137,665	$	115,036


Finance lease assets, net	March 31, 2024			December 31, 2023
Property and equipment	$	902		$	902
Accumulated depreciation		(896	)		(861	)
Property and equipment, net	$	6		$	41


Finance lease liabilities	March 31, 2024		December 31, 2023
Obligations under finance leases, current	$	88	$	124
Obligations under finance leases, net of current portion		-		1
Total finance lease liabilities	$	88	$	125



	March 31, 2024
Weighted-Average Remaining Lease Term (Years)
Operating leases		15.5
Finance leases		0.6
Weighted-Average Discount Rate
Operating leases		6.67	%
Finance leases		7.46	%

Schedule Maturities of Lease Liabilities

Maturities of lease liabilities as of March 31, 2024:


	Operating Leases			Finance Leases
(in thousands)
2024 - remaining	$	8,918		$	90
2025		13,435			1
2026		13,876			—
2027		14,183			—
2028		14,395			—
Thereafter		169,707			—
Total undiscounted lease payments	$	234,514		$	91
Present value discount/interest		(96,849	)		(3	)
Present value		137,665			88
Lease liabilities, current		4,113			88
Lease liabilities, net of current		133,552			0
Total operating lease liability	$	137,665		$	88

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

On March 31, 2024 and March 31, 2023 the gross amounts of property and equipment and related accumulated depreciation and amortization recorded under finance leases were as follows:



(in thousands)	March 31, 2024			March 31, 2023
Property and equipment		902			905
Less accumulated depreciation and amortization		(896	)		(776	)
Property and equipment, net	$	6		$	129

Net Income Per Share - Additional Information (Details)	3 Months Ended
Net Income Per Share - Additional Information (Details)	Mar. 31, 2024 shares
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

Other Related-Party Transactions - Additional Information (Details) - USD ($)		1 Months Ended	3 Months Ended			12 Months Ended
	Aug. 29, 2014	Jan. 31, 2022	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2023	Jun. 30, 2023
Related Party Transaction [Line Items]
Accounts payable for purchases							$ 152,000
Deferred offering costs			$ 0
Payment towards accounts payable			32,000
Pacific Global (PGD)
Related Party Transaction [Line Items]
Purchases of company				$ 800,000
Outstanding obligation				$ 140,000
Other related party transactions ownership percentage rate				100.00%
JL Restaurant Management, Inc
Related Party Transaction [Line Items]
Outstanding obligation			0	$ 78,000
Payments to third party			0	600,000
Wise Universal, Inc
Related Party Transaction [Line Items]
Purchases of company			0	3,500,000
Outstanding obligation			$ 0	420,000
Other related party transactions ownership percentage rate			60.00%
Ignite
Related Party Transaction [Line Items]
Payments to third party			$ 0	880,000
Other related party transactions ownership percentage rate	100.00%
Ignite \| Maximum
Related Party Transaction [Line Items]
Annual fees of gross revenue for consulting services percentage	25.00%
Fast Fabrications, LLC
Related Party Transaction [Line Items]
Payments to third party			$ 0	$ 100,000
Other related party transactions ownership percentage rate			100.00%
Ignite and A/R Put-Forever, LP
Related Party Transaction [Line Items]
Notes receivable from related party						$ 21,500,000
Accruing interest rate			2.50%
Other related party transactions ownership percentage rate						100.00%
Collection from notes receivable		$ 320,000			$ 13,000,000
Repayment of remaining balance								$ 13,000,000
Related Party
Related Party Transaction [Line Items]
Accounts payable for purchases			$ 120,000
IPO
Related Party Transaction [Line Items]
Deferred offering costs			$ 3,300,000

Equity Method Investment - Summary of GKBH financial position and results of operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]
Current assets	$ 32,450		$ 36,818
Current liabilities	34,091		31,303
Operating income	108	$ 3,174
Net income	3,698	4,531
Net income attributable to the entity	$ 496	4,134
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		1,829
Operating income		1,233
Net income		761
Net income attributable to the entity		$ 381

Business Combinations (Tables)

3 Months Ended

Mar. 31, 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 March 31,
(in thousands, except per share data)	2024			2023
	(unaudited)
Revenue		51,669			45,691
Net income before taxes		733			7,943

Earnings per common stock:					—
Basic	$	(0.61	)	$	-
Diluted	$	(0.61	)	$	-

Line of Credit - Additional Information (Details) - USD ($)			1 Months Ended	3 Months Ended
	Sep. 29, 2023	Aug. 16, 2023	Mar. 31, 2022	Mar. 31, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Line of credit matured	Sep. 25, 2024			Sep. 03, 2023
Interest rate, paid		10.25%
Description of periodic payments				Only interest payments were due monthly with the principal balance to be paid in one payment at the maturity date.
Repayments of lines of credit with accrued interest		$ 29,000
Line of credit				$ 0	$ 0
Initial interest rate	8.75%
Line of credit facility remaining borrowing capacity				20,000,000
Drawings against line of credit				$ 0
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

Leases - Additional Information (Details) $ in Millions	Mar. 31, 2024 USD ($)
Lessee, Lease, Description [Line Items]
Additional operating leases	$ 19.2
Finance lease expiry	2 years
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	25 years
Lease term	22 years
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms	1 year
Lease term	20 years

Leases - Schedule Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]
2024 (remaining months)	$ 8,918
2025	13,435
2026	13,876
2027	14,183
2028	14,395
Thereafter	169,707
Total undiscounted lease payments	234,514
Present value discount/interest	(96,849)
Present value	137,665
Lease liabilities, current	4,113	$ 4,535
Lease liabilities, net of current	133,552	110,501
Total operating lease liabilities	137,665	115,036
Finance Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]
2023 (remaining months)	90
2024	1
2025	0
2026	0
2027	0
Thereafter	0
Total undiscounted lease payments	91
Present value discount/interest	(3)
Present value	88
Lease liabilities, current	88	124
Lease liabilities, net of current	0	1
Total finance lease liabilities	$ 88	$ 125

Commitments and Contingencies

3 Months Ended

Mar. 31, 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 the lawsuit to have a material impact on the financial statements of the Company.

Organization and Description of Business - Additional Information (Details) $ / shares in Units, $ in Millions	Feb. 18, 2024 USD ($)	Mar. 31, 2024 Restaurants $ / shares	Dec. 31, 2023 Restaurants $ / shares	Apr. 01, 2016
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of restaurants \| Restaurants		39	37
Class A Common Stock
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, par value \| $ / shares		$ 0.001	$ 0.001
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		13.90%
GEN LLC \| GKBH Restaurant, LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Subsidiary, Ownership Percentage, Parent	100.00%			50.00%
Total purchase price \| $	$ 6.0
GEN Hawaii, LLC [Member] \| GKBH Restaurant, LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Subsidiary, Ownership Percentage, Parent	100.00%
Equity investment ownership percentage	50.00%
Total purchase price \| $	$ 6.0
Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term		22 years
Maximum \| Huebner Oaks (San Antonio), TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term		15 years
Maximum \| Pflugerville (Austin), TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term		15 years
Maximum \| Bayside (Queens), NY
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term		15 years
Minimum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term		20 years
Minimum \| Huebner Oaks (San Antonio), TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term		10 years
Minimum \| Pflugerville (Austin), TX
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term		10 years
Minimum \| Bayside (Queens), NY
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term		10 years

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Class A Common Stock
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	4,511,958	4,140,000
Common stock, shares outstanding	4,511,958	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

Organization and Description of Business

3 Months Ended

Mar. 31, 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, including the Operating Company (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 March 31, 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 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 March 31, 2024, 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 for a total purchase price of $6.0 million and the Company now controls 100% of GKBH. As of March 31, 2024 and December 31, 2023, there were 39 and 37 restaurants in operation, respectively. During the first quarter of 2024, the Company signed three leases for restaurants in Huebner Oaks (San Antonio), TX, Pflugerville (Austin), TX and Bayside (Queens), NY for terms between 10 and 15 years. During April 2024, the Company opened a restaurant in Jacksonville, FL.

Organization

GEN Restaurant Group, Inc. (“GEN Inc.”) was formed as a Delaware corporation on October 28, 2021. GEN Inc. is a holding company that was formed for the purpose of completing an underwritten initial public offering (“IPO”) of shares of its Class A common stock (as defined below) and other related Transactions (as defined below) in order to carry on the business of GEN Restaurant Companies, LLC (“GEN LLC”, or the “Operating Company”), the predecessor of GEN Inc. for financial reporting purposes. The Operating Company was organized under the laws of the state of Delaware on October 28, 2021, and is based in Cerritos, California. As the managing member of 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 Restaurant Group, Inc., and its consolidated subsidiaries, including the Operating Company. The authorized shares of GEN Inc. consist of (i) shares of Class A common stock, par value $0.001 per share (the “Class A common stock”) and (ii) shares of Class B common stock, par value $0.001 per share (the “Class B common stock”). See “Initial Public Offering and Organizational Transactions” below for a description of the IPO and the Transactions completed in June 2023.

The Operating Company has been determined to be the predecessor for accounting purposes and, accordingly, the condensed consolidated financial statements for periods prior to the IPO and the related Transactions have been adjusted to combine the previously separate entities for presentation purposes. Amounts for the period from January 1, 2023 through June 27, 2023 presented in the condensed consolidated financial statements and condensed notes to the financial statements herein represent the historical operations of the Operating Company. The amounts for the period from June 28, 2023 through March 31, 2024 reflect the consolidated operations of the Company.

Leases

3 Months Ended

Mar. 31, 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. Our 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.


(in thousands)		Three months ended March 31,
Operating lease cost	Classification	2024		2023
Operating lease cost	Occupancy and related expenses, and General and administrative expenses	$	2,760	$	2,099
Variable lease cost	Occupancy and related expenses, and General and administrative expenses		1,631		1,333
Total operating lease cost		$	4,391	$	3,432


Supplemental balance sheet information related to leases:
Operating leases	March 31, 2024		December 31, 2023
Operating lease assets	$	121,369	$	99,255
Operating lease liabilities, current		4,113		4,535
Operating lease liabilities, net of current portion		133,552		110,501
Total operating lease liabilities	$	137,665	$	115,036


Finance lease assets, net	March 31, 2024			December 31, 2023
Property and equipment	$	902		$	902
Accumulated depreciation		(896	)		(861	)
Property and equipment, net	$	6		$	41


Finance lease liabilities	March 31, 2024		December 31, 2023
Obligations under finance leases, current	$	88	$	124
Obligations under finance leases, net of current portion		-		1
Total finance lease liabilities	$	88	$	125



	March 31, 2024
Weighted-Average Remaining Lease Term (Years)
Operating leases		15.5
Finance leases		0.6
Weighted-Average Discount Rate
Operating leases		6.67	%
Finance leases		7.46	%

Maturities of lease liabilities as of March 31, 2024:


	Operating Leases			Finance Leases
(in thousands)
2024 - remaining	$	8,918		$	90
2025		13,435			1
2026		13,876			—
2027		14,183			—
2028		14,395			—
Thereafter		169,707			—
Total undiscounted lease payments	$	234,514		$	91
Present value discount/interest		(96,849	)		(3	)
Present value		137,665			88
Lease liabilities, current		4,113			88
Lease liabilities, net of current		133,552			0
Total operating lease liability	$	137,665		$	88

As of March 31, 2024, the Company had additional operating leases related to new restaurants the Company has not yet taken possession of that will total $19.2 million in future lease payment commitments. These operating leases are expected to commence later in fiscal year 2024 and have lease terms, including option periods, of 20 to 22 years.

The Company is obligated under finance leases covering certain property and equipment that expire at various dates during the next 2 years. On March 31, 2024 and March 31, 2023 the gross amounts of property and equipment and related accumulated depreciation and amortization recorded under finance leases were as follows:



(in thousands)	March 31, 2024			March 31, 2023
Property and equipment		902			905
Less accumulated depreciation and amortization		(896	)		(776	)
Property and equipment, net	$	6		$	129

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

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0
Income tax expense	71,000
Interest or penalties	$ 0
Percentage of tax benefits due to equity owners	85.00%
Tax receivable agreement percentage of tax benefits remaining realize	15.00%
Tax receivable agreement liability	$ 584,000	$ 0
Tax receivable agreement payments	$ 0
Effective income tax rates	1.85%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended		4 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($) Restaurants	Mar. 31, 2023 USD ($)	Aug. 31, 2021 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	$ 5,000,000				$ 8,800,000
Related party ownership percentage	60.00%
Number of restaurants \| Restaurants	39				37
Advances from members repaid	$ 864,000
Advance from members balance	1,800,000				$ 2,700,000
Pre-opening costs	$ 1,901,000	$ 519,000
Tax benefit	1.85%
Impairment charges	$ 0
Advertising expense	104,000	33,000
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	0	$ 1,165,000
Deferred offering costs	0
IPO
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred offering costs	$ 3,300,000
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Tax benefit	50.00%
Sysco Los Angels, Inc
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percent of food cost	35.20%	0.00%
U S Foods
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percent of food cost		52.20%
Pacific Global Distribution Inc
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating expenses concentration risk percent	0.50%	22.30%
Wise Universal, Inc
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percent of food supplies		27.80%
Number of restaurants \| Restaurants	13
ASU 2023-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Mar. 31, 2024
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true