Golden Gate acquires 99.98% stake in The Coffee House

1 week ago 4

GlobalData

Thu, Apr 3, 2025, 8:37 AM 1 min read

Vietnamese edifice radical Golden Gate has acquired a 99.98% involvement successful The Coffee House for VND270bn ($10.5m) from the retail radical Seedcom.

The acquisition terms is simply a fraction of The Coffee House's erstwhile $50m valuation, evidencing the difficulties faced by the marque since the Covid-19 pandemic.

The acquisition was initially reported by DealStreetAsia successful February 2025, though neither enactment issued an authoritative connection astatine that time.

Once a rapidly expanding java concatenation with 150 outlets, The Coffee House has seen a diminution successful some gross and store number and present operates 93 sites, chiefly successful Ho Chi Minh City and Hanoi.

In the second fractional of 2024, each its foodservice outlets successful the Can Tho and Da Nang areas were closed arsenic a tactical determination aimed astatine cost-cutting and boosting income astatine sites with greater lawsuit traffic.

The determination was intended to heighten fiscal ratio and ore connected penetrating the marketplace much effectively.

But contempt a surge successful nett gross successful 2022, reaching VND781bn ($30.5m), The Coffee House experienced an 11% gross driblet the pursuing year.

The brand's fiscal struggles person been ongoing, with nary profits recorded betwixt 2019 and 2023 and Seedcom incurring losses of VND1.17tn ($49.82m), starring to store closures.

Golden Gate, established successful 2005, is simply a starring unit successful Vietnam's nutrient and beverage manufacture with 500 restaurants crossed 22 brands, including Gogi House and Kichi-Kichi.

The group's gross grew 5.5% to VND 6.63tn ($258.7m) by the extremity of 2024, though nett net decreased 28% to VND 100bn ($3.9m).

"Golden Gate acquires 99.98% involvement successful The Coffee House" was primitively created and published by Verdict Food Service, a GlobalData owned brand.

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