A store of The Coffee House in Ho Chi Minh City. Photo courtesy of The Coffee House
Golden Gate Group Corporation, which owns popular restaurant chains Manwah and Gogi House, has bought a 99.98% stake in beverage chain The Coffee House for VND270 billion (US$10.5 million).
The deal values the struggling coffee chain at just 20% of the $50 million valuation made in 2021 by auditing firm ASCO.
Once a major player in the coffee market, it has closed 50 outlets around the country since the end of 2023 and now has 93, primarily in major cities such as HCMC and Hanoi.
It had held a 2.02% market share in 2023, when its revenues plunged 11% to VND700 billion and it posted losses of over VND100 billion, almost the same as the previous year.
Golden Gate’s revenues rose by 5.5% last year to VND6.63 trillion but profits fell by 28% to VND100 billion.
It has over 40 food and beverage brands encompassing nearly 500 restaurants that serve 18 million customers annually.
They include Kichi Kichi, iSushi, Durama, Icook, Sumo BBQ, Cowboy Jack’s, and Vuvuzela.
