Vietnamese restaurant behemoth Golden Gate has officially confirmed its acquisition of The Coffee House from retail group Seedcom. The deal was struck at a significantly reduced price of VND 270 billion ($10.5 million).
As per a statement released alongside its consolidated financial results, on January 8, 2025, Golden Gate acquired 99.98% of the shares of Vietnam Tea and Coffee Trading Service Corporation. This is the legal entity responsible for operating The Coffee House.
The relatively low purchase price is a reflection of the arduous times The Coffee House has endured since the onset of the pandemic. It is merely 20% of the $50 – million valuation that auditing firm ASCO assigned to this Ho Chi Minh City – based coffee chain in April 2021.
Established in 2014, The Coffee House was once among Vietnam’s most rapidly expanding coffee chains, boasting over 150 outlets. Seedcom, the retail conglomerate also operating the Juno fashion brand and the King Food Mart supermarket chain, acquired a controlling stake in The Coffee House in 2020. However, it faced difficulties in generating stable revenues.
In 2022, The Coffee House witnessed a 67% year – on – year growth in net revenue, reaching VND 781 billion ($30.5 million). Nevertheless, the coffee chain’s revenues declined by 11% the following year, dropping to VND 700 billion ($27.5 million).
The Coffee House’s financial woes are further emphasized by its failure to turn a profit between 2019 and 2023. During this period, its parent company, Seedcom, amassed losses amounting to VND 1.17 trillion ($49.82 million) and was compelled to close stores. Currently, The Coffee House operates only 93 locations, primarily concentrated in Ho Chi Minh City and Hanoi.
Founded in 2005, Golden Gate stands as one of Vietnam’s leading food and beverage (F&B) groups. Its portfolio encompasses nearly 500 restaurants across 22 brands. Alongside well – known hotpot and BBQ chains such as Gogi House and Kichi – Kichi, the group also runs the bubble tea chain Yu Tang and the café operator The Coffee Inn.
For the 12 – month period ending on December 31, 2024, Golden Gate reported a 5.5% growth in revenue, reaching VND 6.63 trillion ($258.7 million). However, the restaurant group’s annual net profit decreased by 28% to VND 100 billion ($3.9 million).
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