Hot Pot and Grill Giant Golden Gate Acquires The Coffee House

Golden Gate Trade and Service Joint Stock Company has acquired The Coffee House coffee chain, according to Deal Street Asia. Seedcom, the parent company of The Coffee House, has declined to comment. VnExpress sources indicate the acquisition occurred last December, the same time Golden Gate canceled its 53% cash dividend for 2023 to focus on domestic and international expansion. This strategic move aims to bolster the company's foundation for future growth. Golden Gate also closed several underperforming locations after a year of sluggish performance. The company's 2023 revenue was 6.288 trillion VND, a nearly 10% decrease from 2022, resulting in a significantly reduced profit of 139 billion VND. The Coffee House, facing stagnation and declining market share, saw an 11% revenue decrease to approximately 700 billion VND in 2023 and substantial losses in the past two years. The chain has closed numerous stores, reducing its presence to 93 locations, primarily in major cities. The CEO previously attributed the struggles to shifting consumer behaviors and the need to adapt. The chain is now prioritizing its mobile ordering application, which accounts for half of its daily transactions. The F&B market in Vietnam remains highly competitive, with thousands of closures in the first half of 2024. Slowing consumer spending and increased competition have impacted even established brands.