In a statement to Zing, a representative of Golden Gate, owner of restaurant chains including Gogi House, Kichi Kichi, Manwah and Hutong, denied rumors that 39 branches would close. Instead, the company is restructuring its internal operations and streamlining its management for efficiency.
“According to Article 31 of Decree 01/2021/NĐ-CP, business locations are allowed to operate outside the registered address of their branches. Therefore, the company has moved its business locations in these 39 provinces to come under the direct management of its northern or southern branches, which are registered in Hanoi or Ho Chi Minh City. The closure of branches in these 39 counties is intended to bring these business locations under centralized management for better operational efficiency,” said the Golden Gate representative.
The closure of the 39 establishments is therefore aimed at restructuring administrative and legal documents, and does not mean that the restaurants close.
As of December 2022, Golden Gate owns 22 brands and nearly 400 restaurants in more than 40 provinces and cities, serving 18 million customers annually.
In terms of its business operations, Golden Gate has not yet released its 2022 financial results. After a difficult period from 2020 to 2021 due to the Covid-19 pandemic, the chain of hot pot, barbecue and fresh beer restaurants has set a revenue target of VND 7.002 billion for 2022, a record high for the company.
It is expected to have net sales of VND 6,878 billion, EBITDA earnings of VND 931 billion and profit after tax of VND 375 billion. Compared to last year’s financial results, these targets represent an increase in total sales of 111% and an increase in net sales of 107%. This is also the company’s most ambitious revenue target to date.
In 2022, nearly 33% of the capital contributions of former investor Prosperity Food Concepts and a small portion of the capital contributions of two Golden Gate co-founders were transferred to new shareholders, including Temasek, SeaTown Private Capital and Periwinkle (Singapore).
In early February, Golden Gate sought shareholder approval to expand its business into retailing various items in convenience stores and selling food through websites and telephones.
