Golden Gate confirms that all of its restaurants are still operating normally and stable.
Golden Gate branches are still operating normally. Photo: Chi Hung.
In a statement to Zing, a representative of Golden Gate, which owns restaurant chains including Gogi House, Kichi Kichi, Manwah, and Hutong, denied rumors that 39 branches would be closing. 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 can operate outside of the registered address of their branches. Therefore, the company has moved its business locations in these 39 provinces to be 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 provinces is to bring these business locations under centralized management for better operation efficiency,” said the Golden Gate representative.
Thus, the closure of the 39 branches is aimed at restructuring administrative and legal documents, and does not mean that the restaurants are closing.
As of December 2022, Golden Gate owns 22 brands and nearly 400 restaurants in over 40 provinces and cities, serving 18 million customers each year.
Regarding its business operations, Golden Gate has not yet released its financial results for 2022. After a tough period from 2020 to 2021 due to the Covid-19 pandemic, the chain of hotpot, barbecue, and fresh beer restaurants has set a target revenue of VND 7,002 billion for 2022, a record high for the company.
Of this, net revenue is expected to be VND 6,878 billion, EBITDA profit to be VND 931 billion, and post-tax profit to be VND 375 billion. Compared to the previous year’s financial results, these targets represent a 111% increase in total revenue and a 107% increase in net revenue. This is also the company’s most ambitious revenue target to date.
In 2022, nearly 33% of the capital contribution from former investor Prosperity Food Concepts and a small portion of the capital contribution from two Golden Gate co-founders were transferred to new shareholders, including Temasek, SeaTown Private Capital, and Periwinkle (Singapore).
In early February, Golden Gate requested shareholder approval to expand its business into retailing various items in convenience stores, selling food through websites and phones.