Golden Gate acquires The Coffee House from Seedcom

VIETNAM – Golden Gate, a prominent Vietnamese restaurant brand, has acquired The Coffee House, a well-known coffee chain based in Ho Chi Minh City, from retail group Seedcom.

Following a resolution passed by Golden Gate’s board on 24 January 2025, the company announced it would acquire an unnamed food and beverage operator from the last quarter of 2024.

This development comes amid reports that The Coffee House, once one of Vietnam’s rapidly expanding coffee chains, has struggled to maintain profitability in the post-pandemic period.

Data from Vietdata indicates that the chain’s revenues fell by 11% to around VND700 billion (US$27.4 million) in 2023, while losses exceeded VND100 billion (US$3.9 million) in both 2022 and 2023.

The Coffee House operates 93 stores after closing over 50 locations since the end of 2023, with most closures in major cities such as Ho Chi Minh City, Hanoi, and their surrounding provinces.

As part of a change in business strategy, all outlets in Da Nang and Can Tho were shuttered last year, according to CEO Ngo Nguyen Kha, who told VnExpress that the firm was working to reduce costs and improve its financial performance.

He admitted that the chain had been slow to adapt to customers’ evolving preferences.

The Coffee House was among the first chains to invest in well-designed spaces, robust Wi-Fi, and beverages tailored to local tastes, thereby positioning itself as a preferred destination for freelancers and students seeking a productive environment.

The company later shifted its focus from physical stores to developing an online ordering app, which by the second half of 2024 accounted for half of daily sales.

Despite reducing its footprint from 150 stores at the end of 2023 to 93 in 2024, the brand maintains a presence in Vietnam’s two largest cities, with 51 outlets in Ho Chi Minh City and 31 in Hanoi.

The acquisition by Golden Gate may provide The Coffee House with enhanced operational capabilities and financial support, while offering Golden Gate a valuable opportunity to solidify its position within Vietnam’s thriving branded coffee shop sector.

Established in 2005, Golden Gate is one of Vietnam’s leading food and beverage groups, managing 500 restaurants across 22 distinct brands, including popular concepts such as Gogi House, Kichi-Kichi, Yu Tang bubble tea, and café operator The Coffee Inn.

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