Last year, Golden Gate - the operator of Kichi Kichi, Gogi House, Manwah - reduced more than 2,700 employees, earning VND139 billion in profit, one-fifth of the same period.
The audited consolidated financial statements show that Golden Gate Trading and Service Joint Stock Company achieved revenue of VND 6,288 billion, down nearly 10% compared to 2022. Minus cost of goods sold, the company's gross profit was VND 3,963 billion, equivalent to a gross profit margin of 63%, a slight increase over the same period.
Financial revenue fell 43% to VND24.5 billion, mainly due to a decrease in deposit interest. In return, the company also cut its financial expenses by half, mostly from interest. With the current financial loan of VND756 billion, in the financial statement explanation, this company said that it is "completely capable of repaying the debt".
In total, Golden Gate's after-tax profit was VND139 billion, equivalent to one-fifth of the same period. Except for the 2020-2021 pandemic period, this is the company's lowest profit since the information was announced in 2017.
According to the above results, the "hot pot and grill boss" failed to complete the year's business plan when it was 9% off its revenue target and 17% off its profit target. Meanwhile, the 2023 profit plan was 75% lower than the actual profit of the previous year.
As the company’s health deteriorated, Golden Gate cut staff. Its total workforce was more than 17,000 at the end of last year, a reduction of more than 2,700 jobs. Previously, the company had just recruited more than 3,300 employees by 2022.
Golden Gate's business situation is contrary to the general trend of the food service industry. A report by iPOS - a platform providing sales solutions for more than 100,000 restaurant and cafe brands, shows that the food and beverage industry will continue to grow in 2023. This unit cited data from Virac and Euromonitor showing that total F&B revenue last year increased by nearly 12% to VND590,900 billion. Of which, more than 68% of the industry's revenue came from full-service restaurants similar to Golden Gate.
80% of the surveyed units have good business results. Business health has recovered and there are enough resources to develop in the near future. However, iPOS's report noted that Golden Gate and some other "big guys" in the industry are leaving prime locations to optimize profits at each point of sale and eliminate ineffective branches.
Established in 2005, Golden Gate is a famous enterprise with a chain of restaurants in Vietnam with many culinary branches including hotpot, grill, Asian, European dishes and coffee shops. This enterprise currently owns more than 20 brands such as Kichi Kichi, Gogi House, Manwah, Kpub, iSushi, Hutong, Sumo, Vuvuzela, The Coffee Inn... The company announced that it has nearly 400 points of sale, serving nearly 20 million customers each year.
Last year, Golden Gate set a target of opening 600 new restaurants, bringing the total to 1,000. The company recently acquired Sumibi Vietnam and established a new subsidiary, Gather Village, both in the restaurant service business.
Siddhartha
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