Popular restaurant chains report slower growth

By Minh Son   June 14, 2019 | 07:45 am GMT+7
Popular restaurant chains report slower growth
Golden Gate now has 300 restaurants in 25 cities and provinces, while Redsun has 200. Photo by Shutterstock/Artit Wongpradu.
Vietnam’s top restaurant chains Golden Gate and Redsun are seeing a slowdown after years of scorching growth.

Golden Gate, which has 22 brands including hotpot and BBQ chain Gogi House and hotpot chain Kichi Kichi, reported revenues of VND3.97 trillion ($170 million) last year, a growth of 17 percent. In 2013-2017 it recorded rates of 30-50 percent.

Redsun, whose 13 brands include King BBQ Buffet, BBQ chain Buk Buk and Hotpot Story, reported revenues of VND620 billion ($26.57 million), an 14 percent increase compared to 51 percent in 2017, according to market research firm Vietnam Industry Research and Consultancy (VIRAC).

Golden Gate had launched seven new brands in 2015 and three in 2016, but only two more in the next two years. For Redsun, its first restaurant chain, King BBQ, remains its most popular.

One reason for the slower growth is increasing competition from foreign entrants.

Euromonitor said an increasing number of international chains are entering the country and consider it a lucrative market. Chinese hotpot brand Haidilao came to Vietnam earlier this year and set up shop in Ho Chi Minh City’s Bitexco Tower, one of the most premium locations in its central business district.

But for now local players remain dominant. Golden Sun and Redsun, along with traditional food chain Mon Hue are the top dogs in the full-service restaurant market, Euromonitor said.

They offer a variety of promotions to constantly attract customers, it said.

Golden Gate, founded in 2005, now has 300 restaurants in 25 cities and provinces and served 18.2 million customers last year. Redsun, founded in 2008 and a member of the Goldsun Group, has 200 restaurants.

BBQ and hotpot were two of the three leading eating out options for local people last year among non-Vietnamese foods, according to the HCMC-based market research firm Decision Lab. Japanese food was the other.

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