Profits plunge at Kichi Kichi, Gogi House restaurant chain operator

By Tat Dat April 1, 2024 | 05:58 pm PT

Golden Gate, the operator of popular restaurant chains Kichi Kichi, Gogi House and Manwah, saw profits plunge 79% to VND139 billion ($5.61 million) last year.

The figure is the firm’s lowest reported post-tax profit since 2017 when it began disclosing financial figures, according to a company report.

According to the report, Golden Gate revenues dropped 10% last year to VND6.29 trillion.

The company also let go of 2,700 employees after recruiting 3,300 new staff in 2022. The enterprise now employs 17,000 individuals.

The Vietnam food and beverage (F&B) sector as a whole, however, recorded growth of 12% in revenues, up to VND590.90 trillion, last year, according to commerce management service provider iPOS, which used data from market researchers Vietnam Industry Research And Consultancy and Euromonitor.

In Vietnam, 80% of F&B businesses reported positive earnings, according to a survey by iPOS.

Golden Gates, established in 2005, operates over 20 F&B brands in Vietnam, with 400 outlets that serve nearly 20 million customers a year.

Last year it had planned but failed to raise it’s total number of establishments to 1,000.