Vietnam’s popular restaurant chain operator Golden Gate reports layoff of 2,700 in 2023
Vietnam’s popular restaurant chain operator Golden Gate reports layoff of 2,700 in 2023
Golden Gate, which operates over 20 restaurant chains in Vietnam, including well-known brands like GoGi House, Manwah, Kichi Kichi, and iSushi, reported a layoff of more than 2,700 employees in 2023 despite new restaurant openings.
People dine at a GoGi House restaurant in Thu Dau Mot City, Binh Duong Province, southern Vietnam in 2023. Photo: Golden Gate |
The recently-released 2023 financial report of Golden Gate Group Joint Stock Company indicates a total workforce of 17,087 individuals by the end of the year, down by 2,713 from the previous year.
The average monthly salary for full-time employees last year stood at VND12.2 million (US$479) per person.
Both revenue and after-tax profit fell short of Golden Gate’s targets, reaching only 91.3 percent and 83.1 percent, respectively.
Despite a cut in the cost of goods, its gross profit saw an eight-percent decline, reaching VND3.96 trillion ($155.6 million).
Golden Gate achieved a notably high gross profit margin of 63 percent in food and beverage sales.
However, substantial costs related to rent and labor resulted in a significant drop in net profit, recording only VND139 billion ($5.46 million), down nearly 79 percent compared to 2022.
This translates to a net profit margin of only 2.2 percent, significantly lower than the 9.5 percent recorded in the previous year.
In the cost structure, labor expenses remained the largest at VND1.18 trillion ($46.36 million), roughly consistent with the previous year.
Store rental costs increased by 22 percent to VND932 billion ($36.62 million).
Additionally, advertising costs rose from VND64 billion ($2.51 million) to over VND72 billion ($2.83 million).
The rise in expenses coincided with the group’s active expansion efforts in 2023.
The firm introduced 12 new brands, such as Chixmax, Union District, Mak Mak, Man Tang Guo, Cloud Pot, Mama Bakery, Sakura, and Chibo, and expanded its network to a total of 506 restaurants.
Golden Gate’s leaders attributed the challenges faced in 2023 to consumers tightening their belts amidst economic difficulties.
The financial statements also disclosed the income of the board of directors and top executives.
In 2023, the group allocated over VND4 billion ($157,171) to remunerate its three leaders, who are also the founders.
