Popular restaurant chain owner Golden Gate aims to double profits in 2025

Popular restaurant chain owner Golden Gate aims to double profits in 2025

According to documents for the company’s upcoming annual meeting, Golden Gate aims to earn nearly VNĐ8.12 trillion in net revenue and nearly VNĐ205 billion in after-tax profit in 2025.

Customers dining at a Golden Gate restaurant. Photo Kichi Kichi

The Golden Gate Group Joint Stock Company, which operates well-known brands like Kichi Kichi, Gogi House, Manwah and The Coffee House, expects profits to double to VNĐ205 billion (US$8 million) this year.

According to documents for the company’s upcoming annual meeting, Golden Gate aims to earn nearly VNĐ8.12 trillion in net revenue and nearly VNĐ205 billion in after-tax profit in 2025. Compared to last year, the revenue target has increased by 22.5 per cent, while the goal for profits has more than doubled.

If it meets these targets, the company will earn its largest profits in three years. However, this would still not be equal to its profits during the pre-pandemic period, or the VNĐ659 billion in profits the firm earned in 2022.

Golden Gate’s leaders said that this year, the company will continue to focus on enhancing customer experience and expanding business in new selected locations. 

It will also exploit the strengths of its key brands, develop new labels, build a modern corporate governance system and apply technology to optimise operations. In addition, the firm has taken drastic measures to improve the business results of its weaker restaurants.

Last year, Golden Gate earned VNĐ6.63 trillion in revenue, up 5.5 per cent over the previous year. However, the company’s after-tax profit decreased by 28 per cent to more than VNĐ100 billion.

This was the second consecutive year that the company reported a decrease in profit. Increased selling costs are the main reason for this decline.

Established in 2005, Golden Gate is one of the first businesses to apply the restaurant chain model in Việt Nam. Starting with the Ashima mushroom hotpot brand, the company owned more than 40 brands and nearly 500 restaurants in 42 provinces and cities by the end of 2024, serving 18 million customers each year. 

Bizhub