ex. Game, Music, Video, Photography

Two ventures at the top of the food chain in Vietnam

Established by Vietnamese owners, Golden Gate and Redsun now run more than 300 restaurants under 30 brands across the country.

Ngày đăng: 18 tháng 9, 2021
Cập nhật: 11 tháng 12, 2022
Lượt xem: 324226515
Nguồn: vnexpress

It is no secret that Vietnamese love eating out.

It is also a fact that nation has achieved renown as one of the best places in the world for street food.

Jostling for space in this culinary milieu, and succeeding handsomely, are Kichi-kichi, Gogihouse, SumoBBQ and ThaiExpress.

These are no strange names to Vietnamese who love dinning out. They are among most popular grill and hotpot restaurant brands in the country. However, not a lot of restaurant goers are aware that they are established and run by Vietnamese.

In 2005, with the help of two friends, Dao The Vinh, an entrepreneur in his early 30s, opened the first Ashima mushroom hotpot restaurant on Phan Dinh Phung Street in Hanoi after falling in love with a local hotspot dish during his trip to the “heaven on Earth” city of Shangrila in Yunnan, China.

Ashima succeeded beyond the expectations of its founders, who simply thought they were doing what they loved. In just two years, the number of Ashima restaurants had increased to six, three of them in Ho Chi Minh City.

The fast growth of Ashima caught the eye of Vietnamese private equity firm Mekong Capital, which invested $2.6 million in Hoang Thanh Joint Stock Company, which was renamed Golden Gate in 2017.

Golden Gate was given a major makeover with the support of its investor Mekong Capital. The venture fund helped turn Golden Gate into a restaurant chain operator by introducing several restaurant concepts.

In 2010, the owner of Ashima opened the Kichi-Kichi rotary express hotpot restaurants, and the Sumo BBQ grill and hotpot restaurants. But its golden era did not come until 2013 when it established a food distribution and processing center in Hanoi and introduced several new food brands, notably Gogi House, 37th Street and Ba Con Cuu (Three Lambs). Its revenue then exceeded VND500 billion ($22 million) for the first time, up more than 60 percent over the previous year.

Its rapid growth story did not end there. In the following years, Golden Gate continued setting up new restaurant chains including American dining style Cowboy Jack’s or Vuvuzela beer clubs and City Beer Station. Its earnings skyrocketed to reach VND1.2 trillion ($52.7 million) in 2014 and went on to triple that amount to VND3.3 trillion ($145 million) last year.

Golden Gate's revenue skyrocketed by seven-fold within only four years.

The restaurant chain has logged a nearly seven-fold jump in revenue within four years since 2013. This success is even more impressive considering that its gross profit margin stood at 62 percent in 2017. To put it another way, only 38 out of every 100 dong from clients’ pockets was paid for food cost. Its biggest expenses are employee salaries and space rentals, which account for more than 20 percent of total revenue.

Golden Gate earned VND250 billion ($11 million) in profits last year, which might not be an impressive sum in itself, but when considering the charter capital of VND64 billion ($2.8 million), its return on equity ratio has jumped to nearly 400 per cent, something very rare for Vietnamese firms.

Mekong Capital has announced that it recouped its investment in Golden Gate 9.1 times after selling its holdings in the company to Standard Chartered Private Equity (SCPE), the private equity arm of Standard Chartered Bank, in 2014. Since then, Golden Gate has set ambitious targets of increasing its number of restaurants to 400 in four years and posting revenues of $200 million in 2018.

While its impressive track record puts Golden Gate on course to meet its new targets, in the longer run, higher aims could see it run into stiff competition in the restaurant sector.

A franchise focus

At the moment, one of the enterprises that can go head-to-head with Golden Gate in the grill and hotpot segment is Redsun ITI.

Founded in 2008, the company, which is a member of the Goldsun Group which operates in three sectors – food and restaurants, household goods, and packaging and printing, now operates 12 restaurant brands and 140 restaurants across the country.

Different from Golden Gate’s approach of creating “made-in-Vietnam” brands, Redsun sees franchise as its long-term strategy. In the first three years of its development, it bought four international brands including Thai Express and Seoul Garden.

But as it often takes time to seek franchise owners’ approval to adjust the concept to suit Vietnamese tastes, Redsun ITI created its own restaurant franchises to take advantage of market opportunities, Le Vu Minh, the company’s vice president of Franchising, R&D, and International Relations, told the Vietnam Investment Review.

The company launched its first franchise concept, named King BBQ, in 2011 and began to offer franchise opportunities in 2014. The brand now has a strong presence in the market with 75 restaurants nationwide, 15 per cent of which are franchised outlets.

On the back of this success, Redsun ITI introduced a second concept known as Hotpot Story in 2017. The company has already sold Hotpot Story franchises after opening 10 restaurants each in Hanoi and Ho Chi Minh City..

RedSun-owned King BBQ now has a strong presence in the market with 75 restaurants across the country.

Redsun’s growth story is quite modest compared to its bigger rival Golden Gate. According to market analysis firm Vietnam Industry Research and Consultancy, the restaurant operator posted revenues of VND360 billion ($15.8 million) with a small profit margin  in 2016.

While only two of Redsun’s brands --King BBQ and ThaiExpress-- have gained popularity in the market, Golden Gate has a diverse market presence, offering a variety of food choices including Vietnamese, Japanese, Korean and American cuisines.

By the end of last year, Golden Gate had total assets of nearly VND1.5 trillion ($66.9 million), while Redsun’s assets were worth VND360 billion ($15.8 million).

The owners of King BBQ recently increased its charter capital to VND150 billion ($6.6 million) from VND70 billion ($3.1 million) in the first quarter of 2018. At the moment, it has no plans to call for outside investors.

Redsun has also aims at setting up 400 restaurants in three more years, half of which will be franchisees.

Từ vựng liên quan

Tin tức liên quan

Patients pay the price as hospitals struggle with supplies
news 16/09/2022

Patients pay the price as hospitals struggle with supplies

news | 412566508

Public hospitals are blaming complicated procedures for their failure to procure medicines and medical supplies, but patients and their relatives are the ones suffering greater pain and even early death.

  Vietnam condoles Queen Elizabeth II
news 11/09/2022

Vietnam condoles Queen Elizabeth II's passing

news | 411126508

Vietnamese leaders have sent their condolences to the royal family, the government and people in the U.K. after the death of Queen Elizabeth II.

China promotes traditional medicine to combat AIDS
world 08/09/2021

China promotes traditional medicine to combat AIDS

world | 252326527

Traditional medicine treats ailments using herbal mixtures and physical therapies such as acupuncture and cupping.

Vietnam tells firms to stop YouTube and Facebook ads
news 10/09/2021

Vietnam tells firms to stop YouTube and Facebook ads

news | 286086525

The government wants to eliminate 'toxic, fake content' on Google and Facebook.

Inmates riot at HCMC
news 08/09/2021

Inmates riot at HCMC's Chi Hoa prison

news | 249976509

It appears that a riot broke out at Chi Hoa Prison in HCMC Tuesday night, with shots and screams being heard, but the police remain tight-lipped.

Five Vietnamese jailed for attempting to
news 19/09/2021

Five Vietnamese jailed for attempting to 'overthrow government'

news | 326826511

A HCMC court has found a group of five people guilty of 'activities aimed at overthrowing the people’s administration.'

 Asian factories shake off lockdown blues, now face supply headaches
business 02/11/2021

Asian factories shake off lockdown blues, now face supply headaches

business | 350496520

Asia’s manufacturing activity grew in October as emerging economies saw Covid-19 infections subside, but rising input costs, material shortages and slowing Chinese growth cloud the outlook, business surveys showed on Monday.

news 13/06/2021

Vietnam's Covid infection tally crosses 10,000

news | 217766542

The Health Ministry announced 68 local Covid-19 cases Saturday morning in five localities, putting the infection number since the start of the pandemic to 10,048.

 Carriers increase frequency of domestic flights
business 18/03/2021

Carriers increase frequency of domestic flights

industries | 10486556

Several airlines plan to increase the frequency of flights between Hanoi and HCMC from the current one per day to 2-5 from Thursday.

HSBC estimates Vietnam
business 11/09/2021

HSBC estimates Vietnam's foreign exchange reserves at $38 bln

business | 288096525

The central bank may have escaped the impacts of Brexit without exhausting its foreign reserves.

Link Tài Trợ - Sponsored Links

Công Thức Vật Lý