Deal reflects an 80% drop in the coffee chain’s valuation since 2021 amid financial struggles and store closures

Vietnamese food and beverage giant Golden Gate has confirmed its acquisition of The Coffee House from retail group Seedcom in a deal worth VND 270 billion ($10.5 million).

According to the group’s consolidated financial statement, Golden Gate acquired a 99.98% stake in Vietnam Tea and Coffee Trading Service Corporation — the legal entity that operates The Coffee House — on January 8, 2025.

The steep discount in the acquisition price underscores the challenges faced by The Coffee House in the aftermath of the COVID-19 pandemic. The chain was previously valued at $50 million by auditing firm ASCO in April 2021, making the current deal equivalent to just 20% of that amount.

Founded in 2014, The Coffee House quickly emerged as one of Vietnam’s fastest-growing coffee brands, expanding to over 150 outlets nationwide. Seedcom, a retail conglomerate that also owns fashion label Juno and supermarket chain King Food Mart, acquired a controlling stake in the brand in 2020 but struggled to generate consistent revenues.

In 2022, The Coffee House posted a strong 67% year-on-year revenue growth, reaching VND 781 billion ($30.5 million). However, revenues declined by 11% in 2023 to VND 700 billion ($27.5 million), reflecting operational and market pressures.

The company failed to turn a profit between 2019 and 2023, with Seedcom accumulating total losses of VND 1.17 trillion ($49.82 million) and subsequently shutting down a number of locations. The chain now operates just 93 stores, primarily located in Ho Chi Minh City and Hanoi.

Golden Gate, established in 2005, is one of Vietnam’s leading F&B operators, with a portfolio of nearly 500 restaurants across 22 brands. Its lineup includes popular hotpot and barbecue chains Gogi House and Kichi-Kichi, as well as the bubble tea chain Yu Tang and café brand The Coffee Inn.

In 2024, Golden Gate reported a 5.5% increase in annual revenues, reaching VND 6.63 trillion ($258.7 million). However, the group’s net profit dropped by 28% to VND 100 billion ($3.9 million).