Vietnamese restaurant group Golden Gate has acquired a 99.98% stake in The Coffee House for VND270bn ($10.5m) from the retail group Seedcom.

The acquisition price is a fraction of The Coffee House's previous $50m valuation, evidencing the difficulties faced by the brand since the Covid-19 pandemic.

The acquisition was initially reported by DealStreetAsia in February 2025, although neither party issued an official statement at that time.

Once a rapidly expanding coffee chain with 150 outlets, The Coffee House has seen a decline in both revenue and store count and now operates 93 sites, mainly in Ho Chi Minh City and Hanoi.

In the latter half of 2024, all its foodservice outlets in the Can Tho and Da Nang areas were closed as a tactical decision aimed at cost-cutting and boosting sales at sites with greater customer traffic.

The move was intended to enhance financial efficiency and concentrate on penetrating the market more effectively.

But despite a surge in net revenue in 2022, reaching VND781bn ($30.5m), The Coffee House experienced an 11% revenue drop the following year.

The brand's financial struggles have been ongoing, with no profits recorded between 2019 and 2023 and Seedcom incurring losses of VND1.17tn ($49.82m), leading to store closures.

Golden Gate, established in 2005, is a leading force in Vietnam's food and beverage industry with 500 restaurants across 22 brands, including Gogi House and Kichi-Kichi.

The group's revenue grew 5.5% to VND 6.63tn ($258.7m) by the end of 2024, although net profit decreased 28% to VND 100bn ($3.9m).