Restaurant chain operator Golden Gate’s profit plummets
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Restaurant chain operator Golden Gate saw its post-tax profit plunge 79.8 percent year-on-year to VND65 billion ($2.8 million) in 2020.
It posted VND4.5 trillion in revenue, down 5 percent year-on-year, according to its financial statement.
Golden Gate attributed the plunge in profits to the Covid-19 pandemic, which forced the company to temporarily close all of its restaurants in March and April last year as the country underwent social distancing.
It had to cut expenses and implement food delivery services. A total of 18 of its restaurants were shut down last year.
By the end of 2020, its total assets and liabilities were valued at VND2.3 trillion and VND1.1 trillion, respectively.
Golden Gate was founded in 2005 with its first restaurant in Hanoi, the Ashima mushroom hotpot restaurant. It currently runs over 400 restaurants under 21 brands nationwide, with over 4,000 employees.
Questions & Answers
Q.What was the extent of Golden Gate's profit decline last year?
What was the extent of Golden Gate's profit decline last year?
Golden Gate's post-tax profit plunged by 79.8 percent year-on-year in 2020. Its profit for the year stood at VND65 billion, equivalent to $2.8 million, a significant drop from the previous year's figures.
Q.What were the main reasons for the company's fall in profits?
What were the main reasons for the company's fall in profits?
The company attributed the profit plunge to the Covid-19 pandemic. This forced Golden Gate to temporarily close all its restaurants in March and April 2020 due to social distancing measures, leading to revenue loss and necessitating cost-cutting.
Q.How did Golden Gate try to mitigate the impact of the pandemic?
How did Golden Gate try to mitigate the impact of the pandemic?
Golden Gate responded to the pandemic by implementing several measures. It cut expenses across its operations and introduced food delivery services. Also, 18 of its restaurants were permanently shut down during the year.
Q.What was Golden Gate's total revenue in 2020?
What was Golden Gate's total revenue in 2020?
Golden Gate's total revenue for 2020 was VND4.5 trillion. This represented a 5 percent decrease year-on-year from its revenue in the previous year, as reported in its financial statement.
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