The acquisition is part of Red Wok’s market expansion strategy that involves making investments in small scale businesses which have 4 to 10 restaurants and providing its support to restaurant chains in management experience in order to boost the competitive advantages in the market.
In addition to the financial investment in Quan Ut Ut, Red Wok will simultaneously support the restaurant chain in the matters of financial management consulting, human resources, IT, marketing and market development, it said in a statement.
Tim Scott, General Director of Quan Ut Ut Co., said, “Red Wok is a great partner to have on board. Through this collaboration and by leveraging each company’s strengths, we look forward to innovative growth, new perspectives and challenge of the status quo. We are excited about the opportunity to bring our American BBQ and Craft Beer concepts to an even wider audience.”
Quan Ut Ut and BiaCraft restaurant chains have been present in Vietnam since 2014 with 4 branches in HCMC.
Red Wok was founded from predecessor – Wrap & Roll, which has been established in Vietnam since 2006 as the pioneer of authentic Vietnamese restaurant chain. In June 2017, the name was officially changed to Red Wok Cuisine Joint Stock Company.
At present, Red Wok owns 3 Vietnamese F&B brands: Wrap & Roll, Cuon Viet, and Lau Bo Sai Gon Vivu with 25 locations nationally and 6 franchised restaurants in Singapore and Shanghai (China).
The investment from Mekong Capital Fund has helped bringing the financial potential of the company to new heights as well as exploiting more of the intrinsic strength of a typical business representing Vietnamese Cuisine, the statement added.
Tran Thi Lan Anh, CEO of Red Wok, said: “We decided to invest in Quan Ut Ut in the belief that they are popular barbecue and craft beer restaurant chains in Sai Gon and hold strong potential for developing nationwide.”
This investment is also part of Red Wok market expansion strategy from now to 2021 in order to become a Vietnamese cuisine Group owning most popular restaurant chains in Vietnam, it said.