Haidilao’s Hot‑Pot Chill‑Out: What’s Grown Up About the Giant Beijing Chain
China’s biggest hot‑pot empire, Haidilao, is taking a step back from its once‑unstoppable expansion. The chain, famous for turning hungry crowds into long‑line lineups that stretched for hours, is now slowing new restaurant openings and venturing into fresh menu options. The shift comes after the pandemic‑boom that left a wake of sliding foot‑fall and profits.
From Manicures to More
Remember how the brand’s waiting rooms became salons with free manicures, snacks, and shoe shines to keep diners entertained? That “wow” factor helped it turn strangers into regulars. But the days when everyone queued for a soup bowl are fading as the public begins to think twice about dining out.
Turning Tables, Not Hats
With fewer customers squeezing into tables, Haidilao’s turnover rates have dipped. On top of that, new locations can bleed business from their older neighbors, creating a game of “who’s hungry next?” The result? A bittersweet cocktail of reduced revenue and a strain on the hot‑pot’s fortunes.
Slow‑Mo Rollout Plans
The company has openly admitted that it will “open stores based on market demand” and “appropriately slow down our opening pace.” In plain English: it’s waiting for a clear yes before it pushes another outlet onto the market.
Why This Matters
- China’s catering sector shrank by 4.5% in August—though it bounced back to a 3.1% growth in September.
- Economic recovery remains patchy, with volatility likely lingering for some time.
- Repeated waves of sickness keep foot‑traffic unpredictable, hampering core business metrics.
For a company once celebrated as a dining powerhouse, this is a sobering reminder that even the hottest trends can cool when the heat burns out. The next big dip? Yes, but the flavor is still there; Haidilao just needs the right seasoning for tomorrow’s tables.
Haidilao’s Hotpot Hustle: Pandemic, Expansion, and Even Lower Turnover!
Picture this: A bustling Haidilao hotpot joint in Beijing on 11 Oct 2021, with waiters hustling behind a cloud of steam. Despite the global health crisis, the chain kept its cool—literally—and set out to double its footprint.
Why the Growth Feels a Bit… Sizzling
- In early 2020, Haidilao cranked up its expansion engine, snapping up sites left behind by rivals who were forced to close.
- Landlords? They happily offered sky‑high discounts, making it easier for Haidilao to swoop in and conquer new territories.
- Today, the chain boasts nearly 1,600 eateries worldwide—a staggering jump from the 800‑plus it had before.
Table Turnover Hits a Low‑Low
When you expand, you should expect higher foot traffic and more customers per table. Instead, Haidilao’s table turnover rate fell right into the 3.0 mark in the first half of this year—meaning each dining spot served only three groups per day, down from 4.8 in 2019.
That’s like going from a packed concert to a quiet coffeehouse.
Meanwhile, Xiabu Xiabu is Facing a Different Heat
In Hong Kong, Xiabu Xiabu—another hotpot chain—decided to trim its empire. It will shut 200 of its 1,010 locations after suffering a 50 million‑yuan loss in H1 2021.
Price Tags & Analyst Take‑Away
- Haidilao’s stock has slumped to around HK$30 (S$5) from a mind‑blowing high of HK$86 in February.
- China Renaissance analysts caution: “Creating new demand is tougher than satisfying existing one.”
Bottom line: The pandemic has turned the hotpot flame from roaring to simmering. Haidilao is still cooking up expansion plans, but the market demands a fresh, spicy strategy to keep customers coming back for that savory dip.
Delivery and drinks
Haidilao Goes Beyond the Hot Pot
To shake up its fortunes, Haidilao has rolled out more than ten fast‑food outlets. Think noodles and dumplings instead of the signature hot pot that made the company famous in Sichuan.
Little Impact, Big Ambition
- Each new fast‑food location tops out at five stores.
- Guests spend only 10–20 yuan per visit, a fraction of the 107.3 yuan spent at the flagship hot‑pot restaurants.
- The sub‑brands contributed just 0.5 % to first‑half revenue.
Rise and Fall of the Potato Noodle
Just under a year after launching a potato‑noodle shop in Zhengzhou’s central city, Haidilao shut it down—no public explanation given. It’s a reminder that diversification is a gamble.
Other Diversification Efforts
- They added bars to three Beijing venues.
- They’re pushing a delivery service that hit peak sales during the pandemic.
However, delivery income dipped from 409.6 million yuan (4.2 % of total revenue in H1 2020) to 345.7 million yuan (1.7 % in H1 2021).
Why Hot Pot Isn’t Eating at Home
“Hot pot has a great social vibe, so people’re less inclined to order it delivery,” says food analyst Zhu Danpeng.
Surreal Lipsticks on Tmall
Haidilao even opened a shop on Alibaba’s Tmall in recent months, selling quirky lipsticks inspired by its soup bases—think “capsicum rouge” and “summer tomato.”
Is a Multi‑Brand Strategy Worth It?
Zhu believes the approach was the right move, but growth potential is limited: “Haidilao has hit a certain phase in its development, like a man in his middle age.”
