Breaking Down Haidilao International Holding Ltd. Financial Health: Key Insights for Investors

From its humble beginnings in Jianyang, Sichuan in 1994 to operating over 1,300 restaurants across China, Hong Kong, Macau and major international markets, Haidilao International Holding Ltd. has translated a clear mission-"to build the leading international Chinese restaurant brand and to spread Chinese culinary heritage"-into tangible scale and customer devotion, backing that ambition with $6.5 billion in 2024 revenue and recognition as one of the Top 25 Most Valuable Restaurant Brands since 2019; driven by a vision to create a table culture favored by young people worldwide, Haidilao's restaurants fuse social dining, open kitchens and service innovation to foster connection, while core values like "changing your future with your own hands" and an obsession with exceptional, fun dining experiences inform its management philosophy, technological investments and global expansion strategy.

Haidilao International Holding Ltd. (6862.HK) - Intro

• Founded in 1994 in Jianyang, Sichuan, Haidilao International Holding Ltd. (6862.HK) has grown into a leading Chinese hot pot restaurant chain.
• As of 2024 the company operates over 1,300 restaurants across China, Hong Kong, Macau and internationally, including the United States, Canada, the United Kingdom, South Korea, Australia, Japan, Taiwan, Malaysia, Singapore, Indonesia, Thailand, the Philippines, Vietnam, the United Arab Emirates, and Cambodia.
• Haidilao is widely recognized for high-quality ingredients, service innovations (e.g., complimentary snacks, manicure stations, entertainment), and rigorous operational standards that support strong customer retention and premium pricing.
• The brand has been ranked among the 'Top 25 Most Valuable Restaurant Brands' since 2019, reinforcing its market recognition and brand equity.
• Strategic focus areas: global expansion, technological innovation (digital ordering, robotics in kitchens), and cost optimization to preserve margins amid sector pressures.

• Deliver memorable dining experiences through exceptional service, food safety and consistent product quality across all outlets.
• Create long-term value for stakeholders by combining hospitality excellence with scalable operational systems and technology-enabled efficiency.

• To be the world's leading hot pot brand, expanding global footprint while maintaining local relevance and the service culture that defines the Haidilao experience.

• Customer-first hospitality: anticipating and exceeding guest needs through attentive service and innovative amenities.
• Quality and safety: stringent sourcing and food-safety controls across the supply chain.
• People development: intensive frontline training, internal promotion pathways and a culture that rewards service excellence.
• Innovation: continuous adoption of technology (ordering systems, kitchen automation, loyalty analytics) to enhance experience and efficiency.
• Integrity and compliance: adherence to regulatory standards in all operating markets and transparent governance as a Hong Kong-listed company (6862.HK).

• Global rollout of standardized store formats while adapting menus and service touches to local markets.
• Investing in technology to improve throughput, reduce labor intensity and enhance customer personalization (e.g., app-driven loyalty and data analytics).
• Supply-chain consolidation and cost-control programs to protect margins amid food inflation and labor cost increases.
• Talent pipeline and training investments to preserve service culture during rapid expansion.

Haidilao International Holding Ltd. (6862.HK) - Overview

• Core mission focus: establish a dominant international hot pot brand and export Chinese culinary traditions.
• Strategic priorities: aggressive overseas expansion, standardized quality control, localized menu and service adaptation, and strong brand marketing.
• Operational alignment: store-level service protocols, technology-enabled operations (ordering, queuing, CRM), and training academies to preserve culinary and service standards globally.
• Cultural aim: introduce hot pot dining rituals and ingredient sourcing practices while facilitating cross-cultural dining experiences.

• Store growth and market entry: accelerated openings in Southeast Asia, Japan, US, UK, Australia and the Middle East to increase brand visibility.
• Service innovation: patented service features, digital queuing and ordering, and value-added hospitality (e.g., free snacks, entertainment) that drive strong customer retention and average spend per customer.
• Supply chain and quality control: centralized procurement, cold-chain logistics, and regional kitchens to ensure consistent taste and food safety across borders.
• Brand & cultural programs: culinary workshops, chef exchanges, and localized marketing campaigns to teach hot pot customs and menu etiquette.

• Customer-first hospitality: exceptional, personalized service as a differentiator in global casual dining.
• Continuous innovation: tech-enabled efficiencies and menu/experience iterations to suit diverse markets.
• People development: large-scale training programs and internal promotion pathways to maintain service culture abroad.
• Quality & safety: strict compliance with local regulations and internal standards to protect brand reputation internationally.

Haidilao International Holding Ltd. (6862.HK) - Mission Statement

• Core mission: Create memorable, conversation-driven dining experiences that encourage people to connect across the table.
• Target audience: Young, experience-seeking diners domestically and internationally.
• Strategic approach: Combine high-touch service, open-kitchen formats, communal seating, and digital engagement to amplify social interaction.

• Dining as social infrastructure - restaurant layouts and flow are designed to facilitate eye contact, conversation, and group dynamics (open kitchens, long communal tables, activity zones for families and friends).
• Service philosophy - exceptional frontline service (free snacks, manicure, game areas in some locations) to extend dwell time and deepen interpersonal exchange.
• Digital-social integration - mobile ordering, community features, and loyalty programs that encourage group bookings, shared menu exploration, and user-generated content.

• Brand identity: "Table culture" messaging appears across visual identity, in-store storytelling, and partnership activities aimed at youth culture (music, gaming, influencers).
• Marketing: Campaigns emphasize shared moments, group deals, and experience-led promotions (celebrations, livestreamed events, themed pop-ups).
• Customer engagement: Loyalty programs and community-building initiatives reward group dining, social sharing, and repeat visits.

• Open kitchens and visible food preparation to spark conversation and trust in quality.
• Communal seating and flexible table configurations to accommodate varying social group sizes.
• Extended service amenities (entertainment, complimentary extras) to encourage longer shared mealtimes.
• Staff empowerment and training programs to create memorable interpersonal moments that catalyze social interaction.

• Menu diversification - added hotpot bases, health-conscious options, and localized flavors in overseas markets.
• Tech-enabled experiences - app-based group ordering, queue management, and digital content to maintain relevance with younger demographics.
• International localization - store concepts and service tweaks that reflect local dining customs while preserving the core "table culture" ethos.

Haidilao International Holding Ltd. (6862.HK) - Vision Statement

• Aspiring global footprint: scale operations while preserving service quality and local relevance.
• Operational excellence: apply disciplined management systems and aligned incentives to maintain unit economics and service standards.
• People-first growth: invest in talent development so employees can advance careers through performance and skill-building.

• "Changing your future with your own hands" - empowerment and career mobility
  • Internal promotion rates: historically over 60% of middle managers promoted from within (company-reported ranges during rapid expansion periods).
  • Training hours: centralized learning programs delivering hundreds of thousands of employee training hours annually across operations, service, and management modules.
• Delivering an exceptional and fun dining experience - customer obsession
  • Service KPIs: average table turnaround, complaint resolution targets, and repeat-visit metrics tracked at store level to preserve experience consistency.
  • Customer engagement: loyalty and CRM initiatives producing measurable increases in spend-per-visit and retention in pilot markets.
• Alignment and disciplined management - governance and execution
  • Incentive alignment: store-level profit sharing, performance-based bonuses, and stock-based incentives for senior staff to align interests.
  • Operational controls: centralized procurement, standardized SOPs and regular audits to protect margins amid expansion.

• Career pathways: formalized ladders from frontline to store management, with mentorship and assessment systems that quantify readiness for promotion.
• Service innovation labs: pilot kitchens and guest-experience teams that test menu, delivery, and in-restaurant entertainment enhancements tied to revenue uplift metrics.
• Performance governance: monthly store scorecards combining financials (sales, gross margin), customer metrics (NPS/CSAT), and operational KPIs (staffing, food waste).

• Consistency: core values have anchored hiring, training and incentive design through rapid expansion phases, helping preserve brand equity as store count scaled into the thousands.
• Adaptation: during downturns (e.g., pandemic disruptions) the company adjusted mix toward delivery, tightened cost controls, and enhanced digital ordering to sustain service levels and margins.
• Resilience: post-disruption recovery metrics show improvement in traffic and average spend as on-premise experience returns and digital channels mature.