How Does Haidilao International Holding Company Work?

How is Haidilao redefining hot pot at scale?

Haidilao International Holding Ltd. scaled from a single hot pot shop into a multi-brand foodservice leader with projected 2025 revenues above 48 billion RMB, over 1,400 China restaurants, and an international footprint via Super Hi.

Haidilao pairs extreme service culture with a vertically integrated supply chain, data-driven site selection, and a shift toward franchising and multi-brand expansion to sustain a ~3.8–4.0 table turnover rate while growing retail and delivery channels. See Haidilao International Holding Porter's Five Forces Analysis

Haidilao creates value by combining premium Sichuan-style hot pot with a service-led experience—complimentary manicures, shoe shines and live entertainment—that targets middle-to-high-income diners and drives repeat visits.

Service-led dining

Haidilao service strategy emphasizes hospitality and experiential extras to increase dwell time and per-customer spend, supporting higher average bills versus peers.

Decentralized operations

Haidilao operations use a master-apprentice store management model that empowers local managers to adapt menus, staffing and service to local demand.

Vertical integration

Through affiliates like Shuhai and Yihai International, Haidilao company structure controls procurement, logistics and soup-base production to ensure consistency across 1,400+ locations.

Technology-enabled efficiency

Automated kitchens and AI-driven inventory systems reduce food waste by an estimated 15% versus traditional peers and improve table turnaround times.

These elements collectively define the Haidilao business model: premium product, exceptional Haidilao customer experience, decentralized human capital and tight supply-chain control to support standardized quality and scalable growth.

Operational highlights and metrics

Key facts investors and operators track when analyzing Haidilao operations and value proposition.

• Network size: over 1,400 restaurants globally receiving daily fresh supplies via affiliated logistics.
• Vertical partners: centralized procurement (Shuhai) and soup-base manufacturing (Yihai) to maintain margins and quality.
• Labor model: master-apprentice system boosts employee retention and consistent service delivery across markets.
• Efficiency gains: AI inventory and kitchen automation cut food waste ~15%, improving gross margins.

Revenue Streams & Business Model of Haidilao International Holding

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Haidilao's revenue is driven mainly by restaurant operations, with ancillary streams from delivery, retail products and newly launched franchising; the company balances accessibility and margins while expanding monetization through sub-brands and third‑party channels.

Core Restaurant Revenue

Dining operations generate over 94% of group revenue, reflecting the dominance of self‑operated outlets in the Haidilao business model and Haidilao operations.

Average Spend per Guest

In the 2024‑2025 fiscal period the average ticket stabilized at about 100–105 RMB, signalling price resilience amid inflationary pressure and aligned with the Haidilao service strategy.

Delivery and At‑Home Dining

Haidilao Delivery accounts for roughly 3% of total revenue, targeting premium at‑home experiences and leveraging the company structure for logistics and order fulfilment.

Franchising Model (2024)

Selected franchising began in 2024 to enter lower‑tier cities and specialty locations, creating high‑margin royalty and management fee income while preserving quality control through strict standards.

Retail Packaged Products

Bottled sauces and instant hot pot sold via supermarkets and e‑commerce contribute about 2% of revenue, extending the Haidilao company structure into retail channels and brand licensing.

Red Pomegranate Plan (2025)

The 2025 Red Pomegranate Plan incubates fast‑food and beverage sub‑brands to increase visit frequency and address younger demographics, diversifying monetization beyond core hot pot offerings.

The monetization mix supports operational scalability and margin enhancement through multiple levers: self‑operated high‑volume restaurants, growing delivery, retail product sales, franchising royalties, and new sub‑brands under the Haidilao business model and Haidilao operations.

Revenue Mix & Strategic Levers

Key metrics and strategic drivers for monetization and investor analysis.

• Restaurant operations: > 94% of revenue; primary profit engine and core of Haidilao company structure.
• Average spend: 100–105 RMB per guest in 2024–2025, keeping price accessibility.
• Delivery: ~ 3% of revenue via Haidilao Delivery, targeting premium at‑home demand.
• Retail: ~ 2% of revenue from bottled sauces and instant products sold through supermarkets and e‑commerce.
• Franchise royalties: new revenue stream since 2024 focused on lower‑tier cities and strategic locations.
• Red Pomegranate Plan: 2025 initiative to launch fast‑food/beverage sub‑brands to boost frequency and reach.

For additional context on competitors and market positioning, see Competitors Landscape of Haidilao International Holding

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Haidilao’s key milestones include the 2021 Woodpecker Plan to close underperforming stores, the 2022 Hard Core Plan to reopen optimized locations, and the 2024 decision to franchise for expansion into Tier 3–4 cities; these shifts, paired with digital and human-capital investments, drove a record 4.5 billion RMB net profit in 2024 and set momentum for 2025.

Key Milestones

The Woodpecker Plan (2021) cut low-performing outlets; the Hard Core Plan (2022) rebuilt margins via cost discipline. In early 2024 Haidilao opened franchising for the first time to accelerate Tier 3–4 city growth.

Strategic Moves

Franchising complements company-owned expansion to leverage local expertise. Digitalization, including the Haidilao App with over 110 million registered members, supports personalized marketing and retention.

Operational Shifts

Store mix optimization reduced break-even timelines; centralized supply-chain adjustments and menu engineering lowered ingredient and labor pressure while preserving customer experience.

Financial Outcomes

Post-restructure performance produced a record net profit near 4.5 billion RMB in 2024; same-store sales and margin recovery were key metrics monitored into 2025 planning.

Haidilao’s competitive edge combines ecosystem incentives, training systems, and technology to defend market share and scale efficiently.

Competitive Edge & Execution

The master-apprentice system aligns staff incentives with store profitability; mentors receive profit shares from apprentices’ stores, creating leadership pipelines that mitigate rising labor cost impacts.

• Strong brand equity and service reputation sustain high retention and pricing power
• App-driven loyalty with > 110 million registered users enables targeted promotions and lifetime-value optimization
• Franchising targets Tier 3–4 cities to capture local market knowledge and lower rollout costs
• Supply-chain and digital investments improve margins and operational visibility

For context on the company’s origins and growth phases, see Brief History of Haidilao International Holding

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By early 2026 Haidilao remains the market leader in Chinese hot pot, with a market share well above its nearest rivals and a global footprint spanning over 12 countries after the Super Hi International spin-off. The company is shifting from single-brand growth to a multi-brand catering group under the Red Pomegranate Plan while addressing domestic saturation and competitive pressure.

Industry Position

Haidilao dominates the hot pot segment in China, outpacing peers such as Xiabuxiabu by a substantial margin. Global expansion via Super Hi International demonstrates scalability of the Haidilao business model and Haidilao operations across markets.

Market Footprint

The group operates in more than 12 countries and continues to pilot formats for different demographics, confirming the effectiveness of Haidilao service strategy and Haidilao customer experience internationally.

Risks

Risks include Tier 1 city saturation, rising competition from budget and niche hot pot chains, and ongoing regulatory scrutiny on food safety and labor practices. Price-sensitive younger consumers are shifting demand toward lower-cost chains, pressuring same-store sales growth.

Financial Resilience

As of FY2025 the company reported a strong balance sheet with ample liquidity to fund expansion and automation; management targets sustained double-digit revenue growth through 2027, supported by integrated supply chain efficiencies and diversified revenue streams.

Operationally Haidilao is prioritizing automation, menu engineering and incubation of new brands to capture budget segments and campus traffic while leveraging its supply chain control to protect margins.

Strategic Outlook

The Red Pomegranate Plan moves the company toward a multi-brand catering group with targeted formats such as Xiao Hai Hot Pot and campus stores; emphasis is on data-driven Haidilao operations and technology integration in restaurants.

• Launch of budget and campus concepts to address market saturation
• Greater automation and menu optimization to lower operating costs
• Consolidation play: capitalizing on smaller operators with an integrated supply chain
• Continued regulatory monitoring for food safety and labor compliance

For further reading on strategic moves and revenue implications see Growth Strategy of Haidilao International Holding

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