“Design in China”​ e109 – Haidilao’s Journey: A Global Brand with Expanding Horizons

Haidilao’s Journey: A Global Brand with Loyal Patrons and Expanding Horizons

Haidilao, the renowned Chinese hot pot chain, has cemented its status as a global dining powerhouse, synonymous with exceptional service and high-quality food. From its humble beginnings in Jianyang, Sichuan Province, in 1994 to its current operations spanning continents, Haidilao has consistently prioritized customer satisfaction and food safety while adapting to the evolving needs of its vast and diverse clientele. This post delves into how Haidilao has maintained its loyal customer base and outlines its strategic moves for sustainable growth.

From Local Favorite to Global Presence
Haidilao’s story began modestly in Sichuan, China, gradually expanding into major cities such as Xi’an and Beijing by the early 2000s. By 2012, it had launched its first international location in Singapore’s Clarke Quay, marking the start of a successful global expansion. Today, Haidilao operates restaurants across China and in countries including the U.S., Canada, the U.K., South Korea, Japan, Australia, Vietnam, Malaysia, and Indonesia.

Over the years, Haidilao has garnered numerous domestic and international accolades, solidifying its reputation as a high-quality dining establishment. The chain has embraced technological advancements, such as opening its first smart restaurant in Beijing in 2018, enhancing its service capabilities. Notably, it also went public that year, showcasing its growth and ambitions on the global stage.

The Haidilao Experience: What Sets It Apart
Haidilao is celebrated for creating a dining experience that is as enjoyable as it is unique. This is most evident in its meticulous approach to service, which is tailored to make every customer feel valued. The brand has become synonymous with warm, attentive service, often likened to a place where the “working person can feel like a VIP.” Its dedication extends beyond just dining; perks like birthday celebrations, personalized service for solo diners, and even complimentary manicures have contributed to its standing as a customer-centric brand.

A key element of Haidilao’s charm is its extensive membership program, particularly the elite Hei Hai membership tier. Members enjoy benefits such as priority reservations, special food offers, and exclusive dining experiences. In 2023 alone, Haidilao celebrated the birthdays of over 15 million members, reinforcing the personal connection between the brand and its customers. This level of engagement underpins Haidilao’s impressive performance, which saw a 33.6% increase in revenue to 414.53 billion RMB in 2023.

Navigating Expansion and Sustaining Quality
Haidilao’s expansion hasn’t been without challenges. Between 2020 and 2021, the brand’s aggressive growth strategy led to over 800 new outlets opening, resulting in operational strains and a temporary dip in table turnover rates. The company responded with its “Woodpecker Plan” to stabilize operations and refocus on core strengths. By 2023, these adjustments paid off, with turnover rates rebounding to 4.2 times per day and overall revenues reaching record highs.

Critically, Haidilao’s global presence has come with lessons on maintaining service excellence. While some customers have noticed changes, such as fewer complimentary snacks and a shift in service offerings, the brand has been transparent about prioritizing sustainable business practices. Despite these adjustments, Haidilao’s unwavering commitment to food quality and safety remains intact, a principle that has helped it weather industry challenges and maintain consumer trust.

Embracing New Horizons: The Red Pomegranate Plan and Beyond
To continue evolving, Haidilao launched the “Red Pomegranate Plan,” aimed at fostering new brands alongside its primary operations. This initiative has seen the emergence of ventures like Yanqing BBQ and Xiao Hai Hotpot, catering to different dining preferences and price points. By integrating these sub-brands with its established membership program, Haidilao leverages brand loyalty to boost engagement across its portfolio. For example, users can link their Haidilao membership benefits when dining at these new outlets, ensuring a seamless customer experience.

This strategic diversification aligns with Haidilao’s commitment to its mission: to create enjoyable dining experiences and spread a healthy hot pot culture globally. The Red Pomegranate Plan also highlights Haidilao’s ability to adapt to a rapidly changing market, where consumers are looking for both affordability and quality. Through these sub-brands, Haidilao aims to maintain its signature service while expanding its reach and appealing to a broader demographic.

The Road Ahead: Sustaining Growth and Customer Loyalty
As Haidilao looks to the future, its focus will remain on finding the balance between expansion and the high standards that earned it a loyal following. Key to this will be maintaining the warmth and attentiveness that define the Haidilao experience while innovating with new services and business models, such as smart restaurant technologies and a diversified menu that includes more global flavors.

Haidilao’s journey from a small Sichuan restaurant to a worldwide chain is a testament to its adaptability, customer focus, and commitment to quality. As it navigates the complex landscape of global expansion, Haidilao’s efforts to incorporate customer feedback, refine its service model, and uphold its brand values will be crucial in retaining its place as a leader in the international dining scene.