Haidilao International Holding Ltd.: history, ownership, mission, how it works & makes money

From a modest 8,000 Yuan start in Jianyang in March 1994 to a global dining force, Haidilao's journey mixes bold expansion and tech-driven service: by 2018 it operated over 1,300 restaurants and served more than 160 million customers annually, launched its first robot-aided outlet in Beijing in 2019, and-after temporarily closing mainland stores on January 26, 2020 to curb COVID-19 spread-restructured international operations into Super Hi International (listed 9658.HK in 2022); Super Hi later raised $52.7 million in a May 2024 U.S. IPO at $19.56 a share valuing it near $1.26 billion and, as of June 30, 2025, managed 126 Haidilao restaurants across 13 countries while Haidilao overall still operates over 1,300 outlets globally; the group combines self-operated and franchised sites, robot-aided services, centralized kitchens, delivery growth and retail condiment sales to monetize the brand even as it navigates a 3.7% revenue dip to RMB20.7 billion in H1 2025 and pursues strategic initiatives like the 'Pomegranate plan' to drive future expansion.

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

• March 1994 - Zhang Yong and three co-founders opened the first Haidilao hot pot in Jianyang, Sichuan Province with an initial investment of 8,000 Yuan.
• Rapid expansion through the 2000s and 2010s, driven by service-focused operations and brand reputation for customer experience.
• By 2018, Haidilao operated over 1,300 restaurants across China, Hong Kong and Macau and served more than 160 million customers annually.
• 2019 - launched its first robot-aided hot pot restaurant in Beijing, integrating robotics and automation to speed service and reduce labor intensity.
• January 26, 2020 - temporarily closed all mainland China stores in response to COVID-19, causing significant revenue disruption and one-off costs associated with closures and safety measures.
• 2022 - international operations were spun off into Super Hi International and listed in Hong Kong under ticker 9658.HK.
• Late 2025 - Haidilao operates over 1,300 restaurants globally; Super Hi International manages 126 outlets across 13 countries.

• Founder and major shareholder: Zhang Yong (co-founder) together with family and senior management holdings.
• Publicly listed entity: Haidilao International Holding Ltd. trades as 6862.HK on the Hong Kong Stock Exchange.
• International business separated into Super Hi International (9658.HK) in 2022, creating a two-entity structure: Haidilao (domestic & core operations) and Super Hi (international outlets and franchising/management overseas).

• Mission: deliver exceptional dining experiences through high service standards, innovation and consistent food quality.
• Service culture: emphasis on customer care (free snacks, manicures, snacks for waiting customers, attentive staff) to increase dwell time, repeat visits and word-of-mouth.
• Operational focus: standardization of recipes and processes, staff training, centralized supply chain and technology adoption (robotics, kitchen automation, digital ordering).

• Restaurant operations: company-owned and some franchised or managed stores, with a focus on consistent hot-pot dining experience and high table turnover during peak times.
• Supply chain: centralized procurement and distribution centers to ensure ingredient quality and margin control.
• Technology & automation: app-based reservations, mobile ordering, in-restaurant robots for food delivery and plate clearing, and in-house R&D for service efficiency.
• Talent model: intensive staff training, internal promotion pipelines, and performance-incentive structures to maintain service standards.

• Dine-in sales - core revenue from hot pot meals, beverages and table add-ons (broths, premium ingredients).
• Delivery and takeaway - growing channel that leverages restaurant kitchens and packaging for off-premise demand.
• Packaged and retail products - pre-packaged hot pot bases, sauces and ready-to-eat products sold online and through retail partners.
• Management fees and franchising - fees from franchised or managed international outlets (notably under Super Hi International after 2022 spin-off).
• Value-added services - private dining, events, loyalty programs and cross-selling of higher-margin ingredients (premium meats, specialty items).

Haidilao International Holding Ltd. (6862.HK): History

• Registration: Cayman Islands (parent holding company)
• Core markets: Mainland China, Hong Kong, Macau, Taiwan
• International vehicle: Super Hi International Holding Ltd. (ticker 9658.HK on HKEX)

• HKEX listing: 9658.HK (late 2022)
• U.S. IPO: May 2024 - raised $52.7 million; IPO price $19.56 per share; implied valuation ≈ $1.26 billion

• Allows Haidilao to prioritize core Greater China operations and capital allocation
• Super Hi concentrates management, branding, and unit economics for overseas markets
• Facilitates targeted capital raises (e.g., U.S. IPO) to fund international rollout without diluting domestic funding strategies

Haidilao International Holding Ltd. (6862.HK): Ownership Structure

• Mission: to provide a unique dining experience by combining high‑quality hot pot cuisine with exceptional customer service.
• Customer‑centricity: continuous product and service refinement to match evolving tastes and expectations.
• Innovation: active integration of technology (e.g., robot‑aided services, smart kitchens, digital ordering and CRM) to raise efficiency and guest satisfaction.
• Global expansion: bringing Chinese hot‑pot culture to international markets through the Haidilao Hot Pot brand and localized store formats.
• Corporate social responsibility: commitment to incident remediation and staff training-illustrated by compensation and procedural improvements following the March 2025 Shanghai hot pot incident.
• Sustainable, long‑term development: focus on operational excellence, brand differentiation and scalable processes to maintain leadership in the casual dining sector.

• Core revenue comes from dine‑in hot pot sales (food and soup bases), complemented by beverage, retail (sauces, packaged broths), and delivery channels.
• High‑service model: long queue management, free extras (snacks, manicures in some markets), and attentive table service drive strong same‑store customer loyalty and frequency.
• Technology leverage: robots and automation reduce labor intensity in kitchen and delivery tasks, improving throughput and margins at scale.
• Franchise/operating model: a mix of company‑operated and franchise/licensed outlets supports faster rollout while retaining quality control in key markets.
• Ancillary income: merchandise, cloud kitchens, catering and joint ventures in international markets diversify revenue streams.

• Founder and management influence: Zhang Yong (founder) and family/associates remain the largest single influence on strategy through direct and affiliated holdings (controlling stake historically in the ~20-35% range, approx.).
• Institutional ownership: global asset managers and Hong Kong institutional investors (BlackRock, Vanguard‑style funds, regional sovereign and pension funds) collectively hold material minority stakes, supporting liquidity.
• Public float and ADR/HK listing: listed on the Hong Kong Stock Exchange (6862.HK) with a broad public float enabling market price discovery and capital‑raising flexibility.
• Board & governance: mix of founder representatives and independent directors; governance emphasis tightened after high‑profile operational incidents and as part of global expansion requirements.

• Post‑incident responses include customer compensation programs, enhanced staff training, stricter food‑safety and service SOPs, and investment in monitoring/automation to reduce human error.
• Ongoing capital allocation balances new store growth, technology investment (robotics, cloud kitchens, data analytics) and return‑focused operations to protect margins while scaling internationally.

Haidilao International Holding Ltd. (6862.HK): Mission and Values

• Business model: Haidilao operates a hybrid network of largely self-operated restaurants supplemented by selectively franchised locations - the company historically maintains a high proportion of self-operated stores to protect service standards and margins (company disclosures indicate the majority of outlets are self-operated).
• Core product: Fresh hot-pot ingredients, proprietary soup bases and an appetizer/dessert line engineered for high repeat frequency and cross-selling.
• Service & experience: Differentiation through hospitality (free snacks, manicures in some locations, attentive table-side service) to increase dwell time and average spend per customer.

• Automation: Robot servers and automated food-delivery tracks are deployed in many locations to reduce labor intensity and speed up delivery; kitchen automation is used for repetitive preparation tasks to improve throughput.
• Digital ordering: Mobile and in-store digital order platforms, QR-based menus and integrated POS tie customer orders to CRM and inventory systems in real time.
• Data analytics: Central analytics monitor table turnover, average ticket, wait times and customer feedback scores - insights drive staffing, dynamic pricing/promotions and menu engineering.

• Fresh-sourcing: A vertically coordinated procurement approach secures cold-chain logistics and direct supplier relationships for seafood, meats and produce to preserve freshness and control costs.
• Centralized kitchens: Regional central kitchens prepare base sauces, pre-cut ingredients and key semi-finished items to ensure menu consistency and lower unit food cost while allowing local kitchens to perform final assembly.
• Quality controls: HACCP-style procedures, supplier audits and batch tracing are used across the network to maintain food-safety standards and reduce spoilage.

• Intensive onboarding: Multi-week training on service rituals, food safety, and brand etiquette; periodic recertification for line staff and chefs.
• Career pathways: Structured progression (server → team leader → shift manager) plus incentive pay and recognition programs to lower turnover and preserve institutional service knowledge.
• Customer-first KPIs: Staff KPIs tied to customer satisfaction scores and repeat-customer rates rather than only sales metrics.

• Key metrics tracked centrally include table turnover, average spending per head, wait-time distribution, repeat-customer ratio and per-store profit contribution.
• Real-time dashboards enable store managers and regional ops teams to reallocate staff, adjust opening hours and launch localized promotions to optimize utilization.

• Dine-in sales: Primary revenue source - high gross margin on broths, side dishes and beverage add-ons coupled with premium service upsells.
• Takeaway & delivery: Growing channel, often at lower margin but useful for utilization during off-peak hours.
• Value-added services: Memberships, packaged sauces and dessert lines sold retail; franchising fees and royalties from select partners.
• Supply-chain synergies: Central kitchen economies reduce unit food costs and improve gross margin across the estate.

• Table turnover rate: Impacts reservation limits, staffing levels, and menu pacing; typically optimized to balance experience and throughput.
• Customer feedback index: Aggregated NPS-style scoring from in-store tablets and app surveys; used to allocate coaching and rewards.
• Inventory turnover & waste rates: Monitored weekly; central kitchens and predictive ordering reduce spoilage and procurement costs.
• Labor productivity: Revenue per labor hour and cover-per-employee ratios drive scheduling algorithms and automation investments.

Haidilao International Holding Ltd. (6862.HK): How It Works

• Core dining - full-service hot pot restaurants with premium customer service and value-added services (e.g., free snacks, manicures, entertainment) that drive higher average checks and repeat visits.
• Franchising - fees, commissions and ongoing royalties from franchised stores, expanding footprint with lower capital outlay.
• Delivery & takeout - in-house delivery and third-party platform partnerships to capture off-premise demand.
• Packaged retail products - pre-made sauces, soup bases and ingredients sold in supermarkets, e-commerce and in-restaurant retail to extend brand reach into home consumption.
• International operations - Super Hi International manages overseas stores and joint ventures, diversifying revenue across geographies.

• High table turnover plus premium average spend per diner (driven by add-on items and beverages) yields the bulk of sales.
• Operational standardization and supply-chain scale improve gross margin on ingredients and packaged goods.
• Franchise royalties and one-time fees provide recurring, lower-cost revenue growth.
• Delivery increases order frequency and reaches customers outside restaurant catchment areas, often at lower per-order spend but higher volume.
• Retail condiments carry higher gross margins and incremental brand exposure, supporting long-term customer lifetime value.

• Premium service model to justify higher average spend and build loyalty.
• Scale purchasing to reduce ingredient costs and support packaged-product margins.
• Franchise program to accelerate coverage with lower capital needs and steady fee income.
• Third-party platform partnerships plus proprietary delivery to capture off-premise demand while negotiating commission structures.
• International expansion and strategic partnerships (including cross-border listings and capital raises) to fund store rollout and diversify revenue.

• Store network: expansion focused - thousands of domestic and hundreds of international outlets (company-operated + franchised) to increase scale economies.
• Revenue mix (approximate illustrative split): company restaurants ~80-85%, delivery/takeout ~5-10%, franchising ~3-5%, retail products ~3-5%.
• Capital raises and strategic listings historically used to fund rapid store growth and overseas entry.

Haidilao International Holding Ltd. (6862.HK): How It Makes Money

• Core dine-in operations: over 1,300 restaurants in Greater China (largest single-market footprint in Chinese hot pot).
• International operations: 126 restaurants across 13 countries, managed/expanded by Super Hi International.
• Retail & packaged products: sauces, ready-to-eat hot pot bases sold online and in-store.
• Franchise/management fees and licensing in select overseas markets.
• Value-added services: delivery, private rooms, catering, membership programs and ancillary sales (beverages, desserts).

• Average ticket: elevated via premium ingredients, set menus and upselling (seasonal and specialty items).
• Turnover management: operating hours, reservation systems and optimized seating to increase daily covers.
• Technology adoption: automated kitchens, queue management, CRM and mobile ordering to cut wait times and labor inefficiencies.
• Retail/omnichannel: online sales of sauces and bases improve margin volatility and brand reach.

• Leading position in China with scale advantage - more than 1,300 outlets gives network effects and bargaining power with suppliers.
• Short-term headwinds: evolving consumer preferences and intensified competition contributed to a 3.7% revenue decline to RMB20.7 billion in 1H2025.
• Growth levers: international expansion (126 restaurants in 13 countries), the Pomegranate plan to diversify offerings, and continued tech integration to enhance experience and lower unit costs.
• Expectation: sustained investment in brand differentiation and global expansion should support medium- to long-term growth and preserve competitive edge in the global restaurant industry.