HAIDILAO(HK:06862) 3 6 Ke·2025-08-28 12:28Core Viewpoint - Haidilao's strategic decision to expand its franchise model is a calculated move aimed at enhancing operational efficiency and market penetration, rather than a reaction to financial pressures [9]. Group 1: Franchise Expansion - As of June 30, 2025, Haidilao operates 1,363 self-operated restaurants and 41 franchise restaurants, with 25 new self-operated and 3 franchise restaurants opened in the first half of the year [1]. - The franchise business generated revenue of 90.849 million yuan in the first half of 2025, a significant increase from 1.899 million yuan in the same period of 2024 [3]. - Haidilao has received over 20,000 franchise applications since opening its franchise model in 2024, indicating strong interest in the brand [1][9]. Group 2: Franchise Model Characteristics - Haidilao employs a "strong management" franchise system, ensuring uniformity in operations, training, performance evaluation, and brand building across franchise and self-operated restaurants [4]. - Franchisees are required to first acquire an existing restaurant before opening new ones, which helps them quickly understand the brand's management and culture [5]. - The initial investment to open a Haidilao franchise is considered to be around 10 million yuan, with actual costs potentially higher due to various operational expenses [8]. Group 3: Strategic Rationale - The franchise model is seen as a way to leverage local resources and insights, particularly in lower-tier cities where direct management may not be as effective [9]. - Haidilao's management emphasizes that the franchise expansion is not a desperate measure for cash flow, as the company has the capability to continue opening restaurants independently [9]. - The combination of old and new store franchises is designed to enhance franchisee understanding of the brand and reduce the time needed for training [3][5].