HAIDILAO(HK:06862) Sou Hu Cai Jing·2026-01-23 15:24Core Insights - The return of Zhang Yong as CEO of Haidilao is driven by declining revenue and profit, with a 3.7% year-on-year revenue drop and a 13.7% decline in net profit for the first half of 2025 [1][3] - Key metrics such as customer traffic and table turnover rates have also decreased, with a loss of 10 million customers and a turnover rate dropping to 3.8 times per day, below the target of 4 times [1][3] Revenue and Customer Behavior - The average spending per customer has decreased from 110 yuan in 2020 to below 100 yuan, indicating a shift in consumer behavior towards more cost-effective dining options [3][32] - Online discussions about cost-effective dining strategies at Haidilao have emerged, reflecting a trend where customers are seeking to maximize value [3][32] Business Strategy and Expansion - Haidilao has attempted various strategies to address these challenges, including transforming some locations into "nightclubs" and expanding into the children's meal market amid competitors' crises [5][9] - The company has launched the "Red Pomegranate Plan" to foster internal innovation and entrepreneurship, resulting in the incubation of 14 new brands and the opening of 126 new stores by mid-2025 [17][20] Market Position and Competition - Despite the impressive growth in "other restaurant income" by 227%, the revenue from these new brands is still significantly lower than that of the main Haidilao brand, indicating that these initiatives have not yet alleviated the financial pressures on the core business [23][30] - The competitive landscape has shifted, with consumers prioritizing price over brand loyalty, leading to increased pressure on Haidilao to adapt its pricing and service models [32][34] Operational Efficiency and Cost Management - Haidilao's high labor costs, which account for approximately 30% of expenses, are significantly higher than many competitors, necessitating a focus on operational efficiency to maintain profitability [34][39] - The company is exploring ways to enhance efficiency through shared supply chains with its sub-brands, which has contributed to better performance in some new ventures [39][41] Consumer Trends and Expectations - Current consumer preferences indicate a strong desire for value, with many customers favoring substantial food quality over extravagant service or ambiance [32][37] - Haidilao is responding to these trends by launching new concepts that emphasize fresh ingredients and competitive pricing, such as the "Fresh Cut Beef Workshop" and "Seafood Workshop" [37][39]