Core Viewpoint - The article discusses the emergence of "Jugaogao," a new self-service hotpot brand incubated by Haidilao, which is gaining popularity in the small hotpot market while its predecessor, Xiaobuxiang, faces significant losses and store closures [3][4][23]. Group 1: Jugaogao's Market Entry - Jugaogao operates on a self-service model with a price point of 59.9 yuan per person, offering a wide variety of ingredients, which appeals to consumers' desire for value [2][13]. - The brand has quickly gained traction, ranking fifth in local self-service restaurant popularity in Changsha shortly after opening, and even topping the list in Yichun [13]. - Despite its success, Jugaogao has received mixed reviews, with some customers raising concerns about hygiene and food quality [15][16][20]. Group 2: Haidilao's Strategic Shift - Haidilao has been focusing on internal entrepreneurship, launching multiple sub-brands, including Jugaogao, as part of its "Red Pomegranate Plan" to stimulate growth [6][7]. - The company aims to expand its market presence by adopting a "light asset" model, which reduces costs and risks associated with traditional large-scale restaurant operations [49]. - Jugaogao's smaller store format (100-200 square meters) and self-service approach allow for rapid expansion with lower overhead costs [49][50]. Group 3: Xiaobuxiang's Decline - Xiaobuxiang, once a leader in the small hotpot sector, is now struggling with significant losses, having closed 219 stores in 2024 alone, including 138 Xiaobuxiang locations [40][42]. - The company has reported cumulative losses exceeding 12 billion yuan over the past four years, with a projected loss of 0.8 to 1 billion yuan for the first half of 2025 [33][34][32]. - The decline is attributed to a misalignment with market trends and an unsuccessful shift towards higher-end offerings, leading to a drastic drop in market value [30][37]. Group 4: Market Trends and Challenges - The hotpot market is experiencing a polarization in consumer preferences, with a growing divide between high-end and low-cost options, making the mid-range market increasingly competitive [42][43]. - Jugaogao's pricing strategy targets price-sensitive consumers while maintaining quality, positioning it as a competitor in the value segment [47]. - However, the small hotpot market faces challenges such as intense competition and price wars, which could impact profitability [52].