Core Viewpoint - Haidilao is undergoing a significant transformation, shifting from a traditional hotpot chain to a more diversified restaurant ecosystem, driven by innovative strategies to counter declining revenue and customer traffic [5][11][53]. Group 1: Financial Performance - In the first half of 2025, Haidilao reported a 3.7% year-on-year decline in revenue and a 13.7% drop in net profit, with key metrics like table turnover rate, customer traffic, and store count under pressure [6][8]. - The total number of Haidilao restaurants decreased by 5 to 1,363, with 1,299 in mainland China and 23 in Hong Kong, Macau, and Taiwan [6][7]. - The table turnover rate fell to 3.8 times per day, down from 4.2 times the previous year, indicating a struggle to meet the previously set benchmark of 4 times [7][8]. Group 2: Business Strategies - Haidilao is focusing on multi-brand strategies and expanding its delivery business, with revenue growth rates of 227% for "other restaurant income" and nearly 60% for the delivery business in the first half of 2025 [9][10]. - The company is actively experimenting with new dining experiences, such as the "nightclub mode" and high-end dining options, to attract a broader customer base [11][46]. - The "Red Pomegranate Plan" aims to foster internal entrepreneurship among employees, allowing for the development of new brands and concepts [32][33]. Group 3: Market Positioning and Consumer Insights - Haidilao's unique service model, once a competitive advantage, is now facing consumer fatigue, leading to a need for innovation in service delivery [12][15][44]. - The introduction of themed menus and localized products aims to cater to diverse consumer preferences and enhance customer engagement [26][28]. - The company is also exploring high-end dining options, such as the "Haidilao Premium Store," which features a higher price point and exclusive menu items [46]. Group 4: Challenges and Future Outlook - Despite the rapid growth of the delivery business, it remains insufficient to offset the decline in dine-in sales, highlighting the need for a balanced approach to service quality and operational efficiency [48][52]. - The challenge lies in balancing standardization with the demand for personalized dining experiences, as the company navigates its transformation [44][53]. - Haidilao's future success will depend on its ability to innovate while maintaining its core brand identity, as it seeks to establish a second growth curve amidst a competitive landscape [53][54].

Core Insights - The new brand "Lao Bao Jie" under Haidilao has opened its first store in Changchun, focusing on "Old Beijing | Trendy Hot Pot" [1][6] - Haidilao's "Lao Bao Jie" concept was first introduced in 2023 during a pop-up event in Guangzhou [3][6] - The opening in Changchun reflects Haidilao's strategic market positioning and the use of regional characteristics to expand its sub-brands [6] Brand Development Strategy - In 2024, Haidilao launched the "Pomegranate Plan" aimed at incubating and developing more new restaurant brands [6] - In the second half of 2024, Haidilao created 11 sub-brands through the "Pomegranate Plan" [6] - The company continues to diversify its offerings, introducing new categories such as the bakery brand "SHUA BAKERY" and the clay pot dish brand "Cong Qian Yin Xiang" [6] Market Positioning and Consumer Feedback - "Lao Bao Jie" is speculated to combine traditional copper pot hot pot with modern trendy elements, likely maintaining a high cost-performance strategy [6] - Some consumers have expressed concerns about the location of the new store, noting it is not easily accessible [6] - Despite Haidilao's continuous innovation and multiple brand launches, the visibility of its sub-brands remains relatively low [6]