Core Viewpoint - Jiumaojiu (09922) experienced a decline of over 4% in early trading, currently down 3.77% at HKD 2.81, with a trading volume of HKD 32.61 million. The company will hold a board meeting on August 22 to approve its interim results, amid ongoing operational pressures and declining same-store sales across its brands [1]. Group 1: Company Performance - As of the end of June, Jiumaojiu had a total of 729 restaurants categorized by brand [1]. - In Q2 2025, same-store average daily sales for Taier (self-operated only) decreased by 13.7%, Song Hot Pot by 14.3%, and Jiumaojiu by 18.5% [1]. - Despite the pressure on same-store performance, the year-on-year decline for Taier narrowed from 21.2% in Q1 to 13.7% in Q2, indicating initial success in operational adjustments [1]. Group 2: Pricing and Revenue Quality - In Q2, the average customer spending for Taier (Mainland China) and Jiumaojiu increased by 1.5% and 1.8% respectively, while Song Hot Pot saw a decrease of 2.0% [1]. - The company is stabilizing customer spending through measures such as optimizing the menu structure, which is expected to enhance overall revenue quality despite ongoing challenges in customer traffic recovery [1].

Core Insights - Pricing strategy is crucial in the restaurant industry, as it directly influences consumer purchasing decisions and overall brand positioning [2][5]. Pricing Logic - McDonald's breakfast pricing is based on the average time customers spend eating breakfast, which is estimated to be 10-15 minutes, leading to a price point of 13.9 yuan for their breakfast combo [4][5]. - There is a positive correlation between the amount customers are willing to spend and the time they are willing to spend eating, with different meal times (breakfast, lunch, dinner, afternoon tea) having distinct average spending amounts [5][6]. Customer Spending Patterns - Average spending per meal varies by time of day: breakfast (10-15 yuan), lunch (30 yuan), and dinner (60-120 yuan), reflecting the time customers are willing to dedicate to each meal [5][6]. - Afternoon tea typically sees spending in the range of 15-30 yuan, aligning with the 15-30 minute break time [6]. Average Spending Metrics - The distinction between average ticket size (AC) and average per person spending (PPA) is important, as AC reflects the total transaction amount while PPA indicates individual spending [8][9]. - Understanding these metrics helps in analyzing consumer behavior and brand positioning within the market [11]. Market Segmentation - The Chinese restaurant market is segmented into two main categories and eight price tiers, with specific price points defining each tier for both formal and informal dining scenarios [12][14]. - Price tiers are based on average spending and dining duration, with clear distinctions made for different meal types [15]. Regional Variations - Average spending varies significantly across different regions in China, influenced by local income levels, disposable income, and consumer habits [18][21]. - The classification of average spending is dynamic and should be adjusted periodically to reflect changes in the Consumer Price Index (CPI) and actual consumer behavior [21][22]. Trends in Consumer Spending - There is a noticeable downward trend in average spending in the restaurant sector, which has implications for pricing strategies and market positioning [26][30]. - Historical comparisons with Japan's restaurant market suggest that economic recovery and consumer spending patterns may take time to stabilize [31][32].

Core Viewpoint - Haidilao reported a revenue of 42.75 billion yuan and a net profit of 4.708 billion yuan for 2024, marking year-on-year growth of 3.14% and 4.65% respectively [1] Group 1: Business Performance - The table turnover rate increased from 3.8 times per day in 2023 to 4 times per day in 2024, reaching the company's internal threshold for expansion [1] - In 2024, Haidilao opened 62 new restaurants, re-opened 2 previously closed locations, and closed or relocated 70 restaurants [2] - The average table turnover rate for new restaurants in 2024 was 4.4 times per day, outperforming older locations [3] Group 2: Franchise Strategy - Haidilao launched its franchise model in 2024, with a total of 1,368 restaurants, including 13 franchise locations, of which only 3 were newly opened franchises [2] - The company established a three-round screening mechanism for franchisees to ensure quality and operational capability, resulting in a low approval rate for applicants [2] - The franchise model is seen as a supplement to existing operations rather than a replacement, with 70% of franchise applications coming from third-tier cities and below [2] Group 3: Financial Metrics - The average customer spending decreased to 97.5 yuan in 2024, a drop of 1.6 yuan year-on-year, returning to levels seen eight years ago [3] - Despite the decline in average spending, there was a slight increase in the second half of 2024 compared to the first half, with a year-on-year increase of 1.6 yuan in the latter half [3] - Haidilao's takeaway business saw a revenue increase of 20.4%, rising from 1.0415 billion yuan in 2023 to 1.254 billion yuan in 2024, driven by the introduction of a "single meal" premium takeaway service [3]