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].

Core Viewpoint - Haidilao is actively expanding its business lines to seek new growth opportunities amid increasing competition in the hot pot market, which has seen a decline in net store openings [2][3][4]. Group 1: Business Expansion - Haidilao has launched a new self-service hot pot concept called "Juhighao Self-Service Hot Pot" in cities like Changsha, Ningbo, and Nanjing, priced at 59.9 yuan per person, attracting significant consumer interest despite long wait times [2]. - The company has been diversifying its offerings since 2024, introducing new brands in various categories such as spicy hot pot, clay pot dishes, grilled fish, and baking, indicating a strategic move to explore multiple revenue streams [2][4]. - The hot pot market is becoming increasingly competitive, with new brands emerging and traditional restaurant giants entering the space, leading to a challenging environment for established players like Haidilao [3][4]. Group 2: Market Challenges - The hot pot industry has experienced a net decrease of 29,676 stores over the past year, highlighting a trend where the number of closures exceeds openings, which poses a significant challenge for all brands, including Haidilao [3]. - Despite achieving a service volume of 414 million and an average of 303,000 service visits per store in 2024, Haidilao's revenue growth has slowed, with a reported revenue of 42.75 billion yuan, a mere 3.1% increase year-on-year, compared to much higher growth rates in previous years [4][3]. Group 3: Diversification Strategy - Haidilao's diversification strategy includes launching a baking brand "Schwasua," which has seen initial success but faces challenges in maintaining consumer interest and differentiation in a crowded market [5][7]. - The company is also transforming its hot pot restaurants into nightlife venues, offering a broader range of services and products, such as DJ performances and themed food items, to attract a different customer base [5][6]. - The "Red Pomegranate Plan" aims to develop multiple brands and ecosystems with minimal costs, allowing Haidilao to experiment and adapt its offerings based on market feedback [7][9]. Group 4: Future Outlook - While the expansion into new business lines is intended to alleviate growth anxiety, the effectiveness of these initiatives in driving significant revenue growth remains uncertain and will require time to evaluate [8][9]. - The dual nature of expanding into new lines presents both opportunities and challenges, particularly concerning supply chain and operational costs, which could impact the overall success of these ventures [8][9].