Core Viewpoint - Haidilao is undergoing a significant transformation, shifting from a traditional hotpot chain to a more diversified restaurant ecosystem, exploring new business models and marketing strategies to counter declining revenues and customer traffic [1][5][38] 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 such as table turnover rate, customer traffic, and store count under pressure [1][3] - The total number of Haidilao restaurants decreased by 5, totaling 1,363, with 1,299 in mainland China and 41 franchises [1][2] - The table turnover rate for self-operated restaurants was 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 [2][3] Group 2: Business Strategy and Innovation - Haidilao is actively pursuing a multi-brand strategy and enhancing its delivery services, with revenue from "other restaurants" and delivery business growing by 227% and nearly 60% respectively in the first half of 2025 [3][24] - The company is experimenting with new concepts such as "nightclub mode" and launching themed menus to attract customers, including a "night snack menu" featuring new dishes and cocktails [8][13][15] - The "Red Pomegranate Plan" was introduced to encourage internal entrepreneurship among employees, aiming to expand and incubate new brands beyond the main Haidilao brand [22][23] Group 3: Market Position and Challenges - Despite the rapid growth of the delivery business, it still contributes a relatively small portion to overall revenue, and maintaining service quality during this expansion poses a significant challenge [35][37] - The company faces intense competition in the delivery market, having entered a crowded space where many players are vying for market share [37] - Haidilao's traditional service model is being challenged by changing consumer preferences, necessitating a balance between standardization and personalized experiences [38]

Core Viewpoint - Haidilao is testing the high-end market with its new store model, Haidilao·Zhenxuan, featuring a per capita consumption of nearly 700 yuan, significantly higher than its regular outlets [2][5]. Group 1: New Store Model - The first Haidilao·Zhenxuan store opened in Beijing's Guomao business district, focusing on Cantonese-style hot pot with high-quality seafood and Wagyu beef [2]. - The store spans over 1,000 square meters but has only 26 tables, featuring a low-key luxury design with independent private rooms and specialized areas for tea and cocktails [5]. - The service staff includes tea and wine sommeliers from Michelin-starred restaurants, with an additional service charge of 10% to 15% [5]. Group 2: Market Response and Strategy - The initial response to the Zhenxuan store has been positive, with full bookings during evening hours since its trial opening on July 8 [9]. - Haidilao aims to cater to high-spending customers by limiting membership benefits at the Zhenxuan store, which only supports points accumulation and does not offer student discounts [5][11]. - The launch of the Zhenxuan store represents Haidilao's first attempt to move upmarket, contrasting with its previous focus on affordable dining options [10]. Group 3: Industry Trends - The hot pot market is experiencing polarization, with mid-to-high-priced establishments gaining traction among consumers seeking quality dining experiences [12]. - The overall hot pot industry in China is projected to grow steadily, with a compound annual growth rate of approximately 6.5% from 2024 to 2029, while the quality hot pot segment is expected to grow at a rate of 7.8% [13]. - Haidilao plans to enhance its restaurant management by allowing more autonomy to frontline staff and introducing various themed dining experiences to meet diverse consumer needs [14].

Core Viewpoint - Haidilao is testing the high-end market with its new store model, Haidilao · Zhenxuan, which has an average spending of nearly 700 yuan per person, significantly higher than its regular outlets [2][7][10]. Summary by Sections New Store Model - The first Haidilao · Zhenxuan store has opened in Beijing's Guomao business district, focusing on high-quality seafood and Wagyu beef, with a more refined environment and service [4][10]. - The store spans over 1,000 square meters but has only 26 tables, featuring a low-key luxury design with nine private rooms and various dining areas [10][11]. Consumer Response and Market Positioning - Initial consumer feedback has been mixed, with some praising the quality of ingredients and ambiance, while others criticize the service and perceived value compared to regular outlets [11]. - The store has adopted a limited reservation model during its trial phase, which has now transitioned to full operations with high occupancy during dinner hours [11]. Market Trends and Strategic Direction - The launch of the Zhenxuan store reflects a broader trend in the hot pot market towards premiumization, as consumer demand for quality dining experiences increases [12][14]. - The hot pot industry is experiencing polarization, with mid-to-high-end establishments gaining traction among consumers seeking quality and service [14]. - Haidilao plans to diversify its offerings by introducing various themed restaurants and enhancing customer engagement to meet specific dining needs [15].