Core Insights - Haidilao has entered the sushi market with its new brand "Rushi Sushi," offering over 200 affordable dishes, primarily priced at 9.9 yuan and 15 yuan, indicating a strategic move to diversify its offerings beyond hot pot [1][3][4] Group 1: Market Entry and Strategy - The sushi market has seen significant growth in recent years, with international chains expanding rapidly in China, making Haidilao's entry into this sector a logical step [1][7] - Rushi Sushi's pricing strategy aligns with popular sushi brands, focusing on high quality at affordable prices, with a menu that includes sushi, sashimi, noodles, and desserts [3][5] - The "Red Pomegranate Plan" initiated by Haidilao aims to incubate and develop new restaurant brands, leading to a richer brand portfolio and new growth avenues [4][5] Group 2: Brand Development and Performance - Since the implementation of the "Red Pomegranate Plan," Haidilao has expanded its brand matrix to 14 second brands, with "other restaurant revenue" increasing by 227% year-on-year, highlighting the success of this diversification strategy [5][8] - The introduction of Rushi Sushi is part of a broader trend where Haidilao is exploring various culinary categories, including hot pot, grilled meat, and now sushi, to mitigate competition in the hot pot sector [8][10] Group 3: Operational Challenges and Market Dynamics - The sushi segment is characterized by high competition and market potential, with over 23,000 sushi outlets in China, but it also faces challenges such as product homogeneity and a lack of innovation [8][9] - Haidilao must navigate significant operational differences between hot pot and sushi, particularly in supply chain management and customer expectations regarding freshness and quality [9][10] - Balancing the core hot pot business with new ventures like sushi requires careful management of supply chains, cost structures, and brand positioning to ensure sustainable growth [10]