Chinese hotpot chain Haidilao bets on takeaway, new brands, lower-tier reach for growth

Takeaway emerges as Haidilao’s fastest-growing segment as it diversifies its formats, expands into lower-tier markets despite a soft economy

China’s largest hotpot chain Haidilao International Holding has seen takeaway emerge as its fastest-growing segment, with demand for single-serving meals like rice-bowl sets surging, amid positive revenue and profit growth in the first half.

Takeaway revenue for the Hong Kong-listed group reached 2.05 billion yuan (US$305 million) in the first six months, surging 121.2 per cent year on year. The segment accounted for 9.2 per cent of total revenue, up from 4.5 per cent a year earlier, according to its interim results released on Tuesday evening.

“China’s restaurant industry is highly fragmented – chains hold roughly 20 per cent of the market versus around 40 per cent globally. That means a well-run chain like Haidilao can still gain share even in a soft macro environment,” said Ivan Su, director of equity research at Morningstar.

Over the six-month period, the group posted total revenue of 22.34 billion yuan, up 7.9 per cent year on year. Net profit rose 0.5 per cent to 1.77 billion yuan. The Haidilao brand’s dine-in customers spent an average of 97 yuan, little changed from a year earlier.