Hot Pot Chain Haidilao Reports $6.43B Loss, 276 Restaurants Closed in 2021

Chinese hot pot restaurant chain Haidilao has announced audited financial results for the year ended December 31, 2021.

Haidilao recorded revenue of 41 billion yuan ($6.43 billion) in the period, increasing by 43.7% as compared to 2020. Meanwhile, loss attributable to shareholders was 4.16 billion yuan, as compared to the profit attributable to shareholders of 309.3 million yuan for the previous year.

Revenue from Haidilao restaurant operations, which accounted for 96% of the total revenue in 2021, increased by 43.9% from 27.43 billion yuan in 2020 to 39.46 billion yuan in 2021. The average table turnover rate in 2021 was three times per day. The average spending per guest decreased from 110.1 yuan in 2020 to 104.7 yuan in 2021, primarily due to changes in the average number of orders per client and other reasons.

Revenue from Haidilao’s delivery business decreased slightly from 717.7 million yuan in 2020 to 705.7 million yuan in 2021, as delivery business was affected by changes in the COVID-19 pandemic prevention and control policies across various regions.

Due to the overall operation of Haidilao restaurants, the company announced the launch of the “Woodpecker” plan to adjust its expansion strategy and close some restaurants, and also planned to appropriately reduce some future capital investment.

Throughout 2021, Haidilao opened 421 new restaurants and closed 276 restaurants, 16 of which were due to the expiration of leases and other reasons. 32 restaurants were temporarily closed for reorganization under the “Woodpecker” plan.

As of December 31, 2021, Haidilao had a global network consisting of 1,443 restaurants, including 1,329 in mainland China, 114 in Hong Kong, Macao and Taiwan, as well as 11 other countries.

Famous for its warm and considerate service, the group announced a total of 146,584 employees, of which 135,687 were located in mainland China and 10,897 were located in Hong Kong, Macao and Taiwan, and other countries. Haidilao’s staff costs increased by 53.7% from 9.68 billion yuan in 2020 to 14.87 billion yuan in 2021. As a percentage of revenue, its staff costs increased from 33.8% in 2020 to 36.2% in 2021.

Alongside the “Woodpecker” plan, Haidilao has named its Deputy CEO and COO Yang Lijuan as the new CEO. Previously a waiter, Yang has worked at the company for 27 years and is a key figure for the company’s departure, from its origins in Sichuan and the development of operations in the national market. Zhang Yong, Chairman of the Board and former CEO of the company, will continue to serve as Chairman of the Board and Executive Director.

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