Chinese hot pot chain Haidilao announced its financial results for the fiscal year of 2019 and said its expansion plan will not be affected by the coronavirus pandemic.
In 2019, the popular hot pot restaurant chain achieved a total revenue of 26.6 billion yuan, up 56.5% year-on-year. Revenue from hot pot reached 25.6 billion yuan, accounting for 96.4% of the total revenue. Net profit increased 42.3% year-on-year to 2.35 billion yuan.
Haidilao opened 308 stores in 2019, including 291 on the Chinese mainland and 17 in regions and countries outside the mainland. And six stores were closed or relocated. As of the end of 2019, there were 768 Haidilao restaurants across the globe.
According to Haidilao management, 303 stores are ready to open with signed contracts, of which 93 stores are being decorated. They expect to have 1,000 stores globally by the end of this year.
As for the 3,000 stores target set a few years ago, the management believe it is still achievable given the huge catering market. Before the coronavirus outbreak, Haidilao restaurants maintained an average table turnover rate of roughly 5 times per day, a higher number than those of their competitors.
Due to concerns over the spread of the virus, Haidilao had closed all stores in mainland China since Jan. 26. Starting March 12, Haidilao has gradually resumed operations, and over 600 restaurants have reopened so far. The hot pot brand said the turnover rate is steadily improving as the coronavirus situation is getting better.