Is Haidilao going to be cold? Closing 300 stores, the founder Daniel Zhang: We are too confident

Haidilao closed about 300 stores that did not meet expectations, which still had a certain impact on Haidilao. After all, it has more than 1,000 stores.

Many people said that Haidilao is going to be cold?

In this regard, in the reply given by Haidilao, the founder Daniel Zhang said that my judgment of the trend was wrong, when I made plans to further expand the store, now it seems that it is indeed blind confidence, when I realize the problem is too late.

The above words, translated into human words, are that we are too confident, so that we blindly expand, copy the bottom of the industry, and the result collapses.

Haidilao's fame has always been very high, when it comes to Haidilao, everyone thinks of the service that is extremely nuanced, and even slightly embarrassing.

Since 18 years ago, Haidilao was listed on the Hong Kong Stock Exchange, with a market value of HK$470 billion. The founders Daniel Zhang and his wife have also successfully sat in the position of the richest man in Singapore, which can be said to have a bright future.

However, everyone also knows that under the influence of the epidemic, the catering industry as a whole is miserable, and the hot pot track in the catering field is one of the most competitive tracks.

It is reasonable to say that even if Haidilao has a good reputation, coupled with its own good advantages, in such a big environment, it is very necessary to maintain a rational store opening strategy, but Haidilao does not do this, but expanded hundreds of new stores last year.

The new store opening is bound to bring about the problem of high cost. I have often seen people say that when I go to eat Haidilao, I found that the price of Haidilao's dishes has risen a lot, not to mention, the small snacks before the meal are not a grade before, and the sense of experience has dropped several grades.

Closing 300 stores at once definitely has some impact on the operation, such as stock price fluctuations, but we will not pull so far, let's say the most practical placement of employees.

When the store was closed this time, Haidilao said that it would not lay off employees, which was very good, reflecting Haidilao's responsibility and responsibility. However, as later said, corresponding adjustments will be made, saying that it is necessary to strengthen the internal management and assessment mechanism. What do you mean? For example, if the company starts to strictly assess your commuting time, what does it mean? In fact, it is to grasp the "handle".

To be honest, most businesses don't do unprofitable businesses. Today, it is clear that there will be no layoffs, but it may divert you to other stores. If there is no local store, then assign you to a different store, you have to dislike, then you can go by yourself, anyway, the company does not lay off employees, so look, is there nothing wrong with it?

Of course, we are not saying that Haidilao will do this, but there are such companies in the market that will do such things.

Therefore, the real no layoffs must be to ensure that the income of employees does not decline, nor to transfer to a different store, not to let employees make difficult choices, so as not to lay off employees, otherwise they are just doing superficial work.

In addition, Haidilao's closure this time is somewhat similar to the scene in which Starbucks closed 600 stores in 2008. Stopping and adjusting at the right time is also a bad thing. Only in this process, do not let employees pay for their blind optimism, that is really responsible.