Since its listing, Haidilao, a leading enterprise in the hot pot industry, has been on the Weibo hot search list almost every time it releases its annual report, and the topic mainly revolves around its annual report data, such as revenue, net profit, turnover rate, customer flow, per capita consumption amount, etc., which shows the high attention of the outside world to Haidilao.
On March 27th, the three words Haidilao appeared on the Weibo hot search list without accident, and the complete topics related to it are #Haidilao turnover rate of 3.8 times a day# and #Haidilao more than one million people enter the store to eat hot pot every day#. The two sets of data in the hot search topic are both from Haidilao's freshly released 2023 annual report.
In the financial report, the reporter noticed that Haidilao will slow down the speed of store opening in 2023, emphasizing the improvement of the profitability and operational efficiency of the operating stores, this year, Haidilao's overall revenue is about 41.453 billion yuan, and the profit for the year is about 4.495 billion yuan.
The turnover rate is 3.8 times/day,
In 2023, it received more than 397 million customers
In 2023, Haidilao's overall revenue will be approximately RMB41.453 billion, representing a year-on-year increase of 33.6%, and the profit for the year will be approximately RMB4.495 billion. Specifically, Haidilao's revenue mainly comes from restaurant operations, accounting for about 94.7%, followed by takeaway business.
In 2023, Haidilao's income
According to the financial report, in 2023, Haidilao's primary goal is to improve the profitability and operational efficiency of its operating stores.
In 2023, Haidilao's per capita consumption and turnover rate of customers
In 2023, the overall turnover rate of Haidilao restaurants will be 3.8 times/day, the same-store turnover rate will be 3.9 times/day, and the overall and same-store turnover rates will be 3.0 times/day and 3.1 times/day respectively in 2022. Haidilao restaurants received more than 397 million customers in 2023, an increase of 43.7% year-on-year. The per capita spending of Haidilao's customers decreased from RMB104.9 in 2022 to RMB99.1 in 2023, mainly due to the increase in discounts.
An analyst at Zheshang Securities said: "With the turnover rate remaining high, Haidilao's store opening space is still broad. We expect Haidilao's actual store opening rhythm to be optimistic and optimistic with the store operation, and Haidilao is expected to maintain at least single-digit growth rate of new store openings in 2024. ”
According to the previous announcement, Haidilao has made many adjustments in the rhythm of opening stores. In 2019, Haidilao launched a rapid expansion strategy, with data showing that in 2019 and 2020, Haidilao opened 308 and 544 new stores respectively.
In 2021, based on the overall operation of the restaurant, Haidilao decided to adjust its expansion strategy, close some restaurants and plan to appropriately reduce future capital investment. Data shows that in 2021, Haidilao opened 421 new restaurants and closed 276 restaurants, of which 16 were closed due to lease expiration and other reasons. As of December 31, 2021, Haidilao had a total of 1,443 stores worldwide.
In November 2021, Haidilao launched the "Woodpecker Plan", which took measures such as closing some stores, continuously promoting and polishing the store management system, rebuilding and strengthening functional departments, emphasizing corporate culture, and improving employee training. In the second half of 2022, Haidilao launched the "Hard Bone Plan" to reopen some restaurants that had been closed in the past, opening a total of 24 new Haidilao restaurants throughout the year, while 48 restaurants that had been closed resumed operations and 50 restaurants with poor performance were closed.
In Haidilao's view, the ability to turn losses into profits in 2022 is due to the "Woodpecker Plan" and the "Hard Bone Plan". As of December 31, 2023, a total of 1,374 Haidilao restaurants were operated, 9 new Haidilao restaurants were added throughout the year, 26 Haidilao restaurants that were closed in the early stage were restarted, and 32 Haidilao restaurants were closed.
"After nearly 10 years of supply chain reform, the overall business format has undergone fundamental changes, and today, the number of Juewei duck neck/KFC/Luckin coffee stores has exceeded 10,000. Haidilao currently has a total of less than 1,400 stores, and from a long-term perspective, combined with the company's liberalization of the franchise model, the long-term store space is still broad. Zheshang Securities analysts pointed out.
Encourage employees to master more job skills
The "Subject 3" dance video has been viewed more than 5 billion times
In Haidilao's view, in 2023, this concept has greatly improved the restaurant's service quality and business effectiveness.
According to the financial report, Haidilao emphasizes the high degree of autonomy of employees, implements full incentives and full delegation of power, and further mobilizes the enthusiasm of employees. Haidilao implements a salary system of "low basic salary and high dividends" for key management personnel, according to which the salary of store managers is directly linked to the operating profit and management level of the store. For other employees, Haidilao continues to adopt a piecework wage system, advocates the concept of more work and more rewards, encourages employees to master more job skills, and the key employees of the store participate in the profit sharing of the store, so as to mobilize the enthusiasm of employees.
"Under the effective incentive system, our employees can timely and accurately understand customer needs and give feedback, forming a good case of service innovation. On this basis, we have opened up learning and sharing channels within the enterprise, encouraged healthy competition at the regional level and store level, and quickly popularized excellent service innovation cases to all Haidilao restaurants. From May 2023, some stores will start to carry out concert drainage activities, preparing support materials such as mineral water, light sticks, LED light signs printed with the store name, and arranging buses to pick up customers after the concert. In November 2023, Haidilao employees interacted with customers in the form of 'subject three' dance, which was well received by customers, and the relevant interactive video was quickly widely spread on social media, with the video receiving more than 60 million likes and more than 5 billion views on the Douyin platform, becoming a global phenomenon. Haidilao said.
Zheshang Securities analysts said: Haidilao is one of the few catering brands in mainland China that is suitable for all ages, well-known and has the attribute of "spiritual consumption", and its brand positioning of "small gathering" just fits the needs of young people for "emotional value". Since 2023, the main consumer army, mainly the post-90s and post-00s, is no longer satisfied with pure material consumption, but prefers "spiritual consumption" that can provide additional emotional value. Since 2023, the popularity of topics such as stalls in Haidilao Night Market, concerts "Fishing for People", "Subject 3" dance, and frozen roses has continued to rise, which is a factual example of Haidilao's brand positioning based on "Little Joy Gathering" and "breaking 10,000 volumes through innovation".
Looking ahead, Haidilao's development initiatives mainly include: continuously improving Haidilao's dining experience, including continuously improving our service capabilities and providing further value-added services to customers, continuing to explore diversified business strategies, such as exploring catering start-up brands and restaurant franchise formats, and strategically seeking to acquire high-quality assets to further enrich our catering business and customer base.
Beijing News Shell Financial Reporter Yan Xia
Edited by Xu Chao
Proofreading by Yang Xuli