Recently, Haidilao has been on the hot search again.
Ms. Geng, a customer, and a friend dined at a Haidilao hot pot restaurant in Anyang, Zhengzhou, and ordered a crispy and crispy belly, thinking that the portion was not quite right. Later, a check with the waiter of Haidilao found that the specification of 200g was actually only 138g.
Haidilao officials explained in a public apology on the same day that it was an operational error, and has strengthened rectification to support customers to protect their rights according to law. Because the customer's cash compensation of 20,000 yuan has not been agreed, it has been voluntarily reported.
Although this case of customer complaint has temporarily subsided, it has still caused a lot of shocks. On October 21, Haidilao fell more than 5% in the intraday.
In fact, Haidilao has been hit hard since March this year, and its market value has evaporated by HK$300 billion during the National Day. Haidilao founder Daniel Zhang and his wife fell from Singapore's richest man.
Haidilao is facing the biggest dilemma since its inception.
01 The dilemma of opening and closing stores
Haidilao's former rapid growth relied on large-scale stores.
In just five years from 2015 to 2019, the number of Haidilao stores has increased rapidly from only 146 to 768. After a year of expansion in 2020, the number of stores worldwide has soared to 1298.
In the first half of this year, Haidilao has not stopped the pace of large-scale expansion, adding 623 new stores and increasing the number of global stores to 1597.
Among the 623 new stores added by Haidilao in the first half of the year, 72 new first-tier cities, 207 new second-tier cities, and 344 new third-tier cities, the sinking trend to third-tier cities is obvious.
Daniel Zhang the expansion strategy of bucking the trend and bottoming out, in order to seize the opportunity of lower rent in the post-epidemic period. For lower-tier cities, there are not only lease advantages, but also good preferential policies. However, in the general environment, there are still uncertain business risks.
The Haidilao store in Dameicheng, Anyang, Henan Province, just tried to open on December 12 last year, because Dameicheng suddenly went bankrupt, resulting in Haidilao being forced to close the store before the National Day, and it was less than a year after its opening.
The quality of expansion in third-tier cities has cast a shadow over Haidilao's sinking development.
Moreover, due to business expansion, Haidilao's capital-liability ratio in the first half of the year reached 75.4%, nearly double the year-on-year increase over the first half of 2020.
The sequelae brought about by large-scale store opening have also brought a chain reaction in terms of unit price and turnover rate.
02 The dilemma of per capita consumption and turnover rate
According to Haidilao's semi-annual financial report, as of June 30 this year, the per capita consumption was 107.3 yuan, compared with 112.8 yuan in the first half of last year.
Haidilao's turnover rate is also declining. Judging from the semi-annual report data, the overall turnover rate in the first half of this year was 3.0 times / day, compared with 3.3 times / day last year. Among them, the turnover rate of third-tier cities has dropped more, from 3.6 times/ day to 2.9 times / day. It seems that the decline in the flow of customers from the sinking market to the store is much more serious than that in first- and second-tier cities.
In fact, Haidilao's overturning rate ranged from 5.0 times/day of highlight moments in 2018 to 4.8 times/day in 2019, and then to 3.5 times/day in 2020. It's been down for three consecutive years.
According to Guosen Securities, the turnover rate of 3 times / day is the break-even line of Haidilao single store, falling below this value, which means that Haidilao single store is in a state of small profit or loss.
The overturning rate of 3 times / day is undoubtedly an early warning signal of Haidilao.
For Haidilao, it is indeed difficult to expand and ensure profitability.
03 The dilemma of service and vegetable prices
According to data from Baiguan Technology, the average daily peak queuing of Haidilao's single store in January 2021 was 304.7, which dropped to 189.25 in May.
What is the reason why consumers no longer prefer Haidilao when eating hot pot?
In the past, Haidilao went out of the circle because of its high-quality service, and "Haidilao You Can't Learn" was also studied and studied by many in the industry. However, nowadays, the service level of many brands has been greatly improved, and the service difference between Haidilao and Haidilao is not much. When consumers are faced with increasingly expensive dishes after tasting and hunting, they are no longer willing to pay for high prices.
Since last year, many fishing fans have found that Haidilao's dishes are secretly increasing in price.
"7 yuan a bowl of rice, 13 yuan for half a potato"... Forced by the complaints of netizens, Haidilao, which issued an apology letter in April last year and restored the original price, is still quietly increasing its price after that.
Not long ago, Sina Finance launched a haidilao among consumers whether to choose haidilao after the price increase, and 78% of consumers said they would not. Netizens shouted "too expensive to eat". Especially in third-tier cities, the price of Haidilao is 2-3 times that of ordinary hot pot, and per capita consumption basically has no cost-effective advantage.
In addition, product problems such as customers eating fish hooks from the pot, finding hard plastic pieces in black chicken rolls, and "short pounds less than two" in the hair belly are also under the rapid expansion, exposing the negligence of quality management under the store management of large and small areas. It also makes consumers gradually lose their attractiveness to Haidilao.
04 Conclusion
In the first half of 2021, Haidilao's net profit margin on sales was only 0.48%, far lower than that of other peers.
On the track of the hot pot jianghu, there has always been no shortage of beach grabbers. Sipping and nursing are practicing expansion, Banu is embracing capital, Laowang is preparing for listing, and Xiaolongkan will also show his fists after adjustment...
I wonder if Haidilao already has an effective way to solve the current dilemma?
I remember that at the peak of Haidilao, someone asked Duan Yongping how to look at Haidilao, and Duan Yongping said that what he "ate" would eventually return to "eating".
Perhaps, all hot pots will eventually return to "eating"...
#海底捞回应毛肚事件 #