Haidilao Expands Into Takeaway and New Brands to Offset Slowing Hotpot Sales

Haidilao International Holding is expanding into takeaway services and new restaurant brands to drive growth as core hotpot sales slow [1, 2].

The shift marks a strategic pivot for China's largest hotpot chain as it attempts to diversify revenue streams beyond traditional dine-in experiences. By targeting lower-tier Chinese markets and diversifying its menu, the company aims to capture a broader consumer base amid shifting dining habits [1, 2].

Data from the first six months of 2024 shows a significant surge in the company's delivery business ^[1]. Takeaway revenue for that period reached 2.05 billion yuan, which is approximately U.S.$305 million ^[1]. This represents a year-on-year growth of 121.2 percent ^[1].

The takeaway segment now accounts for 9.2 percent of total revenue, a notable increase from the 4.5 percent share recorded a year earlier ^[1]. This rapid growth suggests a strong consumer appetite for delivery-based options over the traditional, labor-intensive hotpot experience.

To further this diversification, Haidilao is launching new restaurant concepts ^[3]. These include a sushi brand, and a second burger brand ^[3]. These ventures allow the company to enter different fast-food categories and reduce its reliance on a single cuisine type.

In addition to new brands, the company is focusing its expansion efforts on lower-tier cities [1, 2]. These regions often provide untapped growth opportunities as market saturation increases in major metropolitan hubs. The strategy combines a geographic push with a product pivot to sustain momentum ^[1].