Haidilao's takeaway business doubles revenue amid China's economic slowdown

Haidilao International Holding's takeaway business has more than doubled in revenue, reaching 2.05 billion yuan (US$305 million) in the first half of the year, driven by surging demand for single-serving meals such as rice-bowl sets.

The Hong Kong-listed hotpot chain saw its takeaway segment jump 121.2 per cent year on year, now accounting for 9.2 per cent of total revenue compared with 4.5 per cent in the same period last year. The expansion comes as China's largest hotpot operator diversifies beyond its traditional dine-in model amid a softening domestic economy.

Growth despite flat spending

Haidilao posted total revenue of 22.34 billion yuan in the six-month period, up 7.9 per cent year on year, while net profit edged up 0.5 per cent to 1.77 billion yuan. Average spending per dine-in customer at Haidilao-branded outlets held steady at 97 yuan, virtually unchanged from the previous year.

The company is pursuing growth through new formats and expansion into lower-tier cities, capitalising on structural advantages in China's fragmented restaurant market. "China's restaurant industry is highly fragmented: chains hold roughly 20 per cent of the market versus around 40 per cent globally," said Ivan Su, director of equity research at Morningstar. "That means a well-run chain like Haidilao can still gain share even in a soft macro environment".

The interim results, released on Tuesday evening, underscore the chain's strategy to capture demand across multiple channels as consumer spending patterns shift.

Source: South China Morning Post