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Haidilao Hotpot: Care and Innovation as Main Ingredients
Yebin An,Jubok kim,An Ni Yeoh,Yuhao Zhu,Ke Michael Mai Academy of Asian Business (AAB) 2021 Academy of Asian Business Review Vol.7 No.2
The paper examines how Haidilao, the Sichuan Hotpot chain, became a globally renowned catering business through its faithful adherence to the objective of creating a perfect dining experience through building rapport with customers and employees. Supplemented by unique organisational processes, Haidilao achieved transformational growth from humble beginnings and differentiated itself from its competitors by upholding the commonly neglected integrity for food safety, customer service, and care for employees in the catering industry. The paper highlights Haidilao’s customer and employee-centric philosophy during operation and management. Haidilao’s attentive customer service makes the customers feel respected and cared for, while its unique human resource management system cultivates trust and support within the workplace by empowering employees and prioritizing their opinions. Due to the competitiveness in the hotpot market, customers are typically viewed as profit generators and employees as expendable. However, Haidilao firmly espouses the Asian value of “community”, which touches the customers and motivates the employees. Along with an advantageous vertically integrated ecosystem, this value allowed Haidilao to establish itself as a global brand despite the challenges posed by hygiene issues, difficulties of penetrating the Western market, and the COVID19 pandemic. The team concludes the report by offering effective recommendations for Haidilao to overcome its limitations and adapt to the future.
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