The Hong Kong-listed hotpot chain is set to permanently close 300 underperforming restaurants by the end of this year.
This mass store closure plan closely follows Haidilao’s rapid expansion plan last year where it continued to open restaurants despite the uncertainty of the Coronavirus pandemic. The restaurant chain opened 400 restaurants in the Covid-19 period.
Last month, Haidilao, which is China’s biggest hotspot chain, showed signs of struggle, announcing that it would slow down its opening pace to cope with the subsequent slump in consumer spending due to numerous lockdowns. The company has recorded falling table turnover rates and profits, losing $7.76M in the first half of this year.
The company has said that if the average table turnover rate is less than four times per day, no further Haidilao restaurants will be opened on a large scale. Furthermore, the company has said that some of its restaurants will temporarily close and then resume operation in more appropriate times.
