Chinese hotpot chain Haidilao International Holding is set to launch its franchise model for Haidilao restaurants, marking a significant shift in its business strategy.  

Haidilao has historically grown its network under a self-operation model, adhering to a philosophy of aligned interests and disciplined management.  

The company has been exploring business models and now recognises the potential of franchising in the evolving catering industry.  

The franchise model complements the self-operation model, allowing for a more moderate pace of expansion. 

Haidilao will implement stringent criteria for selecting franchisees, focusing on their alignment with the brand's values, strategic vision, industry experience and financial strengths.  

The company aims to maintain uniform operational and quality standards across all restaurants, whether self-operated or franchised.  

Franchisees will receive comprehensive central and back-office support from Haidilao, including staff training, food safety controls, supply chain management, brand marketing support and performance evaluations, to ensure consistency in food safety and customer experience. 

The rollout of franchised restaurants will follow a disciplined and systematic approach, taking into account market size, competition, property conditions and location.  

Haidilao has established a dedicated franchise department to develop the franchise model's details and the business co-operation process. 

Founded in 1994, Haidilao International Holding has grown into a globally recognised catering enterprise.  

By 30 June 2023, the company operated 1,360 restaurants in China. With the introduction of the franchise model, it is poised to serve more customers in more regions under the Haidilao brand.

The company is confident that the launch of a franchise model will bolster its operational capabilities, attract quality resources and enhance overall efficiency while upholding its management standards and customer service experience.