Haidilao diversifies into burgers and sushi as hotpot growth cools

Haidilao International Holding, China's biggest hotpot chain, is expanding into hamburger restaurants and additional sushi outlets to seek new growth. The move comes as its core hotpot business shows slowing momentum.

The domestic burger market is already crowded with international names such as Shake Shack and Burger King, as well as homegrown chains Slowboat and NewYoBo. Haidilao is following the playbook of American brands like McDonald's and KFC.

This is not Haidilao's first attempt at burgers. It launched the Hiburger brand in 2024 and closed the stores in 2025. The group also operates other food concepts, including seafood street-style eateries and Chinese fast-food chains.

According to Ivan Su, a director at Morningstar, Haidilao's sub-brands are unlikely to contribute significantly to earnings. He noted that the company runs more than 20 sub-brands, but none has gained meaningful traction.

Su added that while Haidilao has a strong supply chain and cost structure, China's restaurant industry is hypercompetitive and the brand halo does not transfer easily to new concepts.