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Haidilao's takeaway business surges 121% as it expands into lower-tier cities
China's largest hotpot chain Haidilao saw takeaway revenue surge 121% in the first half, as the Hong Kong-listed group diversified into new formats and expanded into lower-tier markets despite a soft economy.
Takeaway revenue for Haidilao International Holding reached 2.05 billion yuan (US$305 million) in the first six months, jumping 121.2% year on year. The segment accounted for 9.2% of total revenue, up from 4.5% a year earlier, according to interim results released on Tuesday evening.
The company said demand for single-serving meals like rice-bowl sets drove the takeaway growth. Total revenue for the period rose 7.9% to 22.34 billion yuan, while net profit edged up 0.5% to 1.77 billion yuan.
Haidilao, which operates more than 1,300 restaurants globally, is also pushing into new formats and lower-tier Chinese cities to capture market share. Dine-in customers spent an average of 97 yuan per visit, little changed from a year earlier.
Ivan Su, director of equity research at Morningstar, said China's restaurant industry remains highly fragmented, with chains holding roughly 20% of the market compared with about 40% globally. He noted that a well-run chain like Haidilao can still gain share even in a soft macro environment.