Our reporter Li Jing
On the evening of August 27th, Haidilao International Holdings Limited (hereinafter referred to as "Haidilao") announced its interim results as of June 30, 2024. Data shows that in the first half of 2024, Haidilao achieved a revenue of 21.491 billion yuan, a year-on-year increase of 13.8%; The core operating profit reached 2.799 billion yuan, an increase of 13.0% compared to the same period last year, and both revenue and core operating profit reached historical highs.
Overturning rate exceeds 4 times per day
In addition to a year-on-year increase in revenue and core operating profit, Haidilao has also achieved a new breakthrough in turnover rate. Data shows that in the first half of the year, the total number of customers received by all restaurants in Haidilao Greater China exceeded 200 million, with a turnover rate of 4.2 times per day, close to 4.8 times per day in 2019.
In addition, in terms of the number of stores, Hai Di Lao opened 11 new restaurants in the first half of the year, while closing some restaurants that did not meet expectations and had insufficient growth potential. Some restaurants also ceased operations due to property adjustments and other commercial reasons. A total of 43 stores were closed in the first half of 2024.
Haidilao's side told Securities Daily reporters, "To ensure the overall good business performance of Haidilao restaurants, we maintain the principle of cautious expansion. In the second half of the year, we will continue to adopt a bottom-up approach to opening stores. With further improvement in our management capabilities, we expect to significantly increase the number of stores we open compared to the first half of the year
Shen Meng, a strategic analyst at Guangke Consulting, told Securities Daily reporters that against the backdrop of overall performance pressure in the catering industry, Haidilao not only increased its turnover rate, but also stabilized various core financial data while optimizing its store network layout, indicating that the new management team has achieved a smooth transition and Haidilao's business strategy continues to operate steadily.
Release the 'Pomegranate Plan' to carry out diversified layout
On the basis of steady development of the main brand, Haidilao, which actively responds to market changes, has also begun a new task. Following the previous Woodpecker Plan and Hardbone Plan, Haidilao announced in its semi annual report the "Pomegranate Plan" aimed at encouraging the incubation and development of more new catering brands and promoting innovation in catering services.
It is reported that in terms of new brand incubation and innovation, Hai Di Lao has launched a total of 5 entrepreneurial projects in the first half of the year, such as Yan Please Barbecue Shop, Xiao Hi Hot Pot, etc., including grilled meat, hot pot, Chinese fast food, etc.
Through the 'Pomegranate Plan', the management of the company believes that the new brands within the group can achieve high-quality development, making each brand like pomegranate seeds, rosy and plump. These brands will be closely integrated to further promote the steady expansion of Haidilao Group's catering business, "Haidilao said in its semi annual report.
Yang Hua, the head coach of Haidilao Entrepreneurship Committee and the founder of Yanqing Barbecue Shop, said that the Woodpecker Plan and the Hard Bone Plan have selected high-quality points for the development of multiple brands and built a "highway". On this basis, all sub brands need to keep pace and drive steadily on the highway.
In fact, the diversified signal of Haidilao has already been sent out. In June of this year, Haidilao welcomed its new CEO, Gou Yiqun. At that time, the announcement showed that under Gou Yiqun's leadership, Haidilao had established two core committees: the Entrepreneurship and Innovation Committee and the Digital Operations Committee.
The demand structure of the current catering market is not only changing rapidly, but also diverging rapidly. How to better meet the different requirements of existing and incremental customers is also a significant challenge for Haidilao. In Shen Meng's opinion, Hai Di Lao chooses to conduct market testing directly through internal entrepreneurship and first principles, which can screen out the truly "capable" winners and ensure that Hai Di Lao's development in the short, medium, and long term is at an predictable level.