Haidilao's international expansion strategy, analyzed through their 2026 plans, centers on an 'experience-first' positioning and a 'Core + Local' approach. Beyond its domestic market, Haidilao is charting a second growth curve in global markets, leveraging its unique service model and localized offerings to stand out.
What's the Current State of China's Food Service Market and Haidilao's Position?
China's food service industry, particularly the hot pot segment, is highly competitive and currently experiencing a downturn. Industry projections estimate a -7.63% growth rate for hot pot in 2025, indicating a contraction. In response, Haidilao is shifting its domestic strategy from rapid expansion to 'adjustment and structural stabilization.' While operating 1,402 stores as of 2025, the company is focusing on efficiency by closing underperforming locations. Haidilao acknowledges its domestic growth has plateaued, making international expansion a logical next step. Interestingly, growth is strongest in smaller cities (Tier 3 and below) at 7.3%, suggesting a focus on these emerging markets. The majority of its stores, 91.1%, are located in shopping malls, indicating a strategy to capitalize on mall traffic and 'impulse consumption.'
How is Haidilao's Global Expansion Strategy Structured?
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Haidilao has established a dedicated subsidiary, Super Hi International, to spearhead its global expansion. As of 2024, international revenue reached $780 million, marking a 13% increase with 122 global outlets. Their international strategy hinges on two main pillars: Firstly, a 'company-owned store focus' where over 95% of revenue comes from directly managed stores, ensuring brand control. Secondly, the 'Core + Local' strategy aims to maintain the quintessential 'Haidilao experience' worldwide while incorporating local flavors. The 'Core' elements include their service system, brand image, signature dishes, and operational standards. The 'Local' adaptations feature Japanese miso soup, Southeast Asian Tom Yum Goong, diverse American sauces, and enhanced premium experiences in markets like Korea. Southeast Asia remains a key focus, accounting for approximately 60% of their international presence.
What Differentiation Strategy Does Haidilao Employ in the Korean Market?
In South Korea, Haidilao goes beyond simple menu localization, focusing intensely on 'positioning localization.' Haidilao Korea is positioned not just as a dining venue, but as a destination for a fun outing – an 'experience-centric' space. They offer enhanced experiential services such as live noodle-making performances, complimentary nail art, special events, and birthday celebrations, often exceeding the offerings in mainland China. This strategy perfectly taps into the Korean market's trends for 'Instagrammable' moments and experiential consumption. Furthermore, Haidilao Korea adopts a premium pricing strategy, with an average individual cost of ₩50,000-70,000 (approximately $37-$52 USD), which is about 2.5 to 3 times higher than in China. This positions Haidilao as an 'experiential premium' brand, distinct from its 'mass-premium' positioning in China. This approach aligns with the higher dining costs in South Korea and the consumer preference for dining experiences over mere meals.
What is Haidilao's Global Expansion Roadmap and Core Competitiveness?
Haidilao's international expansion has been a phased process. Phase 1 (2012–2017) saw entry into key markets like Singapore, the United States, South Korea, and Japan. Phase 2 (2018–2021) expanded their reach into Europe and Southeast Asia. Since 2022, Haidilao has accelerated global growth by spinning off and listing its international operations. This success is underpinned by several core competitive advantages: First, the consistent service system and operational standards that define the 'Haidilao-ness.' Second, their adeptness at 'localization,' adapting to country-specific tastes and preferences. Third, rigorous quality control and brand management through their company-owned store model. Finally, their ability to anticipate evolving dining trends and create value through 'experiential consumption.' These factors collectively drive Haidilao's growth from a Chinese chain to a global foodservice powerhouse.
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