Chinese restaurant giant Haidilao stands at a crossroads, facing a pivotal moment.
On January 13, 2026, Haidilao disclosed an announcement that Board Chairman and Executive Director Zhang Yong had been appointed as Chief Executive Officer (CEO). Concurrently, Haidilao nominated four new young executive directors. Influenced by this news, Haidilao's stock price surged by 9.15% on January 14.
After a four-year interval, Haidilao founder Zhang Yong has returned to the business "front lines," drawing market attention. Domestic and international institutions hold a positive view of Zhang Yong's return; for instance, Citi believes it is a strong signal of improved execution capability in the mainland consumer goods sector, while Guosen Securities issued a research report expressing optimism about the potential for a breakout in proactive operational momentum under Haidilao's new governance structure.
When Zhang Yong stepped down as CEO in March 2022, Haidilao was on the verge of turning its losses into profits. Subsequently, Yang Lijuan and Gou Yiqun successively took over as CEO of Haidilao. As a formidable female leader, Yang Lijuan quickly led Haidilao to surpass its previous performance peaks after taking office. As operations stabilized, Gou Yiqun then attempted to build new growth drivers for the company.
However, entering 2025, Haidilao's performance showed signs of weakness again. In the first half of last year, Haidilao experienced a simultaneous decline in both revenue and net profit, alongside a drop in table turnover rate.
In the capital markets, since its stock price peaked at HKD 83.603 in early 2021, the company has experienced a volatile adjustment period lasting over five years, with the current stock price down more than 80% from its previous high.
In the business world, founders are often labeled as "key figures" who can stabilize morale, focus on core strategy, and drive reform and breakthroughs. The strategic significance behind Zhang Yong's reappointment as CEO may extend beyond solving immediate problems, potentially indicating a tough battle ahead.
Zhang Yong is the founder of Haidilao; few would have guessed he started as a welder. From welder to "Hot Pot King," he built a business through entrepreneurship.
Zhang Yong is from Sichuan. In his youth, he disliked studying; after junior high school, his parents arranged for him to attend a technical school to learn welding, and he was later assigned to work as a welder at the Sichuan Tractor Factory.
At that time, some bold individuals quit their "iron rice bowl" jobs to "plunge into the sea of business," becoming the first wave of "ten-thousand-yuan households" in China. Unfulfilled by his fixed monthly salary, Zhang Yong was eager to find business opportunities.
To this end, Zhang Yong dabbled in "gaming machines," only to be swindled out of his money; he also tried reselling gasoline, which also failed. In his spare time, Zhang Yong opened a mala tang restaurant, which ultimately closed down, and he was also fired from the tractor factory for long-term absenteeism.
In 1994, Zhang Yong pooled together 8,000 yuan with his girlfriend and a good friend to open a hot pot restaurant. At the time, Zhang Yong neither knew how to prepare the broth nor could he make a particularly delicious hot pot. To survive, Zhang Yong's chosen breakthrough point was providing exceptional service; he carried bags for customers, looked after their children, shined shoes, and more.
In its early days, Haidilao employed a family-business management model: shareholders were both bosses and employees.
This management structure was simple; the advantage of this model was that profits were shared, and losses were borne proportionally. In daily operations, when customers entered, everyone worked conscientiously; after customers left, everyone would drink water, chat, and play mahjong.
Over time, Zhang Yong discovered the drawbacks of this model: a growing laxity within the team. Zhang Yong increasingly felt it was improper.
To ensure the venture could go further, Zhang Yong resolved to become the manager, aiming to establish a formally operating company to escape the pitfalls of the family-business style of management. Zhang Yong made a difficult decision—to fire his wife, Shu Ping, and his good friend Shi Yonghong's wife, Li Haiyan.
This decision sparked considerable controversy at the time, but Zhang Yong firmly believed that only in this way could Haidilao break free from the constraints of a family business and establish a more scientific and standardized management system.
In 2007, Zhang Yong and his wife acquired an 18% stake from Shi Yonghong at the original investment amount, becoming absolute controlling shareholders with 68% of Haidilao, granting Zhang Yong ultimate decision-making power.
At this point, Zhang Yong began steadily expanding store locations and turned his attention to the upstream and downstream segments of the hot pot industry chain.
He invested in building his own ingredient processing plants and logistics distribution centers, controlling ingredient quality from the source and ensuring every item was delivered to stores safely and fresh.
Through standardized supply chain management, Haidilao not only reduced operational costs but also improved the quality and consistency of its dishes, laying a solid foundation for its national expansion.
During the rapid growth phase, Zhang Yong led Haidilao to deepen its focus on the catering sector and also expanded its business overseas. In 2012, Haidilao's first overseas store officially opened in Singapore. This was a significant step in Haidilao's internationalization.
The channel that concretely displayed Zhang Yong's wealth was the capital market. In 2014, Xiabuxiabu took the lead by listing in Hong Kong, becoming the "first chain hot pot stock." That year, Haidilao, which had previously been restrained towards listing, showed signs of shifting its stance.
On July 14, 2015, Haidilao International Holding Ltd. was established. Three years later, Haidilao achieved its listing on the Hong Kong Stock Exchange. On September 26, 2018, Zhang Yong rang the bell at the HKEx, covering his ears and laughing heartily, overcome with joy.
From its listing in 2018 until March 2022, during Zhang Yong's tenure as CEO, Haidilao's core strategy focused on hot pot operations and store expansion.
In 2019, Haidilao's revenue scale exceeded 26.5 billion yuan, with net profit surpassing 2.3 billion yuan. In 2020, revenue exceeded 28.6 billion yuan, while net profit adjusted to 309.3 million yuan. Amidst continuous revenue growth, the company's stock price rose by a combined 290.19% over the two years from 2019 to 2020. On February 16, 2021, Haidilao hit a historic high of HKD 83.603, with its market capitalization once exceeding HKD 420 billion.
At its peak, Zhang Yong was dubbed the "Hot Pot King" by the outside world.
However, impacted by aggressive counter-cyclical expansion, Haidilao reported a net loss attributable to owners of the company of 4.163 billion yuan in 2021. Zhang Yong candidly stated, "We have to swallow the bitter fruit ourselves."
It was from this year that Haidilao's stock price entered a prolonged period of volatile adjustment. The 2020 Hurun Rich List showed Zhang Yong and his wife's wealth reached 195 billion yuan. But by 2022, their wealth had shrunk to 61 billion yuan.
Amid this "roller coaster" ride of wealth, Zhang Yong stepped down as CEO in March 2022. Zhang Yong once said that the best role he had found for himself at Haidilao was to "look up at the stars."
Four years ago, Zhang Yong initiated a "successor plan," handing over the restaurant giant to the leaders he had personally cultivated.
In late February 2022, Haidilao issued a profit warning, facing its "darkest hour." In early March of that year, Yang Lijuan took over as CEO from Zhang Yong, shouldering the heavy responsibility of "firefighting."
During her tenure, Yang Lijuan led the implementation of the "Woodpecker Plan" and the "Hard Bones Plan." The former aimed to stop losses by closing stores that failed to meet strict criteria and temporarily suspending some stores, while the latter involved reopening some previously closed stores after stabilization.
Under the implementation of the "Woodpecker Plan" and "Hard Bones Plan" led by Yang Lijuan, Haidilao returned to profitability in the 2022 fiscal year, and subsequently, the net profit attributable to owners set consecutive阶段性新高 in the 2023 and 2024 fiscal years.
After surviving the crisis, in July 2024, Gou Yiqun succeeded Yang Lijuan as the new CEO. He led the implementation of the "Pomegranate Plan," intended to incubate diverse catering formats and create a second growth curve.
However, an official announcement prematurely signaled an impending adjustment to the senior management team.
In the first half of 2025, Haidilao achieved revenue of 20.7033 billion yuan, a year-on-year decrease of 3.7%; the group's core operating profit was 2.4081 billion yuan, down 14.0% year-on-year; profit was 1.7546 billion yuan, a decrease of 13.7% year-on-year.
On September 22, 2025, Haidilao's 2025 interim report mentioned one sentence: "This period of performance decline reflects shortcomings in the management capabilities of senior leadership. As management, we will continue to strive and make improvements."
This seemed to imply that an adjustment to Haidilao's management might be forthcoming.
Yang Lijuan's style is decisive and swift, like a fierce general; Gou Yiqun is logical in his approach, carefully reasoning through matters before making decisions. Both their capabilities are recognized by the company. "Ability to move up or down" is a tradition at Haidilao.
On January 13, 2026, Haidilao officially announced that founder Zhang Yong was reappointed as CEO. After four years, Zhang Yong returned to the operational "front line." Simultaneously, Haidilao newly appointed four executive directors, all of whom are women.
Zhang Yong's return as CEO signals Haidilao's entry into a new period of strategic adjustment. Unlike the survival challenges faced four years ago, the current issue is growth乏力, urgently requiring the discovery of new growth drivers.
In the first half of 2025, Haidilao saw both revenue and net profit decline. A key metric, the overall table turnover rate for self-operated Haidilao restaurants, dropped to 3.8 times per day, compared to 4.2 times per day in the same period last year.
The table turnover rate is considered Haidilao's lifeline. As this core operational metric declines, rival Banu is developing rapidly,无形中 increasing competitive pressure. Banu's prospectus shows that its revenue and adjusted net profit for the first three quarters of 2025 increased by 24.5% and 80.8% year-on-year, respectively. Even with a high average customer spending, Banu's table turnover rate still increased by 0.5 times per day year-on-year to 3.6 times per day.
Against this backdrop, Zhang Yong's return likely means Haidilao is preparing for a tough battle. According to media reports, industry insiders suggest that Zhang Yong's comeback may be related to him personally overseeing the "Pomegranate Plan."
The "Pomegranate Plan" is a brand strategy incubated during Gou Yiqun's tenure as CEO, intended to foster diversification. As of June 2025, Haidilao had built a matrix of 14 catering brands, including sushi, barbecue, fried chicken, and bakery, cumulatively opening 126 stores.
Judging from these created sub-brands, Haidilao似乎 intends to build its own catering ecosystem.
However, although the "Pomegranate Plan" has created many sub-brands, driving revenue from other restaurants to 597 million yuan and increasing its proportion of total revenue to 2.9%, compared to the main brand, these sub-brands have developed unevenly, making focus difficult. Still in the "cash-burning" investment phase, these new businesses are temporarily in a situation where "distant water cannot quench immediate thirst" and cannot yet shoulder the burden of performance.
Zhang Yong's return as CEO may transform the "Pomegranate Plan's" broad-scatter approach into one of intense focus. This could leverage operational experience to consolidate the core hot pot business while also facilitating the Pomegranate Plan's transition from "multiple trial-and-error points" to "focused cultivation," creating a clearer growth model for the company.
Generally speaking, what professional managers cannot replace about founders is the latter's emotional bond with the enterprise, coupled with unparalleled advantages in long-term perspective, internal authority, and resource mobilization.
At this stage, the challenges Zhang Yong faces include: How to find a prescription to boost performance? How to coordinate the development of the main brand with diversified brands? How to consolidate Haidilao's moat? How to implement more effective management? How to respond to competitors seizing market share against the backdrop of a changing consumer environment?
Whether internal issues or external contradictions, they test Zhang Yong's ability to break the deadlock. Zhang Yong's return requires him to steer the large ship that is Haidilao through the waves of the catering industry to find a new direction.
It is worth mentioning that as early as a 2020 internal letter, Zhang Yong mentioned his plan to retire in 10-15 years. Based on this calculation, Zhang Yong expects to prepare for retirement between 2030 and 2035.
Currently, Zhang Yong's return aims to address both immediate problems and prepare for the future handover.
The four newly promoted executives—Li Nana, Zhu Yinhua, Jiao Defeng, and Zhu Xuanyi—are aged between 35 and 44. Li Nana and Zhu Yinhua possess rich regional management experience, Jiao Defeng is responsible for the group's product R&D and procurement, and Zhu Xuanyi has excellent business management and crisis response capabilities.
It is not difficult to see that even by the time Zhang Yong formally retires, the young executives he has cultivated will be under 55 years old, still within the "golden age" for managers.
Stories of founders retaking the helm are common, such as Joseph Tsai's return during Alibaba's market cap low, Steve Jobs' comeback when Apple was near bankruptcy, or Howard Schultz's return to Starbucks during the 2008 financial crisis. Next, whether Zhang Yong can lead Haidilao to a "comeback victory" remains to be seen over time.
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