Following the return of founder Zhang Yong as CEO earlier this year, HAIDILAO has released its first annual financial results under his renewed leadership. The report reveals a further slowdown in revenue growth, marking the lowest increase in three years. Furthermore, net profit attributable to shareholders fell by 13.98% year-on-year, representing the first annual decline in four years.
This weak performance is attributed to poor core operational metrics. In 2025, the average table turnover rate across HAIDILAO's self-operated restaurants was 3.9 times per day, down from 4.1 times per day in 2024 and falling below the company's benchmark of 4 times per day. More significantly, the total number of customers served in 2025 dropped by over 31 million compared to the previous year.
In response to these challenges, HAIDILAO closed or relocated 85 self-operated restaurants during the year. An additional 45 self-operated outlets were converted to a franchise model. The company's total workforce was reduced by 11,558 employees compared to 2024. HAIDILAO also incubated 20 sub-brands targeting various dining segments and increased investment in its delivery services. However, revenue contributions from both these initiatives remain relatively limited at present.
For the full year 2025, HAIDILAO Group reported revenue of RMB 43.225 billion, a slight increase of 1.1% year-on-year. This growth rate has continued to decelerate and is now at a three-year low. The company cited an increasingly competitive market and evolving consumer demands as primary reasons for the slowdown. While official statistics show that the entire Chinese catering industry faced growth pressures, with sector-wide revenue growth slowing from 5.3% in 2024 to 3.2% in 2025, HAIDILAO's growth rate lagged behind the industry average.
Net profit attributable to shareholders was RMB 4.05 billion, a decrease of 13.98% from the previous year. HAIDILAO explained that the profit decline was mainly due to the lower table turnover rate and costs associated with adjustments to its product offerings and restaurant formats.
In terms of restaurant performance, the total number of customers served fell by 7.5% to 383.9 million, down from 415 million in 2024. Average customer spending saw a marginal decrease to RMB 97.7, compared to RMB 97.5 a year earlier.
The table turnover rate is a critical indicator of a restaurant's popularity. In 2018, HAIDILAO's rate peaked at 5.0 times per day, double the industry average for hot pot restaurants, which helped drive its rapid expansion and successful IPO. However, following a severe crisis in 2021 that resulted in an annual loss of RMB 4.16 billion, the company launched the "Woodpecker Plan." This initiative involved closing underperforming stores and establishing a rule that new large-scale expansions would not proceed unless the average table turnover rate reached 4 times per day. The 2025 rate of 3.9 times per day clearly falls short of this threshold.
As part of its cost-cutting and efficiency measures, HAIDILAO ended 2025 with a total of 1,383 restaurants. This included 1,304 self-operated restaurants, 79 of which were newly opened during the year, and 79 franchised outlets, with 21 new franchise openings and 45 conversions from self-operated stores. The company stated that 85 self-operated restaurants were closed or relocated due to failure to meet performance expectations, commercial area redevelopment, or outdated facilities.
Regarding staffing, HAIDILAO Group had 125,620 employees at the end of 2025, with total employee costs amounting to RMB 14.073 billion. This compares to 137,178 employees and employee costs of RMB 14.113 billion at the end of 2024, indicating a reduction of 11,558 staff members over the year.
Beyond cost reduction, HAIDILAO is pursuing revenue diversification. The company is formally implementing a multi-brand strategy, with its "Pomegranate Plan" transitioning from internal incubation to market expansion. This plan includes two mechanisms: "Chef-in-Charge," which supports employee entrepreneurship, and "Public Canteen," which involves headquarters-led project development. By the end of 2025, the group was operating 20 sub-brands across segments such as seafood eateries, sushi, Western light meals, individual hot pot, and Chinese fast food, totaling 207 restaurants. Revenue from these other restaurant operations reached RMB 1.5206 billion, showing significant growth. However, their contribution to total group revenue remains modest, increasing from 1.1% in 2024 to just 3.5% in 2025.
Additionally, HAIDILAO is expanding its delivery services, having established over 1,200 delivery stations nationwide and deepened collaborations with all major food delivery platforms. Revenue from delivery services surged 111.9% to RMB 2.6576 billion in 2025. The company is continuing to optimize its delivery operations, develop products better suited for off-premise consumption, and improve delivery profit margins, while also supporting other brands under the "Pomegranate Plan" in exploring delivery options. Despite the rapid growth, delivery revenue still accounts for only a single-digit percentage of total revenue and has not yet become a primary growth driver.
After steering HAIDILAO out of its 2021 crisis, founder Zhang Yong stepped down as CEO in 2022. Confronted with another challenging year in 2025, he resumed the CEO role at the start of this year. The question now is whether he can once again lead this iconic hot pot brand to a successful turnaround.
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