Recent incidents involving Haidilao's "forced employee-funded gift purchases to reduce customer complaints" have sparked widespread public attention and prompted a re-evaluation of the chain's renowned service model.
Following an initial admission on April 11 regarding compulsory gift purchases by staff, Haidilao released another statement on the evening of April 13 detailing its investigation into the matter. The report confirmed four such incidents occurring across its 1,300+ nationwide stores since last year, involving a total of 1,237.9 yuan, which was fully reimbursed to employees by April 12. CEO Zhang Yong will personally apologize to the four affected employees.
These cases all involved store management transferring customer complaint resolution costs directly to frontline staff. One February incident in Hangzhou saw an employee penalized 1,000 yuan - equivalent to three days' wages as a food runner - for missing supplementary reservation information. Two separate cases in January last year involved staff purchasing children's toys valued at 127.9 yuan and approximately 60 yuan respectively following customer complaints, while another March incident required a 50-yuan gift purchase.
Such practices potentially violate labor regulations. Chinese law permits salary deductions only when employees cause actual financial losses through deliberate misconduct or gross negligence, with monthly deductions capped at 20% of wages and remaining balance不低于 local minimum wage standards. Customer complaints and service issues don't constitute direct financial losses attributable to staff.
Beyond forced gift purchases, Haidilao has faced exposure of managers frequently insulting employees in work groups, threatening arbitrary termination, unlawfully withholding holiday bonuses, and violating employee privacy. These practices represent not only disguised economic penalties but also blanket "management by punishment" that essentially constitutes workplace bullying.
While Haidilao has built its reputation on exceptional "god-like" customer service, such service standards should stem from refined corporate management systems rather than illegal exploitation of frontline staff. Persistent violation of employee interests will inevitably backfire on service quality and operational stability.
This excessive pressure on employees reflects Haidilao's declining performance in recent years. Misguided expansion decisions led to 2021 net losses exceeding 4 billion yuan, with core operational metrics like table turnover rate plunging from peak 5 times daily to 3 times, severely undermining brand development. By 2025, net profits still showed a 14% year-on-year decrease.
Consequently, operational pressures have cascaded down to grassroots employees. Haidilao's statement acknowledged that unrealistic board-level incentives for store managers, coupled with weakened headquarters oversight, created excessive performance anxiety that managers displaced onto frontline staff, noting "primary responsibility lies with the board, not store managers."
Positively, Haidilao has responded promptly and sincerely to public concerns. The company has implemented corrective measures including immediate reimbursement audits and longer-term central platform enhancements within one year to refine management systems and reduce store-level performance pressures.
Under CEO Zhang Yong's leadership, Haidilao is navigating operational recovery. Key priorities include stabilizing core hotpot operations through product and store model optimization to enhance profitability and brand appeal. Ultimately, sustainable recovery requires securing stakeholder confidence - encompassing both consumer trust and employee morale. The market anticipates Haidilao's ongoing self-correction efforts to restore its former industry standing.
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