HAIDILAO has released a follow-up investigation report regarding the incident of staff being compelled to purchase gifts with their own money. The company stated that, starting April 10, 2026, it conducted a comprehensive review of over 1,300 stores nationwide covering the period from January 1, 2025, to the present. An anonymous reporting channel was opened for all employees. As of April 13, four confirmed instances requiring staff to buy gifts personally were identified, involving a total of 1,237.9 yuan. All affected employees were reimbursed on April 12.
To address management shortcomings, HAIDILAO has established a dedicated task force focused on safeguarding employee rights. This group will continuously collect reports of policy violations, with verified cases resulting in reimbursement and accountability measures.
HAIDILAO attributed the root cause of these issues to the board of directors' historical practice of excessively incentivizing store managers while neglecting the development of central corporate functions. Unrealistic demands were placed on store managers to handle excessive management responsibilities, coupled with overly stringent store evaluations. This created an environment of fear and anxiety among store management, who subsequently transferred this pressure to frontline staff. The primary responsibility lies with the board, not the store managers. The company plans both immediate and long-term improvements. Short-term actions include ongoing verification and reimbursement processes. The long-term strategy, to be implemented within one year, involves strengthening middle-office functions, refining lean management practices, and reducing the intensity of store-level assessments.
Recently, an employee claiming six years of service at HAIDILAO published a detailed account alleging persistent irregular management practices at a Beijing location. The post stated that any customer complaint, regardless of validity, led to a mandatory fine of 500 yuan requiring the employee to purchase a gift as a penalty, with repeated violations incurring further fines without any formal regulatory basis.
On April 11, HAIDILAO issued an initial statement concerning the incident. The company confirmed on April 9 that the employee's report was largely accurate. Discussions regarding compensation with the affected staff member took place on April 10. HAIDILAO committed to providing compensation in accordance with the law and offering a sincere apology, either in person or through a channel preferred by the employee. Concerned about potential similar issues at other locations, the company instructed over a thousand stores to conduct internal reviews starting at 10:00 AM on April 10. These investigations are ongoing, with a pledge to address any similar findings lawfully and appropriately.
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