Operating Profit Increased 4.6 Times Compared to the Previous Year
As more restaurants selling hot pot, lamb skewers, and tanghulu have appeared in Korea, people can now enjoy the flavors of China without having to travel there. Haidilao, a leading Chinese hot pot franchise, has captivated Korean taste buds with its spicy flavors, successfully increasing its operating profit fivefold last year. Haidilao entered the Korean market in 2014 starting in Myeongdong and currently operates a total of seven stores (six in Seoul and one in Busan). Globally, it has 115 stores across 12 countries and regions including Singapore, Thailand, Vietnam, Malaysia, Indonesia, Japan, and the United States.
According to the financial report, Haidilao International Holding's sales last year reached 41.453 billion yuan (approximately 7.7724 trillion KRW), a 33.55% increase compared to the previous year. Following the COVID-19 pandemic, the 'mala flavor' craze has driven domestic sales upward as well. Haidilao Korea's sales last year were about 58.3 billion KRW, up 41.4%, and operating profit was approximately 8.5 billion KRW, an increase of 4.6 times (363.3%) compared to the previous year (about 1.8 billion KRW).
'Kindness' as the Top Priority
There are several unfamiliar scenes you might encounter at Haidilao stores in Korea. For example, if you choose a special noodle, staff perform a hand-pulled noodle show right at your table, they sing birthday songs for customers on their birthdays, and offer free nail art services. In China, they also provide personalized services such as washing customers' hair or playing with children.
Haidilao emphasizes 'kindness' as the top priority when hiring staff in Korea. According to Haidilao Korea's 2023 recruitment guidelines, candidates must be passionate, diligent, and quick with their hands and feet. Proficiency in Korean and communication skills among staff, as well as a 'love for Haidilao,' are also emphasized.
Employees need to have an outgoing personality and Korean communication skills to provide good service. Salaries vary by hour. For those working 8 to 10 hours a day, five days a week, the monthly salary ranges from about 2.8 million to 3.8 million KRW. According to a Chinese job platform, the average monthly salary at Haidilao in China is 4,639 yuan (approximately 864,709 KRW). Working in Korea means earning a higher monthly wage.
Strengths of Haidilao According to the Founder
Haidilao founder Zhang Yong stated in an interview with Chinese media that Haidilao's unique human resource system, which stimulates employees' creativity and passion, is its strength.
Zhang Yong is known for frequently saying, "Fate can be changed by hands," which is also Haidilao's core philosophy. He said, "As long as we follow the creed of diligence, dedication, and sincerity, I believe our hands can change our fate. When employees embrace this, they recognize Haidilao's corporate culture and will sincerely treat customers."
He explained that the 'talent system' is the most important aspect in the food service industry. Zhang said, "If the personnel system is well established, a bottom-up culture will form, which will become Haidilao's core competitive advantage in the future."
Haidilao's Successful Generational Change
Yang Lijuan, born in 1978, who took over as CEO in 2022 replacing founder Zhang Yong, joined Haidilao in 1994 and has been with the company for about 29 years. She started as a hall server earning just over 30,000 KRW per month and rose to become CEO. In China, she is credited as a key figure who implemented Haidilao's strengths into optimal service. When the company faced management difficulties due to COVID-19 and other challenges, she led the way in overcoming the crisis through innovative restructuring and recruiting young talent.
CEO Yang closed stores where customer numbers sharply declined or sales were poor: 276 Haidilao stores closed in 2021, 50 in 2022, and 32 in 2023. Although the number of stores decreased, customer touchpoints were expanded through free concert buses and night market stalls, and over 300 new dishes were updated annually as part of new initiatives. With a young management team, she intends to transform the company into a trendier and younger brand, replacing two chief operating officers (COOs) with people in their 30s.
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