Indeed, Haidilao’s high levels of employee loyalty is rare in the Chinese business world.

One key observation is that Haidilao’s employee-centric philosophy is akin to growing a closely knitted family and it is thoroughly embedded across the strategic, political and cultural dimensions. This was very much the driving force behind the management model of Haidilao and sends a very powerful message to all its employees. He highlighted that “the core philosophy of Haidilao is that you can change your life using your own hands”. Haidilao’s culture was very much shaped from the onset by Zhang’s values and belief in meritocracy and fair opportunities for social mobility. As a result of his own life experiences, he clearly empathised with the challenges and aspirations of his young employees coming from rural areas or small towns. Zhang was a low-wage factory worker who loved learning and tried hard to improve his life circumstances.

Its founder Zhang Yong opened its first shop in 1994 with only 4 tables in a small booth. This has been the key competitive advantage that has clearly distinguished it against its competitors. In a hyper-competitive hot pot industry with low barriers of entry, Haidilao’s extraordinary customer service has brought a refreshing and innovative approach to Chinese culinary service. The staff attention to the customers is warm and exemplary. Young children get pleasantly surprised with simple toys at the dining table. There are even “noodle masters” that will prepare handmade noodles by twirling them in front of you in an elaborate display coupled with music. Hot face towels, bib covers, protective cell phone bags etc. Complimentary drinks and snacks, card and board games, and even delicate manicure services by professional nail stylists are provided whilst in the waiting area. The standard of customer service is almost unbelievable until you have personally experienced it. Haidilao is a sensational hot pot restaurant well known amongst many Chinese. This paper examines how Haidilao was able to achieve stunning success by applying these two key tenets consistently and coherently across the strategic, political and cultural dimensions of its business – basically at the forefront of everything the company did.Įxtraordinary Customer Service as Strategic Competitive Advantage Haidilao’s strong success arguably boils down to its customer-centric and employee-centric philosophy. Revenue is estimated to grow by more than 30 percent to 10 billion yuan ($1.5B). Today, it has over 200 outlets in 60 Chinese cities as well as more in Los Angeles, Tokyo, Singapore and Seoul. There are plans to set up many more this year.

Haidilao paints an incredible story of success from its humble beginnings as a small hot-pot shop in 1994.

Road to success chinese pdf