The COVID-19 pandemic has affected the food and beverage industry in China. Many restaurants went out of business or temporarily suspended operations. However, hot pot chain Haidilao still managed to open a new location nearly every day.
Haidilao has opened 935 restaurants in China and abroad in Japan, Australia, the United Kingdom, Canada, and the United States up until the end of June.
Although the firm lost nearly RMB 1 billion (USD 151.5 million) in the first half of 2020, its stock price (HK: 6862) went up 48% over the last 12 months. The company is now valued at USD 36 billion, according to Bloomberg.
Haidilao’s operation mirrors some business strategies used by tech companies for expansion: capital-fueled scaling, capturing users’ attention, and building an ecosystem.
To learn more about Haidilao’s business model, watch our latest explainer.
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