Haidilao's takeaway boom shows China's hotpot king can still grow on a budget

When China's most famous hotpot chain starts selling single-serving rice bowls, it is worth paying attention — not because the food is novel, but because of what the pivot says about the country's cautious consumer. Haidilao International Holding, the Hong Kong-listed giant that built its name on theatrical noodle dances and waiting-room manicures, has found its fastest-growing business is no longer the bubbling tables but the takeaway box. In the first half of this year, delivery revenue hit 2.05 billion yuan (US$305 million), a stunning 121.2 per cent jump from a year earlier, and now accounts for 9.2 per cent of total revenue — double its share in the same period last year.

The numbers behind this shift are telling. Total revenue for the group reached 22.34 billion yuan, up 7.9 per cent, while net profit crept up just 0.5 per cent to 1.77 billion yuan. Dine-in customers spent an average of 97 yuan per visit, essentially flat. For a company that once defined the group-eating experience in China, the message is clear: the era of lavish hotpot feasts is cooling, but the appetite for affordable, convenient versions of the same comfort food is heating up. The rice-bowl sets — single-portion meals designed for one — are a direct response to a society where solo dining and budget-consciousness are becoming the norm.

Haidilao is not just chasing delivery orders; it is also pushing into lower-tier cities, a move that makes sense in a country where the top-tier metros are saturated and the middle class is tightening its belt. The company's willingness to diversify formats — from full-service restaurants to takeaway-only kitchens and smaller brand concepts — reflects a strategic realism that many of its peers lack. Morningstar's Ivan Su points out that China's restaurant industry remains highly fragmented, with chains holding only about 20 per cent of the market versus roughly 40 per cent globally. That gap is an opportunity, even in a soft macro environment, for a well-run operator like Haidilao to keep grabbing share.

For international readers tracking Asian wealth, Haidilao's story is a useful barometer. The company, founded by Zhang Yong in 1994 in Sichuan, became a symbol of China's consumption boom — a stock market darling that turned a humble hotpot into a global brand with outposts from Singapore to London. Its current pivot shows that even the most successful consumer franchises must adapt when the economy slows. The rise of takeaway is not just about convenience; it is about value. Chinese consumers are still spending, but they are spending smarter, choosing a 30-yuan rice bowl over a 300-yuan group dinner. That shift is rippling through the entire food and beverage sector, from luxury restaurants to street vendors.

What this signals for capital in Asia is a broader recalibration. Investors who once chased high-growth consumption stories in China are now looking for resilience, operational efficiency, and the ability to monetise a more frugal customer base. Haidilao's results suggest that such resilience exists, but it comes with thinner margins and a need for constant innovation. The company's expansion into lower-tier cities is a bet that the next wave of Chinese consumers will be more price-sensitive but still loyal to brands they trust. If Haidilao can maintain its brand cachet while serving cheaper meals through new formats, it may set a template for other restaurant groups across Asia facing similar headwinds.

Looking ahead, the question is whether Haidilao can sustain this momentum. Takeaway revenue is growing from a small base, and the competition in delivery is fierce, with players like Meituan and Ele.me controlling the logistics. But the company's brand recognition and operational discipline give it an edge. For wealth watchers, the deeper takeaway is this: in a challenging economy, the winners are not necessarily those with the flashiest growth but those who can reinvent their business model without losing their core identity. Haidilao is doing exactly that — one rice bowl at a time. The hotpot king has learned that in today's China, sometimes the best way to grow is to shrink the portion size and bring the meal to your door.