Product details

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Published by: Tsinghua University School of Economics and Management
Originally published in: 2020
Version: 2018-6-3
Length: 13 pages
Data source: Field research

Abstract

Haidilao (HDL) is a famous Chinese Sichuan-flavor hot pot restaurant chain known for exceptional service that constantly goes beyond customer expectations. HDL employees' enthusiasm is deeply rooted in the company's values, which reward personal effort and emphasize a culture of benevolence and treating people with fairness and justice. Decent living conditions, higher salaries than at other restaurants, and opportunities for career advancement give employees a sense of self-esteem and superiority over peers who work in other restaurants. Adopting a 100 percent direct operations model, the company previously lacked experienced restaurant managers, who were deemed as the company's core talent. The founder Zhang Yong designed a profit-sharing mechanism that not only motivated restaurant managers effectively, but also facilitated mentor-protege relationships. After two years of execution, the company achieved high-speed expansion and formed a core talent pool for the future. Zhang Yong is not resting satisfied with HDL's China market success, but rather aims to introduce the hot pot dining experience in overseas markets, especially to local mainstream customers. However, would HDL's incentive system work as well in different cultures? Another issue is food safety concerns. HDL has invested heavily in a smart restaurant with an unmanned kitchen in Beijing; could that be the solution?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2018.

Geographical setting

Region:
Asia
Country:
China
Location:
Beijing

Featured company

Sichuan Haidilao Holdings Co, Ltd
Employees:
10000+
Type:
Public company
Industry:
Restaurant Chain
Other keywords:
Mentorship; Protege; Incentive; Leadership; Bonus; Service staff; Group learning

About

Abstract

Haidilao (HDL) is a famous Chinese Sichuan-flavor hot pot restaurant chain known for exceptional service that constantly goes beyond customer expectations. HDL employees' enthusiasm is deeply rooted in the company's values, which reward personal effort and emphasize a culture of benevolence and treating people with fairness and justice. Decent living conditions, higher salaries than at other restaurants, and opportunities for career advancement give employees a sense of self-esteem and superiority over peers who work in other restaurants. Adopting a 100 percent direct operations model, the company previously lacked experienced restaurant managers, who were deemed as the company's core talent. The founder Zhang Yong designed a profit-sharing mechanism that not only motivated restaurant managers effectively, but also facilitated mentor-protege relationships. After two years of execution, the company achieved high-speed expansion and formed a core talent pool for the future. Zhang Yong is not resting satisfied with HDL's China market success, but rather aims to introduce the hot pot dining experience in overseas markets, especially to local mainstream customers. However, would HDL's incentive system work as well in different cultures? Another issue is food safety concerns. HDL has invested heavily in a smart restaurant with an unmanned kitchen in Beijing; could that be the solution?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2018.

Geographical setting

Region:
Asia
Country:
China
Location:
Beijing

Featured company

Sichuan Haidilao Holdings Co, Ltd
Employees:
10000+
Type:
Public company
Industry:
Restaurant Chain
Other keywords:
Mentorship; Protege; Incentive; Leadership; Bonus; Service staff; Group learning

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