High-Quality Service in a Chinese Restaurant Chain:

Abstract

Haidilao (HDL) is the No. 1 hot pot restaurant chain in China and is also one of the most successful Chinese restaurant chains in the world. The company provides Sichuan-flavored hot pot with high-quality service. Its rapid expansion started in 2010, reaching a total of over 900 company-owned restaurants worldwide by June of 2020. The two main factors behind Haidilao’s consistent success are its corporate culture based on Chinese traditional philosophy, and an innovative incentive mechanism. Zhang Yong, the founder of the company, is one of the most famous Chinese entrepreneurs, known not only for his successful business endeavors, but also for the manner in which he treats his customers and employees. This paper gives overviews of the company’s history and qualified service, then focuses on its corporate culture and its unique incentive system. Recent issues including the management of Haidilao in the midst of the COVID-19 pandemic are mentioned in the conclusion, as well as challenges that might arise in the future.

Keywords

• chinese restaurant chains
• service quality
• customer satisfaction
• employee satisfaction
• incentive system