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Haidilao to close 300 restaurants as Covid curbs eating out

Haidilao Hotpot

Hong Kong-listed hotpot chain, Haidilao International Holding, is to shut down about 300 underperforming restaurants by the end of this year.

The company said some of the restaurants will be temporarily closed of no more than two years and resume operation in appropriate times. The mass store closure plan follows Haidilao’s rapid expansion plan last year, where it opened 400 restaurants despite the uncertainty Covid-19 situation. 

Last month, the China’s biggest hotpot chain has shown its sights of struggling, announcing it would slow down its opening pace to cope with a subsequent slump in consumer spending. Haidilao has recorded falling table turnover rates and profits, losing US$7.76 million in the first half of this year. 

The company said if the average table turnover rate of Haidilao restaurants is less than four times/day, no new Haidilao restaurants will be opened on a large scale in principle.

As of last June, Haidilao has a network of 1597 restaurants globally, with 1491 locations in Mainland China. 

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