The 5 Secrets Of Haidilao’s 114B Dollar Customer Experience Success

Weekly Business Insights from Top Ten Business Magazines

Extractive summaries and key takeaways from the articles curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Since September 2017 | Week 348 | May 10-16, 2024 

Strategy & Business Model Section | 3

The 5 Secrets Of Haidilao’s 114B Dollar Customer Experience Success

By Blake Morgan | Forbes Magazine | May 15, 2024

Extractive Summary of the Article | Listen

Did you know the root of the word “restaurant” is the French verb “restaurer,” meaning “to restore.” Today going out to eat doesn’t always feel like that, but hot pot chain Haidilao set out to be different by leading with customer experience and now they are one of the top five most valuable food brands in the world, only surpassed by Starbucks, McDonalds, and KFC.

Founded in 1994 by Zhang Yong in Sichuan Province, China, Haidilao has grown into a behemoth with 118,000 employees, renowned not just for its food, but for the unforgettable dining experiences it offers. By May 2024, Haidilao’s market capitalization is estimated to be approximately $14.19 billion.  Five secrets to Haidilao’s customer experience success:

1. The Experience Is A Feast – For customers, the customer experience itself is a feast – totally unique from most fast food restaurants.  The waiting room includes a hand massage, shoe shine, noodle dance, and opera singer performance. If you’re alone Haidilao employees will sit a giant stuffed animal across from you to keep you company.  Once you are seated the surprises continue, with synchronized waiters bursting into choreographed dances if the customer knows the secret code and says “kemusan”.
2. A Laser Focus On Employee Experience – Store managers have an incentive to train and groom their top-performing employees to become store managers of new locations. By becoming a mentor both the new store manager and their “parent”–the name given to their mentor– take part in a profit sharing program. New store managers can then go on to groom other store managers, creating a “family” which can span multiple generations. Recently Haidilao reported over 90 families.
3. Creating Unique, Shareable Entertainment – The actual dining experience is entertainment itself. You might witness a traditional Chinese opera performance or see your waiter break into a dance while serving noodles.  Customers leave with stories to tell, fostering word-of-mouth promotion that is invaluable for any business. 
4. Leveraging Technology to Enhance Service – Haidilao developed a super app that not only makes it easier to book tables and order food but also engages customers with personalized offers and interactive features.
5. Emphasizing a Customer-First Culture – While the company is employee-focused, they show you can be both employee and customer-focused at the same time. At the heart of Haidilao’s strategy is a customer-first culture. Every aspect of their service is designed to prioritize the customer’s needs and desires.

Whether you’re running a restaurant, a retail store, or any other type of business, these lessons from Haidilao can help you elevate your customer experience and build a stronger, more resilient brand.

3 key takeaways from the article

1. Did you know the root of the word “restaurant” is the French verb “restaurer,” meaning “to restore.” Today going out to eat doesn’t always feel like that, but hot pot chain Haidilao set out to be different by leading with customer experience and now they are one of the top five most valuable food brands in the world, only surpassed by Starbucks, McDonalds, and KFC.
2. Founded in 1994 by Zhang Yong in Sichuan Province, China, Haidilao has grown into a behemoth with 118,000 employees, renowned not just for its food, but for the unforgettable dining experiences it offers. By May 2024, Haidilao’s market capitalization is estimated to be approximately $14.19 billion.  
3. Five secrets to Haidilao’s customer experience success:  The Experience Is A Feast, A Laser Focus On Employee Experience, Creating Unique, Shareable Entertainment, Leveraging Technology to Enhance Service, and Emphasizing a Customer-First Culture.

Full Article

(Copyright lies with the publisher)

Topics:  Strategy, Business Model, Decision-making, Marketing, Customer Satisfaction, Customer Relationship