Nov 06, 2021 12:41 AM (GMT+8) · EqualOcean
On November 5, Haidilao announced on the Hong Kong stock exchange that it would gradually close about 300 stores that did not meet the expected operation before December 31, 2021, and some of them would temporarily rest and reopen at an opportunity, with a rest cycle of no more than two years. The store will be closed without layoffs, and the employees and management involved in the store will be properly resettled. At the same time, Haidilao announced to launch the "woodpecker" plan, which is under the sole responsibility of Yang Lijuan, executive director and deputy CEO of Haidilao. She continues to pay attention to the stores with poor business performance, rebuild and strengthen some functional departments, restore the regional management system, strengthen the internal management and assessment mechanism, shrink the business expansion, and expects to further improve the company's business situation. On the evening of the 5th, Haidilao also released a letter "to friends who care about Haidilao" through its official microblog, saying that the operation of some stores did not meet expectations, mainly due to the rapid expansion strategy starting in 2019. According to the data, 308 and 544 new stores were opened in Haidilao in 2019 and 2020 respectively. 299 new stores were added in the first half of 2021. As of June 31, 2021, the total number of global stores reached 1597. After subtracting about 300 stores that will be closed soon, the total number of Haidilao stores is still more than 1300, and it is still the largest chain hotpot catering enterprise in China.

This text is a result of machine translation.