Of course, it makes money, but not all stores will make money. Although the corporate loss data released by Haidilao seems to be large, the reasons for its losses are not clarified. If we understand the development track of Haidilao in recent years, it is not difficult to find that its expansion in third-and fourth-tier cities and even counties is irrational, which is likely to be the cause of the overall losses. As we all know, the price of Haidilao is relatively high, but in a big city like Beishangguang, the consumption level is relatively high, and Haidilao, which is relatively high in both the quality of dishes and the taste of service, will naturally become a favorite business of consumers. The competition in the simple catering market is fierce, and the profit rate of a single store will be at a higher level.

On the other hand, in the county-level catering market, Haidilao's business model has no obvious advantages. Blindly expanding in the county-level market, it is natural that it can't achieve as glamorous and beautiful performance as a big city, which is the fundamental reason that Haidilao has to face huge losses. Up to now, Haidilao has shut down more than 311 restaurants. It is believed that there are almost no stores in first-and second-tier cities in these restaurants. On the contrary, Haidilao, which has been blindly expanded in recent years, may become a victim of self-rescue, which also proves from an objective point of view that these stores have not brought considerable benefits.

Simply put, the profit and loss of Haidilao is calculated according to the overall revenue. Although the operating income has obviously increased compared with the last accounting year, the cost of opening a store has suddenly increased in the process of blind expansion, and even the profit has been unable to make up for the deficit of expenses, resulting in huge losses. In fact, it is understandable to choose the county-level market in theory, but the premise is that the price standard should match the on-site consumption capacity. Obviously, the county-level market stores in Haidilao ignore this objective demand, which makes it difficult to integrate into the local market environment after opening the store.

With the gradual closure of stores with weak profitability, the loss situation of Haidilao will be alleviated in the future. After all, in the catering competition in first-and second-tier cities, Haidilao's competitiveness is still strong, and its relatively high profit rate is easier to create greater profits for the headquarters. Although there was a huge loss last year, Haidilao is a well-known brand in the catering market after all, and it is not difficult to turn losses into profits.