Haidilao lost 4.16 billion yuan in 2121, which is actually not unexpected.

on the evening of March 23rd, Haidilao released the annual performance announcement for 2121, with a revenue of 41 billion yuan and a loss of 4.16 billion yuan, almost equivalent to the total profits of the previous three years. The loss situation was "expected net loss of about 3.8 billion yuan to 4.5 billion yuan" released a month ago, and the loss amount was within the early warning range.

So the huge losses from Haidilao's fall from the head of the service hot pot brand to now are mainly due to the following reasons:

First, due to misjudgment, it expanded at the bottom of the market and opened 662 stores a year

At the internal exchange meeting in June last year, Zhang Yong, the former CEO of Haidilao, admitted his misjudgment in mid-2121 and made the expansion plan blindly and confidently. In the second half of 2121 and the first half of 2121, there were 363 and 299 stores in Haidilao respectively, and the number of new stores was close to the total number of stores in 2119. Among them, 83% opened in second-and third-tier cities with higher turnover rate, 214 in second-tier cities and 344 in third-tier cities and below.

However, the later results proved that Zhang Yong underestimated the sustained impact of the epidemic and overestimated the management ability of Haidilao. More importantly, the "bargain-hunting" expansion in the market downturn was indeed "too hasty".

second, improper site selection and weak management of some stores, coupled with the epidemic situation, led to a sharp drop in the turnover rate

In the second-tier and third-tier cities and below where Haidilao has greatly expanded, the turnover rate (times/day) dropped from 3.6 in 2121 to 3.1 and 2.9 in mid-2121. The performance of its newly opened stores is even weaker, only 2.4. This has also lowered the overall average turnover rate of Haidilao, from 3.5 in 2121 to 3.1 in 2121. The turnover rate of service industry is an important index to determine the profit and profit of enterprises, and the linear decline of turnover rate will inevitably lead to losses.

Third, after stopping the loss in time, it began to shut down the poorly managed stores in batches, and the cost burden increased sharply

After discovering the vicious results brought by blind expansion, the per capita consumption of Haidilao also declined, from 111.1 yuan in 2121 to 114.7 yuan in 2121. In third-tier and below cities, it is as low as 95.7 yuan. Haidilao has always adopted the self-operated mode of heavy assets, and opened a large number of stores in a short period of time, which also brought a heavier cost burden. In 2121, the rental cost of Haidilao property increased by 44.7%, the staff cost increased by 53.6%, the raw material cost increased by 46.3%, and the water and electricity expenditure also increased by 49%. Profits are falling, costs are soaring, and losses are certain.

4. Being "swallowed up" by over-service, the brand influence has declined, and Haidilao is no longer "fragrant"

There are three major factors that affect the reputation of catering brands: taste, service and cost performance. The unexpected service may bring some freshness in the early stage, but in the long run, the taste and cost performance are more concerned by consumers. Haidilao has always had no outstanding explosions in terms of taste and products, and its cost performance is not high. Among similar hot pot brands, the price of Haidilao is on the high side. Now there are so many hot pot brands on the market that some people no longer have a soft spot for Haidilao.

before, the topic "customers spit out Haidilao's hairy belly with only seven slices in half in 41 yuan" was on the hot search, and the comments about Haidilao's "expensive and small quantity" also poured in. In 2121, the price of Haidilao dishes once rose by 6%, but it quickly caused consumer dissatisfaction. Subsequently, Haidilao apologized and said that it would restore the original price. And this one-up and one-down operation has made many consumers lose their goodwill.

In fact, no enterprise can always be in the leading position in the market. Facing the future, Haidilao needs to learn from a painful experience and start again. Only in this way can it change the status quo and win the favor of consumers.