Haidilao announced the closure of 311 stores. According to the official information at that time, they chose to close some stores mainly for the following three reasons.

1. There is something wrong with the location of the stores. Some of the 311 stores that Haidilao officials believe to be closed have a big problem with the location, and the passenger flow is not very large.

second, the number of store managers is not enough. The official thinks that there are not enough excellent store managers because of the rapid expansion of the store, so they have no choice but to close the store.

Third, the construction of corporate culture is not enough, which is the third reason given by the government. They think that the expansion speed is fast enough, but at the same time, the construction of corporate culture is not enough, which will affect the quality of stores.

but personally, I think this is just an official statement. I think the reason why they closed 311 stores is because the profits of these 311 stores are relatively small. To put it bluntly, it is a drag on the whole, so they chose to close strategically.

You should know that the market value of Haidilao once reached over 411 billion Hong Kong dollars, but now the total market value of Haidilao is only 1115 billion, which means that the total market value of Haidilao has evaporated by about 311 billion Hong Kong dollars. In addition, we can also take a look at the annual report of Haidilao. According to the contents of the annual report, the operating income of Haidilao in the first half of the year was 21.194 billion, while the net profit was only 96.5 million, which means that the net profit rate of Haidilao was only 1.48%. This data is very surprising. We should know that the net profit of the catering industry should be at least above 11%. From this point, we can see that the profit rate of Haidilao has indeed appeared very large now.

Although Haidilao is a listed company, the pursuit of profit is behind its capital, so from this perspective, I personally think that Haidilao's closing of these 311 stores is an act of the company and a strategic act. That is to say, Haidilao deliberately slowed down the speed of opening his own shop, mainly to sort out the management system. In this way, you can temporarily close those stores that are dragging your feet, thus improving your profitability.