What makes Hai Di Lao Steamboat so successful?

Hai Di Lao’s (海底捞) Recipe for Success – Perfecting Customer Service

We have always been fascinated by the long queue at Hai Di Lao steamboat restaurants. After all, there are many other steamboat spots that also serve great food. So what’s all the fuss about?

Well, you’d be surprised to know that they are the only restaurant chain that provides free manicure service, popcorns, drinks and playground for children while they are waiting. The restaurant considers their customers’ overall experience, not just the food, in creating the best dining experience. This is what sets them apart, and why their patrons don’t mind waiting in line!

With over 300 restaurants worldwide, their achieved a massive yearly turnover of over 6 billion RMB.

Hai Di Lao’s (海底捞) Recipe for Success – Perfecting the Customer Experience

I have always been fascinated by the long queue at Hai Di Lao steamboat restaurants. After all, there are many other steamboat spots that also serve great food. So what’s all the fuss about?

Well, you’d be surprised to know that they are the only restaurant chain that provides free manicure service and playground for children while they are waiting. Others may think that this is a small factor, but it’s the small things that make a difference. The restaurant considers their customers’ overall experience, not just the food, in creating the best dining experience. This is what sets them apart, and why their patrons don’t mind waiting in line.

Yes It’s the Whole Experience

The secret to their success, Mr Si (Co-founder of Hai Di Lao) highlighted, is that they view their offering as not just the food they serve their patrons, but it includes the whole experience they have when they first enter the restaurant. It’s about the top-notch service, the right price point, and of course, the ambience that collectively sets Hai Di Lao apart from their competition.

Unique Human Resource (HR) practices

To give an example, when they hire a general manager for their restaurant, the candidate has to pass all the theory and practical tests of all the 45 roles, from cleaners to chefs, in their restaurant. This stringent process of filtering candidates results in them acquiring only the most competent people who are truly passionate about their industry.

Convenience via Technology 

It opened online stores on both e-commerce platforms, such as Alibaba, and its own official website, targeting to serve customers who want to have Haidilao hot pot at home. All a customer needs to do is placing an order, a waiter will then deliver the food, soup, and all needed tableware including the hot pot to the customer’s home at appointed time. Just let Haidilao know when finished, the waiter will come back help do all the cleaning jobs and take the tableware back.

It’s so uncommon, it might be hard to replicate

Because it would take a lot of time and effort to replicate, it’s also sustainable — this is important anywhere, but is especially important in China, where competitors will instantly copy all aspects of your business. The constant training, and willingness to follow-through with firing employees who are complained about, has created a culture of quality service that is hard for other restaurants to copy. Is there something you can do in the long-term to differentiate yourself that might take a while to implement?