Abstract

The case discusses the ascent of Chinese hotpot restaurant chain HaiDiLao to become one of the biggest hotpot restaurant chains in the world. HaiDiLao was known for its Sichuan-style broth and exceptional customer service. As of October 2022, it operated more than 1500+ restaurants globally. The chain’s success could be attributed to a tightly structured corporate culture, aggressive expansion strategy, and unconventional customer service creativity. Customer experience was always the first priority at HaiDiLao. From giving manicures, and shoulder massages to offering snacks, drinks, board games, etc., to customers during the time they spent waiting, HaiDiLao had went to great lengths to keep customers engaged and at the same time delighted. It created a defining customer experience and unique customer service, leveraging on technology, brilliant employee engagement, a data-driven supply chain model, and brand advocacy. To satisfy customers, HaiDiLao employees were empowered to go beyond procedures and systems. HaiDiLao’s journey was not without its challenges. These included growing competition, labor shortage, inflation, and safety and hygiene and meeting the expectations of its customers. It remained to be seen whether HaiDiLao would continue to maintain its excellent customer service standards going forward and sustain its dominant position in the hot pot restaurant space.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the concept of Hidden Champions and their characteristics
• Understand the importance of customer service in the service industry
• Study the customer centric philosophies of HaiDiLao, and how these have contributed to the success of the company
• Identify the challenges faced by HaiDiLao
• Explore strategies that HaiDiLao can adopt in future to attract more customers

Keywords

Customer service; Hidden champion; Customer experience; Customer loyalty; Customer satisfaction; Customer-centricity; Competitive advantage; Haidilao; hotpot restaurant,HaiDilao; Marketing Management; Business Strategy