During the semi-annual earnings call, Haidilao CEO Gou Yiqun confirmed for the first time the acquisition of the self-service hotpot brand “JuGaoGao”. The brand has an average per capita spending of 59.9 RMB and currently operates 10 directly-managed stores across 10 cities in China.
Haidilao launched the “Red Pomegranate Plan” in 2024, aiming to expand diversified dining brands through an internal entrepreneurship incubation model. This plan has incubated 14 brands spanning barbecue, fried chicken, baking, and other sectors. In the first half of 2025, revenue from these brands reached 597 million RMB, a year-on-year increase of 227%. The acquisition of JuGaoGao marks a strategic upgrade of the Red Pomegranate Plan: in addition to internal incubation, Haidilao now introduces external mature brands through acquisitions.
According to Qichacha data, the company associated with JuGaoGao, Zhijinghai (Sichuan) Catering Co., Ltd., has key personnel from Haidilao: Supervisor Tang Lanying and Director Zhang Fan. Meanwhile, Manager Fu Qianyi also serves as the legal representative of a competing brand, “Yi Wei Beef Hotpot”.
Haidilao CFO Li Peng stated during the call that JuGaoGao has established a stable single-store model with solid profit margins, although the specific acquisition amount was not disclosed. Unlike Haidilao’s main multi-person dining model, JuGaoGao operates with individual pots, conveyor-belt self-service, offers six soup bases and over 100 products, and has introduced freshly baked pizza, burgers, and other snack items.
Public data shows that acquisition strategies have significantly improved Haidilao’s operational efficiency. Brands acquired since 2020, such as “Hanshe Chinese Cuisine”, have continued operations for over three years. In contrast, more than half of internally incubated brands had closed by March 2025, with about one-third lasting less than a year. The newly incubated brand “Miaotang Spicy Grilled Fish” has experienced slow expansion, adding only three stores in a year.
Relying on its existing supply chain system, Haidilao ensures quality ingredients for JuGaoGao, with investments in high-end fruits like cherries and lychees, as well as freshly prepared dishes. This strategy directly addresses the “low price, low quality” issue prevalent in the small hotpot industry, where some brands reportedly use over 60% synthetic meat to maintain price competitiveness.
According to the China Chain Restaurant Association, the number of restaurant industry mergers and acquisitions in the first half of 2025 increased by 47% year-on-year. Leading companies enter niche segments through acquisitions 3.2 times faster than by establishing new brands internally.
References:
- Qichacha corporate database
- China Chain Restaurant Association 2025 H1 report
