Zhang Yong and his wife, Shu Ping, co-founders of the global hotpot chain Haidilao, have achieved remarkable success. According to an article in VN Express, they have amassed a combined wealth of US$7.6 billion, securing a place among the wealthiest in Singapore. What started as a modest restaurant in Sichuan, China has expanded into one of the world’s most popular Chinese cuisine brands.
With 1,374 outlets worldwide by the end of 2023 and a revenue of US$5.7 billion, Haidilao’s journey is proof of entrepreneurial grit, innovation, and the power of customer-focused service.
A humble start and visionary leadership
The story of Haidilao began in 1994 with Zhang Yong’s decision to start a hotpot restaurant in his hometown of Jianyang, Sichuan. Armed with less than 10,000 yuan in startup capital, mostly funded by his co-founders (including his then-girlfriend, Shu Ping), Zhang embarked on a journey that would eventually redefine the hotpot dining experience. Initially, he didn’t even know how to prepare a traditional Sichuan hotpot, but his determination and bold vision set him on a path to success.
Zhang’s leadership was integral to the company’s rapid expansion. He promised to grow the restaurant’s assets to 150,000 yuan within five years, vowing that if he failed, he would compensate his partners. His commitment paid off as the brand steadily expanded its footprint. The Haidilao team also built separate businesses to manage critical functions like warehousing and food supply, helping new locations break even in just a few months.
Innovation and employee-centred growth
Haidilao’s meteoric rise can also be attributed to its commitment to exceptional customer service and continuous innovation. The restaurant chain is famous for its unique features, such as offering free manicures to waiting customers, photo booths, and hand-pulled noodles made at the table. Zhang’s focus on customer experience didn’t stop there—he made sure that his employees were empowered to innovate, which led to initiatives like offering plastic bags for customers’ phones and hair ties for long-haired diners.
Zhang believes that trust in employees is the cornerstone of Haidilao’s success. “If you doubt them, then you will fail. You have to give them room to perform, then they will treat their job seriously,” he said in an interview. By offering financial incentives like a 3% share of profits to restaurant managers, Haidilao ensured a motivated and invested workforce, further fueling the company’s rapid growth.
Overcoming challenges and resilience amid setbacks
Despite its earlier triumphs, Haidilao faced significant challenges. After going public in 2018, raising nearly $1 billion in its initial public offering, the company’s stock value plummeted in 2021 due to underperforming stores and a struggling global economy during the Covid-19 pandemic. In response, Haidilao decided to close or suspend 300 of its outlets, re-evaluating its operations and company culture.
Zhang’s resignation as CEO in 2022 marked a period of restructuring, but Haidilao bounced back with a 1.37 billion yuan profit in the same year.
In his 2023 annual report, Zhang reflected on the company’s progress, emphasizing improvements in both service quality and operational performance. As part of its recovery, Haidilao announced plans to expand into the U.S., aiming to offset declining consumption in China. Zhang’s focus remains on using money as a resource for investment, stressing that entrepreneurs should view financial gains as tools to further their larger dreams rather than short-term objectives.
The entrepreneurial mindset – a global perspective
Zhang Yong’s entrepreneurial journey offers invaluable lessons for business leaders worldwide. His philosophy emphasizes the importance of taking risks and nurturing long-term relationships rather than merely pursuing profits. “If you’re only interested in earning money, you’re scared of risks, and you break your principles as soon as quarrels break out,” Zhang said. Zhang’s mindset exemplifies the essence of entrepreneurship by maintaining a bigger vision and viewing money as a tool for investment.
Today, Zhang and his wife, Shu Ping remain influential figures in the business world, with Haidilao continuing to evolve and adapt to changing market conditions. Their story is one of resilience, innovation, and an unwavering commitment to their vision—one that has made Haidilao a household name in the world of hotpot dining.