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China Brands, Marketing & Consumers

Hotpot Chain Haidilao Is Shutting Down Over 300 Restaurants

After adding 544 stores in 2020, Haidilao will close 300 locations this year.

Manya Koetse

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News that China’s most popular hotpot chain is closing down over 300 restaurants became a top trending topic on Chinese social media site Weibo on Friday.

Haidilao (海底捞) made the announcement on Friday evening through a social media post, saying the company will gradually shut down about 300 of its stores. The restaurants that are to be closed are those with relatively low customer traffic and lower-than-expected business performance.

Although the stores will be shut down before December 31 of this year, some of them will potentially reopen at a later date after reorganization. The company also said it would not lay off its staff for now.

Haidilao has approximately 1600 restaurants, of which many were opened in 2020, when the chain added an astonishing 544 new restaurants. In the summer of 2021, Haidilao had a total of 131,084 employees.

It has been over 25 years since Zhang Yong, the owner of Haidilao, set up his first hot pot restaurant in Jianyang, Sichuan, with a mere investment of 10,000 yuan ($1470). It later became the dominant hot pot chain in the country.

Hot pot restaurants, where fresh meat and vegetables are cooked at the table in the simmering broth, are extremely common across China. But Zhang Yong chose to market Haidilao and its authentic Sichuan hot pot with an innovative strategy: high-service, high-tech, and high-quality.

The restaurant is known for giving its customers a free manicure along with snacks and drinks while waiting for a table. The staff is thoroughly trained in providing the best customer service, and Haidilao has introduced new concepts throughout the years to enhance customer experience. People who dine alone, for example, will get a teddy bear to join them. The restaurant also introduced robot waiters and is known for its noodle dancers and staff singing birthday songs whenever there is a birthday celebration.

Want a bear to join you for hotpot? Haidilao’s got you covered.

Over the past two years, however, Haidilao’s table turnover rate shrunk dramatically. The average table turnover rate in 2019 was 4.8 per day, but that number fell to 3 times per day in 2021, with some restaurants only doing 2.3 per day, leading to significant losses for the company’s net profit.

Due to the Covid19 crisis and lockdowns, Haidilao closed its doors in late January of 2020. By mid-March, it started to gradually reopen some of its locations, although they initially offered fewer seats and introduced an increased distance between dining table, that were allowed to have no more than three guests.

Due to the restaurant’s limited tables and increased labor costs, its menu prices went up, much to the dismay of many netizens, who already thought the prices at Haidilao were steep before the pandemic.

In October of this year, the story of a Haidilao customer in Zhengzhou discovering that the 200 grams of tripe he ordered for 72rmb ($11) was actually only 138 grams also went viral on Weibo, stirring discussions on the Haidilao menu prices.

While news about Haidilao closing so many of its stores attracted over 260 million views by Friday night, many commenters agreed that the company should scale down. “The more stores you open, the less you focus on service, the surroundings of the newly opened stores are not up to par, while prices are only rising,” one person wrote on Weibo.

“They’re not making enough money, while their prices were already being pressed down, and still I can’t afford to eat there,” another commenter wrote.

Others also wondered how Haidilao could claim they would not sack their staff while closing down so many stores. “Does that basically mean they’ll wait for them to leave for themselves?”

“When there’s a pandemic, there’s bound to be bad luck [in business],” another commenter writes: “There’s really not much to do about it.”

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2021 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Manya Koetse is the founder and editor-in-chief of whatsonweibo.com. She is a writer, public speaker, and researcher (Sinologist, MPhil) on social trends, digital developments, and new media in an ever-changing China, with a focus on Chinese society, pop culture, and gender issues. She shares her love for hotpot on hotpotambassador.com. Contact at manya@whatsonweibo.com, or follow on Twitter.

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1 Comment

  1. Avatar

    Jin Wang

    November 6, 2021 at 10:31 am

    with the increase of labor cost in China, only profitable restaurant will be open.
    Restaurant with financial problems will be closed.

    (great website)

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China Brands, Marketing & Consumers

‘Carpet Pacific’: A Timeline of the Cathay Pacific Scandal Through Weibo Hashtags

Cathay Pacific flight attendants mocking non-English speaking passengers by saying, “If you can’t say blanket, you can’t have it,” has sparked a major controversy and caused a marketing catastrophe.

Manya Koetse

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Last week, Xiamen Airlines was the focus of attention on Chinese social media after one of their pilots was caught secretly filming a female staff members in the ladies room. This week, the focus has shifted to Cathay Pacific, as the Hong Kong-based airline faced accusations of discrimination against travelers from mainland China.

The incident gained significant attention on May 22 when a user of the Xiaohongshu (Little Red Book) app shared a public complaint about the Hong Kong airline. In the post, the author, who claimed to have resided in Hong Kong for eleven years, expressed their inability to remain silent after witnessing overt discrimination on a Cathay Pacific CX987 flight from Chengdu to Hong Kong.

The passenger said they were seated near the area where the flight attendants rest and prepare meals, and that they could hear the cabin crew making fun of passengers who could not speak English. Passengers who tried to ask them for help in English about filling out immigration cards allegedly also received impatient responses. The passenger recorded some of their conversation, and later posted the audio clip online.

In one clip, you can hear the staff laughing about a passenger who wanted a blanket but could not properly say it in English. “If you cannot say blanket, you cannot have it,” they joked. Since some passengers allegedly had used the word ‘carpet’ instead of ‘blanket’, the cabin crew can be heard saying: “A carpet is on the floor.”

Since the incident was first exposed on social media, it turned into a major controversy and a marketing crisis for the Cathay Pacific company. As Cathay was condemned by million of netizens, many also vowed to boycott the airline.

Cathay Pacific has been hit hard by the pandemic, and was seeing an increased demand for travel into the Chinese Mainland since quarantine-free travel between Hong Kong the Mainland was finally resumed on January 8 of this year. Cathay is heavily dependent on the Chinese market, and approximately 70% of its revue reportedly comes from China (#国泰航空近七成营收来自中国#).

The incident has ignited anger due to the discriminatory treatment of mainland customers by a Hong Kong company, leading to further discussions on anti-Chinese sentiments in Hong Kong and the role of language in fostering (or hindering) national unity between mainland China and Hong Kong.

This is a timeline of the incident through Weibo hashtags that have gone trending over the past few days.

▶︎ The Cathay Discrimination Audio Leaked Online #国泰空乘歧视乘客录音曝光# (260 million views)

After a netizen posted about supposed discrimination against non-English speaking passengers by cabin crew members on the Cathay Pacific CX987 flight, the incident soon garnered widespread attention on Chinese social media, especially when the 30-second audio was also shared online (hear the audio snippet here).

▶︎ Cathay Pacific Apologizes #国泰航空致歉# (210 million views)

On May 22, Cathay Pacific soon issued a response apologizing for the passenger’s experience and promised a thorough investigation. However, their initial apology was considered inadequate by many netizens, and only sparked more debates about the discrimination against mainland Chinese passengers within Cathay’s work environment.

On May 23, Cathay Pacific issued a second apology via social channels, mentioning that they had contacted the passenger and that they had suspended the flight attendants involved.

▶︎ Cathay Pacific Uses Standard Mandarin to Apologize #国泰航空行政总裁用普通话道歉# (10 million views)

Lin Shaobo apologizes using Standard Mandarin, image via Weibo.com.

During a media briefing in Guangzhou on May 24, Cathay Pacific CEO Lin Shaobo (林绍波) once again expressed his sincere apologies on behalf of Cathay for the incident. In doing so, he used Standard Mandarin, the national language of mainland China.

▶︎ Three Employers Fired for Discriminating Against Passengers #国泰航空3名歧视乘客空乘被解聘# (460 million views)

At this time, it was also announced that Cathay had completed their investigation into the matter and, in accordance with the company’s regulations, had dismissed the three involved cabin crew members. Lin Shaobo clarified that the airline maintains a “zero tolerance” approach towards any employees who violate the company’s rules and ethical standards.

▶︎ Cathay Pacific’s Flight Attendant Union Regrets the Incident #国泰空乘工会对空姐被解聘感到遗憾# (180 million views)

On May 24, there was some online turmoil over a statement issued by Cathay Pacific’s Flight Attendant Union (FAU). In the statement, the union expressed that Cathay is “facing a shortage of both manpower and resources, a significant increase in workload and low salaries.” Because these problems are ignored, Cathay is seeing an “extremely low” morale among cabin crew and more complaints regarding cabin service. “Nothing comes from nothing,” the statement said. The Union was criticized for “whitewashing” the cabin crew’s discrimination against non-English-speakers.

▶︎ No Official Support for The Union #国泰航空称空中服务员工会不代表国泰# (130 million views)

On May 25, Cathay Pacific issued a statement in which they clarified that The Union is an independent labor union and does not represent the company. They also clarified that did not support the union’s position nor agreed with it.

▶︎ Hu Xijin Recommends Mainland Passengers to Speak Mandarin #胡锡进建议乘国泰航空只讲普通话# (910,000 views)

Chinese political & social commentator Hu Xijin (@胡锡进) also responded to the Cathay incident in multiple posts. In one of them, he suggested that mainland passengers should primarily speak Mandarin when they fly Cathay in the future. Since so much of their customer base is from mainland, Cathay should have enough cabin crew speaking Mandarin, he argued. Hu also reflected on how Cathay also caused controversy in 2019, when it would not stop staff from joining the Kong Kong pro-democracy protests. According to Hu, the company should pay attention to “correcting the values” of their employees.

▶︎”Leaked” Internal Email Labeled as Fake News #国泰航空称网传英文内部信件为伪造# (77 million views)

Post by Cathay in which they deny that this “leaked memo” is authentic. Screenshot by What’s on Weibo.

In the meantime, some images circulated online that allegedly showed an internal Cathay Pacific memo by the company’s HK Express CEO Mandy Ng in which a warning was issued to be “cautious when engaging with customers from China and be aware of their media culture.” That memo was labeled as being false by Cathay Pacific.

▶︎ Hong Kong Perfomer Condemns Cathay for Incident #香港演员怒斥国泰空乘歧视乘客# (170 million views)

Hong Kong celebrity Maria Cordero, nicknamed ‘Fat Mama’ (肥妈) went trending on Weibo for condemning the Cathay Pacific crew members in a recent interview. “Is speaking English that important?” she wondered: “The whole world is learning Chinese!” She also expressed that the primary duty of flight attendants is to look after passengers and help solve their problems. If they are incapable of fulfilling their duty, they should be sacked.

▶︎ Blankets for Everyone #旅客称现在国泰的航班挨个发毛毯# (6.5 million views)

According to passengers flying Cathay after the ‘blanket incident,’ the cabin crew went around explicitly asking all passengers if they needed any blankets, making announcements in English, Mandarin, and Cantonese.

▶︎ Follow-up to the Incident #国泰航空空乘歧视乘客后续# (26 million views)

As the Cathay scandal keeps fermenting online, one commenter expressed a common viewpoint by stating: “If Cathay Pacific is so unwilling to serve Chinese people and they refuse to speak Mandarin, why don’t they clearly state that they don’t welcome Chinese passengers? They can’t have it both ways by earning money from Chinese tickets without providing the same level of service.”

Meanwhile, an online meme has gained popularity, depicting ‘Cathay Pacific’ as ‘Carpet Pacific’ in reference to the controversial comments made by the cabin crew.

Other memes include the quote: “If you cannot say blanket, you cannot have it,” or include the phrase “no zuo no die” – a popular internet meme that basically means ‘what goes around comes around.’

Those flying China Southern Airlines or Eastern Airlines are posting about their warm on-board blankets, joking: “I didn’t even have to say ‘blanket’ and still got it!”

By Manya Koetse

Get the story behind the hashtag. Subscribe to What’s on Weibo here to receive our newsletter and get access to our latest articles:

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2023 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China and Covid19

Repurposing China’s Abandoned Nucleic Acid Booths: 10 Innovative Transformations

Abandoned nucleic acid booths are getting a second life through these new initiatives.

Manya Koetse

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During the pandemic, nucleic acid testing booths in Chinese cities were primarily focused on maintaining physical distance. Now, empty booths are being repurposed to bring people together, serving as new spaces to serve the community and promote social engagement.

Just months ago, nucleic acid testing booths were the most lively spots of some Chinese cities. During the 2022 Shanghai summer, for example, there were massive queues in front of the city’s nucleic acid booths, as people needed a negative PCR test no older than 72 hours for accessing public transport, going to work, or visiting markets and malls.

The word ‘hésuān tíng‘ (核酸亭), nucleic acid booth (also:核酸采样小屋), became a part of China’s pandemic lexicon, just like hésuān dìtú (核酸地图), the nucleic acid test map lauched in May 2022 that would show where you can get a nucleic test.

Example of nucleic acid test map.

During Halloween parties in Shanghai in 2022, some people even came dressed up as nucleic test booths – although local authorities could not appreciate the creative costume.

Halloween 2022: dressed up as nucliec acid booths. Via @manyapan twitter.

In December 2022, along with the announced changed rules in China’s ‘zero Covid’ approach, nucleic acid booths were suddenly left dismantled and empty.

With many cities spending millions to set up these booths in central locations, the question soon arose: what should they do with the abandoned booths?

This question also relates to who actually owns them, since the ownership is mixed. Some booths were purchased by authorities, others were bought by companies, and there are also local communities owning their own testing booths. Depending on the contracts and legal implications, not all booths are able to get a new function or be removed yet (Worker’s Daily).

In Tianjin, a total of 266 nucleic acid booths located in Jinghai District were listed for public acquisition earlier this month, and they were acquired for 4.78 million yuan (US$683.300) by a local food and beverage company which will transform the booths into convenience service points, selling snacks or providing other services.

Tianjin is not the only city where old nucleic acid testing booths are being repurposed. While some booths have been discarded, some companies and/or local governments – in cooperation with local communities – have demonstrated creativity by transforming the booths into new landmarks. Since the start of 2023, different cities and districts across China have already begun to repurpose testing booths. Here, we will explore ten different way in which China’s abandoned nucleic test booths get a second chance at a meaningful existence.

 

1: Pharmacy/Medical Booths

Via ‘copyquan’ republished on Sohu.

Blogger ‘copyquan’ recently explored various ways in which abandoned PCR testing points are being repurposed.

One way in which they are used is as small pharmacies or as medical service points for local residents (居民医疗点). Alleviating the strain on hospitals and pharmacies, this was one of the earliest ways in which the booths were repurposed back in December of 2022 and January of 2023.

Chongqing, Tianjin, and Suzhou were among earlier cities where some testing booths were transformed into convenient medical facilities.

 

2: Market Stalls

Market stalls instead of nucliec acid testing booths. Image via Sina.

In Suzhou, Jiangsu province, the local government transformed vacant nucleic acid booths into market stalls for the Spring Festival in January 2022, offering them free of charge to businesses to sell local products, snacks, and traditional New Year goods.

The idea was not just meant as a way for small businesses to conveniently sell to local residents, it was also meant as a way to attract more shoppers and promote other businesses in the neighborhood.

 

3: Community Service Center

Small grid community center in Shizhuang Village, image via Sohu.

Some residential areas have transformed their local nucleic acid testing booths into community service centers, offering all kinds of convenient services to neighborhood residents.

These little station are called wǎnggé yìzhàn (网格驿站) or “grid service stations,” and they can serve as small community centers where residents can get various kinds of care and support.

 

4: “Refuel” Stations

In February of this year, 100 idle nucleic acid sampling booths were transformed into so-called “Rider Refuel Stations” (骑士加油站) in Zhejiang’s Pinghu. Although it initially sounds like a place where delivery riders can fill up their fuel tanks, it is actually meant as a place where they themselves can recharge.

Delivery riders and other outdoor workers can come to the ‘refuel’ station to drink some water or tea, warm their hands, warm up some food and take a quick nap.

 

5: Free Libraries

image via sohu.

In various Chinese cities, abandoned nucleic acid booths have been transformed into little free libraries where people can grab some books to read, donate or return other books, and sit down for some reading.

Changzhou is one of the places where you’ll find such “drifting bookstores” (漂流书屋) (see video), but similar initiatives have also been launched in other places, including Suzhou.

 

6: Study Space

Photos via Copyquan’s article on Sohu.

Another innovative way in which old testing points are being repurposed is by turning them into places where students can sit together to study. The so-called “Let’s Study Space” (一间习吧), fully airconditioned, are opened from 8 in the morning until 22:00 at night.

Students – or any citizens who would like a nice place to study – can make online reservations with their ID cards and scan a QR code to enter the study rooms.

There are currently ten study booths in Anji, and the popular project is an initiative by the Anji County Library in Zhejiang (see video).

 

7: Beer Kiosk

Hoegaarden beer shop, image via Creative Adquan.

Changing an old nucleic acid testing booth into a beer bar is a marketing initiative by the Shanghai McCann ad agency for the Belgium beer brand Hoegaarden.

The idea behind the bar is to celebrate a new spring after the pandemic. The ad agency has revamped a total of six formr nucleic acid booths into small Hoegaarden ‘beer gardens.’

 

8: Police Box

In Taizhou City, Jiangsu Province, authorities have repurposed old testing booths and transformed them into ‘police boxes’ (警务岗亭) to enhance security and improve the visibility of city police among the public.

Currently, a total of eight vacant nucleic acid booths have been renovated into modern police stations, serving as key points for police presence and interaction with the community.

 

9: Lottery Ticket Booths

Image via The Paper

Some nucleic acid booths have now been turned into small shops selling lottery tickets for the China Welfare Lottery. One such place turning the kiosks into lottery shops is Songjiang in Shanghai.

Using the booths like this is a win-win situation: they are placed in central locations so it is more convenient for locals to get their lottery tickets, and on the other hand, the sales also help the community, as the profits are used for welfare projects, including care for the elderly.

 

10: Mini Fire Stations

Micro fire stations, images via ZjNews.

Some communities decided that it would be useful to repurpose the testing points and turn them into mini fire kiosks, just allowing enough space for the necessary equipment to quickly respond to fire emergencies.

Want to read more about the end of ‘zero Covid’ in China? Check our other articles here.

By Manya Koetse,

Get the story behind the hashtag. Subscribe to What’s on Weibo here to receive our newsletter and get access to our latest articles:

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2023 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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