The Hotpot Empire’s Desperate Gambit: Why Haidilao’s Burger Bet Won’t Pay Off

Haidilao International Holding, a major player in China’s once-booming hotpot industry, is scrambling to adapt as the market experiences a significant slowdown. In an attempt to inject new life into its stagnating business, the company has launched Fresh Burger, a hamburger chain that takes on some of America’s biggest burger brands.

At first glance, this move may seem like a bold strategy to diversify Haidilao’s portfolio and tap into the growing demand for Western-style fast food in China. However, it is a desperate attempt to cling to relevance in an increasingly crowded market. The domestic burger scene has become almost as saturated as the hotpot industry that Haidilao once dominated.

Haidilao has attempted this strategy before with limited success. In 2024, they launched Hiburger, which ultimately closed down in 2025. The company is rebranding the same concept under a new name, Fresh Burger, with little to no significant changes to its offerings or business model. It’s unclear what sets Fresh Burger apart from its predecessor.

The bigger question here is not just why Haidilao is trying to make burgers but also how they plan to transfer their brand halo to a completely new concept. Ivan Su, director at Morningstar, noted that “China’s restaurant industry is hypercompetitive,” and it’s unlikely that Haidilao’s existing customer base will automatically follow them into the burger market.

This move by Haidilao mirrors the broader trend of Chinese companies copying Western concepts without adapting them to local tastes or preferences. This approach has been tried before, with varying degrees of success, and it remains to be seen whether Fresh Burger will fare any better.

The Fading Hotpot Empire

The decline of China’s hotpot industry is a more nuanced story that goes beyond just Haidilao’s struggles. The once-thriving market fueled the growth of companies like Haidilao but has been experiencing slowing demand due to changing consumer preferences and rising competition.

Hotpot chains, initially popular for their affordable prices and communal dining experience, have struggled to adapt as consumers increasingly opt for more premium experiences and diverse cuisines. The hotpot market is no longer the lucrative business it once was, and companies like Haidilao are being forced to diversify in order to stay afloat.

What This Means for China’s Restaurant Industry

The fact that Haidilao is trying to pivot into the burger market at this stage raises questions about the resilience of the company and its leadership. The failure of previous attempts, combined with the lackluster reception of Fresh Burger so far, paints a concerning picture for investors.

This move has implications for China’s restaurant industry as a whole. It highlights the difficulties that even the largest players face in adapting to changing consumer preferences and staying relevant in an increasingly crowded market. This trend is likely to continue unless major players are willing to take bold steps towards innovation and adaptation.

The End of the Hotpot Empire?

As Haidilao’s struggles with its burger venture become more apparent, one can’t help but wonder whether this marks the beginning of the end for China’s hotpot empire. Will other companies follow suit, or will they opt for a more strategic approach to diversification?

It remains to be seen whether Haidilao can pull off this gamble. However, it is clear that the hotpot industry is no longer the lucrative business it once was, and companies are being forced to think outside the box if they want to stay ahead of the curve.

In a market where consumer preferences are constantly shifting, even the most successful companies are not immune to the risks of stagnation. As Haidilao struggles to reinvent itself, one thing becomes clear: this is not just about burgers or hotpots – it’s about survival in an increasingly competitive landscape.