Haidilao, once a bright star in the catering industry, is known for its unique service concept and rapid development, but it has recently fallen into an unprecedented predicament. Since its listing, Haidilao's share price has continued to be the best, with its market value evaporating by more than 363.5 billion yuan, a staggering 80% decline. Although in March 2022, after the new CEO Yang Lijuan took over, the company made a series of reform attempts and successfully turned a profit, but this does not seem to have won the favor of the capital market.
Haidilao's predicament stems from many factors. First, its aggressive expansion strategy in the past has led to its current organizational bloat and operational inefficiencies. In addition, the company seems to have failed to adjust its business model and business strategy in a timely manner in the face of intensified market competition, changes in consumption Xi and macroeconomic pressures. Although the "Woodpecker" program launched by Yang Lijuan after taking office has achieved results in the short term and the performance has rebounded, this has not fundamentally changed the market's pessimistic expectations for Haidilao.
The continued share price** reflects investors' concerns about Haidilao's future development. In the context of consumption upgrading, consumers' requirements for quality and experience are increasing, and Haidilao does not seem to have kept up with this trend in terms of service innovation and dish quality. At the same time, in the face of fierce market competition, especially from the pressure faced by emerging catering brands and first-class takeaway services, Haidilao's market share is being severely challenged.
Changes in the market environment and challenges in internal management have made Haidilao's future uncertain. Although it has tried to cope with the current situation by adjusting its menu** and store operation strategy, it is still unclear whether these measures will be effective in restoring consumer confidence and market acceptance. How to find new growth points in this volatile market environment and regain the trust of investors and consumers has become an urgent issue.