Fast-growing Beijing-based restaurant group Haidilao Hotpot has employed humorous gimmicks — from dancing noodle chefs and manicures to teddy bears for solo diners — to sell its Sichuan food. But now the chain has embarked on a more serious project: preparing for an initial public offering.
The chain, known for offering massages and pedicures to customers waiting for tables, is set to list in Hong Kong as part of a wave of IPOs and private fundraising by China food service groups tapping demand from discerning millennial customers.
China’s restaurant industry, which had sales of Rmb4tn ($622bn) last year, is forecast to grow by about 10 per cent annually over the next five years, according to Frost & Sullivan, a market research group. Rising incomes and an expanding middle class have made China the second-largest restaurant market after the US, according to a report by the China Cuisine Association, an industry body.