Amid slowing hotpot growth in China, Haidilao takes on biggest American burger brands

Haidilao International Holding, China's leading hotpot chain, has expanded into the hamburger market with the launch of its new outlet, Fresh Burger, in Wuhan, Hubei Province. This move comes amid signs of slowing growth in the hotpot sector and reflects Haidilao's strategy to diversify its offerings by entering markets dominated by established international players such as McDonald’s, KFC, and Five Guys. The company has also increased its presence in the sushi segment, signaling a broader effort to identify new revenue streams. Five Guys, one of the most prominent American burger chains, recently opened its first two locations in Beijing, intensifying competition in the city’s already saturated fast-casual dining landscape. Meanwhile, Haidilao, which operates over 20 sub-brands under its umbrella, introduced Fresh Burger in late July, marking its second venture into the burger space. Its initial attempt, Hiburger, was shuttered in early 2025, highlighting the challenges of competing in a fiercely competitive market. The domestic burger scene in China is highly fragmented, featuring both foreign and local players. Established names like Burger King and Shake Shack coexist with indigenous chains such as Slowboat and NewYoBo. These competitors have carved out niches through localized menus, pricing strategies, and marketing approaches tailored to Chinese consumer preferences. Haidilao’s entry into this arena aims to leverage its existing brand strength while introducing fresh concepts that align with current trends in casual dining. According to Ivan Su, a director at Morningstar, Haidilao’s sub-brands, including Fresh Burger, are unlikely to significantly impact the company’s financial performance in the near term. While Haidilao possesses advantages such as a robust supply chain and efficient cost structures, the restaurant industry in China remains intensely competitive. Moreover, the company’s reputation as a hotpot specialist does not easily translate to success in entirely different culinary formats, such as burgers or sushi. Fresh Burger focuses on freshly grilled burgers made without pre-frozen meat patties, offering a perceived premium compared to mass-produced alternatives. Prices range from 18.9 yuan (approximately $2.80) to 41.9 yuan ($6.30), with additional options including pizza, pasta, coffee, and ice cream. This diversified menu suggests an intent to appeal to a broad customer base, potentially drawing diners who seek variety beyond traditional hotpot fare. Beyond burgers, Haidilao continues to explore other segments, operating seafood street-style eateries and Chinese fast-food chains. These ventures underscore the company’s commitment to innovation and adaptation in response to shifting consumer demands. However, the success of these initiatives will depend on factors such as consumer acceptance, operational efficiency, and effective marketing strategies. As Haidilao navigates this expansion, the outcome of its efforts in the burger and sushi sectors could influence how other hotpot chains approach diversification. The company’s experience with Hiburger, which failed to gain substantial traction, serves as a cautionary tale. Nonetheless, the decision to enter new markets reflects a strategic shift toward resilience in a maturing industry. The coming months will reveal whether Haidilao’s latest ventures can carve out a sustainable place in the competitive landscape of Chinese dining.