Hotpot Restaurant Chain Haidilao Serves Up a Franchise Model

Restaurant chain seeks rapid expansion through franchisees while keeping a tight control on food safety and quality control

A Haidilao restaurant at a shopping mall in Shanghai.

Chinese hotpot chain Haidilao International Holding Ltd. announced Monday that it will launch a franchise model to further support the expansion of its restaurant network.

In a filing with the Hong Kong Exchange, Haidilao said it has set up a franchise department to formulate the details of the franchise model and the business cooperation process.

Franchised restaurants will be provided with central and back-office services, such as staff training, supply chain system, management experience, food safety control, brand marketing services and performance appraisal by the group, to ensure food safety as well as customer experience, the company said.