Haidilao's Brand Expansion in the U.S.: A Complete Analysis from its Launch in Los Angeles to its Nationwide Rollout

01｜ Development Journey: From the First Store to the Present US Network

First Store Opening Time and Location

Haidilao opened its first US store in Arcadia, California in 2013.

Key considerations for choosing Arcadia as its first overseas stop included:

• Customer Base: The area has a Chinese population of approximately 30%, is concentrated with middle-to-high-income families, and could quickly absorb the brand's initial customer base.

• Location Advantage: Its proximity to core Los Angeles business districts allowed it to reach diverse consumer groups, paving the way for future penetration into the mainstream market.

Store Count and Layout

As of mid-2025, Haidilao operates approximately 13 stores in the United States.

It is particularly active on the West Coast: The Greater Los Angeles area has 4 stores (Arcadia, Industry, Irvine, Santa Monica), with one also in San Diego. The Bay Area has two stores (Fremont, Cupertino), and a new store exceeding 7,000 square feet is planned for the Serramonte Center in Daly City. Additionally, there are two stores in Seattle.

On the East Coast, Haidilao opened its first store in Flushing in 2019, followed by a Chicago store in 2020. In 2021, it entered Texas, opening one store each in Dallas and Katy.

Corporate / Overall Overseas Operations

Haidilao's overseas operations unit is named Super Hi International, which was spun off and listed independently in 2022.

As of the end of 2023, Super Hi managed approximately 119 self-operated restaurants across about 13 countries, including the North American market.

Finance and Market Capitalization

In May 2024, Super Hi listed on the US NASDAQ (in ADS form) with an issue price of $19.56 per share, raising approximately $52.7 million and reaching a valuation of around $1.26 billion.

02｜ Strategic Positioning: Adhering to Brand Essence with Localized Adjustments

Service Standards and Brand Essence

Haidilao consistently centers its brand around "premium service and user experience." This includes complimentary snacks, fruits, hairstyling tidying, shoe shining, toys/children's play areas, and waiting lounges during wait times. These services have been specifically optimized for the US due to licensing or legal restrictions (e.g., some "manicure/massage" waiting services are canceled or simplified due to differing regulations).

Location Strategy

Haidilao in the US typically chooses locations in high-traffic shopping malls, commercial streets, or large community-edge malls, rather than concentrating solely in Chinatowns or other Chinese communities. This strategy aims to attract mainstream, non-ethnic Chinese customers. The new Daly City store exemplifies this approach.

Dish / Menu / Environment Localization

While retaining the core elements of Chinese hot pot (soup bases, dish combinations, variety of dipping sauces, etc.), Haidilao US locations adjust for local consumer taste preferences (spiciness levels, soup base options, exclusion of specific ingredients, etc.). Interior design and service processes emphasize ambiance, visible clean kitchens, and transparent service flows to meet US consumer expectations for hygiene, safety, and experience. Some stores feature large spaces, modern design, and investments in lighting, customer flow, and the queuing area experience.

03｜ Operations, Food Safety, and Supply Chain Details

Food Safety Standards and Supply Chain Control

Haidilao complies with local US food safety regulations (FDA, state/county health standards, etc.), conducts qualification audits for suppliers of meat, seafood, and vegetables, and maintains cold chain transportation and temperature control. Store kitchens and ingredient handling adhere to US health codes, with features like kitchen visibility and transparent kitchen designs further strengthening consumer confidence.

A comparative advantage is that while US food safety requirements are stringent, execution and management across various stages are highly effective. Suppliers from formal channels each fulfill their responsibilities according to regulations (e.g., organic certification, ingredient labeling, allergy alerts). This clear division of responsibility, where the end merchant isn't solely accountable for all preceding steps, significantly reduces the compliance burden on the final operator.

Cold Chain and Logistics

Haidilao's ingredients are sourced from multiple states or countries and require refrigeration/freezing. Their service quality and freshness are vital components of brand reputation. Haidilao US did not build its own cold chain storage facilities but leveraged third-party partnerships to enable rapid expansion. It is reported that Haidilao established a strategic cooperation with Walong, one of the largest Asian food wholesalers in the US, utilizing its established food import processes and large, temperature-zoned storage facilities for efficient cold chain distribution to each store.

Staff and Experience

Haidilao is renowned for "Service + Employee Experience." In US stores, employee training is strong, service processes are standardized, while incorporating some characteristic Chinese service elements (e.g., tableside service, self-selection condiment bars, complimentary snacks while queuing).

04｜ Summary of Success Factors

Based on the above development journey and strategy, key factors for Haidilao's success in the US market can be summarized as:

• Strong Brand Value + Service as Differentiator: Haidilao attracts customers not just with the hot pot and ingredients, but with service experiences that exceed standards, turning "waiting" into part of the brand experience.

• Location Strategy and Breaking Customer Segments: Avoiding confinement to ethnic enclaves, opting for mainstream commercial centers and shopping malls to gain exposure and traffic from non-ethnic customers.

• Balance of Localization Adaptation and Core Identity: Adjusting spiciness levels, dish combinations, store design, and service models for the US market, while preserving the core hot pot experience and "Haidilao-style service."

• Focus on Food Safety and Operational Standards: Adhering to local US regulations and standards, maintaining brand trust through kitchen hygiene, supplier qualifications, and ingredient cold chain management.

• Leveraging Capital Markets and International Platforms: The spin-off and US IPO of Super Hi enhanced capital access and international exposure, supporting expansion and standardized operations.

• Adapted Digital Marketing: Operating official accounts on Instagram and TikTok, posting content like "hot pot eating tutorials" and "employee dance videos," accumulating over 100,000 followers. In 2024, 25% of store customers were driven by social media. Its TikTok marketing employs localized content strategies, such as custom beer clinking AR effects for the US market, enhancing user interaction.

05｜ Lessons for Other Brands

From Haidilao's US path, other Chinese brands (e.g., in bubble tea, snacks, e-commerce food) can learn the following:

• Prioritize "Service + Experience" before just selling the product; customer experience can be a powerful shaper of brand differentiation and loyalty.

• Don't limit store locations solely to Chinese markets; if a brand can balance experiential standards with cultural communication, it can appeal to non-Chinese customers in mainstream consumer markets.

• Combine capital and operations to drive expansion: Utilize international capital markets, IPOs, etc., for funding and brand influence, while maintaining standardization in store operations and staff training.

• Innovation and localization require continuous effort: Menu adaptation, store design, social media marketing all need dynamic adjustment; don't assume successful formulas from China can be entirely replicated.

• Front-load Compliance: Consult local compliance advisors before entering the US market to avoid legal risks.

06｜ Conclusion

Haidilao's expansion in the US was not achieved overnight. It was progressively rolled out through a combined push of "brand essence + high standards + local adaptation + integration of capital and operational resources." From the first store opening in Los Angeles to the ongoing opening of new stores in the Bay Area, selection of mainstream mall locations, and listing on international capital markets, this trajectory charts the evolution of a Chinese brand overseas from an "ethnic Chinese restaurant" to a "cross-cultural dining brand." If other Chinese brands entering the US market can learn from Haidilao's experiences, they will be more likely to gain a firm foothold in the mainstream market and achieve true "brand globalization."