Chinese hot pot meals are social events with diners sharing a steaming pot of soup. These restaurants were understandably hit hard during the pandemic due to social-distancing requirements. Now they face a new type of challenge as locals spend increasingly less.
China’s household savings have been rising this year, hitting a record high of about $20tn at the end of June. That is a reflection of Chinese consumers spending less on everything from clothes and travel to dining out — including hot pot dinners.
China’s largest hotpot chain, Haidilao International, reported a 10 per cent fall in group profit to Rmb2.03bn ($285mn) for the first half, as consumer spending continued to weaken. Average spending per guest also declined. Another problem is that the local market has been getting increasingly saturated, with rivals Jiumaojiu and Xiabuxiabu aggressively expanding.