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#89 2011 · Haidilao (海底捞) · Restaurantsreframe

Haidilao stopped trying to shorten the wait and turned it into a free salon and arcade instead

the problem

Long waits for a table were driving customers away

background

A restaurant with a line out the door is a restaurant losing customers to boredom and irritation, not to the food. The standard published playbook for that problem is well established and was already available in the 2000s: take reservations, hand out pagers, quote an honest wait time, maybe offer a free appetizer to soften the delay. None of it changes how the wait itself feels — it just manages the queue.

Haidilao, a Sichuan-style hot pot chain, staffed its waiting areas as if they were their own small business: manicure stations, a shoeshine stand, snack tables, board games, phone chargers, and a supervised play area for children, eventually occupying a large share of some locations' total floor space. Customers stopped experiencing the wait as dead time to be endured and started treating it as a reason to arrive early.

the move

Rather than add tables, hand out buzzers, or discount the wait, Haidilao staffed its waiting areas like a second business: free manicures and shoe-shining, snacks and drinks, board games, phone chargers, and a staffed children's playroom, occupying roughly a third of some restaurants' total floor space. The wait itself became something customers asked for.

the payoff

The practice, publicized in a 2009 Harvard Business Review China article, became the anchor of the million-copy book 海底捞你学不会 ("You Can't Copy Haidilao") and a case taught across Chinese business schools; Haidilao went on to a 2018 Hong Kong IPO raising roughly $963 million. Demand for the free manicure line alone reportedly ran waits of one to two hours on its own, hours longer on holidays — enough that by 2024 some locations began charging for premium manicure options.

what came after

The wait-time services became Haidilao's signature and the centerpiece of its own business-school mythology, studied in China and abroad as a case of turning a cost center into a marketing asset — a lesson credited with helping build the brand recognition that carried the chain to its 2018 IPO.

filed under

The felt wait

references

  1. [1]What Brands Can Learn About Customer Experience From Hot Pot Chain Hai Di LaoForbes, 2018forbes.com
  2. [2]The restaurant offering free pedicures and manicures with your hot potThe Irish Times, 2018irishtimes.com
  3. [3]Hai Di Lao: Service Beyond ImaginationsHarvard Business School Digital Initiative, 2015d3.harvard.edu

was it genius?

same kind of clever