Hot Pot Hospitality

Zhang Yong’s Haidilao mushroomed into a Chinese sensation, and suddenly he’s the world’s richest restaurant magnate.

- Pamela Ambler

The ordered frenzy of a Haidilao hot pot restaurant is mirrored these days in the makings of founder Zhang Yong’s company. As the dining chain rollicked through a Hong Kong IPO in September that established Zhang as the world’s richest eatery entrepreneur, it continued opening spots in Asia and beyond at the rate of one every three days.

Two decades after Zhang first greeted diners in his native Sichuan Province, home of pandas and the infamous mala peppercorns, he controls not only Haidilao but also the supplier of its spicy broths, condiment maker Yihai International. Together those holdings, which he shares with his wife and without accounting for a few smaller companies he has, gave him at age 47 a late September valuation of $7.5 billion.

Whether in China, which still accounts for most of its 370 sites, or in Seoul or Singapore or New York or L.A.—or soon in London’s Piccadilly—the selling point for Haidilao’s hot act remains the experience. By nearly all accounts, the food, which is self-stewed at the table by customers who select ingredients à la carte, is nothing you wouldn’t expect from similar trendy joints, even with the hand-pulled noodles and popular sauce bar. But the swift, sure shepherding by staff, after any wait has been mollified by complimentary manicures or smartphone detailing, is the dealmaker. Selfie prints are standard, baby cots are likely to be offered table-side—the roster of special services is up to each manager.

Hospitality is still in short supply at mass-scale eateries on the mainland, and that’s where Haidilao has stood out. It’s the secret to satisfying 106 million guests last fiscal year, with revenues up 36% to $10.4 billion. And to keeping the throngs coming all the time.