According to reports, HAIDILAO received over 20,000 franchise applications last year, but only 13 were completed

According to domestic media reports, HAIDILAO (06862.HK) opened franchise applications last year, and by the end of 2024, out of more than 20,000 applications, over 10,000 applicants have completed the review process, while only 13 franchise stores have completed the delivery process, of which 10 are transfers of existing stores and 3 are newly opened stores. Additionally, among the more than 20,000 applications, the proportion from third-tier cities and below accounts for 70%.

The report indicates that HAIDILAO's franchise conditions are among the most "stringent" in the restaurant industry, requiring franchisees to invest no less than 10 million yuan (excluding loans), as well as having the financial foundation for multi-store development and local property resources, along with enterprise management experience. The report analyzes that the real purpose of HAIDILAO opening franchises is to target lower-tier markets, using franchises as leverage to tap into more resources in the sinking market