Executive Summary: Key Takeaways
As 呷哺呷哺 (Xiabu Xiabu) grapples with mounting financial pressures, its shift towards buffet-style models represents a critical strategic pivot. Here are the essential insights for market participants:
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– 呷哺呷哺 (Xiabu Xiabu) anticipates a net loss of 2.9 to 3.1 billion yuan for 2025, driving an urgent search for new revenue streams through an all-you-can-eat buffet strategy.
– The group is testing semi-buffet formats across its portfolio, including main brand 呷哺呷哺 (Xiabu Xiabu), mid-premium brand 湊湊 (Coucou), and new sub-brands like 呷牛排 (Xiabu Steak) and 呷哺牧场·自选小火锅 (Xiabu Ranch Self-Service Hot Pot).
– This buffet strategy aims to counter declining customer traffic and average spending, but faces severe challenges from market saturation, operational costs, and potential brand dilution.
– 呷哺呷哺 (Xiabu Xiabu)’s near-three-decade supply chain infrastructure could provide a competitive advantage in executing cost-effective buffet operations, though success hinges on differentiation and precise execution.
– Investors should monitor same-store sales, customer feedback, and the scalability of these models to assess whether this gamble can stem losses and restore profitability.
The Buffet Bet: 呷哺呷哺 (Xiabu Xiabu)’s Radical Pivot
The Chinese hotpot sector, once a darling of consumer spending, is facing a stark reality check. Amid slowing growth and intensified competition, 呷哺呷哺 (Xiabu Xiabu), a former market leader, is placing a high-stakes wager on an all-you-can-eat buffet strategy to revive its fortunes. This move signals a fundamental shift from its traditional table-service model towards volume-driven, value-focused dining in a bid to recapture market share.
Trials Across the Brand Portfolio
呷哺呷哺 (Xiabu Xiabu) is not limiting its buffet experiment to a single concept. Instead, it is deploying variations across its multi-brand strategy to test different price points and customer segments.
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– 呷哺呷哺 (Xiabu Xiabu) Main Brand: In Shenyang, two locations have quietly transitioned to a semi-buffet model priced at 39.9 yuan. This offers unlimited consumption of nearly 100 dishes, base broths, condiments, and beverages, effectively slashing the average per-person spend to 40-50 yuan from previous levels.
– 湊湊 (Coucou) Mid-Premium Play: For 2025, 湊湊 (Coucou) introduced a hybrid “à la carte + unlimited feast” model with tiered pricing at 158, 198, and 258 yuan per person. This aims to maintain average check sizes while offering the perceived value of a buffet.
– New Sub-Brand Ventures: The group has launched 呷牛排 (Xiabu Steak), a “steak à la carte + buffet” concept, and 呷哺牧场·自选小火锅 (Xiabu Ranch Self-Service Hot Pot), where a base fee of 29.82 yuan covers broth and vegetables, with add-ons priced in tiers.
Early consumer feedback is mixed. While some praise the improved value proposition, others criticize limited protein selections in the budget tiers and a lack of distinct innovation compared to existing buffet competitors. The all-you-can-eat buffet strategy is clearly a response to pervasive market pressure, but its initial reception has been tepid, failing to generate significant social media buzz or customer queues.
Learning from Past Missteps
This is not 呷哺呷哺 (Xiabu Xiabu)’s first attempt at diversification through new formats. The group previously launched 趁烧 (Chen Shao), a high-end烤肉 (barbecue) brand with an average ticket of 250 yuan. Despite initial success, it was shuttered within two years, a victim of misjudging the market’s shift towards value-consciousness. The current buffet push must avoid similar pitfalls by accurately aligning with today’s demand for性价比 (cost-performance ratio).
Financial Desperation: Losses Driving Innovation
The urgency behind 呷哺呷哺 (Xiabu Xiabu)’s buffet foray is underscored by stark financial numbers. The company’s preliminary 2025 results forecast revenue of approximately 38 billion yuan, a drop of about 20% year-on-year, and a net loss between 2.9 and 3.1 billion yuan. While this represents an improvement from 2023’s 3.98 billion yuan loss, it extends a painful five-year cumulative loss exceeding 15 billion yuan.
Industry-Wide Pressures
呷哺呷哺 (Xiabu Xiabu) is not alone in its struggles. Industry leader 海底捞 (Haidilao) also reported a 3.7% decline in revenue and a 13.7% drop in net profit for the first half of 2025. The entire sector is grappling with what analysts term a “客流危机” (customer traffic crisis) and “客单下滑” (declining average spend per customer). In this environment, an all-you-can-eat buffet strategy emerges as a tactical tool to boost footfall and transaction volume, even at the expense of margin.
To survive, 呷哺呷哺 (Xiabu Xiabu) has undertaken aggressive cost-cutting, including shutting underperforming stores to preserve cash flow. Concurrently, it has launched initiatives like the “凤还巢” (Phoenix Return) partnership program to incentivize store managers and improve operational efficiency. The buffet models are part of this broader restructuring aimed at finding a sustainable growth formula.
The High-Risk Nature of Buffet Economics
Founder 贺光启 (He Guangqi) has emphasized a commitment to “高品质和平价化” (high quality and affordable pricing). However, buffet operations are notoriously difficult to master. They create a triple squeeze from食材成本 (ingredient costs), 人力损耗 (labor waste), and 品控管理 (quality control). A cautionary tale is 哥老官 (Gelaoguan), a once-popular hotpot chain that pivoted to buffets only to see quality plummet,口碑 (word-of-mouth) collapse, and its decline accelerate. This illustrates that an all-you-can-eat buffet strategy is far from a guaranteed lifeline.
Market Timing: Is 呷哺呷哺 (Xiabu Xiabu) Too Late to the Buffet Party?
While the buffet trend aligns with the consumer pursuit of value, 呷哺呷哺 (Xiabu Xiabu) faces the critical question of whether its entry is mistimed. The market for budget-friendly, self-service dining is increasingly crowded, raising the bar for differentiation and success.
The Crowded Landscape of Self-Service Hot Pot
Data from 企查查 (Qichacha) indicates there are over 20,000 registered “小火锅” (small hot pot) enterprises in China, with an estimated 50,000 physical stores nationwide. Regional champions like 围辣小火锅 (Weila Small Hot Pot), 龍哥自助小火锅 (Longge Self-Service Hot Pot), and 一围肥牛小火锅 (Yiwei Fat Beef Hot Pot) have already secured strong footholds with aggressive expansion. 呷哺牧场·自选小火锅 (Xiabu Ranch Self-Service Hot Pot) enters this red ocean with a model that offers little immediate differentiation in price or product, risking obscurity.
Challenges for 湊湊 (Coucou)’s Mid-Tier Buffet
For 湊湊 (Coucou), the challenge is twofold. First, the mid-to-high-end火锅 (hot pot) segment itself is softening as consumers downgrade. Second, its buffet pricing above 120 yuan places it in direct competition with a plethora of established quality buffet restaurants. While the 湊湊 (Coucou) brand retains some pull, its all-you-can-eat buffet strategy may struggle to stand out in a segment now teeming with options. The subdued launch of its自助火锅副牌 (self-service hot pot sub-brand), 锅韵火锅·茶憩 (Guoyun Hot Pot & Tea Lounge), which garnered minimal market attention, hints at these difficulties.
The Niche Opportunity in Steak Buffets
The launch of 呷牛排 (Xiabu Steak) targets a relatively open niche:牛排自助 (steak buffet) lacks a dominant national chain. This presents a theoretical opportunity. However, based on initial store visits in Beijing, the concept currently lacks a memorable signature experience beyond basic牛排 (steak) and standard buffet lines. To succeed, it must elevate its product offering and ambiance to justify its ~100 yuan price point and avoid being perceived as merely an upscale fast-casual meal.
Strategic Assets: Supply Chain as a Competitive Edge
Amidst the challenges, 呷哺呷哺 (Xiabu Xiabu)’s core strength lies in its nearly 30 years of accumulated back-end capabilities. This robust supply chain could be the decisive factor in making its all-you-can-eat buffet strategy viable.
The Backbone of Efficiency
As a listed company, 呷哺呷哺 (Xiabu Xiabu) has built an integrated system encompassing global sourcing, central kitchen processing, and nationwide logistics. This infrastructure allows for bulk purchasing, cost control, and consistent quality—critical advantages when operating buffet models with thin margins. If leveraged effectively, it can enable the group to deliver on its promise of “平价高品质” (affordable high quality) within the buffet framework.
A Measured Approach to Scaling
Unlike the rapid expansion of its early years, 呷哺呷哺 (Xiabu Xiabu) appears to be adopting a cautious, test-and-learn approach with its new buffet concepts. The goal seems to be refining the单店盈利模型 (single-store profit model) before committing to large-scale replication. This prudence is wise in today’s environment where operational excellence trumps pure scale. However, it also means that these new brands are unlikely to contribute meaningfully to financial recovery in the short term.
The Path Forward for 呷哺呷哺 (Xiabu Xiabu)
呷哺呷哺 (Xiabu Xiabu)’s embrace of buffet-style dining is a symptomatic response to deep-seated issues: brand aging, lost pricing power, and innovation fatigue. The all-you-can-eat buffet strategy is a potent but dangerous remedy. Its success will not be determined by the concept alone, but by 呷哺呷哺 (Xiabu Xiabu)’s ability to execute with surgical precision.
The company must clearly differentiate each buffet brand from both external competitors and its own portfolio. For 呷哺呷哺 (Xiabu Xiabu) main brand, this means defending its value proposition without eroding quality. For 湊湊 (Coucou), it involves maintaining premium perceptions while offering genuine buffet value. Operationally, mastering the logistics of waste reduction, dynamic replenishment, and cost-per-head calculations will be paramount. Investors and industry watchers should closely monitor key metrics such as store-level EBITDA, customer return rates, and social sentiment analysis across these new formats.
Ultimately, the buffet models are a test—a probe into whether 呷哺呷哺 (Xiabu Xiabu) can reconnect with the性价比 (cost-performance) ethos that once made it a champion and leverage its supply chain muscle to win in a new arena. The market will soon render its verdict on whether this all-you-can-eat buffet strategy marks the beginning of a turnaround or a last, desperate gamble.