Shares in China’s Hot Pot Chain Haidilao Jump After Plan to Shut Stores


BEIJING—Shares in Chinese hot pot chain Haidilao International surged on Monday after the company announced it would suspend or shut down 300 stores by the end of the year, slamming the brakes on a rapid expansion it undertook during the COVID-19 pandemic. China’s largest hot pot chain said late on Friday it would shut down restaurants with relatively low customer traffic and unsatisfactory results and would launch a new plan focused on improving operation of its existing stores. The shares jumped more than 11 percent on Monday to hit their highest since Oct. 28. Reuters reported last month that Haidilao planned to slow its growth after softening consumer appetite in China left it with falling table turnover rates and profits. Haidilao, which became so popular in recent years that it appeased customers in hours-long queues for its soups by providing free manicures, snacks, and shoe shines, was initially undeterred by …

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