Zhang Yong, founder of Haidilao, has resumed his role as CEO of the global hot pot chain, reports Caixin. He returns to the operational helm to navigate a strategic overhaul as earnings flag and China’s dining sector cools.
The leadership shake-up, announced late Tuesday, signals what insiders call a “second revolution” for the Hong Kong-listed company. Zhang aims to revive profitability through an accelerated rollout of the “Red Pomegranate Plan,” an initiative launched in 2024 to develop new restaurant brands beyond hot pot. While Zhang has in recent years focused on high-level strategy, sources familiar with the matter said his return is meant to quicken decision-making during a pivotal transition.
The Red Pomegranate Plan is already showing signs of momentum. In the first half of 2025, revenue from Haidilao’s non-hot pot restaurants surged 227% year-over-year to RMB 597 million ($85 million), helped by an internal effort to consolidate resources. However, the broader business faces mounting pressure. Total revenue fell 3.7% in the first half of 2025 to RMB 20.7 billion, while net profit dropped 13.7% to RMB 1.755 billion.