Is Capital Turning Its Gaze Back to the Mini Hotpot Industry?

The latest half-year reports from the restaurant industry have landed—and the chill is unmistakable.
Xiabuxiabu continues to wrestle with losses, and even hotpot titan Haidilao has unexpectedly stumbled, with declining performance drawing industry-wide attention.

Against this backdrop, mini hotpot has emerged as a strategic focal point for many food and beverage brands seeking a breakthrough.

Yet, behind the rising heat lies a landscape filled with hidden challenges.

Mini Hotpot’s Second Wave

Who would have predicted that Xiabuxiabu’s once downplayed mini hotpot business would be making a comeback?

After securing a solid foothold in the affordable mini hotpot segment, Xiabuxiabu shifted its focus to the high-end market. Unfortunately, that premium push failed to meet expectations and left the company mired in sustained losses.

From 2016 to 2020, mini hotpot became a competitive hotspot for many restaurant brands. In the years that followed, names like Haidilao, Yoshinoya, Hofuland Noodles, Nanchengxiang, Banu, and Country Chicken all launched their own mini hotpot products.

In recent years, with consumer spending showing signs of tightening, mini hotpot—thanks to its “one person, one pot” dining format, flexible settings, and wallet-friendly pricing—has become a market favorite. Today’s mini hotpot scene features national players like Xiabuxiabu, cross-category chains such as Nanchengxiang and Country Chicken, and numerous regional affordable mini hotpot brands expanding aggressively, from “Weila” in Henan to “Chuan Shiduo” in Xi’an and “Longge” in Shandong.

Despite fierce competition, new entrants remain undeterred.

Haidilao, long focused on the mid-to-high-end hotpot market, has adjusted its strategy. In November 2024, it launched “Feipai Zhenxian Mini Hotpot” to test the waters. By July 2025, it had introduced its new self-service mini hotpot brand “Ju Gaogao” across multiple cities.

Xiabuxiabu has also revived its mini hotpot push. In May last year, it rolled out a “Worker’s Exclusive Set” priced at 49.9 RMB per person, and in select locations, introduced a 39.9 RMB all-you-can-eat model aimed squarely at lower-tier markets.

Cross-category players are joining in as well. In May this year, Beijing’s Qingfeng Steamed Bun Shop added an all-vegetarian mini hotpot option in select outlets, served after 2 p.m. In July 2025, Malatang giant Yang Guofu opened its first self-service mini hotpot store in Qingdao.

Entering the Market with Caution

The surge in mini hotpot popularity is no accident.

According to Hongcan Big Data, as of July 2024, there were over 50,000 mini hotpot stores nationwide, accounting for about 10% of all hotpot outlets. That same year, mini hotpot consumption grew by 28.9% year-on-year, underscoring strong momentum.

But the aggressive pivot toward mini hotpot is also a reflection of what could be called “growth anxiety” among restaurant giants.

The 2025 half-year results tell a sobering story:

• Haidilao’s revenue dropped 3.7% year-on-year, net profit fell 13.7%, and daily table turnover slipped from 4.2 to 3.8 times.
• Xiabuxiabu remained in the red, with revenue down 18.88% and a net loss of 84.079 million RMB—a nearly 70% drop in profit compared to last year.
• Yang Guofu, after two unsuccessful attempts to list on the Hong Kong Stock Exchange and a “premium pricing” backlash, is also seeking breakthroughs via new business lines.

While the direction is clear, execution strategies are increasingly prudent.

Most entrants today come from hotpot, Malatang, or other highly compatible formats—lowering the operational switch-over barrier and allowing them to leverage existing expertise to reduce trial-and-error costs.

Take Yang Guofu, for example. As a Malatang leader, it can directly reuse its mature supply chain, dramatically cutting cross-category costs in procurement and logistics without building from scratch.

Expansion tactics are also shifting. Instead of chasing rapid store openings and market blitzes, companies are focusing on operational performance. Haidilao’s “Ju Gaogao” is being developed with experienced external partners, rather than through aggressive solo expansion. Yang Guofu has so far opened just one self-service mini hotpot location in Qingdao to gauge market response.

The competitive focus is also changing. Gone are the days of “low-price arms races”—this wave of mini hotpot competition centers on quality.

Previously, self-service mini hotpots were often priced at 20–30 RMB per person. Now, Haidilao and Yang Guofu are setting prices at 59.9 RMB, with upgraded ingredients to target the mid-to-high-end segment directly.

Breaking Through Remains Tough

Caution in the latest mini hotpot push stems from a hard truth widely recognized in the industry: mini hotpot is not an easy business.

This difficulty cuts across both premium players and value-focused brands.

For mid-to-high-end contenders like Haidilao and Yang Guofu, the greatest challenge is balancing cost control with consumer willingness to pay.

To support a premium positioning, brands must invest heavily in ingredients, store design, and service—driving up costs. But mini hotpot’s core customer base is still highly price-sensitive. If diners perceive insufficient value at a 59.9 RMB price point, brands risk falling into the “high cost, low return” trap, with mounting profit pressures.

Competition is also stiff in the 60 RMB segment, with well-established traditional hotpot brands already entrenched.

For budget-friendly players, the risk lies in quality erosion amid price wars. To draw in customers, some brands slash prices, boldly advertising “19.9 RMB broth” or “29.9 RMB all-you-can-eat” offers. But low pricing often means razor-thin margins, forcing compromises in ingredient standards, which then hurt product quality and trigger the downward spiral of “low price → lower quality → lost traffic”.

Hongcan Big Data paints a stark picture: as of July 2024, 81.6% of mini hotpot brands operated five or fewer stores, while brands with over 100 stores made up less than 1% of the market.

Even Weila, one of the few mini hotpot brands to surpass 1,000 locations, finds itself struggling with scale without influence, unable to carve out a distinctive competitive edge.