ATRQ-2
Reading- The Four Things Service Business Must Get Right
Haidilao catering is one of the most famous hotpot restaurant brands in China. Founded in 1994 in China, it has annual net income over $500 million. And now this company has extended its market in the United States and Singapore. (http://www.haidilao.us/). Speaking of the taste of the hotpot, Haidilao is not the best; its secret for success is its “attentive, warm and comfortable” services for customers. The case of Haidilao has been very popular and has been taken as business research by many institutions. (A simple explanation about hotpot: put a pot it on a burner, and then you order vegetables, thinly-sliced meats, fish, or anything else to cook in the boiling broth. It’s delicious simplicity, and comes in many forms throughout China.) http://startingupinchina.com/2012/10/using-extraordinary-service-as-a-competitive-advantage-at-hai-di-lao/ http://www.wsj.com/articles/SB10001424127887324767004578485361216000412 http://www.npr.org/2011/04/22/135631054/hotpot-delivered-in-china-a-new-dining-experience After reading of the article of The Four Things Service Business Must Get Right, I have one question, whether and how Haidilao applies the Four Things discussed in the article.
Service offering: Haidilao realized that people go out to dinner not only for food; they are searching for experience too. Haidilao decided to bring the delicate service and experience to the forefront, while also provide high-quality food. Customers can get free manicures while waiting for the tables. Table games, snacks, soft drinks are also provided. Recently, customers can even make paper-fold birds, and certain number of the birds can offset part of the dinner bill. During the dining time, performance related to Chinese culture is on for customers. Waiters/waitresses always smile to customers and meet customers need as soon as possible. Even in the restroom, customers will be handed soft towels to dry hands, and lotions afterwards. This extraordinary service differentiates Haidilao, and explains how this restaurant feeds more than 10,000 people in Beijing a night, with people willing to wait two hours for a table.
Funding mechanism: Compared to other hotpot restaurants in China, the price charged in Haidilao belongs to a higher rank. So I would say Haidilao charges a premium for its excellent service. Haidilao also let customers to do some work. Haidilao created the self-service for the dip source of hotpot. Different customer has their own habit and taste for dip source. It could be a very complicated process. Some customers may like a mix of sesame, garlic and chilli, some may like soy sauce, or vinegar. Haidilao gives customers to choose what they like and make choices by themselves. It saves labor input and time, and avoids the