Haidilao Catering: From a Hot Pot to Crisis Management (Simplified Chinese Version)
(7 pages of text)
Case (Pub Mat)
Sichuan Haidilao Catering Co., Ltd. (Haidilao) was the leading hot pot company in the Chinese market and the largest hot pot chain of restaurants in the world. Haidilao was famous for its extraordinary customer service, which had made it a legend in the catering industry. However, on August 25, 2017, a news report with online videos revealed that mice were in the kitchen of one of Haidilao’s restaurants, that dustpans and tableware were washed in the same sink, and that spoons intended for customer use were used to unclog blockages in the plumbing. How could Zhang Yong, the founder and chair of Haidilao’s board of directors, respond to the crisis, turn threats into opportunities, and prevent the recurrence of such a crisis?
This case can be used in a graduate-level marketing course or module with a focus on public relations and crisis management to demonstrate the use of the 5S Model of crisis management. It can also be used in a graduate-level human resources management course to show how corporate values can be incorporated in a human resources management system. Working through the case will give students the opportunity to understand the following:
- How firms can cope with unexpected crises and return to a regular order of business.
- That firms may be able to manage crises by using appropriate crisis management systems to turn market threats into opportunities.
- How corporate values are translated into human resources management systems and how corporate values can be used to cope with market crises.
- That perceived customer value can change attitudes toward a brand, a product, or a crisis; ultimately, customers’ perceptions will decide their responses to market offerings.
Accommodation & Food Services
China, Large, 2017
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