Haidilao has mastered both logistics and customer service in ways that are the envy of any industry. If they can make automation work at scale, a number of of chains will seek to replicate its success.
— Jason Clampet
In Haidilao International Holding Ltd.’s hotpot restaurants, robots are replacing chefs and waiters.
Asia’s biggest listed restaurant chain by market value is partnering with Japan’s Panasonic Corp. to open what the two companies say is the world’s first eatery with a fully automated kitchen Oct. 28 in Beijing. At the new Haidilao restaurant, robots will take orders, prepare and deliver raw meat and fresh vegetables to customers to plop into soups prepared at their tables.
The automation will lower labor costs and boost efficiency, underpinning Haidilao’s plan to expand to as many as 5,000 restaurants worldwide, the companies said. Panasonic also supplies batteries to power Tesla Inc.’s electric cars.
“It could be difficult to expand to that size in terms of personnel, so Haidilao is shifting earlier to an operation that doesn’t rely so much on manual labor,” said Jun Yamashita, managing director of Ying Hai Holding Pte., the Singapore-based joint venture Haidilao and Panasonic have set up. “That’s where Panasonic’s technology comes in.”
The joint venture was started with an investment of $20 million, according to the companies. Haidilao has plans to expand the automated restaurants gradually in China and later overseas.
Haidilao became Asia’s first eatery chain to surpass $10 billion in market value when it held its initial public offering in Hong Kong last month. The company has more than 360 locations around the world including Japan, the U.S. and Taiwan.
The chain’s billionaire chairman Zhang Yong said that when he first started Haidilao 24 years ago, the restaurant business seemed “centuries” out of date. With technology, he’s set out to run more efficient restaurants.
Yong pointed to advice he received from Alibaba Group Holding Ltd. founder Jack Ma in how to think about the business: “Haidilao is not just a restaurant. We’re also a company that also does manufacturing and logistics,” Zhang said at a briefing Tokyo Thursday. “Before the food is brought to the table, it’s all a manufacturing process. After that, the service aspect takes over.”
©2018 Bloomberg L.P.