Sample Management Paper on Great Success of Hai Di Lao Hot Pot

Hai Di Lao started from a humble beginning in 1994 and has since grown into China’s most celebrated brand in the restaurant industry. It has established over 80 branches in China’s major cities and has also expanded to Los Angeles, Singapore, and Seoul. Hai Di Lao’s success is arguably associated with its customer-centric and employee-centric strategies. How Hai Di Lao empowers its employees and why this empowerment is successful for them are of concern.

One of Hai Di Lao’s major objectives is to establish a closely knitted and strong employee network. Hence, the restaurant has structured various strategies to empower their employees. The employees are always entitled to attractive incentives and welfare packages specifically designed to take care of their needs in the future whenever they decide to quit working for the restaurant (Chen, Shen & Fan, 2015). Moreover, outstanding employees often receive parental incentives and other benefits such as referral incentives. Thus, they are allowed to refer their family and friends to go and work for the restaurant. Besides, the restaurant always promotes the employees from within depending on their work performance. This usually motivates employees to work even harder to get a promotion and to achieve their dreams. The restaurant also employees its employees by showing kindness to them by giving out gifts and bonuses. As such, employees dedicate their loyalty and hard-work to Hai Di Lao as they feel recognized and respected (Huo & Hong, 2013).

Employee empowerment has enabled Hai Di Lao to maintain a competitive advantage. This is achieved because the headquarters do not interfere with day-to-day employee operations, but they do lend support and guidance. Hai Di Lao’s main management trusts the employees to improve customer service operations. The employees always own the better outcomes of customer engagement as they are allowed to make effective decisions related to customer service operations.


Chen, C., Shen, H., & Fan, D. X. (2015). Hai Di Lao Hot Pot: From Employee Stimulation to Service Innovation. Journal of China Tourism Research, 11(3), 337-348. Retrieved from

Huo, J., & Hong, Z. (2013). Service Philosophy. In-Service Science in China (pp. 129-166). Springer, Berlin, Heidelberg. Retrieved from