Zhang Yong, Chairman of Haidilao: Our core competitiveness has never been service (the answer is unexpected)!

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It is said that service is Haidilao's corporate strategy and core competitiveness. But Chairman Zhang Yong's own explanation is not the case. He believes that Haitianlao's core competitiveness is his own unique Haitianlao human resource system that can stimulate the creativity, enthusiasm and enthusiasm of employees. This is what Haitianlao explores and tries and is unique to the restaurant industry. Haidilao Zhang Yong: The founder of Haidilao Zhang Yong is a technical school student and he graduated from a technical school. After success, he reached the podium of Peking University. In 1988, after graduating from the 18-year-old Zhang Yong Technical School, he entered the Sichuan Tractor Factory. "To change destiny with both hands" is Zhang Yong's sentence. After 70 years of age, he was born in Jianyang, Sichuan Province. His deepest memory of this child is poverty. After graduating from junior high school, at the request of his parents, he went to a technical school in Jianyang to study welding. This incident made Zhang Yong very uncomfortable. To this day, he still introduces himself by graduating from junior high school. At the age of 18, he graduated from Zhang Yong Technical School and was assigned to his father's state-owned Sichuan tractor factory, where he worked as a chef. But in his opinion, his father worked hard all his life, but failed to change the fate of poverty. Obviously, the factory is not where he has his ambitions. In 1994, after several "shortcuts" failed, Zhang Yong decided to officially open a hot pot restaurant. Just when he was worried about the name, his wife who was playing Mahjong happened to meet Haidilao. Thus, a legendary hot pot restaurant was born. In 1994, the first Haidilao Hot Pot was officially opened. Today, he manages more than 20,000 employees and the company's annual turnover is billions of dollars. The following is Zhang Yong's summary of his original human resources system: Zhang Yong: Catering is a completely competitive industry, and the consumer experience is paramount. We attach great importance to customer satisfaction from an early age. Customer satisfaction is guaranteed and achieved by employees. Therefore, we have established the core concept of "hands change destiny" to unite employees. I want to take this opportunity to convey a message that as long as we follow the tenets of hard work, professionalism, and honesty, our hands can change something. When employees accept this concept, they recognize our company and pay customers in the heart. Our service innovation is the crystallization of employees' own wisdom, because they are inspired by the core concept of "change your destiny with both hands". Once this value is established, our system will be designed around this concept. For example, our employees' career development plans are actually based on this philosophy. In general, Haidilao does not hire managers from outside. This does not mean that external managers are bad. Instead, it hires employees from the outside, leaving good positions to the outside. What we say and do are different. We told everyone to change their destiny with both hands, but actually blocked everyone's way. Therefore, our career development path must go from the grassroots level, and we cannot break the rules. Zhang Yong: Frankly, we do n’t have the standard for recruiting people, because we ca n’t recruit people, we really do n’t have the right to choose. As long as the candidates are healthy and willing to work, we can recruit them. People who work in Haidilao must be at least three months or longer to be considered employees of Haidilao. According to this standard, the personnel turnover rate in Haidilao is very low, and our cadre turnover rate is almost zero. Even if we withdraw a store manager, even if we provide a family allowance of $ 80,000 when people leave, no one will leave. In addition, many units are willing to go to the sea to recruit personnel, we also recommend some people to go elsewhere, and no one stays. Since I started my business, we have brought only two cadres. For many years, I am most proud of the loyalty of Haidilao employees, because this loyalty is actually the cornerstone for employees to serve customers. I am satisfied that the staff will make up for some customer dissatisfaction. In fact, cadres cannot do without submarine fishing, because subsea fishing allows him to live a decent life. If he moves elsewhere, he may have nothing. Income is the basic prerequisite for a person to live with dignity. On this basis, pay more attention to his spiritual level. In this regard, we do think of many ways. Frankly, we don't have the criteria for recruiting people because we can't recruit people and we really don't qualify. As long as the candidates are healthy and willing to work, we can recruit them. People who work in Haidilao must be at least three months or longer to be considered employees of Haidilao. According to this standard, the personnel turnover rate in Haidilao is very low, and our cadre turnover rate is almost zero. Even if we withdraw a store manager, even if we provide a family allowance of $ 80,000 when people leave, no one will leave. In addition, many units are willing to go to the sea to recruit personnel, we also recommend some people to go elsewhere, and no one stays. Since I started my business, we have brought only two cadres. For many years, I am most proud of the loyalty of Haidilao employees, because this loyalty is actually the cornerstone for employees to serve their customers. I am satisfied that the staff will make up for some customer dissatisfaction. In fact, cadres cannot do without submarine fishing, because subsea fishing allows him to live a decent life. If he moves elsewhere, he may have nothing. Income is the basic prerequisite for a person to live with dignity. On this basis, pay more attention to his spiritual level. In this regard, we do think of many ways. Frankly, we don't have the criteria for recruiting people because we can't recruit people and we really don't qualify. As long as the candidates are healthy and willing to work, we can recruit them. People who work in Haidilao must be at least three months or longer to be considered employees of Haidilao. According to this standard, the personnel turnover rate in Haidilao is very low, and our cadre turnover rate is almost zero. Even if we withdraw a store manager, even if we provide a family allowance of $ 80,000 when people leave, no one will leave. In addition, many units are willing to go to the sea to recruit personnel, we also recommend some people to go elsewhere, and no one stays. Since I started my business, we have brought only two cadres. For many years, I am most proud of the loyalty of Haidilao employees, because this loyalty is actually the cornerstone for employees to serve their customers. I am satisfied that the staff will make up for some customer dissatisfaction. In fact, cadres cannot do without submarine fishing, because subsea fishing allows him to live a decent life. If he moves elsewhere, he may have nothing. Income is the basic prerequisite for a person to live with dignity. On this basis, pay more attention to his spiritual level. In this regard, we do think of many ways.

For example, in the 1990s, we gave money to the parents of lobby-level managers. It seemed simple, but it made him very powerful in the local village. He would feel that when he went to Haidilao, even his family would receive a subsidy of 200 yuan per month. If he had to resign, it is conceivable that even his parents would help me talk and leave him here to work hard. Zhang Yong: I don't know the exact wage level in the same industry. I estimate that it is almost 10% higher than in the same industry. I think this is trivial, and what is more important is to establish a human resources system in which employees can obtain and develop materially and spiritually. Zhang Yong: Fast integration into corporate culture only exists in imagination or desire. We also saw clerks arguing with customers, and even took away the money paid by customers and ran away. However, we have been doing our best to get our employees integrated into our corporate culture and value needs as quickly as possible. Except for some cases of default, most of our employees are working hard for the company. Many employees have been treated unfairly in society. When they reach the bottom of the sea, we will give them something humane. In this case, in fact, he would be grateful to him a little. I think we can do better. There are implementation issues. Because every new employee will contact the foreman, and the foreman's understanding of the company's corporate culture is different, you will find that there are still old people who bully new people in Haidilao. This has a lot to do with his master, foreman and manager. After all, many masters, foremen, and managers are also young. They are in their early 19s or 20s. It's really not easy for these children to understand what responsibilities and strategic goals are. Zhang Yong: Many of the employees in our shop are post-90s, but still many are very hardworking. I think there is still a need for innovation as part of the corporate culture and human resources system. For example, we cannot treat post-90s employees in the same way as post-70s employees. For example, he was very grateful to employees who came from the countryside at my age and gave his parents 200 yuan. He is proud. However, for the post-90s generation, another 200 yuan may not be suitable for him. He may want to install a computer in the dormitory, play games after work, and chat with his girlfriend elsewhere online. We must make different arrangements or designs based on the characteristics and needs of these people. Zhang Yong: No, business is still about making money. I think the three are equally important, not which one is more important. For example, if shareholders do not pay for the investment, employees will not have a work platform. However, after the employee enters the company, if you continue to squeeze him, he will not serve your customers well. So in my opinion, these three are equally important. I always hope that we can do more and better in caring for our employees. Most of our employees are migrant workers. They are not well educated and are at the bottom of society. More than a decade ago, many migrant workers were still unpaid, and many employees in the catering industry lived in the basement. We have slightly improved the treatment of our employees and given them more appropriate care. The outside world thinks we put our employees first. In fact, I think these are not enough, and there is still a gap compared with European and American countries. I hope we can do better in this area in the future. Zhang Yong: I have been thinking about the core competitiveness of the catering industry. Is it environment, taste, food safety or service quality? I thought about it a lot and found that none of these could form core competitiveness in the end. I think the human resources system is very important for the restaurant business. If we can build this human resource system well, it will form a bottom-up culture. I think this may become the core competitiveness of Haitian Road in the future. As for costs, for us, there are mainly two relatively large costs and expenses. One is food safety and the other is labor costs for employees. In terms of food safety, we have basically achieved mechanized cleaning and cutting, including zero bacteria in the water used to wash vegetables and the temperature in the cleaning shop. These are all built to very high standards and the costs are definitely higher. I have been thinking about the core competitiveness of the catering industry. Is it environment, taste, food safety or service quality? I thought about it a lot and found that none of these could form core competitiveness in the end. I think the human resources system is very important for the restaurant business. If we can build this human resource system well, it will form a bottom-up culture. I think this may become the core competitiveness of Haitian Road in the future. As for costs, for us, there are mainly two relatively large costs and expenses. One is food safety and the other is labor costs for employees. In terms of food safety, we have basically achieved mechanized cleaning and cutting, including zero bacteria in the water used to wash vegetables and the temperature in the cleaning shop. These are all built to very high standards and the costs are definitely higher. I have been thinking about the core competitiveness of the catering industry. Is it environment, taste, food safety or service quality? I thought about it a lot and found that none of these could form core competitiveness in the end. I think the human resources system is very important for the restaurant business. If we can build this human resource system well, it will form a bottom-up culture. I think this may become the core competitiveness of Haitian Road in the future. As for costs, for us, there are mainly two relatively large costs and expenses. One is food safety and the other is labor costs for employees. In terms of food safety, we have basically achieved mechanized cleaning and cutting, including zero bacteria in the water used to wash vegetables and the temperature in the cleaning shop. These are all built to very high standards and the costs are definitely higher.

As for rising labor costs, I think this is a good thing, because the ideal of our company is to increase the income of grassroots employees. Through market supervision, we can ensure that employees' income has greater room for growth by increasing sales prices or suppressing partial returns to shareholders. Your selling price may be a little higher than other competitors, but if you are a brand, all problems will be solved. Zhang Yong: This problem actually goes back to what I mentioned earlier, finding a balance between employees, shareholders and customers. We can't always consider things from our own perspective. We have to think in terms of others. For example, when a customer arrives at Haidilao, he must wait for a seat, where there are no seats and no snacks. People definitely won't wait, and as a result we have no income. Therefore, in this case, we have to add a service, and the cost of increasing this service is actually very trivial. For example, returning food to customers, for us, the cost of food is very low, so we can't conflict with customers because of this little cost. Some people only count their own accounts, not the accounts of employees, colleagues, and customers, so there are fewer and fewer partners. We must make money in doing business, but we cannot be too short-sighted, we cannot just say how much money we made in this transaction. For example, when customers eat hot pot, they all cry very salty. At this time, customers should be waived. Because customers consume your products as substandard products, the loss must be borne by the merchant. Zhang Yong: Profits must be evaluated. Our view of profit is not short-term, but long-term. I can't make any money this month. I must consider making more money in the future. However, I did not directly evaluate the profit of a good manager because I believe that if a company is to become strong, the monthly and annual profitability of each manager is very important, but more importantly, they have the ability Bring employees together and ensure customer satisfaction. Only then can we ensure our long-term profit. We evaluate store managers, employee satisfaction and customer satisfaction based on two metrics. If employees are not satisfied, customers are not satisfied. Our strategic goal is to continuously improve customer satisfaction and ensure that Haidilao becomes a national brand on the premise of ensuring customer satisfaction. Zhang Yong: That's what I said. I fish all over China. This is a relatively general statement. I still want to make Haidilao a high-end brand. Hot pot itself is a popular thing, not many high-end, but I hope Haidilao is a high-end brand in hot pot. In other words, the fees are still a little higher, but must be limited by local consumption levels, so some places are still not suitable for business. After completing the share reform more than a year ago, we stopped financing. As for going public, I know its priority is to raise funds. After raising funds, I must invest in some hardware and software to improve the structure of the enterprise. We have always valued manpower and logistics. That's what we've been doing, and the benefits of fishing on the ocean floor can fully guarantee that. In addition, China's capital market is not standardized. I am not willing to join at the moment. Maybe I just want to join it because I really lack money. At present, I still want to make steady progress. I think what restricts us now is the issue of human resources and other systems. Enterprise development remains a soft power issue. Soft power covers human resources systems, information management systems, financial systems, and logistics systems. Only by establishing these systems can Haidilao become a true brand. When these systems are very bad, you will spend a lot of money to open a lot of stores, isn't this speeding up the destruction? Therefore, I don't think it's time for rapid expansion. It's time to calm down and build a basic system. I have maintained this view for years. Zhang Di, CEO of Haidilao, also shared a small story: When Haidilao opened a store in Japan, a man in his 40s bowed at the door of Haidilao, claiming to be the owner of a restaurant business. He heard that Haidilao was doing well, so he came to learn. "I feel terrible, but I just heard that we did a good job and started to study hard." Zhang Yong said. When Haidilao opened a store in Japan, a man in his 40s bowed at the door of Haidilao, claiming to be the owner of a restaurant business. He heard that Haidilao was doing well, so he came to learn. "I feel terrible, but I just heard that we did a good job and started to study hard." Zhang Yong said. When Haidilao opened a store in Japan, a man in his 40s bowed at the door of Haidilao, claiming to be the owner of a restaurant business. He heard that Haidilao was doing well, so he came to learn. "I feel terrible, but I just heard that we did a good job and started to study hard." Zhang Yong said.

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