By Li Yaoqi

Ask any hotpot lover in China where they go for their favorite food and you'll find Hai Di Lao a frequent reply. The popular chain began 15 years ago and has steadily grown to become a household name.

Vice General Manager of the Hai Di Lao chain, Yuan Huaqiang, puts their success down to hard work and quality product. “There's no secret behind our success. We only offer good services,” Yuan said. Hai Di Lao was originally a small fourtable food stall in Southwest China's Sichuan Province. It sold “malatang”, a spicy snack similar to hotpot. Now the chain boasts 36 stores across the country and has an annual turnover of nearly 300 million yuan ($43.8 million).

Value added services are important to the philosophy of Hai Di Lao. Often the large restaurants are full of customers waiting for a table. While customers wait, attendants serve free snacks and drinks. Also on offer, a game of poker or chess and free internet services. Small plastic bags are available to protect mobile phones and
rubber bands and small hairpins are given to women to fix their hair. Wet cloths are always on hand and a shoeshine service is provided. Responding to popular demand, free manicures are also now an option.

Yuan said the plethora of complementary services reduce profits by at least 10 percent each year. He said providing good conditions for staff and their families also affects the budget but both pay off in the long run. Citing President of Hai Di Lao, Zhang Yong, Yuan explained, “there are three goals for our enterprise: to create a just and fair work environment, to promote reaping great rewards with our own hands and to open outlets all over China.”

Yuan Huaqiang is only in his early 30s and began his career at Hai Di Lao as a waiter. Born in a poor village in Sichuan and with a secondary school education, Yuan has worked his way up Hi Di Lao’s ranks. He now lives in Beijing and has a comfortable lifestyle.

Chen Qunlan, a store manager in Beijing also shares Yuan’s experience. Chen too came from a poor family in Sichuan, the fifth of six children. She quit school at 15 due to poverty. Before starting at Hai Di Lao in 2000, Chen held many menial jobs. Now as a store manager Chen earns 10,000 yuan per month, almost unimaginable in her hometown.

Yuan said the company’s founder Zhang Yong believes strongly in rewarding hard work and providing opportunities for those who deserve it.

It is because of this ethos that Yuan plans to stay with the company for the foreseeable future. “It's Zhang's great consideration and egalitarian thought that inspires me to keep going ahead,” he said.

Hai Di Lao fosters a sense of community. Managers must reside with staff for at least three days per month. Wang Dandan, a 21-year-old waitress said she feels like she lives in one big family, with everyone like brothers and sisters.

Li Shunjun is 24 years old and gave up his white collar job to become a chief cook. Li is among a few university graduates that have joined Hai Di Lao. “I came here for the promising prospects and moreover, to enjoy a really just and fair environment hardly seen anywhere else.” said Li.

Despite having a solid staff and customer base, Yuan said Hai Di Lao's future development will take time. “We have to be cautious enough. The opportunity for massive expansion has not yet arrived,” Yuan said.

In early 2008 Hai Di Lao began to establish a modern personnel management and training system. Previously the company operated on a “masterapprentice” basis with newcomers learning from experienced staff members. “Such a system, though ensuring best service, couldn't deal with rising human resources demand due to rapid expansion and inhibited the development of our enterprise.” Li said.

While still successful, Yuan said that seven of the 15 Hai Di Lao stores in Beijing have seen profits fall from last year. Yuan doesn't think this is linked to the current economic crisis. “Our stores have been surrounded by competitors. Customers' attention has been detracted,” he said.

Facing the pressure of competition and human resource demands, there's also high customer expectation. A young man named Geng complained that “they're not as hospitable as expected.” He said he loved the flavor of the hotpot but was a little disappointed with the services.