A Haidilao hotpot restaurant in Shanghai on April 8, 2026 Photo: VCG

Chinese hotpot chain Haidilao, known for its meticulous customer service, said on Monday it had uncovered several cases in which employees were required to pay out of pocket for customer gifts and announced a series of short- and long-term measures to address the issue, the brand said on its Weibo account.

The investigation came after a customer posted on Xiaohongshu that the service was all "forced." The customer filed a complaint over one of its restaurants over service and dishes, and that the store manager called the customer to pay for compensation out of his own pocket. The customer said has felt the pressure as if done something wrong.  

In the company notice, Haidilao said it launched a comprehensive review on Friday, covering more than 1,300 outlets across the country and examining operations dating back to January 1, 2025. An anonymous reporting channel was also opened to all staff.

As of Monday, the probe had verified four incidents involving such practices. In one case at a Hangzhou outlet in East China's Zhejiang Province on February 3, 2026, a staff member was penalized for failing to promptly monitor standby reservation information and was required by store management to purchase gifts worth 1,000 yuan($146.46), equivalent to three days' wages as a food runner, to appease customers.

Two similar cases occurred at a Xianyang branch in Northwest China's Shaanxi Province in January 2025, where employees were asked to buy children's toys worth 127.9 yuan and about 60 yuan respectively after customer complaints. Another incident was reported at a Beijing outlet on March 22, 2025, involving a 50-yuan gift purchased under similar circumstances.

The total amount involved in the four cases was 1,237.9 yuan, all of which has been fully reimbursed to the employees as of Sunday, the company said. Its CEO will issue direct apologies to the four affected staff members, per notice.

Haidilao added that it has established a dedicated task force to handle employee rights protection, which will continue to collect and investigate reports of violations. Both current and former employees are encouraged to report unreasonable penalties or practices, with the company pledging prompt reimbursement and corrective action once cases are verified. The task force said it will contact whistleblowers within 24 hours of receiving valid leads.

According to the company, the cause of the issue lies in long-standing management practices, including excessive incentives tied to store managers and insufficient development of centralized support functions. Overly demanding performance assessments had created pressure and anxiety at the store level, which was then passed on to frontline staff.

"The primary responsibility lies with the board, rather than store managers," the notice said.

Looking ahead, the company said its response will unfold in two phases. In the short term, it will continue investigations and reimbursements. Over the longer term, it aims to strengthen mid-level management systems, improve operational efficiency, and reduce the assessment burden placed on individual outlets within the next year.

Haidilao runs 1383 restaurants at home and abroad by the end of 2025, and has expanded to 122 locations across 14 countries as of 2024, including Singapore, Malaysia, Japan, and the US, according to its official website.

Global Times