A Research On Profit Modela Of Haidilao

The economy of China has changed dramatically since the economic reform.The living standard of Chinese residents has greatly improved.Residents no longer just earn their livelihood,but value healthy living.The development of business model varies with the market change of catering business.Catering business was rare back in the 1980's.Nowadays,catering business is everywhere.It has becoming a part of people's life to eat in restaurants.Current situation and problems of the catering industry was analyzed firstly.Then the profit model of Haidilao International Holding Ltd.as the case,was briefly analyzed based on four factors,profit point,profit source,leveraged profits,and profit barrier.Financial analysis of the company's key indicators was also carried out.Based on the four factors and financial analysis,it is summarized that Haidilao is facing expansion risks,ineffective internal controls,high costs and development bottleneck.Causes of these problems were analyzed as well.Suggestions were eventually made for Haidilao to select and improve its profit model.