Hotpot chain Xiabuxiabu swung to profit in first half amid post-pandemic recovery

 

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Chinese hotpot chain Xiabuxiabu swung to a net profit of 2.4 million yuan from a net loss of 279 million yuan due to the rebound in customer traffic as economic activities resumed normalcy following the end of the pandemic. 

The company’s revenue rose 32% year over year to 2.85 billion yuan. Its Xiabuxiabu hot pot chain experienced a 29.5% surge in sales, reaching 1.38 billion yuan.

The mid- to high-end brand Coucou saw a substantial 36.8% increase in sales, rising from 1.02 billion yuan to 1.4 billion yuan.

The company enhanced its marketing and promotional efforts during the first quarter, with discount initiatives as part of the anniversary stored value promotion to enhance customer footfall at its restaurants.  The seat turnover rate surged to 2.4 times in the first half from 1.9 times a year earlier. 

By the end of June the company had 1,094 restaurants worldwide, adding 91 restaurants in the first half of this year. It had 1,080 eateries in the mainland.