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August 31, 2017

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How a popular hot pot chain turned a food safety scandal into a positive PR exercise

By Ni Tao | 00:01 UTC+8 August 31, 2017 | Print Edition

WHAT does the recent food safety crisis engulfing Haidilao tell us?

In a blatant breach of its own conviction that food safety is the lifeblood of a catering company, the popular Sichuan-based hot pot chain was named and shamed in the press for letting serious food safety violations happen in its kitchens.

A video taken by undercover journalists shows rats in the kitchen of one of Haidilao’s restaurants in Beijing, a dishwasher caked with greasy food residue, as well as a worker using a soup ladle to unclog a drain.

This revelation quickly led to a publicity crisis for the hot pot chain that had long enjoyed a reputation for its authentic Sichuan-style food and premium service.

Haidilao could have followed in the footsteps of catering brands that bungled their responses to food safety scandals. Instead, it was spared further damage following a swift publicity stunt.

Within four hours of the revelation, the company released a statement in which it frankly admitted management flaws and apologized for the scandal.

This worked, and the reason this worked, as many have reckoned, is that it did not blame the “faulty operation” and poor hygienic conditions on some “temps,” which seems to be the centerpiece of some companies’ strategy to wriggle out of a crisis.

In a call for media and public oversight, the management of the hot pot chain also has shown just enough wisdom and candor to orchestrate a shift in public opinion.

Indeed, the sincere tone, the willingness to accept mistakes and resulting responsibility, the sheer amount of transparency not only mitigated the damage, but also garnered a wave of approval for Haidilao’s PR flacks.

A few friends working in corporate PR positions posted articles in their WeChat moments praising the hot pot chain for its crisis management.

Indeed, Haidilao’s effort no doubt can be hailed as a successful example of how to avert a looming publicity fiasco.

What I’m more interested in is how a business with as humble an origin as Haidilao’s — it started out as a mom-and-pop in Jianyang, a small city in Sichuan Province — could have acquired the acumen and dexterity to outperform juggernauts like, say, the United Airlines, which blundered first by forcibly deplaning a passenger from an overbooked flight and then letting hubris get the better of it.

This question led me to a book entitled “You Cannot Copy the Haidilao Model.”

This book, published in Chinese in 2011, traces the rise of the hot pot chain through stories told by its staff members.

Midway through reading the book, I was struck by the devotion of many Haidilao employees to their work, however physically and mentally demanding.

The book chronicles the life of many waiters and waitresses who hail from rural China, take jobs that friends and relatives look down upon, endure hardships and abuses by customers, and work their way up the social ladder.

Benchmark

Over these years, Haidilao has earned a reputation for an assortment of services that appear to have set the benchmark for what quality services stand for.

It’s easy to come across effusive online comments by diners who tell of their experiences at Haidilao.

Diners get free snacks and drinks during the time they wait for dinner companions; without asking, those coughing and sneezing are offered a bowl of warm ginger soup to relieve cold symptoms; employees go out of their way to get a recharger for a diner in urgent need of recharging his or her phone; one can even tuck into a hot pot meal at home as waiters or waitresses stand dutifully by, taking care of everything from preparing the food to cleaning up afterward.

These tales illustrate the great lengths Haidilao has gone to make every meal a delightful experience for customers.

And it proves highly rewarding. Haidilao emerged as one of the market leaders amid cutthroat competition. Further crowning glory came in 2011 when the company was profiled in a case study by Harvard Business School researchers.

The Chinese service industry has long been criticized for an inadequate spirit of service. This began to change with Haidilao’s success.

With the blot now on its name, the company needs desperately to set things right. Just as a People’s Daily editorial suggested, it can start by checking more often on its kitchens and staying true to its ideals. This perhaps goes further than some PR stunts in creating a company built to last, it says.

Another piece of advice for Haidilao is to dispense with non-essential services, especially if they put the service provider and recipient both ill at ease.

I’m talking about the shoe shine service, for I find it excessive and demeaning.

Zhang Yong, Haidilao’s founder, once proudly said he instilled self-esteem in his staff, but devoted as they are to their work, how many of his employees would derive self-respect from the drudgery of constantly stooping and polishing the boots of customers?

Sometimes less is more.

Opinion


 

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