The Morning FounderSoutheast Asian business history, daily

Hai Di Lao

Watercolour illustration for Hai Di Lao
Watercolour · The Morning Founder

He couldn't cook. So he made the restaurant about everything except the food.

Every time I walk past a Hai Di Lao, there's a queue. Not a short one. The kind where people are sitting on stools getting their nails done while they wait for a table.

Getting your nails done. At a hotpot restaurant. While you wait.

Here's what I didn't know until recently:

The guy behind all of this didn't eat in a restaurant until he was 19.

Zhang Yong grew up in Jianyang, rural Sichuan. Dropped out of high school. Welded tractors at a government factory. Ate in the factory cafeteria every day because he couldn't afford to eat out.

The first time he went to a restaurant — a local hotpot place — the food was mediocre and the staff were rude. Most people would forget that meal. Zhang Yong remembered it for 30 years.

In 1994, he quit the factory after a dispute over a company apartment. No savings. No backup plan. No cooking skills.

He opened a hotpot restaurant with three others. Four tables. 8,000 yuan between them — about $1,400. Zhang was the one with no money.

Here's the thing: he couldn't cook. He openly admitted he didn't know how to make a proper Sichuan hotpot. In Sichuan. The province that invented hotpot.

So he made a bet. If he couldn't win on food, he'd win on everything else.

Free manicures while you queue. Shoe polishing. Snacks and board games. Phone cases to keep your screen dry. Hair ties. Aprons. Birthday celebrations you didn't ask for but somehow love.

Then the noodle dancers. Employees train for four to six months to perform hand-pulled noodle routines tableside — twirling dough like gymnast ribbons, stretching it ten feet through the air, landing it in your pot. Half the restaurant films it. Every video goes viral.

And here's what nobody talks about:

His employees — mostly young, from small towns — get company apartments with air conditioning and internet. No outside hires for management. Everyone promotes from within. He runs a monthly "golden idea" competition where any staff member can submit innovations. The noodle dance? That came from an employee competition.

He built a restaurant where the staff actually want to be there. Customers can feel it.

Four tables became 1,400+ locations across China, Singapore, London, New York. Zhang moved to Singapore, became a citizen, and became the richest person in the country. Net worth peaked above US$15 billion.

A high school dropout who couldn't cook hotpot.

Here's what keeps coming back to me:

Everyone in F&B obsesses over the food. Zhang Yong couldn't compete on that. So he asked a different question: what if the restaurant experience has almost nothing to do with eating?

He reinvented everything around the meal. Not the meal itself.

What's something you couldn't compete on that ended up being the best thing that happened to your business?

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