Chongqing—On October 17, leaders from China’s booming hotpot industry met in Chongqing for the 10th China International Hotpot Industry Expo to chart the global expansion of Chinese hotpot brands.

Chongqing hotpot is quickly transforming from a regional specialty to a global dining trend, with over 3,000 new international outlets opening annually. Brands like Liu Yishou, Qin Ma, and Zhu Guangyu have become highly sought-after in cities like New York, London, and Tokyo, captivating global diners with their unique appeal.

Exhibitors at the 10th China (Chongqing) International Hotpot Industry Expo showcase hotpot products. (Photo/Zheng Ran)

According to Zhang Gejian, partner of Frost & Sullivan, the overseas hotpot market, excluding China, was valued at over $30 billion and projected to grow to around $40 billion in the next few years. He also confirmed that North America, especially the U.S., is the largest market, accounting for about $13 billion of this total, followed by Canada and several European countries.

Zhang Gejian, partner of Frost & Sullivan. (Photo/HOTPOTEX)

Yang Ou, vice president of Happy Lamb, an international hot pot restaurant chain known for its Inner-Mongolian-style cuisine, shared that the company now operates over 100 international outlets, with 60 of those in overseas markets such as the U.S. and Europe.

Yang Ou, vice president of Happy Lamb. (Photo/HOTPOTEX)

Yang explained that one of the key differentiators in Happy Lamb's success in the U.S. market was the decision to focus more on local, non-Chinese customers rather than only targeting the Chinese diaspora. 

According to Yang, as they moved their stores into shopping malls rather than Chinatowns, they found that positioning the brand as a trendy dining option for young people in the U.S. helped attract a diverse customer base. This approach enabled them to grow beyond traditional Chinese food lovers and tap into the broader food culture.

Similarly, Wang Wenjun, co-founder of Da Long Yi Hot Pot,  shared the brand's successful adaptation of its hotpot offerings in over 50 stores across 33 countries. For example, the company introduced a milder, more approachable version of the broth in markets like Spain, where local consumers are not accustomed to the spicy, oily flavors typical of traditional Chinese hotpot. This adaptation helped the brand attract a wider range of customers.

Li Yang, the founding partner of Zhu Guangyu Hot Pot, also shared a case from the brand's expansion into Malaysia. When the brand opened its 2,500-square-meter location in Kuala Lumpur, the design and strategy focused on customer satisfaction and enhancing the dining experience. 

A key feature of the new store was its second floor, which consisted entirely of private rooms equipped with KTV (karaoke) systems. According to Li, this design was strategically aimed at attracting Chinese expatriates in the region who prefer dining experiences that also entertain, especially for group gatherings.

Li Yang is the founding partner of Zhu Guangyu Hot Pot. (Photo/HOTPOTEX)

As there is a need to adapt business models for overseas markets, Zhang Gejian highlighted that brands should avoid simply replicating their Chinese model in foreign markets. Instead, he suggested that businesses should localize their products and services to meet the tastes and preferences of international consumers.

In addition to product adjustments, the leaders emphasized the importance of building strong partnerships with local businesses. According to Zhang Gejian, working with local partners and understanding the local supply chain is crucial for ensuring consistent product quality and meeting the regulatory requirements of foreign markets.

Zhang Yuan, vice president of RestoSuite, highlighted the importance of digital management for hotpot brands expanding internationally. RestoSuite has helped streamline operations by integrating supply chain management, digital payments, and customer feedback across multiple locations. 

Digital tools ensure consistent customer experiences, reduce inefficiencies, and gather key data for growth. With rising labor costs, brands like Liu Yishou are adopting automated systems like robotic servers to cut costs and maintain service quality.

The panelists agreed that the best time to expand into international markets is now, as the global demand for Chinese cuisine continues to grow. "It's not too late, and the opportunities are vast," said Zhang Gejian. "As long as we focus on adapting to local markets, we can continue to grow and thrive internationally."

According to the Chongqing Hotpot Association, by the end of 2024, nearly 39,600 hotpot outlets had generated 82.4 billion yuan (about 11.5 billion U.S. dollars) in sales, making up 32.7% of the city's restaurant revenue. This growth has boosted the entire supply chain, contributing over 300 billion yuan to the economy. 

Chongqing aims for a 500 billion yuan industry output by 2027 and to become the global hotpot capital by 2035.