Coto closed 53 stores, and the average transaction value increased! The Jibao Group's revenue decreased last year, but losses were reduced.

On March 26, Xabuxiabu (00520.HK, hereinafter referred to as “Xabuxiabu Group”) released its 2025 financial report. In 2025, Xabuxiabu Group’s revenue was 3.79B yuan, down 20.32% year over year; net loss was 301 million yuan, with losses narrowing by 24.99% year over year. This is also the fifth consecutive year that Xabuxiabu Group has recorded losses.

Xabuxiabu Group’s core revenue comes from the value-priced hot pot brand Xabuxiabu and the mid-to-high-end hot pot brand CouCou. CouCou’s continued store closures and shrinkage have caused a clear drag on its overall performance. In 2025, CouCou closed 53 stores and its table-turn rate continued to decline. Against this backdrop, CouCou adjusted its pricing. Its per-capita spend rose by more than 20%, but the increase in average spend did not drive revenue growth; last year, revenue fell by 30%.

CouCou closed 53 stores last year

Per-capita spend rose 20%

CouCou is still following the trend of shrinking its store footprint. In 2025, it closed 53 stores and opened 3, for a net reduction of 50 stores. By the end of 2025, it had 147 stores, of which 16 were overseas. Since 2024, CouCou’s number of store closures has already been clearly higher than the number of new openings, and that year it recorded a net reduction of 60 stores.

With store closures layered on top of a decline in same-store sales, CouCou’s revenue fell significantly. In 2025, CouCou’s revenue decreased by 30.75% year over year to 1.35B yuan, with a much steeper drop than the overall level of Xabuxiabu Group; operating loss increased by 10.50% year over year to 200 million yuan, which is also the fourth consecutive year that CouCou has recorded losses.

On key restaurant operating metrics, in 2025, CouCou’s table-turn rate fell from 1.6 times per day in 2024 to 1.4 times per day. Customer per-capita spend increased by 20.49% year over year to 148.8 yuan, while same-store sales fell by 14.2%. In its 2023 financial report, CouCou mentioned that changes in the consumer market had a relatively large impact on its higher average-check positioning. Even after introducing measures such as smaller portion dishes, its average check remained higher than most competing peers. In 2023 and 2024, CouCou reduced average check prices for two consecutive years, but the price adjustment in 2025 brought its per-capita spend back to the level seen in 2023.

In a horizontal comparison with publicly listed—or soon-to-be listed—hot pot brands such as Haidilao, Song Hotpot, and Banu, CouCou’s pricing is still on the high side. In 2025, Haidilao’s per-capita spend was roughly flat year over year at 97.7 yuan; Song Hotpot’s per-capita spend in Q4 2025 was 104 yuan, up 5.05% year over year. Also, according to its prospectus, in the first three quarters of 2025, Banu’s average per-capita spending price was 138 yuan, down 2.82% year over year. In terms of table-turn rate, CouCou is also on the low end. In 2025, Haidilao’s table-turn rate was 3.9 times per day; in Q4 2025, Song Hotpot was 2.3 times per day; and in the first three quarters of 2025, Banu was 3.6 times per day.

With a relatively low table-turn rate, CouCou has been trying to adjust its operating model. In September 2025, at 46 stores in mainland China, CouCou trialed a dual-option model of “selected à la carte + all-you-can-eat with fun included.” Building on traditional ordering, it added a “time-limited, unlimited” all-you-can-eat option, set at three price tiers of 158 yuan, 198 yuan, and 258 yuan, and in November of the same year expanded this model to all stores in mainland China. CouCou has not disclosed market feedback on this model in its latest financial report.

Lin Yue, Chief Analyst at Lingyan Consulting Management, told Nandu Bay Finance and Economics News’s reporter that CouCou’s all-you-can-eat model offers high value for money and has some appeal to consumers. However, these three price tiers still position the offering as mid-to-high-end, and overall pricing is not friendly. In addition, the self-serve model places very high demands on the efficiency of the supply chain and operations. Once there is unstable dish quality or dishes fall below customer expectations, it is easy to lose out against large quantities of self-serve mini hot pot competitors.

Regarding the reasons for CouCou’s 2025 price adjustment and market feedback on the “fun included all-you-can-eat” model, on March 27, Nandu Bay Finance and Economics News’s reporter asked relevant executives at Xabuxiabu Group for details. As of the time of this release, no response had been received.

Xabuxiabu Group’s revenue fell 13%

The table-turn rate rose somewhat last year

Among the two hot pot brands, Xabuxiabu on the Xabuxiabu Group side entered its adjustment period earlier than CouCou. Starting in 2021, it launched large-scale store closures and optimization. In 2025, this intense adjustment trend eased somewhat. Last year, the number of new stores opened was roughly equal to the number of stores closed, and the total number of stores was roughly similar to the previous year.

Specifically, in 2025, Xabuxiabu closed 56 stores and opened 54, for a net reduction of 2 stores to 758 stores, including 3 located overseas. In 2021 to 2024, it respectively closed 229 stores, 81 stores, 99 stores, and 138 stores; and opened 52 stores, 41 stores, 131 stores, and 65 stores. It has long been in a state of intense, large-scale store opening-and-closing adjustments. After multiple rounds of optimization, Xabuxiabu’s store scale has been clearly reduced compared with the peak of 1,061 stores in 2020.

The store adjustments in 2025 also brought changes to regional structure. Xabuxiabu saw a clear increase in the number of stores in third-tier cities, a clear decline in second-tier cities, and only a modest increase in first-tier cities. However, regional market revenue growth did not follow these structural changes; last year, its revenue in cities of all tiers declined to varying degrees. Overall, in 2025, Xabuxiabu Group’s revenue decreased by 13.31% year over year to 2.28B yuan, and operating profit decreased by 30.79% year over year to 62.32M yuan.

Unlike CouCou’s price increases, Xabuxiabu’s average check has still been trending downward, while the table-turn rate has risen noticeably. In 2025, Xabuxiabu’s per-capita spend decreased by 6.02% year over year to 51.5 yuan; the table-turn rate rose from 2.5 times per day in 2024 to 2.8 times per day. The table-turn rate reached its highest level since 2020. However, same-store sales still fell by 9.6%.

Xabuxiabu is continuing to adjust. In December 2025, it launched a self-selected mini hot pot brand called “Xabuxiabu Ranch.” Its first store opened in Shanghai, and pricing was lowered further. According to information from the brand’s operator, “Xabuxiabu Ranch” offers three tiers of soup base: 2.91 yuan, 5.91 yuan, and 8.91 yuan, with meat starting from 9.91 yuan. The minimum spend per person is about 29.82 yuan. It will continue to run trials in high-spending cities such as Shanghai.

This year, Xabuxiabu Group expects to open at least 100 new Xabuxiabu stores

The group plans to open 100 steak stores within three years

Although revenue for both hot pot brands is declining, judging by the plans for the coming year, Xabuxiabu Group is clearly more confident in Xabuxiabu.

Xabuxiabu plans to open no fewer than 100 new stores in 2026. It sets reaching a table-turn rate of 3 times per day as an operating target. In high-spending cities such as Shanghai, it will also trial “Xabuxiabu Ranch” and restaurants with a self-serve model. In cities such as Guangzhou and Shenzhen, it will focus on building delivery “satellite” stores, covering multiple mealtime scenarios including both main meals and late-night dining. At the same time, in lower-tier markets, it will explore a “Xabuxiabu Mini” restaurant model with a high value-for-money positioning.

In its financial report, Xabuxiabu Group did not disclose more information about “Xabuxiabu Mini.” The reporter contacted Xabuxiabu Group to ask about the progress of the launch of the first “Xabuxiabu Mini” store; as of the time of this release, no response had been received.

In terms of its store-opening strategy, Xabuxiabu has started leveraging external resources. In July 2025, Xabuxiabu first rolled out an internal partner program, opening a channel for new store partnership to employees within the group. The shares of newly opened stores are held jointly by partners and Xabuxiabu Group, as well as senior executives of the group. According to data provided by the brand operator, last year Xabuxiabu launched the “Feng Huan Cheng” partner program twice. As of the end of 2025, the number of partner stores had increased to 13, and the number of internal partners had increased to more than 50. Xabuxiabu plans to add approximately 50 to 100 partner stores every year.

Different from Xabuxiabu Group’s expansion plan, according to official guidance, in 2026 the CouCou brand will persist with cautious expansion, focus on core cities and high-quality commercial districts, implement lightweight and high-efficiency store formats, strictly control site selection and investment costs, and steadily advance its restaurant network layout. The goal is for profitability at the single-store level as the top priority; it will not expand blindly. It will gradually improve regional layout and strengthen operational foundations.

In addition to hot pot, Xabuxiabu Group also wants to continue seeking new growth curves by developing sub-brands. In February 2026, it cross-industry launched a new subsidiary brand called “Xia Niu Steak” (呷牛排). “Xia Niu Steak” is positioned around “handmade, classic, old-school thick-cut steak” and features a “steak + all-you-can-eat” model. Steak is priced at 109 yuan to 228 yuan, and after ordering, diners can enjoy free all-you-can-eat of 158 assorted foods.

This is not the first time Xabuxiabu Group has branched out cross-industry. In September 2022, Xabuxiabu Group also tested launching a premium barbecue brand called “Chen Shao,” with a price positioning of 250 yuan or above. Regarding cross-industry grilled meat, Xabuxiabu Group founder He Guangqi previously pointed out that the decision was based on the market being large enough and the high-end barbecue segment not yet having a leading company. He Guangqi planned to make “Chen Shao” into a top brand in the premium barbecue segment. At the time, the “Chen Shao” plan opened 30 stores in 2023, but in reality the number of stores opened was far less than expected. By August 2024, all stores were closed; it had opened only 8 stores.

In He Guangqi’s view, for this cross-industry steak endeavor, it is basically very difficult to scale up a steak restaurant with a high average check. A restaurant with a low average check lacks profitability, and some restaurants struggle to ensure quality. The steak category has not yet produced an industry “unicorn,” leaving a brand vacuum; and many meat lovers really like steak. The core advantage of “Xia Niu Steak” lies in Xabuxiabu Group’s decades-long supply experience with beef and mutton, enabling both quality control of ingredients and control of costs.

According to official plans, “Xia Niu Steak” is expected to reach a 100-store scale within three years.

Written and reported by: Nandu · Bay Finance and Economics News reporter Zhan Danqing