Xiabu Xiabu: From Hotpot to Crisis Management

Name: Xiabu Xiabu: From Hotpot to Crisis Management (English version)
SKU: W24205

Weina Zhang, Ruth S.K. Tan, Renbao Chen

Product #:W24205

Supplier:Ivey/NUS

Discipline:Finance

Setting:China, 2018

Details:Case (PDF) • 11 pages • 2022-02-16

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On September 6, 2018, a couple was enjoying a meal at a hotpot restaurant in Weifang, Shandong Province, China. The restaurant was a branch of the popular Chinese hotpot restaurant chain owned by Xiabuxiabu Catering Management (China) Holdings Co. Ltd. (Xiabu Xiabu). Halfway through the meal, the pregnant wife found a dead rat in her soup. The news spread on social media, and according to some analysts, Xiabu Xiabu’s share price dropped US$190 million in market value. Had Xiabu Xiabu’s lack of quality assurance undermined the company’s success? How could the company improve its risk and crisis management?

Learning Objectives

This crisis management case can be used in an advanced undergraduate- or graduate-level course in risk management. After working through the case and assignment questions, students will be able to

appreciate the importance of instituting good and proactive risk and crisis management practices;
understand how external factors such as the regulatory environment might affect enterprise risk management;
propose an effective internal process and control measures to enhance enterprise risk management capabilities and provide incentives to motivate risk management staff; and
comprehend that the wellbeing of a company is also dependent on stakeholders other than shareholders and that their needs can be met with crisis management.

Xiabu Xiabu: From Hotpot to Crisis Management

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Learning Objectives