Why Haidilao's US Service Fails: Hofstede's Insights on Cultural Differences

According to Hofstede's cultural dimensions theory, the cultural differences between China and the United States can explain why Haidilao's service in the US is not appreciated. Two dimensions that may contribute to this are:

Individualism vs. Collectivism: The United States is a highly individualistic culture, meaning that people prioritize their own goals and interests over the goals and interests of the group. In contrast, China is a collectivist culture, meaning that people prioritize the goals and interests of the group over their own goals and interests. This difference can lead to misunderstandings in customer service situations. For example, in Haidilao's US locations, customers may expect to be served quickly and efficiently, with no unnecessary conversation or small talk. However, Haidilao's service style is based on building a relationship with the customer and creating a welcoming atmosphere. This may be perceived as slow or inefficient by US customers who are more focused on their own needs.
Power Distance: Power distance refers to the degree to which people in a culture accept unequal distribution of power. In China, there is a high power distance, meaning that people accept and expect unequal distribution of power and status. In the US, there is a low power distance, meaning that people expect equality and may be uncomfortable with displays of hierarchy or deference. Haidilao's service style includes a lot of deference to the customer, such as offering to tie their hair back or wash their phone. This may be perceived as uncomfortable or even condescending by US customers who are not used to this level of deference.

The part of the service that made US consumers unhappy may be the slow and inefficient service, as well as the perceived condescension from the deference shown by the Haidilao staff. Additionally, the lack of customization in the food and service may also contribute to the negative reviews, as US customers are used to having more control over their dining experience.