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The Impact of Crisis Public Relations Strategies on Corporate Financial Performance: A Case Study of Haidilao's "Urination Incident"

Tongxin Wang

Abstract


This study examines how crisis public relations strategies affect financial performance in a customer misconduct crisis via the case
of Haidilao's urination incident. Proactive financial compensation stabilized revenue but came at a measurable cost to profitability. Market reactions were volatile but short-lived, with share prices recovering quickly. Legal action against perpetrators served as an effective PR function
by publicly attributing responsibility. The study offers practical recommendations for food industry managers.

Keywords


Crisis public relations; Financial impact; Haidilao; Brand reputation

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References


[1] Liu, C. T., & Zuo, Y. Y. (2021). Crisis public relations strategies for corporate food safety in the new media environment: A case study of

Haidilao's "mouse incident". Journal of News Research, 12(3), 24–25.

[2] Chen, H., & Luo, J. (2025). Crisis response to food safety public opinion in the all-media era. Food Science, 46(13), 438–447.

[3] Huang, H., & Yi, P. L. (2023). Trust repair discourse strategies in corporate crisis PR statements on new media. Shandong Foreign Language Teaching, 44(6), 10–20.

[4] Heath, R. (2001). Crisis management. CITIC Press. (Original work published in Chinese)




DOI: http://dx.doi.org/10.70711/frim.v4i7.9864

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