The hotpot chain Haidilao runs a shitu zhi, a system of masters and apprentices, among its restaurant managers. When an apprentice becomes the manager of a new restaurant, the master receives a share of its profit. When the apprentice’s own apprentice takes over a new restaurant, the grand-master receives a share as well.
According to the business site 36Kr, a master manager receives, beyond the base salary, the higher of two rewards. One is 2.8 percent of the profit of the manager’s own restaurant. The other is 0.4 percent of that profit, plus 3.1 percent of the profit of each apprentice’s restaurant and 1.5 percent of the profit of each grand-apprentice’s restaurant.