BEIJING, (Reuters) – Shares of Chinese hot pot chain Haidilao International rocketed Monday following the announcement that the company would close or suspend 300 outlets by the end the year. This is a major setback to the rapid expansion the company undertook in the COVID-19 epidemic.

China’s most popular hot pot company announced Friday night that it was closing down stores with low customer traffic or unsatisfying results. Instead, the new strategy would focus on improving operations at existing shops.

The shares rose more than 11% Monday, making them the highest level since Oct. 28, when they were at their peak.

Reuters published last month that Haidilao had plans to slow its growth, following China’s expansion and weakening consumer desire. It was left with declining table turnover rates and smaller profits.

Haidilao was so well-known in recent years, that customers waited in long lines for their soups. The company also offered free manicures and snacks to those who were not able to pay. In early 2020, the company began an expansion campaign that saw it increase its number of outlets to nearly 1,600.

Citi analysts stated that Haidilao would likely have to make one-off write-downs or provisions for store assets and leases during the second half, but they believed the closings would decrease Haidilao’s start-up loss and improve performance at its nearby stores.

They stated that they expected the restructuring plan to increase its table turnover of stores by 2022.