A video showing two men urinating into the broth of their hotpot while dining in a private room at a Haidilao restaurant started circulating online late in February.
Haidilao said on March 12 that the incident occurred on Feb. 24, but that it only became aware of the issue four days later and could not initially determine the time and location.
It showed the case revealed a lack of training procedures, which led to staff’s failure to detect the situation promptly. The company confirmed the location in downtown Shanghai on March 6.
"We fully understand that the distress caused to our customers by this incident cannot be fully compensated for by any means," the company said in the statement. "We are willing to do our utmost to take responsibility."
The company did not say how much it would be spending in compensation.
Haidilao reported the case to the police in Jianyang, Sichuan, where it is headquartered, and other locations.
The police have since detained two men, both 17 years old, according to a statement issued by Shanghai police. Haidilao filed a civil lawsuit application against them on March 10, the company’s statement added.