This research constructs a scale to measure the perceived quality of Haidilao hot pot restaurant, and then evaluates the relationships among perceived quality, customer satisfaction and customer retention by the structural equation model and multiple regression analysis. The main findings are as follows: (1) Both perceived service quality and perceived product quality positively influence customer satisfaction significantly, moreover, perceived service quality imposes greater impact on customer satisfaction than perceived product quality in the hot pot industry. (2) Customer retention is significantly directly influenced by perceived service quality and customer satisfaction, but there was no significantly direct effect between perceived product quality and customer retention. (3) Service empathy is the most vital dimension of perceived quality to influence customer satisfaction and customer retention, which followed by service responsiveness and assurance, special product, service tangibles, and general product.