Core Viewpoint - The controversy surrounding the chairman of Baiguoyuan, Yu Huiyong, has sparked discussions about consumer perception and the company's performance, particularly after a significant decline in profits and store closures in 2024 [1][6]. Group 1: Company Performance - In 2024, Baiguoyuan reported a net loss of 386 million yuan, a year-on-year decline of 206.7% [1]. - The total revenue for the year was 10.273 billion yuan, down 9.8% compared to the previous year [1]. - The number of chain stores decreased from 6,093 in 2023 to 5,127 in 2024, representing a reduction of 966 stores or 15.9% [1]. Group 2: Franchise Operations - Baiguoyuan operates primarily through a franchise model, with 4,039 out of 5,127 stores being franchise locations, accounting for 78.8% of total stores [1]. - Franchisees are required to follow company guidelines for product display, pricing, and promotions, with regular inspections by Baiguoyuan staff [3]. - The investment cost for franchisees is approximately 230,000 yuan, which includes various fees and a security deposit [5]. Group 3: Consumer Engagement and Membership - Baiguoyuan has implemented a membership recharge strategy, offering incentives for customers who recharge their accounts, which has reportedly attracted over 10.86 million successful recharges [5]. - The number of members across all distribution channels increased by 8.1% year-on-year to 90.74 million, while the number of paying members decreased by 27.1% to approximately 850,000 [5]. Group 4: Leadership and Strategy - Chairman Yu Huiyong emphasized the importance of building trust with franchisees and ensuring their profitability as a core strategy for the company [6]. - Following Yu's controversial remarks, the company's stock price remained relatively stable, closing at 1.74 HKD per share with a market capitalization of approximately 2.7 billion HKD as of August 14 [6].

Core Insights - The article highlights the rapid growth of the lower-tier market in the restaurant industry, with a projected growth rate of over 8% in 2024, significantly contributing to national dining consumption increases [1] - The brand "Fish You Together" has successfully expanded its franchise model, surpassing 2,500 global franchise stores by July 2024, indicating its effective market penetration strategy [1] Group 1: Business Strategy - "Fish You Together" employs a "high efficiency + light asset" dual franchise strategy, which reduces franchise costs and enhances operational efficiency through standardized processes and digital management [3][6] - The brand has established a comprehensive supply chain system that supplies 85% of its core ingredients directly from nine major warehouses, effectively lowering food and logistics costs while ensuring consistent food quality across all locations [5][6] Group 2: Market Positioning - The brand initially focused on first-tier cities, targeting office workers and professionals, and has successfully built its reputation through affordable and nutritious offerings [6] - Following the launch of the "Thousand Cities, Ten Thousand Stores" plan in 2021, "Fish You Together" has adapted its strategies for different markets, including mini takeout stores in urban areas and local-style stores in rural markets, while also adjusting flavors for international markets [6][8] Group 3: Consumer Trends - The brand's success is attributed to its ability to understand market demands and implement innovative strategies, positioning it favorably in a competitive landscape [8]