Core Viewpoint - The article discusses the declining performance and reputation of the restaurant chain "Tai Er" (太二酸菜鱼), highlighting issues related to food quality, customer satisfaction, and financial performance, which have led to a significant drop in stock price and market confidence [3][4][15]. Financial Performance - Tai Er's revenue for the first half of 2025 was 1.946 billion RMB, down 13.3% from 2.248 billion RMB in the same period last year, indicating a severe decline in its core brand performance [10][11]. - The operating profit for Tai Er was 262 million RMB, a decrease of 15.65% year-on-year, reflecting a deterioration in its profitability [10]. - The number of self-operated Tai Er restaurants decreased from 612 to 547, a reduction of 65 locations, contributing to the decline in same-store sales [11]. Customer Experience and Quality Issues - Reports indicate that customers have experienced issues with food quality, such as fish tasting sour and having a poor texture, leading to dissatisfaction [8][10]. - Complaints on platforms like Black Cat Complaints focus on food safety, including foreign objects in food and health issues after consumption [8]. Market Position and Brand Perception - The once-popular brand is losing its appeal, as consumers are no longer willing to wait in long lines for its offerings, indicating a shift in consumer sentiment [4][18]. - The brand's single-product strategy has shown vulnerability as market novelty fades and competition increases, leading to inevitable performance declines [4][18]. Stock Market Reaction - The stock price of the parent company, Jiumaojiu (九毛九), has plummeted from nearly 38 HKD at its peak to the current range of 2-3 HKD, representing a market value loss of over 90% [15]. - The company was recently removed from the "Hong Kong Stock Connect" list due to not meeting market capitalization and liquidity requirements, further impacting investor confidence [15][13]. Industry Competition - The competitive landscape has intensified, with many imitators entering the market, leading to a decrease in Tai Er's unique selling proposition [4][18]. - Analysts suggest that the brand's previous "internet celebrity" status is diminishing, making it more susceptible to price sensitivity and quality scrutiny from consumers [17][18].

Core Viewpoint - The recent controversy surrounding the speed of service at Tai Er Suancaiyu has highlighted concerns about the quality of its food and the use of pre-prepared ingredients, leading to a significant decline in the company's stock price and consumer trust [2][5][10]. Company Performance - Tai Er Suancaiyu's revenue for the first half of 2025 was 1.946 billion RMB, down 13.3% from 2.248 billion RMB in the same period last year, indicating a severe decline in its core brand performance [5][6]. - The number of self-operated restaurants decreased from 612 to 547 within a year, reflecting a loss of 65 locations, which has contributed to the overall decline in sales [6][7]. - The table turnover rate for Tai Er Suancaiyu was 3.1 times per day in the first half of 2025, compared to 3.8 times for competitors like Haidilao, showing a significant drop from its peak of 4.8 times in 2019 [7][9]. Market Reaction - The stock price of the parent company, Jiumaojiu, has plummeted from nearly 38 HKD at its peak in 2021 to the current range of 2-3 HKD, representing a market value loss of over 90% [9][10]. - Jiumaojiu was recently removed from the "Hong Kong Stock Connect" list due to not meeting market capitalization and liquidity requirements, further impacting investor confidence [9][10]. Industry Context - The competitive landscape has intensified, with the novelty of Tai Er Suancaiyu's brand diminishing, leading to increased price sensitivity among consumers [10]. - The brand's reliance on a single popular dish strategy has proven vulnerable as market freshness wanes and imitators proliferate, resulting in inevitable performance declines [10].