Core Viewpoint - The controversy surrounding the restaurant chain Xibei, triggered by a critical social media post from entrepreneur Luo Yonghao, highlights the blurred lines between "pre-prepared dishes" and "pre-prepared processes" in the modern dining industry, raising consumer awareness about their rights [2][3] Company Overview - Xibei, founded by Jia Guolong in 1999, has grown into a national dining brand with over 360 locations and annual revenue exceeding 2 billion yuan at its peak, built on strong brand recognition, high average spending, and a focus on service experience [2][3] - The company initially focused on traditional dining but has attempted to pivot towards fast food through various sub-brands since 2015, aiming to replicate the success of global fast-food giants like McDonald's and KFC [3][5] Challenges Faced - Jia Guolong's attempts to standardize fast food offerings have led to operational inefficiencies, with slow service times and low table turnover rates, contradicting the fast-food model that prioritizes speed and cost-effectiveness [5][6] - The sub-brands have suffered from poor brand positioning and naming, leading to consumer confusion and low repeat purchase rates, as they failed to clearly communicate their value propositions [6][8] Strategic Missteps - The pricing strategy of the sub-brands has placed them in a "pricing trap," where they cannot compete effectively with either low-cost fast food or established chain brands, resulting in a lack of customer interest [6][8] - The organizational structure of Xibei, which is oriented towards traditional dining, lacks the necessary capabilities for fast food operations, leading to operational mismatches and consumer dissatisfaction [8][9] Future Direction - In June 2024, Jia Guolong announced a strategic shift, elevating "Jia Guolong Small Pot Beef" to a new growth line, moving away from low-cost fast food and refocusing on maximizing customer value and enhancing brand experience [9][10] - The lessons learned from the failed sub-brands emphasize the importance of sustainable profitability over mere expansion, suggesting that a more tailored approach to scaling in the Chinese dining market may be more effective than blindly pursuing the "ten-thousand store" model [9][10]