Core Viewpoint - The ongoing conflict between Jia Guolong and Luo Yonghao highlights the challenges faced by Xibei, a well-known Chinese restaurant brand, as it navigates a significant crisis following public accusations and operational difficulties [2][4]. Group 1: Company Challenges - Xibei has confirmed the closure of 102 stores, marking its largest downsizing effort to date, which reflects the deep challenges faced by the brand after rapid expansion [2][4]. - The company is undergoing a "100-day self-rescue" initiative, which includes product adjustments, price reductions, and employee salary increases to regain customer trust and improve sales [4][5]. - Xibei's human resource costs have risen from 25% to over 30% of revenue, indicating financial strain as the company attempts to attract customers through significant discounts [6]. Group 2: Market Position and Consumer Perception - Xibei's brand positioning has become unclear due to frequent changes, leading to consumer confusion and a perception of high prices, with average spending increasing from 60-80 yuan to 100-120 yuan [7][8]. - The brand's focus on high-quality ingredients and family dining has resulted in a high average ticket price, which is now seen as a barrier to growth in a market where consumers are becoming more price-sensitive [7][8]. Group 3: Strategic Adjustments - The company is shifting its growth strategy from aggressive expansion to a more sustainable approach, accepting a degree of scale reduction and focusing on profitability rather than sheer size [8][9]. - Xibei is reevaluating its supply chain and operational processes to balance quality and efficiency, as the reliance on a centralized kitchen has led to challenges in maintaining food freshness and quality [10][11]. - The brand is exploring new menu options that align with modern health trends while maintaining its core offerings, aiming to enhance customer loyalty and satisfaction [11][12]. Group 4: Industry Implications - Xibei's situation serves as a case study for the broader challenges facing the Chinese restaurant industry, particularly in balancing scale with quality and adapting to changing consumer preferences [11][13]. - The company's recent decisions reflect a shift towards a more cautious and thoughtful approach to growth, which may resonate with other brands in the industry facing similar pressures [12][13].