Core Viewpoint - The public relations crisis surrounding Xibei has subsided, but consumer backlash against pre-made dishes continues, highlighting a divide in the restaurant industry between different types of dining establishments [1] Group 1: Industry Dynamics - The restaurant industry is experiencing a split, with brands like Laoxiangji and Dami Xiansheng being favored by workers despite their use of pre-made dishes, while others similar to Xibei are facing public scrutiny [1] - The "middle ground" in the restaurant sector is characterized by brands with moderate pricing and a specific number of outlets, typically around 500, such as Xibei (470+ stores, average spending of 98 yuan) and Xiaocaiyuan (700+ stores, average spending of 60 yuan) [3][4] - High-end dining establishments like Xinrongji, which focus on quality and exclusivity, contrast sharply with budget-friendly fast food chains like Laoxiangji, which prioritize standardization and rapid expansion [4][7] Group 2: Business Models - The operational model of budget restaurants relies on "standardized pre-made dishes and franchise expansion," allowing for rapid growth while minimizing cooking processes at the store level [5] - In contrast, high-end restaurants like Xinrongji operate on a "high average spending and non-standardized direct management" model, focusing on quality control and customer experience [7][9] - The "middle ground" restaurants attempt to balance the benefits of both models, leveraging standardized expansion while also enjoying higher profit margins associated with direct management [11] Group 3: Market Challenges - The restaurant industry has faced challenges in maintaining customer turnover rates, with many brands in the "middle ground" experiencing a disconnect between store expansion and operational efficiency [23] - The expansion strategy of these mid-tier restaurants, which often mirrors that of Haidilao, has encountered limitations in lower-tier cities where local brands dominate [25] - Despite attempts to increase average spending, many restaurants have seen a decline in customer spending, with brands like Tai Er experiencing a drop from 79 yuan to 70 yuan over four years [29][32]