Core Viewpoint - The closure of 102 stores by Xibei represents the largest adjustment in its 38-year history, driven by operational challenges rather than just public relations issues [4][6]. Group 1: Operational Challenges - Xibei's single-store net profit margin is only 5%, with some stores facing fixed costs nearing 500,000 yuan per month, necessitating monthly revenues of 800,000 yuan to break even [6]. - The closures were primarily of low-revenue stores, selected based on hard metrics like rent costs and customer traffic, indicating pre-existing operational difficulties [6][12]. - The high-cost operational model, including premium ingredients and employee benefits, has become unsustainable in a competitive environment with declining consumer spending [6][12]. Group 2: Market Position and Consumer Perception - Xibei's average customer spending of approximately 92 yuan is not competitive in a market increasingly focused on value, particularly among its core demographic of price-sensitive family and elderly consumers [7][12]. - The backlash against Xibei during the pre-prepared food controversy highlighted a disconnect between the company's definition of "pre-prepared food" and consumer perceptions, exacerbating existing operational vulnerabilities [7][12]. Group 3: Strategic Adjustments - In response to declining customer traffic, Xibei attempted to revert some food preparation processes back to stores and reduced prices on over 30 menu items, but these measures did not fully restore customer flow [9][12]. - The decision to maintain operations for pre-booked events, despite financial losses, reflects a commitment to customer service but also raises questions about the sustainability of such decisions under financial strain [9][10]. Group 4: Future Outlook - Xibei's future stability hinges on addressing the long-standing imbalance between expansion and operational efficiency, as well as improving communication with consumers regarding its value proposition [12][13]. - The recent store closures serve as a cautionary tale for the restaurant industry, emphasizing that growth must be built on a solid operational foundation rather than mere expansion [12][13].