Core Points - The recent controversy involving Luo Yonghao and the restaurant brand Xibei has resurfaced, particularly regarding a salary increase for Xibei employees, which has drawn attention on social media [1][3] - Hua Shan, founder of marketing consultancy Hua Yu Hua, claimed that Xibei is being "schemed against," leading to further disputes with Luo Yonghao threatening to release recordings if no public apology is made by Hua Shan [1][4] Group 1: Company Background - Xibei has been collaborating with Hua Yu Hua since 2013, with Hua Yu Hua providing significant branding and marketing strategies, including the creation of the "I♥莜" symbol and the simplification of Xibei's menu from over 100 dishes to 44 [4][5] - Hua Yu Hua has charged Xibei over 60 million yuan in consulting fees over the past decade, averaging more than 6 million yuan annually [5] Group 2: Recent Developments - Luo Yonghao previously criticized Xibei for serving mostly pre-packaged dishes, which led to a public backlash against the brand [4] - Hua Shan has not yet responded to Luo Yonghao's accusations, and his social media account has been set to private, preventing further comments [5]

Core Viewpoint - The recent controversy involving entrepreneur Luo Yonghao and the restaurant brand Xibei has reignited discussions about the pre-made food industry in China, highlighting issues of consumer rights and public relations within the sector [1][4]. Group 1: Controversy Background - Luo Yonghao criticized Xibei for serving pre-made dishes at high prices, which led to a significant public backlash against the restaurant [5]. - Xibei's founder, Jia Guolong, expressed feeling "hurt" by the criticism and announced intentions to sue Luo Yonghao [5]. - The controversy escalated with Luo emphasizing the importance of consumer rights and Xibei's subsequent decision to open its kitchens for public inspection [5][6]. Group 2: Financial Impact - Following the criticism, Xibei experienced a drastic decline in customer traffic, with daily revenues dropping by 1 million yuan on September 10 and 11, and an estimated decrease of 2 to 3 million yuan on September 12 [6]. - The financial repercussions of the controversy have been significant, affecting Xibei's overall business performance [6]. Group 3: Marketing and Consulting Relationships - Xibei has been working with the marketing consulting firm "Hua Yu Hua" since 2013, which has played a crucial role in its branding and marketing strategies [6]. - The collaboration has been financially substantial, with Hua Yu Hua reportedly receiving over 60 million yuan in consulting fees over ten years, averaging more than 6 million yuan annually [6].

Core Viewpoint - The recent controversy involving entrepreneur Luo Yonghao and the restaurant brand Xibei has reignited discussions about the pre-made food industry and its implications for consumer rights and brand reputation [1][4]. Group 1: Controversy Overview - Luo Yonghao criticized Xibei for serving pre-made dishes at high prices, leading to a public backlash and a significant drop in customer traffic and revenue for Xibei [5]. - Xibei's founder, Jia Guolong, expressed feelings of being unfairly targeted and announced plans to sue Luo Yonghao for defamation [5]. - The marketing consulting firm Huayi Huayi, which has worked with Xibei for a decade, became involved in the dispute, with its founder Huashan defending Xibei and labeling Luo as a "network black mouth" [5][6]. Group 2: Financial Impact - Following the controversy, Xibei experienced a drastic decline in customer traffic, with daily revenue dropping by approximately 1 million yuan on September 10 and 11, and an estimated decrease of 2 to 3 million yuan on September 12 [5]. - The long-term partnership between Xibei and Huayi Huayi has been financially significant, with over 60 million yuan in consulting fees paid over ten years, averaging over 6 million yuan annually [6]. Group 3: Industry Context - The incident highlights the growing scrutiny of the pre-made food sector in China, as consumer awareness and demand for transparency increase [5]. - The controversy reflects broader challenges within the restaurant industry regarding quality perception and consumer rights, particularly in the context of rising operational costs and competitive pressures [5][6].

Group 1 - The controversy involving entrepreneur Luo Yonghao and the restaurant brand Xibei has resurfaced, with comments from Hua Shan, founder of marketing consulting firm Hua Yu Hua, defending Xibei's employee salary increase and suggesting that the brand is facing malicious attacks [1][3] - Luo Yonghao responded to Hua Shan's comments with a series of questions and a threat to release recordings if no public apology was made by Hua Shan by a specified deadline [1][3] - The initial controversy began on September 10, when Luo Yonghao criticized Xibei for serving expensive pre-packaged meals, leading to a significant drop in customer traffic and sales for the restaurant [3][4] Group 2 - Following Luo Yonghao's comments, Xibei's daily revenue dropped by approximately 1 million yuan on September 10 and 11, with an expected decrease of 2 to 3 million yuan on September 12 [4] - Hua Yu Hua, founded in 2002, has been a long-term marketing partner for Xibei, having received over 60 million yuan in consulting fees over ten years, with an average annual fee exceeding 6 million yuan [4] - As of now, Hua Shan has not publicly responded to Luo Yonghao's accusations, and Xibei has also remained silent on the matter [4]

Core Insights - Xibei has implemented a nationwide price reduction for over 40 dishes, with an average decrease of nearly 20% since early October [2][3] - The company has also initiated various promotional activities to attract customers, including issuing cash vouchers and offering discounts [4] Price Adjustment - Xibei's price reduction affects 70%-80% of menu items at individual locations, with specific dishes seeing price drops of 16.81%, 11.24%, and 10.34% [3] - The price adjustments were a response to negative publicity following the "pre-made dish incident" in September [3] Employee Support - In light of the negative impact on frontline employees due to public backlash, Xibei has introduced a "compensation award" and is providing psychological counseling [3] - Since September, Xibei has increased salaries for frontline employees by an average of 500 yuan per month and is considering further salary enhancements [3] Customer Engagement - Xibei launched the "Xibei Treats You to Dinner" campaign, offering 100 yuan vouchers to customers, followed by a new promotion where customers receive vouchers based on their spending [4] - As a result of these initiatives, overall customer traffic increased by approximately 5% compared to the same period last year, with 70% of participants being repeat customers [4] Store Operations - Despite the promotional efforts, Xibei has closed nearly 10 stores since October, while planning to open 8 new locations by the end of December [4] - The company emphasizes that opening and closing stores is a normal part of restaurant operations and is based on business performance [4]

Core Insights - Xibei has implemented a nationwide price reduction on over 40 dishes, with an average decrease of nearly 20% since early October, following negative publicity from the "pre-made dish incident" [1][4] - The company has initiated various promotional activities, including distributing cash vouchers to attract customers back to its stores [2][4] - Despite the promotional efforts, Xibei has closed nearly 10 stores since October, although it plans to open 8 new locations by the end of December [4] Pricing Strategy - Xibei's price adjustments include specific dishes such as the grassland tender grilled lamb chop, which decreased from 119 yuan to 99 yuan (a reduction of 16.81%), and the scallion grilled fish, which dropped from 89 yuan to 79 yuan (an 11.24% decrease) [1] - The price reduction strategy is part of a broader effort to regain customer trust and increase foot traffic, which has reportedly risen by 5% compared to the same period last year [4] Employee Support Measures - In response to the negative impact on frontline employees due to the "Xibei Luo Yonghao incident," the company has introduced a compensation program and psychological counseling for affected staff [1] - Since September, Xibei has increased the average monthly salary of frontline employees by 500 yuan and is considering further salary enhancements [1] Customer Engagement Initiatives - The "Xibei Treats You to Dinner" campaign began on September 24, offering customers a 100 yuan voucher with any purchase, followed by a new promotion from October 9 to October 31, where customers could earn vouchers based on their spending [2] - Approximately 70% of customers participating in the promotional activities were returning customers, indicating a successful re-engagement strategy [4]

Core Viewpoint - The company, Xibei, has issued a statement addressing the recent closure of multiple stores, emphasizing that opening and closing stores is a normal operational behavior in the restaurant industry, and adjustments are made based on business conditions [1]. Store Closures - Xibei has confirmed that the recent closures in cities such as Shenzhen, Shantou, and Yiwu are part of a normal adjustment process [3][4]. - The company has received reports from customers regarding store closures, citing reasons such as development planning adjustments or lease expirations [6]. Principles for Store Closures - Xibei adheres to three principles during store closures: 1. Customers are informed in advance through announcements and SMS notifications to members with stored value, offering them the option to either receive a full refund or transfer their balance to other locations [4][6]. 2. The company ensures that every customer dining at the closing store is treated with care and is informed about nearby Xibei locations [6]. 3. Employees are prioritized for reassignment to other Xibei stores to protect their interests [4][6]. New Store Openings - Despite the closures, Xibei is also opening new stores, including locations in Harbin and Jinan, with plans to open eight more by December 31, including stores in Shenzhen and Nanjing [5][6]. Service and Product Enhancements - Xibei is actively upgrading its services, adjusting menu items, optimizing pricing, and prioritizing food safety by advancing the "Sunshine Kitchen" initiative [7].

Core Viewpoint - The company is undergoing a strategic restructuring, closing underperforming stores while simultaneously implementing aggressive promotional activities to drive traffic to core locations [1][4][8]. Group 1: Store Closures - Since October, the company has closed nearly 10 stores across various locations due to lease expirations and operational adjustments [1][3]. - The closures are part of a unified strategy to eliminate unprofitable and inefficient outlets while focusing on enhancing the performance of core stores [4][8]. - The company operates nearly 400 stores across 60 cities in China, employing over 20,000 staff [3]. Group 2: Customer Promotions - The company has launched significant promotional campaigns, including issuing large dining vouchers to attract customers back to its restaurants [5][7]. - From September 24 to October 8, the company offered 100 yuan dining vouchers, followed by a promotion from October 9 to October 31, where customers received 50 yuan vouchers for every 50 yuan spent [5]. - Reports indicate that some locations experienced long queues during peak hours due to these promotions, although not all stores saw the same level of customer traffic [5][8]. Group 3: Market Analysis - Industry experts suggest that the company's closure of stores is a necessary measure to mitigate losses following a decline in customer traffic due to a recent public relations crisis [4][8]. - The long-term impact of the promotional strategies on brand value remains uncertain, as ongoing competition from rivals could challenge the company's market position [8][9]. - The varying performance of different stores highlights the uneven impact of the recent crisis and the need for tailored strategies to restore customer trust and brand integrity [8][9].

Core Insights - The "Xibei pre-made dish" controversy has created significant public pressure on Xibei and other restaurant businesses, but it also presents opportunities for transformation in the industry [1][2] - Many restaurant companies are shifting towards "made-to-order" and "transparent kitchen" models to regain consumer trust and improve their image [3][4] Industry Trends - Despite reluctance to adopt the "pre-made dish" label, many chain restaurants may find it necessary due to operational demands for standardized and efficient service [2][8] - Rising operational costs, including labor and rent, are pushing restaurants to consider pre-made dishes as a cost-saving measure [2][8] - A significant portion of the restaurant market is already utilizing central kitchens and pre-made processing, which simplifies the cooking process and reduces costs [2][8] Consumer Sentiment - Approximately 50% of surveyed consumers reject pre-made dishes, with over 60% opposing their presence in restaurants, indicating a strong consumer preference for freshly prepared meals [2][3] - Consumers associate pre-made dishes with a lack of freshness and quality, leading to a negative perception of restaurants that do not transparently disclose their food preparation methods [3][8] Response from Restaurants - In response to the controversy, many restaurants are emphasizing "made-to-order" and showcasing their cooking processes to enhance transparency and consumer trust [3][4] - Some smaller restaurant brands are prominently advertising their lack of pre-made dishes to attract customers, while larger chains like Xibei are also making significant branding changes to align with consumer expectations [6][7] Balancing Pre-made and Fresh - There is a notable disconnect between consumer perceptions of pre-made dishes and the actual standards of pre-made food in the industry, which can lead to misunderstandings [8][9] - Transparency in food preparation can help bridge the gap between consumer expectations and restaurant practices, allowing for a potential coexistence of pre-made and freshly prepared dishes [8][9]

Core Viewpoint - The article discusses the impact of promotional vouchers and holiday consumption on the performance of Xibei restaurants, highlighting a temporary increase in customer traffic following a period of decline due to the pre-prepared food controversy [3][7]. Group 1: Customer Traffic and Performance - During the holiday period, some Xibei locations experienced over 80% occupancy rates, with customers needing to queue [3]. - Post-holiday, occupancy rates dropped to around 50% during lunch hours, although this was an improvement compared to the initial decline when the pre-prepared food issue arose [3][5]. Group 2: Promotional Strategies - Xibei launched a "Xibei Treats You" campaign, distributing 100 yuan dining vouchers to customers, which significantly attracted patrons [5]. - A new promotion was introduced offering 50 yuan vouchers for every 50 yuan spent, valid from October 9 to October 31, 2025, further incentivizing customer visits [5]. Group 3: Market Dynamics - The trading of Xibei's 100 yuan vouchers on second-hand platforms like Xianyu has seen a resurgence, with transaction prices ranging from 50 to 60 yuan [6]. - Xibei has stated that vouchers are for personal use only and require membership verification upon redemption [6]. Group 4: Long-term Considerations - Industry experts suggest that while short-term strategies like promotions are effective, Xibei must focus on improving product quality, pricing, branding, and crisis management for sustainable growth [7].