Core Insights - The founder of Xibei Restaurant, Jia Guolong, publicly acknowledged past mistakes and emphasized the importance of listening to customer feedback and improving service quality [1][3][12] Group 1: Crisis Management - Xibei faced a significant public relations crisis after accusations of using pre-made dishes, leading to a drastic drop in customer traffic and sales, with some stores experiencing over a 50% decline [3] - In response to the crisis, Xibei chose to remain silent on social media, allowing time for internal adjustments and avoiding further escalation of the situation [3][4] - The company implemented a series of changes, including menu modifications and a shift towards fresh, made-to-order dishes, which required significant adjustments to their supply chain and operational processes [4][6] Group 2: Pricing Strategy - Xibei adjusted the prices of nearly 40 dishes, reducing them by 5% to 20%, which lowered the average customer spending from 92 yuan to approximately 75 yuan [6][7] - The company introduced promotional activities, such as "spend 50 get 50" vouchers, which successfully increased customer traffic and improved sales during weekends [6] - The pricing strategy shifted from a cost-plus model to a customer perception-based pricing model, aiming to enhance value perception among customers [6][7] Group 3: Employee Engagement - Xibei increased salaries for all frontline staff by 500 yuan and introduced various incentive programs to boost morale and service quality [8][9] - The company emphasized the importance of human resources, ensuring no layoffs occurred during the crisis and focusing on staff training and development [8][9] Group 4: Transparency and Food Safety - Xibei implemented a dual transparency mechanism with live kitchen feeds and strict adherence to food safety regulations, enhancing customer trust [10][11] - The company established dedicated food safety personnel in each location and increased the weight of food safety in performance evaluations [11] - Following the crisis, Xibei successfully passed over 80 government inspections without any food safety issues, reinforcing their commitment to quality [11] Group 5: Long-term Sustainability - The company's actions during the crisis demonstrated a commitment to genuine customer engagement and operational improvements, but challenges remain regarding the sustainability of these changes [12] - Future success will depend on converting short-term promotions into long-term customer loyalty and clearly defining the brand's positioning in the market [12]