Core Viewpoint - The recent controversy surrounding the well-known restaurant brand Xibei, triggered by a social media post from Luo Yonghao, has led to significant operational adjustments and the closure of several sub-brands, indicating challenges in the fast-food segment and a shift in strategic focus for the company [1][2]. Company Adjustments - Xibei announced it would complete nine adjustments by October 1, aiming to shift from centralized kitchen operations to on-site processing at stores [1]. - The sub-brand "Xibei Little Beef Braised Rice and Noodles," launched last year, has been closed, with remaining inventory being sold off [1][2]. - The founder, Jia Guolong, has faced setbacks with multiple fast-food sub-brands, including "Jia Guolong Chinese Burger," which was expected to open over 100 stores but was closed within a year [2][4]. Market Position and Competition - The fast-food market has seen rapid expansion from competitors like Tastin, which opened 3,772 new stores in 2023, contrasting with Xibei's struggles [2]. - Xibei's new brand "Jia Guolong Little Beef" is being developed from the former "Jia Guolong Chinese Burger" locations, with a goal of exceeding 100 stores [4]. Consumer Insights - The average price point for the new "Xibei Little Beef Braised Rice" is set at 35.9 yuan, significantly lower than the previous 80 yuan for "Jia Guolong Little Beef," indicating a strategic move to attract more price-sensitive consumers [5]. - Consumer feedback highlights concerns over pricing and portion sizes, with many feeling that even the reduced prices are still too high for the target demographic [5]. Industry Trends - The restaurant industry is experiencing low growth and intense competition, leading to a focus on cost-effective offerings, with over 60% of brands targeting a consumer spending range of 10-30 yuan [6]. - The trend of consolidating resources into main brands while eliminating underperforming sub-brands is becoming a common strategy in the industry, as seen with other companies like Jiumaojiu Group [7].