Core Viewpoint - The article discusses the challenges faced by the restaurant cultural service brand "Wenheyou" in expanding outside its home base of Changsha, highlighting issues such as declining reputation, difficulties in replication, and cultural mismatches in new markets [1][3][4]. Group 1: Performance in New Markets - Wenheyou experienced initial success in Guangzhou and Shenzhen, with Guangzhou seeing nearly 3,000 tables queued during trial operations and Shenzhen exceeding 50,000 on its opening day [3]. - However, both locations quickly faced challenges, with local brands withdrawing and a significant drop in customer traffic, leading to the closure of many shops [3][6]. - The management acknowledged that they struggled to balance successful elements with local culture, resulting in a failure to meet consumer expectations [3][4]. Group 2: Cultural and Operational Challenges - The brand's attempt to adapt to local tastes was criticized, with feedback indicating a lack of understanding of local culture and poor food quality [3][6]. - The CEO admitted that Wenheyou did not effectively express Changsha culture in its new locations, which led to consumer disappointment [4]. - The operational capabilities of Wenheyou were found lacking compared to local competitors, impacting their market judgment and responsiveness [6]. Group 3: Financial Considerations - The rental costs for Wenheyou's locations were deemed excessively high, with rates reaching up to 1,500 RMB per square meter, which was not justified by the surrounding market conditions [7]. - The high rental prices posed a significant challenge for the brand, especially in a competitive environment where local operators had established expertise [7]. Group 4: Historical Context and Brand Evolution - Wenheyou was founded by Wen Bin, who initially started with a street food stall and later expanded into a cultural dining experience that became a popular destination in Changsha [8]. - The brand's expansion strategy included replicating the nostalgic atmosphere of the 1990s, but this approach has not translated successfully in new markets [8][9]. - Despite the emphasis on customer experience, the company must also consider cost efficiency to sustain long-term growth [9].