Core Insights - The article discusses the transformation of the restaurant industry in China, particularly focusing on the brand "Tai Er" and its commitment to transparency and freshness in food preparation [1][5][12] Group 1: Company Initiatives - Tai Er has launched a comprehensive menu transparency initiative, categorizing dishes based on ingredient freshness and pre-processing levels into four classes, with Class A representing the freshest ingredients [1][4] - The brand's "5.0 Fresh Model" was initiated in March 2023, and by December 2025, Tai Er aims to have over 200 restaurants operating under this model, up from an initial target of 150 [5][12] - The company emphasizes that all dishes are 100% made in-house, with a visible kitchen setup allowing customers to observe the cooking process [5][10] Group 2: Industry Trends - The chain restaurant penetration rate in the dining industry has increased from 18% in 2021 to 23% in 2024, reflecting a growing consumer demand for freshness [3][7] - The Chinese dining market is projected to reach 5.5 trillion yuan in revenue by 2024, with a year-on-year growth rate of 5.3%, surpassing the growth of retail sales [7] - Consumer preferences are shifting towards a more cautious approach, valuing authentic experiences over mere affordability, with a significant increase in searches for "fresh" and "live" food options [7][8] Group 3: Operational Challenges - The implementation of the "Fresh Strategy" poses challenges for Tai Er, particularly in managing the supply chain for fresh ingredients, which requires high standards for cold chain logistics and inventory turnover [11][12] - The company has adopted a "batch killing" method for fish to balance efficiency and freshness, ensuring that customers do not experience long wait times while maintaining quality [10][12] - Despite the positive reception of upgraded stores, the increased costs associated with fresh ingredients have led to a decline in profit margins for new store formats [12]