Core Viewpoint - After 125 days of efforts, Xibei's chairman confirmed the closure of 102 stores, representing 30% of its total outlets, amid challenges in the prepared food sector [1][4]. Summary by Sections Store Closures and Employee Commitment - Xibei will close 102 stores gradually in the first quarter, ensuring that employee salaries remain intact and customer prepaid cards can be used at other locations [1][2][10]. - The company will honor commitments to customers who have booked New Year's Eve dinners by completing their last service before closing [2][10]. Internal Measures and Employee Welfare - Xibei has implemented internal measures to support employees, including a "complaint award" and psychological counseling for staff [5]. - Since September, the company has raised salaries for frontline employees by an average of 500 yuan per month, with reports of service staff earning nearly 9,100 yuan after deductions [5][10]. External Adjustments and Promotions - Xibei has made significant adjustments to its menu and pricing, including the introduction of new dishes and a large-scale price reduction on 40 items [6][8]. - Promotional activities have been launched, such as offering 100 yuan vouchers for in-store purchases and discounts on popular dishes [8][10]. Financial Performance and Market Position - Despite these efforts, Xibei's revenue in November was only 265 million yuan, less than half of the same period last year, indicating ongoing financial struggles [10][12]. - The company has faced a decline in store numbers since October, with nearly 10 closures in just one month [10][12]. Brand Image and Public Relations Challenges - The crisis was exacerbated by public relations missteps, including a failure to address consumer concerns effectively and a lack of empathy in communications [20][21]. - The founder's personal brand, once a source of strength, has become a liability as public scrutiny intensifies [23][24]. Industry Implications and Lessons Learned - The situation serves as a cautionary tale for the restaurant industry, highlighting the importance of balancing operational excellence with effective communication in the public sphere [24]. - Xibei's experience underscores the need for brands to adapt to changing consumer expectations and the impact of social media on public perception [24].

Investment Rating - The report does not explicitly provide an investment rating for the company. Core Insights - In 2025, the company "Xi Bei" faced a significant public relations crisis due to the "pre-made dish wave," which severely tested its brand reputation and consumer trust. The crisis peaked in September, with online mentions exceeding 400,000 and interactions nearing 70 million, significantly increasing the proportion of negative sentiment [3][4]. - To address the crisis, Xi Bei implemented a series of strategic adjustments in the second half of 2025, including a shift in focus from personal branding to product and service quality, a commitment to "in-store freshly made" dishes for over 30 menu items, and the introduction of a "sunshine kitchen" initiative to enhance transparency [3][4][5]. - The company also adjusted its pricing strategy, reducing the average customer spending from 92 yuan to a range of 75-85 yuan by lowering prices on over 40 dishes and launching large-scale promotional activities such as "Xi Bei invites you to dinner" [3][4][12]. Summary by Sections 1. Marketing Actions in 2025 - Xi Bei undertook a series of marketing adjustments focused on crisis response and brand rebuilding, particularly after the September crisis [5]. - The company quickly implemented transparency and quality enhancement measures in response to consumer concerns about food safety and information rights [7]. 2. Social Media Heat Analysis - In 2025, Xi Bei's social media performance was closely linked to its marketing and public relations events, showing a pattern of "silent periods followed by explosive reactions" [22]. - The brand's online mentions peaked in September, with a surge from approximately 53,000 mentions in August to over 405,000 in September, reflecting a nearly sevenfold increase [26]. 3. Consumer Feedback and Sentiment Analysis - Throughout 2025, consumer feedback evolved from a trust crisis to cautious observation, with neutral sentiment dominating but negative interactions significantly outpacing positive ones [35]. - During the pre-made dish wave, negative sentiment surged, with negative mentions rising from 3.3% to 29.6% [40]. 4. Marketing Strategy Effectiveness and Social Media Performance Correlation - The marketing actions taken by Xi Bei had a clear impact on social media heat, with crisis management actions and subsequent promotional activities leading to significant peaks in online mentions [44]. - The adjustments in marketing strategy influenced consumer sentiment, with proactive measures in the fourth quarter helping to alleviate some negative perceptions [48]. 5. Conclusion - In 2025, Xi Bei navigated a major public relations crisis and implemented a series of marketing and strategic adjustments that led to a temporary recovery in social media heat and customer traffic. However, the long-term rebuilding of brand trust remains a challenge [53][54].

Core Viewpoint - Xibei has shown signs of recovery, with increased employee salaries and customer traffic, but faces significant challenges regarding its long-term profitability and operational sustainability [2][3][21]. Group 1: Employee Compensation and Customer Traffic - Recent reports indicate that Xibei employees are earning between 8,000 to 9,000 yuan monthly, which has garnered public attention [2]. - During the New Year period, Xibei's nationwide stores attracted approximately 500,000 customers, showing resilience despite the cessation of subsidies [2]. - The company's "Hundred Days of Reform" appears to have positively impacted its reputation, alleviating concerns about its future [2][3]. Group 2: Pricing Strategy and Profitability Concerns - Xibei has reduced its average customer spending to around 75 yuan, a 20% decrease, with no plans to raise prices on already discounted items [4][5]. - The restaurant industry typically operates on high gross margins but low net profit margins; Xibei's projected average profit margin is expected to be below 5% [5][6]. - The significant price cuts raise questions about how Xibei will maintain profitability, especially with rising labor costs and a competitive market [6][8]. Group 3: Labor Costs and Employee Welfare - Xibei has announced salary increases for frontline employees and introduced a compensation program, reflecting a commitment to employee welfare [9][10]. - The average salaries for restaurant workers are projected to rise, with labor costs expected to exceed 35% of total expenses by 2025 [10][12]. - The company's strategy includes enhancing employee training and operational standards, which may further increase labor costs [12][16]. Group 4: Marketing and Public Relations Strategy - Xibei has remained in the public eye through continuous engagement and marketing efforts, particularly focusing on its children's meal offerings [22][25]. - The company aims to reshape its image and regain consumer trust following previous controversies, emphasizing transparency and quality in its offerings [22][30]. - Xibei's marketing strategy appears to be proactive, utilizing ongoing exposure to counter negative perceptions and promote positive changes [23][24]. Group 5: Product Quality and Supply Chain Issues - There have been discrepancies between Xibei's marketing claims regarding organic ingredients and the actual sources of its products, leading to consumer skepticism [37][38]. - The company has faced criticism for reducing portion sizes while advertising price cuts, which could lead to further reputational damage if not addressed [40][41]. - Xibei's commitment to quality and transparency in its supply chain is crucial for maintaining customer loyalty and trust, especially in the competitive dining market [43].

Core Viewpoint - After experiencing a public relations crisis, Xibei is actively implementing measures to regain consumer trust and has seen some success in increasing foot traffic in its stores [3][13]. Group 1: Recovery Measures - Xibei has initiated various strategies such as price reductions, issuing vouchers, optimizing menu items, and establishing "sunshine kitchens" to restore consumer confidence [3][10][19]. - The company reported that foot traffic in November was roughly on par with the same period last year, indicating a recovery after a significant drop following the crisis [3][7]. - The implementation of a voucher system has garnered positive consumer feedback, with many returning to dine after receiving substantial vouchers [10][13]. Group 2: Operational Adjustments - Xibei has adjusted the prices of 41 menu items, with notable reductions such as the signature Mongolian beef dropping from 169 yuan to 139 yuan per pound [11]. - The average customer spending has decreased to approximately 75 yuan due to these price adjustments [11]. - The company is enhancing service quality by providing baby care napkins and free dental kits, as well as offering various bonuses to frontline staff [11][19]. Group 3: Long-term Strategy - Industry experts suggest that Xibei needs to refine its positioning and focus on sustainable operations to build long-term competitive advantages, moving away from reliance on short-term promotions [4][16]. - The brand's commitment to food safety and transparency through the "sunshine kitchen" initiative is crucial for rebuilding trust with consumers [19]. - Xibei's challenge lies in balancing profitability while ensuring customer retention, as reliance on discounts may lead to a dependency that could harm long-term growth [16][17].

Core Viewpoint - After facing a crisis for over two months, Xibei is actively working on recovery, showing initial positive results with a return of customer traffic to pre-crisis levels in November [1][4]. Group 1: Recovery Measures - Xibei has implemented various strategies such as price reductions, issuing vouchers, optimizing menu items, and establishing "sunshine kitchens" to regain consumer trust [1][5]. - The customer flow began to recover from late September, following a significant drop after the crisis began on September 10 [4][5]. - In October, Xibei issued vouchers for any purchase over 100 yuan, leading to higher customer traffic compared to previous years [5]. Group 2: Customer Engagement and Feedback - The "gratitude feedback" campaign in November offered vouchers for purchases over 50 yuan, resulting in customer traffic being on par with the previous year [5][7]. - Despite the positive response to voucher campaigns, concerns about food safety remain among consumers [7][11]. Group 3: Pricing and Product Adjustments - Xibei has adjusted prices for 41 menu items, with significant reductions such as the Mongolian beef price dropping from 169 yuan to 139 yuan per pound [8][10]. - The average customer spending has decreased to approximately 75 yuan due to these price adjustments [8]. Group 4: Service and Operational Improvements - Xibei is enhancing service quality by providing baby care napkins, free dental kits, and first aid kits in all stores [8]. - The company has also introduced various subsidies for frontline staff, with total subsidies ranging from 300 to 800 yuan per person [8]. Group 5: Long-term Strategy and Challenges - Xibei's long-term strategy focuses on building trust and optimizing cost structures, emphasizing the importance of maintaining food safety and service quality [12]. - The challenge remains in balancing profitability while ensuring customer retention post-promotional activities, as reliance on short-term promotions may lead to customer dependency [9][11].

Core Viewpoint - The ongoing conflict between Xi Bei and marketing consultancy Hua Yu Hua has reignited public discourse, with implications for Xi Bei's brand reputation and operational strategies [2][5][12]. Group 1: Brand Reputation and Public Relations - Hua Yu Hua's chairman, Hua Shan, publicly defended Xi Bei, suggesting it is a pinnacle of the Chinese restaurant industry, but his comments have been interpreted as targeting Luo Yonghao, who previously had a conflict with Xi Bei [2][4]. - Luo Yonghao responded to Hua Shan's remarks, indicating a willingness to escalate the situation if clarity is not provided, which could further complicate Xi Bei's public relations efforts [4][5]. - The marketing consultancy's involvement has been criticized for exacerbating the situation rather than aiding in reputation recovery, highlighting a potential misalignment in communication strategies [12][15]. Group 2: Operational Adjustments and Customer Engagement - In response to previous negative publicity, Xi Bei has implemented strategies such as price reductions, issuing vouchers, and increasing employee salaries to restore brand image and customer trust [6][7]. - Xi Bei reduced prices on over 40 dishes by nearly 20%, with specific examples showing significant price drops on popular menu items [6]. - The company has also introduced a "compensation award" for affected frontline employees and has engaged psychological counseling services to support staff [6][8]. Group 3: Customer Traffic and Financial Performance - Following the implementation of customer engagement strategies, Xi Bei has seen a gradual recovery in customer traffic, with a reported increase of approximately 5% compared to the same period last year [8]. - Despite the increase in customer traffic, the average spending per customer has declined due to the price reductions, with the average per capita spending reported at around 75 yuan [8][9]. - The ongoing public relations challenges have led to a temporary halt in Xi Bei's expansion, with reports indicating the closure of nearly 10 stores since October, although the company plans to open 8 new locations by the end of the year [9][10].

Core Insights - Xibei Youmian Village has initiated a nationwide price reduction strategy to recover from the backlash caused by the "pre-made dish controversy," with an overall price cut of nearly 20% on over 30 core dishes starting from early October 2025 [2] - The price adjustments include significant reductions on popular items, such as Mongolian steak from 149 yuan to 128 yuan and grassland roasted lamb chop from 119 yuan to 109 yuan, resulting in an average customer spending dropping to around 85 yuan, nearly returning to levels seen a decade ago [2] - The controversy, sparked by criticism from Luo Yonghao regarding the quality of Xibei's dishes, led to a sharp decline in daily revenue, prompting the founder to clear his social media and focus on internal reforms [2] Strategic Measures - In addition to price cuts, Xibei has implemented several initiatives, including moving the central kitchen processing to in-store preparation, offering substantial discount vouchers, and increasing salaries for 18,000 frontline employees by an additional 500 to 2000 yuan per month [2] - The company has also introduced a "grievance award" to support employees affected by online harassment [2] Market Outlook - Industry analysts suggest that Xibei's strategy of combining price reductions with quality improvements has stabilized its customer base, but the real challenge lies in maintaining market acceptance after the promotional activities conclude [3]

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 recent crisis faced by Xibei has led to significant changes in its operations, including product adjustments, price reductions, and employee salary increases, which may indicate a recovery in consumer trust and brand reputation [2][24][25]. Group 1: Store Operations and Consumer Response - Xibei plans to open 8 new stores by the end of the year, with the recent opening of the Nanjing store attracting long queues and positive consumer response [2][3]. - The opening day of the Nanjing store saw a peak of 109 tables waiting, indicating strong consumer interest [2]. - The company has adjusted prices for nearly 40 dishes, with some prices returning to levels seen a decade ago, addressing consumer concerns about high pricing [16][19]. Group 2: Food Safety Measures - Xibei underwent 78 inspections by regulatory authorities from September to early November, with no food safety penalties reported, highlighting the company's commitment to food safety [6][8]. - The company has implemented a "Sunshine Kitchen" initiative, allowing customers to view food preparation processes live, enhancing transparency and consumer trust [6][8]. Group 3: Product Adjustments - Xibei has made significant changes to its menu, including the introduction of freshly made dishes such as chicken soup, lamb skewers, and dumplings, which are now prepared on-site [9][10]. - The company has maintained the use of organic ingredients, such as organic broccoli, while offering alternatives to customers [14]. Group 4: Employee Compensation and Morale - Reports indicate that Xibei has increased employee compensation, with additional bonuses based on performance and skill levels, leading to a more satisfied workforce [20][21]. - Employees can earn between 1,500 to 2,000 yuan in additional bonuses monthly, contributing to overall job satisfaction [21]. Group 5: Brand Recovery Strategy - Xibei's recent public relations efforts have been well-received, focusing on product adjustments, price reductions, and employee welfare, which may help restore its brand image [25][26]. - The company is seen as using the crisis as an opportunity for brand rebirth, suggesting a proactive approach to improving its operational model and consumer relations [26].