Core Viewpoint - The recent public discourse surrounding Xibei has shifted dramatically, with concerns about store closures contrasting sharply with reports of long queues at other locations, indicating a complex operational adjustment strategy by the company [1][7]. Store Operations - Xibei has been closing some stores in cities like Shenzhen and Shantou as part of normal operational adjustments, while simultaneously planning to open eight new locations by the end of the year [3][5]. - The company has implemented a policy to inform customers about store closures through announcements and SMS notifications, offering options for refunds or transfers of stored value to other locations [4]. Management Response - Founder Jia Guolong has taken a hands-on approach during a challenging period, focusing on improving product quality and customer service rather than engaging in public disputes [8][11]. - The company has emphasized transparency in food preparation processes to enhance customer trust, showcasing the cooking methods in-store [10][18]. Pricing Strategy - In response to consumer concerns about pricing, Xibei has reduced menu prices and issued substantial discount coupons, effectively doubling the value for customers [12][15]. - The strategy has successfully attracted both returning and new customers, with reports indicating a 20% increase in weekend traffic at some locations [15]. Customer Engagement - Xibei is focusing on rebuilding trust through a "scene revolution" in its stores, where cooking processes are made visible to customers, reinforcing the brand's commitment to quality and authenticity [16][18]. - The company aims to reconnect with its customer base by demonstrating improvements in service and product offerings, encouraging patrons to return and experience the changes firsthand [18].

Core Viewpoint - The article discusses the challenges faced by mid-range dining chains in China, particularly focusing on Yunhaiyao and Xibei, highlighting their struggles in a changing economic environment and consumer expectations [5][6][17]. Group 1: Company Challenges - Yunhaiyao's founder passed away unexpectedly, and the company has recently closed some locations, indicating a decline in business [5]. - Xibei has also faced significant public relations issues, leading to decreased customer traffic despite remaining open [5][9]. - Both companies have been criticized for their handling of food safety and customer service, which has contributed to their current struggles [5][9]. Group 2: Economic Context - The dining industry in Beijing is projected to see a revenue decline of 4.9% in 2024, with significant drops in profitability, as evidenced by a reported 88.8% decrease in profits for large-scale dining establishments [9][10]. - The average profit margin for dining companies has plummeted to 0.37%, with many businesses operating at a loss [9][10]. Group 3: Standardization and Central Kitchen - The push for standardization in Chinese dining has led to the adoption of central kitchens, which aim to reduce costs and maintain consistency across locations [10][11]. - While central kitchens can improve efficiency, they may also compromise the quality and uniqueness of dishes, leading to customer dissatisfaction [10][11]. - The reliance on pre-prepared meals has created a dilemma for dining brands, as consumers increasingly seek fresh, made-to-order options [11][12]. Group 4: Consumer Expectations - Consumers are becoming more discerning, expecting higher value for their spending, which has made it difficult for mid-range dining brands to meet these demands [13][14]. - The article notes that the perception of value has shifted, with customers feeling that the same amount of money now buys less in terms of dining experience [13][14]. Group 5: Future Outlook - There are discussions about the potential for these brands to expand internationally, but past experiences, such as Yunhaiyao's issues in Singapore, suggest that the challenges may outweigh the benefits [16][17]. - The article concludes that many mid-range dining brands are caught in a negative cycle of declining customer satisfaction and revenue, making it difficult to sustain growth [15][18].

Core Viewpoint - The recent incidents involving Yunhaiyao and Xibei highlight the challenges faced by mid-range dining chains in China, indicating that these brands are at a critical crossroads in their business trajectories [2][30]. Group 1: Company Challenges - Both Yunhaiyao and Xibei have faced significant public relations crises, with Xibei's founder struggling to respond effectively to criticism and Yunhaiyao involved in a serious food safety incident in Singapore [2][3]. - The dining industry has seen a decline in customer traffic, with Xibei experiencing reduced footfall despite remaining open [2][9]. - The profitability of the restaurant sector has sharply declined, with Beijing's large-scale dining industry reporting a profit drop of 88.8% in the first half of 2024, leading to a profit margin of only 0.37% [11][12]. Group 2: Economic Context - The dining sector, particularly mid-range brands, thrived during economic upturns but is now facing a downturn, with consumers tightening their spending [8][30]. - The average consumer now perceives 100 yuan as more valuable than before, leading to higher expectations for value and experience from dining establishments [20][30]. Group 3: Standardization and Central Kitchen - Standardization in Chinese cuisine is challenging, and while central kitchens were initially seen as burdensome, they have become necessary for cost reduction and efficiency as brands scale [4][13]. - Both Yunhaiyao and Xibei have invested in central kitchens to maintain consistency and reduce operational costs, but this has led to a compromise in food quality and customer satisfaction [15][16]. Group 4: Market Position and Future Prospects - The number of operational stores for Yunhaiyao has stagnated, remaining at around 150 over several years, indicating a lack of growth [22][24]. - There are discussions about international expansion as a potential solution for these brands, but past experiences, such as Yunhaiyao's challenges in Singapore, suggest that the risks may outweigh the benefits [25][26][27].

Core Viewpoint - The controversy surrounding Xibei's high pricing contrasts sharply with the rising popularity of pre-made dishes, leading to consumer confusion about the value of a bowl of noodles priced at several tens of yuan [1][2] Pricing Logic - Xibei's pricing strategy is based on a combination of cost reduction and brand premium, with prices consistently higher than similar Northwest cuisine restaurants, such as 30-40 yuan for a bowl of noodles and over 20 yuan for a dish of yellow steamed bread [1][2] - The company claims its pricing reflects the use of high-quality ingredients, complex cooking processes, and the overall dining experience, emphasizing a family-friendly dining service rather than a high-end positioning [1][2] Consumer Expectations - Consumers expect a fresh, made-to-order experience when paying higher prices, rather than standardized pre-made dishes, which has led to a broader discussion about the value of pre-made meals in the context of high prices [2][3] - The financial perspective reveals that Xibei's profit margin is around 5%, raising questions about whether brand premium and supply chain efficiency justify the pricing after accounting for raw materials, labor, and rent [2][3] Trust and Quality - The controversy highlights a critical issue in the restaurant industry: high prices do not necessarily equate to high quality, and consumers expect transparency and reasonable value exchange when paying a premium for a brand [2][3] - Maintaining quality while controlling costs is essential; sacrificing quality for cost savings can erode consumer trust, which is fundamental to brand value [3][4] Future Directions - As consumers increasingly prioritize dining quality and health, non-pre-made dish models may become a key differentiator in the competitive landscape, provided that companies establish clear cost control and pricing logic [4][5]

Core Insights - The article discusses the challenges and strategies of Xibei, a prominent player in the Chinese restaurant industry, highlighting its pricing strategy and market positioning [1][2][3] Group 1: Company Strategy - Xibei aims to cater to ordinary consumers by opening locations in high-traffic areas, despite its high price point, which may deter some customers [1] - The company has successfully positioned itself as a premium brand, focusing on providing not just meals but also a unique dining experience, particularly through its children's menu [2] - Xibei has invested significantly in branding and positioning strategies, hiring multiple consulting firms to enhance its market presence and brand recognition [3] Group 2: Pricing and Market Position - The pricing strategy of Xibei is crucial for its market positioning, as higher prices are intended to attract a specific customer base and enhance perceived value [2] - The company faces challenges in balancing high prices with consumer expectations, especially as it attempts to standardize processes and reduce costs [3] - Xibei's focus on unique offerings, such as traditional dishes and cultural elements, aims to justify its premium pricing and differentiate it from competitors [2][3]

Core Viewpoint - The controversy surrounding Xibei restaurant, triggered by a negative comment from Luo Yonghao about the use of pre-prepared dishes, has significantly impacted its reputation and sales [1][3][13]. Group 1: Company Background - Xibei, founded by Jia Guolong, has over 400 locations and annual revenue exceeding 6 billion yuan [3][12]. - The company has a history of emphasizing high-quality ingredients, which has contributed to its higher pricing strategy [4][6]. - Jia Guolong's entrepreneurial journey began in 1988, focusing on quality sourcing and expanding into various restaurant formats [6][8]. Group 2: Controversy and Response - Luo Yonghao criticized Xibei for allegedly serving pre-prepared dishes, leading to a public backlash and a significant drop in sales [1][13]. - Xibei's management, including Jia Guolong, has publicly denied the use of pre-prepared dishes and plans to take legal action against Luo [1][3][14]. - The restaurant's sales reportedly dropped by 1 million yuan on September 11 and an estimated 2 to 3 million yuan on September 12 due to the controversy [13]. Group 3: Industry Context - The issue of pre-prepared dishes has been a contentious topic in the restaurant industry, with other companies like Laoxiangji facing similar accusations [16]. - Legal definitions of pre-prepared dishes differ from consumer perceptions, complicating the public relations challenge for Xibei [16][17]. - The industry is calling for clearer regulations to address the quality of pre-prepared dishes and protect consumer interests [17].

Core Viewpoint - The controversy surrounding Xibei's use of pre-prepared dishes has intensified following criticism from Luo Yonghao, leading to a noticeable decline in customer traffic and revenue at Xibei's stores [1][2]. Group 1: Company Performance - Following Luo Yonghao's criticism, Xibei's store in Shenzhen experienced a significant drop in both revenue and customer flow, with Saturday's customer count falling from over 500 to just over 300, and revenue dropping from 65,000-70,000 yuan to 54,000 yuan [1]. - The store manager indicated that the business trend has been declining, with no queues observed during peak hours, which is unusual for the restaurant [1]. Group 2: Controversy Details - Luo Yonghao's initial complaint on social media claimed that most of the dishes at Xibei were pre-prepared and overpriced, sparking a public debate [1]. - Xibei's CEO, Jia Guolong, refuted these claims, asserting that no dishes at Xibei are pre-prepared and announced plans to sue Luo Yonghao while introducing a "Luo Yonghao set meal" [1]. Group 3: Pre-prepared Dishes Definition - The definition of pre-prepared dishes was clarified by regulatory authorities, stating that they are made from one or more food products through industrial pre-processing and must meet specific storage and consumption conditions [4]. - Foods that undergo only simple processing, such as washing and cutting, do not qualify as pre-prepared dishes, and many chain restaurants utilize central kitchens for food preparation [4]. Group 4: Consumer Sentiment - Consumers expressed that while many chain restaurants use pre-prepared ingredients, the key concern lies in the alignment of price and value, with some suggesting that if a restaurant uses pre-prepared dishes, the prices should be reasonable [2][3]. - Luo Yonghao emphasized that consumers have the right to know whether restaurants use pre-prepared dishes [3]. Group 5: Regulatory Developments - A draft national standard for pre-prepared food safety, led by the National Health Commission, has passed expert review and will soon seek public opinion, aiming to standardize the classification and disclosure of pre-prepared dishes in restaurants [5].

Core Viewpoint - The article discusses the recent challenges faced by the restaurant chain Xibei, highlighting a significant drop in customer traffic and revenue due to online controversies and public perception issues [1][3][7]. Group 1: Impact on Business - Xibei's daily revenue has decreased by 20,000 to 30,000 yuan, nearly halving its usual earnings [7]. - The restaurant's customer traffic has also seen a significant decline, with many tables remaining empty during peak hours [1][7]. - Online controversies have led to a 50% drop in both dine-in and takeout orders [9]. Group 2: Employee Response and Company Culture - The head chef, who has worked at Xibei for nearly 20 years, expressed feelings of unfairness regarding the recent public scrutiny [3][42]. - An online meeting involving 18,000 employees was held to address concerns and feedback, indicating a transparent communication approach within the company [3][42]. - Employees are committed to maintaining high standards for food safety and quality, with no reported major health issues among staff over the years [11][43]. Group 3: Food Quality and Preparation Practices - Xibei emphasizes that it does not use pre-prepared meals but rather employs a "process pre-preparation" method, ensuring that all food is freshly cooked [35][42]. - The restaurant uses frozen ingredients with long shelf lives, which are stored and handled according to strict food safety standards [16][20]. - The head chef clarified that the food preparation process involves multiple steps, including thawing and cooking, rather than serving pre-packaged meals [30][35]. Group 4: Customer Perception and Market Position - Customer feedback has been mixed, with some expressing dissatisfaction with the taste and pricing of the food [4][14]. - The article highlights a disconnect between the restaurant's efforts to maintain quality and the public's perception influenced by recent controversies [3][4]. - The head chef encourages consumers to visit the restaurant and observe the food preparation process to alleviate concerns about food quality [44].

Core Viewpoint - The conflict between Luo Yonghao and Xibei has escalated into a public debate about the definition and perception of pre-prepared dishes in the restaurant industry, highlighting consumer concerns over transparency and quality [1][8][31] Group 1: Company Responses - Luo Yonghao criticized Xibei for using pre-prepared dishes and called for restaurants to disclose such practices [2] - Xibei's founder, Jia Guolong, responded by denying the use of pre-prepared dishes and announced plans to sue Luo Yonghao, while also launching a menu featuring 13 dishes similar to those of Luo Yonghao [3][10] - Xibei has opened its kitchen to customers for transparency, aiming to counter the allegations and enhance its public image [3][18] Group 2: Consumer Perspectives - Consumers have varying definitions of pre-prepared dishes, leading to confusion and dissatisfaction regarding food quality and preparation methods [8][12] - Many consumers associate pre-prepared dishes with a lack of freshness and culinary skill, which diminishes their dining experience [14][22] - The public outcry is less about the specific practices of Xibei and more about a broader dissatisfaction with the restaurant industry's use of pre-prepared ingredients without clear communication to customers [24][26] Group 3: Industry Implications - The incident has sparked discussions about the need for clearer regulations and definitions regarding pre-prepared dishes in the food industry [10][31] - The 2024 regulatory framework aims to clarify what constitutes pre-prepared dishes, but consumer perceptions may not align with official definitions [10][16] - The situation may lead to increased scrutiny of restaurant practices and a push for greater transparency in the industry, as consumers demand better value and clarity regarding food preparation [26][28]

Core Viewpoint - The incident involving the well-known restaurant chain Xibei and public figure Luo Yonghao highlights the ongoing debate about the use of pre-prepared dishes in the restaurant industry, with Xibei defending its practices and Luo advocating for transparency in food sourcing [2][3][4][25]. Company Response - Xibei issued a letter to customers addressing Luo Yonghao's comments, emphasizing its commitment to quality and thanking its 40 million annual customers for their support [2][6]. - The company confirmed that the dishes served during Luo's visit were not pre-prepared, and they provided detailed production processes for 13 dishes to clarify their cooking methods [4][9][30]. Public Reaction - Luo Yonghao criticized Xibei on social media, claiming that most of the dishes were pre-prepared and calling for legislation to require restaurants to disclose such practices [3][25]. - Following Luo's comments, Xibei's founder, Jia Guolong, expressed his intention to sue Luo for defamation, stating that Luo's remarks had caused significant harm to the brand [30][33]. Industry Context - The incident reflects a broader trend in the restaurant industry regarding the use of pre-prepared foods, with some industry leaders acknowledging that pre-prepared dishes can be a part of modern dining [30]. - Luo's comments have sparked discussions about consumer rights and the need for transparency in food sourcing, which may influence future regulations in the restaurant sector [24][28].