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].

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 - 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 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]

Group 1 - The core viewpoint of the article highlights the proactive measures taken by the company, Xibei, in response to negative publicity and operational challenges since September, including employee support initiatives and product adjustments [1][2][3] Group 2 - Xibei has established a "compensation award" for frontline employees affected by online harassment, along with psychological counseling support [1] - Since September, Xibei has increased the average monthly salary of frontline employees by 500 yuan and is discussing further salary enhancements [1] - The company held a nationwide meeting for 18,000 employees to assure them of job security, prohibiting layoffs and reduced shifts [1] Group 3 - To rebuild its brand image, Xibei has committed to food safety and has adjusted its food preparation processes, moving from centralized kitchens to in-store cooking [1] - As of the end of September, Xibei has completed the first phase of menu adjustments, including the use of non-GMO soybean oil and freshly cooked dishes [1] Group 4 - Xibei launched promotional activities such as "Xibei Treats You to Dinner," offering 100 yuan vouchers to attract customers, followed by a new round of promotions with additional discounts [2] - The company has reduced prices on over 40 dishes since October 1, with significant price drops on popular items, such as a 16.81% reduction on lamb chops [2] - As a result of these promotions, overall customer traffic increased by approximately 5% compared to the same period last year, with 70% of participants being repeat customers [2] Group 5 - Despite the promotional efforts, Xibei has closed nearly 10 stores since October, which the company describes as a normal operational adjustment [3] - New store openings are also occurring, with plans to open 8 additional locations by December 31 [3] - The company has outlined three principles for store closures, including notifying customers in advance and ensuring employee job security through transfers to other locations [3]

Core Viewpoint - Recent discussions about Xibei's store adjustments have sparked public attention and questions, particularly regarding a wave of store closures across various cities, which the company claims are part of normal operational adjustments [1][3]. Store Adjustments - Xibei has reportedly experienced a "store closure wave," with locations in cities such as Suzhou, Beijing, Shantou, Nanjing, Shenzhen, Changsha, and Chongqing shutting down [1]. - The company stated that opening and closing stores is a normal practice in the restaurant industry, and it continues to dynamically adjust its store count based on operational conditions [1]. - Despite closures, Xibei is also opening new locations, including stores in Harbin and Jinan, with plans to open eight more by December 31 in cities like Shenzhen, Nanjing, and Beijing [1]. Self-Reform Initiatives - Xibei is undergoing significant self-reform to regain lost customers and reputation, focusing on service upgrades, menu adjustments, price optimization, and prioritizing food safety [3]. - On September 15, Xibei issued an apology and announced nine major adjustments, including switching to non-GMO soybean oil and ensuring fresh preparation of various dishes [4]. Price Adjustments - Starting October 1, Xibei implemented significant price reductions on over 30 dishes, with some items seeing price drops exceeding 20% [4]. - Specific examples include a reduction in the price of sesame oil scrambled eggs from 43 yuan to 33 yuan (23% decrease) and grassland tender grilled lamb chops from 119 yuan to 99 yuan (approximately 16.8% decrease) [4]. Marketing Strategies - Xibei has been actively using promotional strategies, such as distributing dining vouchers to attract customers, with campaigns like "Xibei Treats You to Dinner" offering 100 yuan vouchers for in-store consumption [6]. - The company has also introduced a new logo and branding strategy, testing a new color scheme in select locations to refresh its image [6]. Customer Feedback - Initial responses to Xibei's reforms have been mixed, with some consumers expressing willingness to give the brand another chance, while others remain skeptical about the effectiveness of the changes [8][9]. - Positive comments highlight the company's sincerity and improvements, while criticisms focus on lingering doubts about service quality and pricing transparency [8][9].

Core Viewpoint - The recent closure of some Xibei restaurants has sparked discussions on social media, but the company asserts that these closures are part of normal adjustments, with plans to open 8 new locations by the end of the year [1][3][4]. Group 1: Store Operations - Xibei plans to open 8 new stores this year, including locations in Shenzhen, Nanjing, and Xi'an [2][3]. - The company has closed nearly 10 stores since October, primarily due to factors like lease expirations and market strategy adjustments [3][4]. - Xibei's annual dynamic store adjustment rate is around 10%, with 2023 seeing 26 new openings and 14 closures, resulting in a total of 354 stores [4]. Group 2: Customer Engagement and Promotions - Xibei initiated a "Please Eat" campaign, offering customers vouchers to encourage visits and feedback on improved dishes, which has led to a 5% increase in overall customer traffic compared to the previous year [5][6]. - The company has been actively issuing vouchers since September 24, with promotions designed to attract both new and returning customers [5][6]. Group 3: Menu and Pricing Adjustments - Starting October 1, Xibei reduced prices on over 30 dishes by nearly 20%, with specific examples showing significant price drops [6]. - The company is committed to continuous improvement based on customer feedback, focusing on enhancing food quality and service [6][7]. Group 4: Brand Reputation and Safety - Xibei has undergone over 70 inspections since September, with no food safety risks identified, maintaining consumer trust in food safety, especially among families [7]. - The company aims to strengthen its focus on family dining, including specialized services for children and the elderly, while also enhancing safety measures in all locations [7].

Core Viewpoint - The article discusses the dual challenges faced by Xibei, with store closures in multiple cities alongside promotional activities that attract long queues, indicating a struggle for survival amid a crisis stemming from the pre-prepared food controversy [3][4][6]. Store Closures - Xibei has experienced a wave of store closures across various cities, including Suzhou, Beijing, Shantou, and Shenzhen, with some locations completely shutting down [6][9]. - The reasons for these closures are primarily attributed to store development planning adjustments or lease expirations, with some stores closing within a week of announcing their closure [6][8]. - As of September 16, Xibei had 350 operational stores across 24 provinces and 59 cities, but the recent closures have significantly impacted its market presence [9]. Customer Engagement and Promotions - In response to declining customer traffic, Xibei has implemented aggressive promotional strategies, including offering cash vouchers to attract customers and ensure store traffic [10][14]. - The promotional activities have led to increased customer turnout in some locations, with reports of long queues during weekends [14][15]. - The strategy aims to cover fixed costs such as rent and labor while attempting to stabilize the business [15]. Brand Image and Menu Adjustments - To rebuild its brand image, Xibei initiated a large-scale rectification process starting in late September, which included menu adjustments and price reductions of approximately 20% [11][14]. - The company has also changed its visual branding, including a new logo and color scheme in select locations, although this change is not intended for widespread implementation [11][14]. - Xibei's adjustments reflect an effort to respond to the backlash from the pre-prepared food controversy and to regain customer trust [11][15].

Core Viewpoint - The company is undergoing significant changes in branding and menu offerings in response to declining sales due to recent controversies, aiming to restore its image and boost consumer confidence [2][3]. Group 1: Branding Changes - The company has changed its storefront color from red and white to white and green, with a new slogan "I come from the grassland" replacing the previous one [1]. - The logo and branding adjustments are part of a broader strategy to reshape the company's image following a sales decline [2]. Group 2: Sales Promotions - The company has issued two rounds of consumer vouchers, with promotions running from October 9 to October 31, offering discounts based on spending thresholds [2]. - A special event called "Xibei Treats You to Dinner" was held from September 24 to October 8, distributing 100 yuan dining vouchers to customers, valid until October 31, 2025 [2]. Group 3: Menu Adjustments - The company is implementing menu changes, including the transition to on-site cooking for certain dishes, with a commitment to complete these adjustments by October 1, 2025 [3]. - Price reductions have been made on select menu items, such as the grassland tender grilled lamb chop, which decreased from 119 yuan to 99 yuan [2].