Core Viewpoint - Xu Ji Seafood, known as the "Seafood King," is facing significant operational challenges, with a reported sales decline of nearly 20% in June compared to May, and a 24.4% decrease in the second quarter, leading to substantial layoffs from 7,800 to 5,000 employees [1][6][24] Group 1: Market Challenges - The overall restaurant industry is experiencing a downturn, with domestic restaurant revenue growth expected to drop from 20.4% in 2023 to 5.3% in 2024 [7] - High-end dining, particularly business banquets, has seen a significant decline in demand, impacting sales for seafood restaurants like Xu Ji Seafood [6][7] - Xu Ji Seafood's average consumer spending is around 200-300 yuan, which is perceived as high in the current market context [4][24] Group 2: Company Background and Expansion - Xu Ji Seafood was founded in 1999 in Changsha and has expanded to over 60 locations across major cities in China [1][8] - The company has successfully navigated challenges during the pandemic, increasing its store count from about 30 in 2019 to 60 by 2022, with revenue growing from over 600 million yuan in 2018 to over 1.8 billion yuan in 2022 [11][13] - The company has established a strong supply chain, allowing it to maintain competitive pricing and quality, which is crucial for its expansion strategy [14][16] Group 3: Strategic Adjustments - In response to market conditions, Xu Ji Seafood is diversifying its brand portfolio, launching the high-end "Blue Qilin" and the more affordable "Ocean Little Guest" to cater to different consumer segments [18][21] - The company is focusing on family dining experiences, particularly birthday celebrations, to adapt to changing consumer preferences and increase foot traffic [22][23] - Xu Ji Seafood is exploring ways to reduce its average spending per customer to remain competitive against lower-cost dining options [24]