Core Viewpoint - The article discusses a significant public relations crisis faced by the restaurant chain Xibei, triggered by criticism from internet entrepreneur Luo Yonghao regarding the use of pre-prepared dishes, leading to a substantial drop in sales and a backlash against the brand [1][17][51]. Group 1: Crisis Overview - Xibei held an all-staff meeting with 18,000 employees to address the crisis, which was described by founder Jia Guolong as the largest external crisis since the brand's inception [1][2]. - Luo Yonghao criticized Xibei on social media, claiming that the restaurant primarily uses pre-prepared dishes, which sparked widespread public outrage [6][11]. - Following the criticism, Xibei's daily revenue reportedly dropped by 1 million yuan before the crisis escalated, with estimates suggesting a drop of 2 to 3 million yuan on the peak day of the controversy [52][76]. Group 2: Company Response - Jia Guolong responded by canceling a family trip to address the situation and initiated a public defense of the brand, asserting that Xibei does not use pre-prepared dishes [8][13]. - Xibei opened its kitchens to the public and media to demonstrate its cooking processes, aiming to counter the negative perceptions [20][25]. - The company issued a letter detailing the ingredients used in its dishes, but this was met with skepticism from the public, who pointed out inconsistencies in the information provided [26][27]. Group 3: Public Perception and Impact - The controversy highlighted the public's growing concern over food transparency and quality, particularly regarding the use of frozen ingredients in children's meals [22][24]. - Despite efforts to clarify its practices, Xibei's reputation suffered significantly, with many consumers associating the brand with high prices and low-quality food [80][81]. - The incident reflects broader challenges in the restaurant industry, particularly in maintaining consumer trust and adapting to changing perceptions about food sourcing and preparation [64][74]. Group 4: Leadership and Management Style - Jia Guolong's management style has been described as strong-willed and resistant to external advice, which may have contributed to the crisis escalation [59][60]. - The article suggests that Jia's focus on standardization and operational control may not align with consumer expectations regarding food quality and transparency [32][42]. - The crisis has prompted discussions about the need for modern management practices in the restaurant industry, particularly in handling public relations and consumer engagement [63][64].

Core Viewpoint - The dispute between Luo Yonghao and Xibei over prepared dishes has escalated, impacting Xibei's business operations and IPO plans for 2026 [2][6]. Group 1: Dispute Details - Luo Yonghao accused Xibei of lying about not having any prepared dishes, stating that there are no national standards yet [2]. - Xibei held an all-staff meeting titled "Xibei's 18,000 Partners vs. Luo Yonghao," emphasizing their stance that they do not offer any prepared dishes [4]. Group 2: Financial Impact - Since the controversy began, Xibei has experienced a significant drop in customer traffic and revenue, with losses of 1 million yuan on September 10 and 11, and an estimated loss of 2 to 3 million yuan on September 12 [6]. - The timing of this dispute is critical as Xibei aims for a high-quality IPO in 2026, with plans for substantial growth from 2023 to 2025 [6]. Group 3: Company Background - Founded in 1988, Xibei started as a small eatery in Inner Mongolia and has grown to over 370 stores across 62 cities, employing around 18,000 people [6]. - In 2023, Xibei achieved a record of over 37.66 million customers and revenue exceeding 6.2 billion yuan [6]. Group 4: Business Diversification - Xibei is exploring diverse business models, including fast food brands like "Jia Guolong Small Pot Beef" and "Jia Guolong Chinese Burger," although some expansion plans have been scaled back [7]. - The takeaway segment has performed well, with "Xibei Quality Takeaway" generating 2 billion yuan in net sales in 2023 [9]. - The retail business, through the "Xibei Kung Fu Cuisine" brand, achieved over 340 million yuan in revenue in 2023, while the children's meal segment saw a 415% revenue increase from 2019 to 2022 [9].

Core Viewpoint - The incident involving a former employee of Xibei taking unauthorized photos of a child in the restaurant has raised significant concerns about customer privacy and trust in the brand [1][2][5]. Group 1: Incident Details - A customer reported that a male employee at Xibei's Hangzhou Binjiang store took a photo of her child and used it as his social media background [1]. - The employee, who has since left the company, apologized and deleted the photo after the customer requested its removal [2][4]. - The customer expressed her dissatisfaction with the handling of the situation and stated she would no longer dine at Xibei [1]. Group 2: Company Response - Xibei issued a public apology and stated that they are conducting a thorough investigation into the incident [2][5]. - The company emphasized that unauthorized publication of customer photos and private information is strictly prohibited in all its locations [5]. - Xibei plans to implement privacy protection training for all employees to prevent similar incidents in the future [5]. Group 3: Company Background - Xibei Catering Group was founded in 1998 and operates multiple brands, including Xibei Youmian Village and Xibei Seafood [6]. - As of May 2025, Xibei has nearly 400 locations nationwide and has been focusing on children's meals, with over 20 million children's meals sold in 2024, generating over 500 million yuan in sales [6].