Core Viewpoint - The recent controversy surrounding the well-known restaurant brand Xibei, triggered by a social media post from Luo Yonghao, has led to significant operational adjustments and the closure of several sub-brands, indicating challenges in the fast-food segment and a shift in strategic focus for the company [1][2]. Company Adjustments - Xibei announced it would complete nine adjustments by October 1, aiming to shift from centralized kitchen operations to on-site processing at stores [1]. - The sub-brand "Xibei Little Beef Braised Rice and Noodles," launched last year, has been closed, with remaining inventory being sold off [1][2]. - The founder, Jia Guolong, has faced setbacks with multiple fast-food sub-brands, including "Jia Guolong Chinese Burger," which was expected to open over 100 stores but was closed within a year [2][4]. Market Position and Competition - The fast-food market has seen rapid expansion from competitors like Tastin, which opened 3,772 new stores in 2023, contrasting with Xibei's struggles [2]. - Xibei's new brand "Jia Guolong Little Beef" is being developed from the former "Jia Guolong Chinese Burger" locations, with a goal of exceeding 100 stores [4]. Consumer Insights - The average price point for the new "Xibei Little Beef Braised Rice" is set at 35.9 yuan, significantly lower than the previous 80 yuan for "Jia Guolong Little Beef," indicating a strategic move to attract more price-sensitive consumers [5]. - Consumer feedback highlights concerns over pricing and portion sizes, with many feeling that even the reduced prices are still too high for the target demographic [5]. Industry Trends - The restaurant industry is experiencing low growth and intense competition, leading to a focus on cost-effective offerings, with over 60% of brands targeting a consumer spending range of 10-30 yuan [6]. - The trend of consolidating resources into main brands while eliminating underperforming sub-brands is becoming a common strategy in the industry, as seen with other companies like Jiumaojiu Group [7].

Core Viewpoint - The article discusses the ongoing crisis faced by the company Xibei, led by CEO Jia Guolong, due to public criticism from influencer Luo Yonghao, which has significantly impacted the company's revenue and customer traffic [4][5][6]. Group 1: Impact of Luo Yonghao's Criticism - Luo Yonghao's social media posts and live broadcasts have led to a drastic decline in Xibei's daily revenue, with estimates of a drop of 1 million yuan on September 10 and 11, and projections of 2 to 3 million yuan on September 12 [9][12]. - The company is experiencing a "cliff-like" decrease in customer traffic, which Jia Guolong describes as the most significant external crisis in the company's history [31][32]. Group 2: Company Response and Legal Action - Jia Guolong has expressed a firm decision to pursue legal action against Luo Yonghao, stating that even if the business suffers, the truth must be clarified [13][16]. - Despite receiving advice to take a softer approach, Jia insists on confronting the issue head-on, emphasizing the importance of integrity and accountability [17][18]. Group 3: Company Operations and Strategy - Xibei operates over 370 stores and employs more than 18,000 staff, with a reported revenue of 6.2 billion yuan in 2023 [4][6]. - The company has been focusing on improving its management and operational efficiency, with Jia Guolong returning to the CEO position to lead these efforts [34][35]. Group 4: Clarification on Pre-prepared Dishes - Jia Guolong clarifies that while Xibei utilizes pre-preparation techniques, it does not serve pre-prepared dishes as defined by industry standards [40][42]. - The company has previously operated a fast-food brand that included pre-prepared items, but this brand has since been closed, and no pre-prepared dishes are currently offered in Xibei's main operations [37][38].

Core Viewpoint - The article discusses the ongoing conflict between Jia Guolong, CEO of Xibei, and Luo Yonghao, a prominent internet celebrity, highlighting the impact of Luo's criticism on Xibei's business and the subsequent legal actions taken by Jia to defend the company's reputation [6][7][19]. Group 1: Impact on Business - Xibei's daily revenue dropped significantly, with a reported decrease of 1 million yuan on September 10 and 11, and an estimated drop of 2 to 3 million yuan on September 12 due to Luo's online attacks [14][19]. - The conflict has led to a drastic reduction in customer traffic, which Jia describes as a "cliff-like decline" [14][33]. - Jia expressed his determination to recover customer trust, stating that he believes loyal customers will return despite the current challenges [19][21]. Group 2: Legal Actions and Responses - Jia confirmed that he intends to pursue legal action against Luo, emphasizing that the decision is not impulsive but a necessary step to clarify the truth [19][20]. - Despite receiving advice to take a more conciliatory approach, Jia remains firm in his decision to confront Luo directly, indicating a strong commitment to defending Xibei's reputation [21][22]. - Jia's approach contrasts with typical customer service responses, as he prioritizes addressing the issue publicly rather than offering apologies or discounts [17][22]. Group 3: Crisis Management - Jia characterized the situation as the largest external crisis Xibei has faced, primarily due to the negative publicity generated by a high-profile individual [28][33]. - He noted that previous crises were mostly internal, related to management or strategic errors, making this external attack unprecedented for the company [33][35]. - Jia believes that overcoming this crisis will ultimately strengthen Xibei's organizational capabilities [34]. Group 4: Clarification on Product Offerings - In response to accusations of serving pre-prepared dishes, Jia clarified that while Xibei employs pre-preparation techniques, it does not serve pre-prepared meals as defined by industry standards [39][45]. - He explained that the company focuses on quality and freshness, using pre-preparation methods to enhance efficiency without compromising on the quality of the dishes served [42][46]. - Jia emphasized the importance of distinguishing between pre-preparation and pre-prepared meals, asserting that Xibei maintains high standards in its food offerings [45][46].