Core Insights - The article discusses the challenges faced by Xibei, a restaurant chain founded by Jia Guolong, as it navigates a significant downturn in 2024 after a strong performance in 2023 [3][6] - Jia Guolong's decision to return as CEO in 2024 is a response to the company's struggles, marking a pivotal year in his nearly 40-year entrepreneurial journey [4][5] Company Performance - In 2023, Xibei achieved record revenue exceeding 6.2 billion yuan, with Xibei Youmian Village generating 2 billion yuan in net sales and serving 37.66 million customers [6][8] - However, in 2024, the company faced a drastic decline in customer traffic and overall performance, leading to what Jia described as the "most difficult year" since its establishment [3][6] Market Environment - The domestic restaurant industry in 2024 is characterized by complex challenges, including increasingly diverse consumer demands and intensified competition from emerging brands [8][30] - Xibei's struggles are compounded by its past strategic decisions, including a focus on multiple sub-brands that have not yielded expected returns [9][29] Strategic Decisions - After stepping down as CEO in 2015, Jia Guolong attempted to explore new growth avenues through various sub-brands, but most of these initiatives failed, leading to significant financial losses [9][11] - In response to the current challenges, Jia has refocused on Xibei's core business, eliminating underperforming sub-brands and emphasizing the main brand strategy [26][28] Brand Evolution - Xibei has undergone significant brand evolution, including a name and logo change to simplify its identity and enhance brand recognition [27] - The company has implemented a new incentive structure for employees, shifting from quarterly to daily rewards to boost morale and performance [28] Historical Context - Xibei's journey began in 1988, with Jia Guolong's unconventional approach leading to its rise as a prominent brand in the Chinese restaurant industry [14][16] - The company's early success was driven by strict standardization in service and food quality, which has been a key factor in its growth [18][19] Challenges and Future Outlook - The article highlights the risks associated with Xibei's over-reliance on Jia Guolong's personal vision, which may not align with evolving market demands [29][31] - The shift towards an IPO strategy reflects a significant change in the company's approach to capital and growth, with plans to complete the IPO by 2026 [32]

Core Viewpoint - The article discusses the rapid expansion of Haidilao's sub-brands in the competitive restaurant industry, highlighting both successes and failures of various brands under different companies, and emphasizes a shift towards cautious and strategic growth in the face of market challenges [1][19]. Summary by Sections Haidilao's Sub-brands - Haidilao has launched several sub-brands, including "Haini Beef Spicy Hotpot" and "Congqian Yinyuan Claypot Dishes," with plans to open 25 and 1 locations respectively in 2024 [1][2]. - The sub-brand "Yanquan" has opened at least 30 locations since its launch, focusing on grilled meat with a unique offering of "grilled meat + fruit" [4]. - Other sub-brands have been more cautious, with many still in the market validation phase [4]. Industry Trends - The restaurant industry has seen a trend of rapid openings and closures, with many brands failing to establish a sustainable presence [6][10]. - For instance, the tea brand "Chamao" launched by Kudi closed 25 stores, reflecting a high closure rate of 22.32% [7]. - High-end brands like "Nawen Dashi is Chef" have also struggled, leading to their closure within months [11]. Market Challenges - The overall performance of major restaurant brands has declined, with significant drops in same-store sales reported for brands like Taier and Song Hotpot [11]. - Taier's average monthly sales per store fell from approximately 800,000 yuan to 600,000 yuan, indicating a troubling trend for profitability [11]. Strategic Shifts - There is a noticeable shift in strategy among restaurant giants, moving from aggressive sub-brand expansion to more measured and innovative approaches within existing brands [12][19]. - Companies are focusing on micro-innovations and leveraging existing supply chains to reduce costs and improve operational efficiency [17]. - The emphasis is now on understanding consumer needs and maintaining a competitive edge in core areas rather than expanding into numerous sub-brands [19]. Conclusion - The article concludes that the future of the restaurant industry will depend on brands' ability to adapt to market conditions, understand their consumers, and maintain a stronghold in their core competencies [19].