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 controversy surrounding the restaurant chain Xibei, triggered by a critical social media post from entrepreneur Luo Yonghao, highlights the blurred lines between "pre-prepared dishes" and "pre-prepared processes" in the modern dining industry, raising consumer awareness about their rights [2][3] Company Overview - Xibei, founded by Jia Guolong in 1999, has grown into a national dining brand with over 360 locations and annual revenue exceeding 2 billion yuan at its peak, built on strong brand recognition, high average spending, and a focus on service experience [2][3] - The company initially focused on traditional dining but has attempted to pivot towards fast food through various sub-brands since 2015, aiming to replicate the success of global fast-food giants like McDonald's and KFC [3][5] Challenges Faced - Jia Guolong's attempts to standardize fast food offerings have led to operational inefficiencies, with slow service times and low table turnover rates, contradicting the fast-food model that prioritizes speed and cost-effectiveness [5][6] - The sub-brands have suffered from poor brand positioning and naming, leading to consumer confusion and low repeat purchase rates, as they failed to clearly communicate their value propositions [6][8] Strategic Missteps - The pricing strategy of the sub-brands has placed them in a "pricing trap," where they cannot compete effectively with either low-cost fast food or established chain brands, resulting in a lack of customer interest [6][8] - The organizational structure of Xibei, which is oriented towards traditional dining, lacks the necessary capabilities for fast food operations, leading to operational mismatches and consumer dissatisfaction [8][9] Future Direction - In June 2024, Jia Guolong announced a strategic shift, elevating "Jia Guolong Small Pot Beef" to a new growth line, moving away from low-cost fast food and refocusing on maximizing customer value and enhancing brand experience [9][10] - The lessons learned from the failed sub-brands emphasize the importance of sustainable profitability over mere expansion, suggesting that a more tailored approach to scaling in the Chinese dining market may be more effective than blindly pursuing the "ten-thousand store" model [9][10]

Core Viewpoint - The article discusses the challenges and controversies faced by Xibei, a prominent Chinese restaurant chain founded by Jia Guolong, as he approaches retirement and navigates a competitive industry landscape [5][6]. Group 1: Company Background and Leadership - Jia Guolong, the founder of Xibei, has dedicated his life to building the brand, which now generates an annual revenue of 6 billion yuan [5]. - Xibei has undergone significant transformations, focusing solely on its brand since 2009 after experimenting with various restaurant concepts [5][6]. - Jia's leadership style is characterized by a strong personal presence and a tendency to engage directly with public controversies, which has both helped and hindered the brand [6][10]. Group 2: Industry Challenges - The Chinese restaurant industry is currently experiencing intense competition, with trends such as online transformation, consumer segmentation, and the rise of central kitchen models [6][30]. - Xibei has faced scrutiny over its pricing strategies and the quality of its food, particularly regarding allegations of using pre-prepared ingredients [31][35]. Group 3: Financial Performance and Future Plans - Xibei's revenue for 2023 was reported at 6.2 billion yuan, with plans to achieve 20 billion yuan by 2026-2027, necessitating a compound annual growth rate of at least 33% [34][35]. - The company is exploring an IPO as a means to strengthen its financial position, having previously faced cash flow issues [33][34]. Group 4: Public Relations and Controversies - Jia Guolong's public statements have often led to backlash, such as the "715 work system" controversy and accusations of price hikes during the pandemic [11][14][15]. - Despite the controversies, Jia has received support from industry peers, indicating a level of respect for his contributions to the sector [17][20]. Group 5: Strategic Shifts and Recommendations - The article suggests that Xibei needs to find new growth avenues and possibly adopt a more decentralized management approach to mitigate risks associated with Jia's strong personal influence [35][36]. - The brand's future success may depend on balancing Jia's vocal leadership style with a more collaborative approach to decision-making [28][36].

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]