Investment Rating - The report does not explicitly provide an investment rating for the company. Core Insights - In 2025, the company "Xi Bei" faced a significant public relations crisis due to the "pre-made dish wave," which severely tested its brand reputation and consumer trust. The crisis peaked in September, with online mentions exceeding 400,000 and interactions nearing 70 million, significantly increasing the proportion of negative sentiment [3][4]. - To address the crisis, Xi Bei implemented a series of strategic adjustments in the second half of 2025, including a shift in focus from personal branding to product and service quality, a commitment to "in-store freshly made" dishes for over 30 menu items, and the introduction of a "sunshine kitchen" initiative to enhance transparency [3][4][5]. - The company also adjusted its pricing strategy, reducing the average customer spending from 92 yuan to a range of 75-85 yuan by lowering prices on over 40 dishes and launching large-scale promotional activities such as "Xi Bei invites you to dinner" [3][4][12]. Summary by Sections 1. Marketing Actions in 2025 - Xi Bei undertook a series of marketing adjustments focused on crisis response and brand rebuilding, particularly after the September crisis [5]. - The company quickly implemented transparency and quality enhancement measures in response to consumer concerns about food safety and information rights [7]. 2. Social Media Heat Analysis - In 2025, Xi Bei's social media performance was closely linked to its marketing and public relations events, showing a pattern of "silent periods followed by explosive reactions" [22]. - The brand's online mentions peaked in September, with a surge from approximately 53,000 mentions in August to over 405,000 in September, reflecting a nearly sevenfold increase [26]. 3. Consumer Feedback and Sentiment Analysis - Throughout 2025, consumer feedback evolved from a trust crisis to cautious observation, with neutral sentiment dominating but negative interactions significantly outpacing positive ones [35]. - During the pre-made dish wave, negative sentiment surged, with negative mentions rising from 3.3% to 29.6% [40]. 4. Marketing Strategy Effectiveness and Social Media Performance Correlation - The marketing actions taken by Xi Bei had a clear impact on social media heat, with crisis management actions and subsequent promotional activities leading to significant peaks in online mentions [44]. - The adjustments in marketing strategy influenced consumer sentiment, with proactive measures in the fourth quarter helping to alleviate some negative perceptions [48]. 5. Conclusion - In 2025, Xi Bei navigated a major public relations crisis and implemented a series of marketing and strategic adjustments that led to a temporary recovery in social media heat and customer traffic. However, the long-term rebuilding of brand trust remains a challenge [53][54].

Core Viewpoint - Xibei has announced the closure of 102 stores, attributing the large-scale closures to public relations issues involving Luo Yonghao, although this is seen as a superficial cause rather than the root of the problem [1][12][13] Store Operations - Xibei's store changes from 2022 to 2025 include: 31 closures and 13 openings in 2022; 14 closures and 26 openings in 2023; 21 closures and 39 openings in 2024; and a plan to close 50-60 stores in 2025, with an actual closure of 102 stores and 30 openings [2][12] - Revenue peaked at 6.2 billion in 2023, with a projected decline to approximately 5.8 billion in 2024, indicating operational difficulties [2][12] Customer Engagement and Marketing - The issuance of 3 billion in consumer vouchers did not lead to a significant increase in actual revenue, suggesting that the strategy was ineffective [3][15] - The perception of Xibei as expensive is a significant issue, with the company struggling to meet customer expectations for value [5][15] Pricing Strategy - Xibei has attempted to lower prices but has not achieved the desired increase in customer traffic, indicating that further price reductions may be necessary [5][19] - The company’s food cost is reported to be around 25%, which is lower than many competitors, suggesting potential for greater price reductions [16][17] Management Issues - There is a significant discrepancy between gross margin and net profit margin, attributed to management inefficiencies, particularly in store size and employee count [16][17] - The company has a high number of headquarters employees (around 2000), which is considered excessive for a restaurant business, indicating potential for workforce reduction [17][18] Leadership and Future Directions - The leadership style of the CEO, characterized as autocratic, has led to management issues that need addressing for the company to improve [19][20] - Future sustainability may depend on not only price adjustments but also on innovation in product development, as past new brands have failed to resonate with customers [19][20]

Core Viewpoint - Xibei has shown signs of recovery, with increased employee salaries and customer traffic, but faces significant challenges regarding its long-term profitability and operational sustainability [2][3][21]. Group 1: Employee Compensation and Customer Traffic - Recent reports indicate that Xibei employees are earning between 8,000 to 9,000 yuan monthly, which has garnered public attention [2]. - During the New Year period, Xibei's nationwide stores attracted approximately 500,000 customers, showing resilience despite the cessation of subsidies [2]. - The company's "Hundred Days of Reform" appears to have positively impacted its reputation, alleviating concerns about its future [2][3]. Group 2: Pricing Strategy and Profitability Concerns - Xibei has reduced its average customer spending to around 75 yuan, a 20% decrease, with no plans to raise prices on already discounted items [4][5]. - The restaurant industry typically operates on high gross margins but low net profit margins; Xibei's projected average profit margin is expected to be below 5% [5][6]. - The significant price cuts raise questions about how Xibei will maintain profitability, especially with rising labor costs and a competitive market [6][8]. Group 3: Labor Costs and Employee Welfare - Xibei has announced salary increases for frontline employees and introduced a compensation program, reflecting a commitment to employee welfare [9][10]. - The average salaries for restaurant workers are projected to rise, with labor costs expected to exceed 35% of total expenses by 2025 [10][12]. - The company's strategy includes enhancing employee training and operational standards, which may further increase labor costs [12][16]. Group 4: Marketing and Public Relations Strategy - Xibei has remained in the public eye through continuous engagement and marketing efforts, particularly focusing on its children's meal offerings [22][25]. - The company aims to reshape its image and regain consumer trust following previous controversies, emphasizing transparency and quality in its offerings [22][30]. - Xibei's marketing strategy appears to be proactive, utilizing ongoing exposure to counter negative perceptions and promote positive changes [23][24]. Group 5: Product Quality and Supply Chain Issues - There have been discrepancies between Xibei's marketing claims regarding organic ingredients and the actual sources of its products, leading to consumer skepticism [37][38]. - The company has faced criticism for reducing portion sizes while advertising price cuts, which could lead to further reputational damage if not addressed [40][41]. - Xibei's commitment to quality and transparency in its supply chain is crucial for maintaining customer loyalty and trust, especially in the competitive dining market [43].

Core Viewpoint - After a two-month crisis regarding pre-made dishes, the restaurant chain Xibei is transitioning from poor public relations to a more receptive approach, implementing price cuts, salary increases, and freshly made dishes to attract customers back to their restaurants [1][4]. Group 1: Customer Attraction Strategies - Xibei has initiated significant discount campaigns, including a "50 yuan off 50 yuan" voucher promotion, which has been extended to the end of November, aiming to draw customers back to the dining experience [1][2]. - The restaurant chain launched a "Please Eat" campaign on September 24, offering customers a no-strings-attached 100 yuan voucher, which significantly improved foot traffic [2]. - Xibei has also reduced prices on over 40 dishes by 15% to 20%, addressing consumer concerns about high prices and enhancing the overall dining experience [3][6]. Group 2: Employee Engagement and Cost Management - The company announced an average salary increase of 500 yuan per month for frontline employees starting in September, along with additional bonuses and allowances to stabilize staff morale [5]. - This dual strategy of lowering prices while increasing employee wages aims to improve customer service quality, which is crucial for retaining customers [5][6]. Group 3: Financial Performance and Challenges - Xibei reported a revenue of 6.2 billion yuan in 2023, with food procurement costs at 30%, indicating a relatively strong cost control compared to the industry average of 45.2% [6]. - However, the reliance on large subsidies to attract customers poses a risk to profitability, as ongoing discounts may compress profit margins [6][7]. Group 4: Industry Context and Competitive Landscape - The restaurant industry is undergoing a significant shakeout, with many once-popular brands struggling to maintain profitability amid rising costs and changing consumer preferences [8][9]. - Xibei's recent challenges reflect broader industry trends, including a decline in average dining prices and increased competition, which may necessitate structural adjustments to maintain profitability [8][9]. Group 5: Future Outlook and Strategic Considerations - The recent public relations incident involving Xibei's marketing partner has reignited scrutiny, potentially complicating the company's recovery efforts [9][10]. - Moving forward, Xibei must establish transparent pricing and production practices to regain consumer trust and ensure long-term sustainability in a competitive market [10][11].

Core Viewpoint - The ongoing conflict between Xi Bei and marketing consultancy Hua Yu Hua has reignited public discourse, with implications for Xi Bei's brand reputation and operational strategies [2][5][12]. Group 1: Brand Reputation and Public Relations - Hua Yu Hua's chairman, Hua Shan, publicly defended Xi Bei, suggesting it is a pinnacle of the Chinese restaurant industry, but his comments have been interpreted as targeting Luo Yonghao, who previously had a conflict with Xi Bei [2][4]. - Luo Yonghao responded to Hua Shan's remarks, indicating a willingness to escalate the situation if clarity is not provided, which could further complicate Xi Bei's public relations efforts [4][5]. - The marketing consultancy's involvement has been criticized for exacerbating the situation rather than aiding in reputation recovery, highlighting a potential misalignment in communication strategies [12][15]. Group 2: Operational Adjustments and Customer Engagement - In response to previous negative publicity, Xi Bei has implemented strategies such as price reductions, issuing vouchers, and increasing employee salaries to restore brand image and customer trust [6][7]. - Xi Bei reduced prices on over 40 dishes by nearly 20%, with specific examples showing significant price drops on popular menu items [6]. - The company has also introduced a "compensation award" for affected frontline employees and has engaged psychological counseling services to support staff [6][8]. Group 3: Customer Traffic and Financial Performance - Following the implementation of customer engagement strategies, Xi Bei has seen a gradual recovery in customer traffic, with a reported increase of approximately 5% compared to the same period last year [8]. - Despite the increase in customer traffic, the average spending per customer has declined due to the price reductions, with the average per capita spending reported at around 75 yuan [8][9]. - The ongoing public relations challenges have led to a temporary halt in Xi Bei's expansion, with reports indicating the closure of nearly 10 stores since October, although the company plans to open 8 new locations by the end of the year [9][10].

Core Insights - Xibei has implemented a nationwide price reduction for over 40 dishes, with an average decrease of nearly 20% since early October [2][3] - The company has also initiated various promotional activities to attract customers, including issuing cash vouchers and offering discounts [4] Price Adjustment - Xibei's price reduction affects 70%-80% of menu items at individual locations, with specific dishes seeing price drops of 16.81%, 11.24%, and 10.34% [3] - The price adjustments were a response to negative publicity following the "pre-made dish incident" in September [3] Employee Support - In light of the negative impact on frontline employees due to public backlash, Xibei has introduced a "compensation award" and is providing psychological counseling [3] - Since September, Xibei has increased salaries for frontline employees by an average of 500 yuan per month and is considering further salary enhancements [3] Customer Engagement - Xibei launched the "Xibei Treats You to Dinner" campaign, offering 100 yuan vouchers to customers, followed by a new promotion where customers receive vouchers based on their spending [4] - As a result of these initiatives, overall customer traffic increased by approximately 5% compared to the same period last year, with 70% of participants being repeat customers [4] Store Operations - Despite the promotional efforts, Xibei has closed nearly 10 stores since October, while planning to open 8 new locations by the end of December [4] - The company emphasizes that opening and closing stores is a normal part of restaurant operations and is based on business performance [4]

Core Insights - Xibei has implemented a nationwide price reduction on over 40 dishes, with an average decrease of nearly 20% since early October, following negative publicity from the "pre-made dish incident" [1][4] - The company has initiated various promotional activities, including distributing cash vouchers to attract customers back to its stores [2][4] - Despite the promotional efforts, Xibei has closed nearly 10 stores since October, although it plans to open 8 new locations by the end of December [4] Pricing Strategy - Xibei's price adjustments include specific dishes such as the grassland tender grilled lamb chop, which decreased from 119 yuan to 99 yuan (a reduction of 16.81%), and the scallion grilled fish, which dropped from 89 yuan to 79 yuan (an 11.24% decrease) [1] - The price reduction strategy is part of a broader effort to regain customer trust and increase foot traffic, which has reportedly risen by 5% compared to the same period last year [4] Employee Support Measures - In response to the negative impact on frontline employees due to the "Xibei Luo Yonghao incident," the company has introduced a compensation program and psychological counseling for affected staff [1] - Since September, Xibei has increased the average monthly salary of frontline employees by 500 yuan and is considering further salary enhancements [1] Customer Engagement Initiatives - The "Xibei Treats You to Dinner" campaign began on September 24, offering customers a 100 yuan voucher with any purchase, followed by a new promotion from October 9 to October 31, where customers could earn vouchers based on their spending [2] - Approximately 70% of customers participating in the promotional activities were returning customers, indicating a successful re-engagement strategy [4]

Group 1 - The core viewpoint of the article highlights the proactive measures taken by the company, Xibei, in response to negative publicity and operational challenges since September, including employee support initiatives and product adjustments [1][2][3] Group 2 - Xibei has established a "compensation award" for frontline employees affected by online harassment, along with psychological counseling support [1] - Since September, Xibei has increased the average monthly salary of frontline employees by 500 yuan and is discussing further salary enhancements [1] - The company held a nationwide meeting for 18,000 employees to assure them of job security, prohibiting layoffs and reduced shifts [1] Group 3 - To rebuild its brand image, Xibei has committed to food safety and has adjusted its food preparation processes, moving from centralized kitchens to in-store cooking [1] - As of the end of September, Xibei has completed the first phase of menu adjustments, including the use of non-GMO soybean oil and freshly cooked dishes [1] Group 4 - Xibei launched promotional activities such as "Xibei Treats You to Dinner," offering 100 yuan vouchers to attract customers, followed by a new round of promotions with additional discounts [2] - The company has reduced prices on over 40 dishes since October 1, with significant price drops on popular items, such as a 16.81% reduction on lamb chops [2] - As a result of these promotions, overall customer traffic increased by approximately 5% compared to the same period last year, with 70% of participants being repeat customers [2] Group 5 - Despite the promotional efforts, Xibei has closed nearly 10 stores since October, which the company describes as a normal operational adjustment [3] - New store openings are also occurring, with plans to open 8 additional locations by December 31 [3] - The company has outlined three principles for store closures, including notifying customers in advance and ensuring employee job security through transfers to other locations [3]

Core Viewpoint - The recent closure of some Xibei restaurants has sparked discussions on social media, but the company asserts that these closures are part of normal adjustments, with plans to open 8 new locations by the end of the year [1][3][4]. Group 1: Store Operations - Xibei plans to open 8 new stores this year, including locations in Shenzhen, Nanjing, and Xi'an [2][3]. - The company has closed nearly 10 stores since October, primarily due to factors like lease expirations and market strategy adjustments [3][4]. - Xibei's annual dynamic store adjustment rate is around 10%, with 2023 seeing 26 new openings and 14 closures, resulting in a total of 354 stores [4]. Group 2: Customer Engagement and Promotions - Xibei initiated a "Please Eat" campaign, offering customers vouchers to encourage visits and feedback on improved dishes, which has led to a 5% increase in overall customer traffic compared to the previous year [5][6]. - The company has been actively issuing vouchers since September 24, with promotions designed to attract both new and returning customers [5][6]. Group 3: Menu and Pricing Adjustments - Starting October 1, Xibei reduced prices on over 30 dishes by nearly 20%, with specific examples showing significant price drops [6]. - The company is committed to continuous improvement based on customer feedback, focusing on enhancing food quality and service [6][7]. Group 4: Brand Reputation and Safety - Xibei has undergone over 70 inspections since September, with no food safety risks identified, maintaining consumer trust in food safety, especially among families [7]. - The company aims to strengthen its focus on family dining, including specialized services for children and the elderly, while also enhancing safety measures in all locations [7].

Core Viewpoint - The article discusses the paradox of the restaurant chain Xibei, which, despite facing significant online criticism, continues to attract long queues of customers in physical locations, highlighting the disconnect between online sentiment and real-world consumer behavior [5][10][20]. Group 1: Online Criticism vs. Real-World Demand - Many online critics of Xibei have likely never dined there, as evidenced by the continued customer turnout despite negative reviews [6][10]. - The criticism directed at Xibei is more about its public relations and brand image rather than the quality of its food [10][11]. - The phenomenon of online backlash does not equate to a brand's demise; rather, it reflects a broader social behavior where criticism can be a form of social expression [13][22]. Group 2: Consumer Behavior and Preferences - Consumers prioritize their personal cravings over online opinions, leading them to choose Xibei for its unique offerings, such as its signature dishes [15][19]. - Xibei has established a reputation for safety and consistency, which is particularly appealing to families with children, contributing to its sustained popularity [16][18]. - The brand has a loyal customer base, with 70% of its patrons being repeat customers, indicating a strong connection to its offerings despite external criticism [18][24]. Group 3: Brand Resilience and Market Position - Xibei has survived numerous controversies without significant damage to its business model, suggesting a robust market position [19][20]. - The brand's ability to meet consumer needs in a standardized manner has allowed it to thrive, even amidst public relations challenges [19][22]. - The article concludes that the only real threat to Xibei's existence would be a failure in product quality, as it has maintained a clean safety record over its 37 years of operation [24].