Core Viewpoint - Xibei has initiated a significant price reduction across its nationwide stores, with discounts ranging from 20% to 40%, but customer response has been lukewarm, indicating a potential disconnect between the company's actions and consumer perception [1][3]. Pricing Strategy - The price reductions observed in Xibei's "Luo Yonghao" set menu in Beijing show a total price drop from 663 yuan to 598 yuan, equating to a 9.8% decrease [2]. - Specific dishes like the "Sesame Oil Fried Eggs" saw a price drop from 43 yuan to 33 yuan, a reduction of 23.26%, while the "Five Tomato Sour Soup Noodle Fish" decreased from 29 yuan to 23 yuan, a 20.69% drop [2]. Customer Sentiment - Despite the price cuts, consumer sentiment remains negative, with a significant majority of users on social media expressing they will not return to Xibei, highlighting a lack of trust in the brand [5]. - The competitive landscape in the restaurant industry is noted, with consumers having numerous alternatives, which diminishes the effectiveness of Xibei's price reduction strategy [5]. Operational Challenges - Xibei's price reduction is seen as a desperate measure to counteract a significant drop in customer traffic, with reports indicating many empty tables during peak hours [3]. - Previous attempts at customer retention, such as offering 100 yuan dining vouchers, have not proven effective in attracting and retaining customers [5]. Public Relations and Brand Image - Xibei's handling of the public relations crisis is criticized, with comparisons drawn to successful crisis management by other brands like Haidilao [10]. - The company's leadership, particularly CEO Jia Guolong, is portrayed as out of touch with consumer sentiment, which has contributed to the brand's declining reputation [7][10].