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Recently, Xibei announced preliminary plans to close 102 outlets nationwide, covering over 30 cities. Today, during a visit to several outlets slated for closure in a certain region, employees at these locations uniformly stated they had not yet received official closure notifications from the company, saying, "We are not clear whether this outlet will close or not." When discussing the news of "planning to close over 102 outlets," staff expressed regret but acknowledged the reality: "We can't do anything either; for now, we can only focus on doing our jobs properly. However, Chairman Jia has promised to pay all wages that are due." Another employee mentioned that Xibei's benefits and compensation are relatively good within the catering industry, adding, "The boss has always aimed to create a homely atmosphere in the stores, and there genuinely is some of that feeling; many employees can sense it." Regarding customer traffic, during the weekday lunch hour, although Xibei was not at full capacity, some customers did come to dine, with an occupancy rate of approximately 30-40%. A significant proportion of these customers were family groups.
Employees, having not yet received closure notices, stated they would continue their support. Recently, Xibei held a meeting at its Hohhot base, initially planning to close 102 outlets across more than 30 cities. Different outlets correspond to different closure suggestions, including "Close," "Close Early," "Close upon Lease Expiry," "Complete Transfer, Pending Discussion," "Negotiate Rent Reduction, Close if Unsuccessful," and "Re-evaluate in Q1."
Jia Guolong confirmed the situation was accurate on his social media feed, stating, "The closure of these 102 outlets will be completed successively in the first quarter. All employees who unfortunately have to leave will receive every cent of their wages owed. All customer stored value cards can be used at other outlets at any time, and those wishing refunds can get them immediately."
Although a closure list has been circulating, visits to several outlets on the list revealed that they had not actually received corresponding notifications and were still operating normally. Staff were also unaware, stating, "We don't know if the outlet will close, and we haven't received any such notice." Discussing the news of "planning to close over 102 outlets," staff acknowledged being aware but said they had no choice but to accept it: "We can't do anything either; we can only focus on doing our jobs properly. However, Chairman Jia has promised to pay all wages that are due. Because of this, even if that day really comes, I will continue to support Xibei as always." Staff also noted that Xibei's benefits and compensation are relatively good within the catering industry, adding, "Occasionally working a bit harder or longer is acceptable. The atmosphere here is excellent, with a kind of family-like warmth." "Last year's pay raise was substantial, so we are actually all grateful to Xibei for motivating us to provide better service to customers. Every day we are on duty, we are happy, and naturally, that happiness is passed on to the customers," the staff member said. When concerns were raised about stored value services due to the closure news, staff reassured, "Our stored value cards can be refunded at any time; just bring your phone to the store. Even if an outlet closes, the card can still be used at other locations."
Observations during the lunch hour showed that while Xibei was not full, a considerable number of customers were dining. Family groups constituted a large proportion. However, compared to previous times when queues were common, Xibei now appears somewhat quieter. Some staff mentioned that during peak hours on weekends, the outlets are basically full, with many parents bringing children for the kids' meals, adding, "Management maintains strict control over hygiene, and we are very meticulous in our work, ensuring customers can enjoy every safe and satisfying meal."
Single-outlet net profit is only 5%; Jia Guolong previously "admitted mistakes." Since the "public opinion storm" last September, Xibei has initiated a series of self-rescue measures. These included adjusting the preparation of numerous dishes to be made fresh in-store, then distributing millions of no-threshold 100-yuan vouchers to dine-in customers, further launching "spend 50, get 50 back" subsidies, and directly reducing prices on some menu items by an average of about 20%. For employees, Xibei opted to "directly give money" — providing a 500-yuan subsidy for each frontline employee; outlets established allowances for craftsmanship spirit, service excellence, and food safety guardianship, with each frontline employee receiving total allowances ranging from 300 to 800 yuan. However, these measures also significantly increased Xibei's costs. Jia Guolong revealed in an interview that Xibei's net profit per outlet is only 5%. In November last year, during the worst operational period, Xibei's overall revenue was merely 265 million yuan, less than half of the same period in previous years; fixed expenses for wages alone that month reached as high as 135 million yuan. Reflecting on the pre-made meal controversy, Jia Guolong stated, "I admit my mistakes. I apologize to the customers, I apologize to the employees, and I apologize to myself." Jia acknowledged having long ignored customer feedback, saying that if given another choice, he would "firmly avoid being confrontational and patiently listen to every customer's opinion." Jia Guolong said, "I now feel that defining and setting standards for pre-made meals is very difficult, and the public's understanding of the concept varies greatly." Regarding his future personal plans, Jia Guolong indicated, "I will no longer focus on building a personal IP; I will step back and concentrate on working diligently. I still have insights and interest in managing the enterprise. Doing a good job with the food and serving customers well is what I'm good at. One learns from experience; in the future, I cannot be autocratic."
Xibei today also directly responded to several issues. Today, addressing consumer concerns about ingredients, Xibei officially published responses. First, why choose Inner Mongolian grassland lamb. Xibei explained that many people dislike eating lamb due to the fear of its gamy smell. The root of the gaminess lies in the branched-chain fatty acids in lamb fat. When sheep are rapidly fattened or are older, these substances tend to accumulate excessively, making the gamy smell particularly noticeable.
Xibei stated, "Inner Mongolian grassland sheep are free-range, get plenty of exercise, and have fat evenly distributed within their muscles. Their daily diet includes dozens of natural forages like sand onions and licorice, which are rich in sulfides and aromatic substances that can neutralize the components causing gaminess in lamb. Xibei only selects 6-8 month old grassland lambs, as the accumulation of these gamy substances is lower at this stage." Addressing the practice of bulk purchasing only once a year, Xibei clarified this is not primarily for cost reasons but to respect the natural cycle of the grassland. The livestock cycle in Inner Mongolia is closely tied to the climate: lambs are born in spring, nourished by the lush grass and water throughout the summer, and by August to October each year, they are precisely 6-8 months old, which is the peak season for flavor. Xibei pointed out, "By choosing to make bulk purchases during this brief golden window and using rapid freezing at low temperatures to lock in freshness, we preserve the concentrated grassland flavor and nutrition entirely, using cold chain logistics throughout for year-round supply to our outlets." Xibei emphasized that honesty about ingredients is the greatest respect for customers. "We thank everyone for every query; this is the motivation for us to examine ourselves and improve."
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