Why did 400 branches in Xibei Noodle Village close down and lose more than 800 million in January?

The Vientiane City in Taiyuan has been open for a long time, and people come and go every day. So, I was ready to go and have a look. When we went there, we had not yet had dinner at 7pm, so we walked around and selected Xibei Noodle Village. I heard that his restaurant specializes in whole grain brands, and I saw that the restaurant environment was pretty good. We had a great time eating, and the food was served very quickly, but the portions were a bit too small. When we paid, we were dumbfounded! I ordered three dishes and spent more than 200.

Among so many restaurants, why is Duduxibei Noodle Village so dazzling? As early as 2017, Xibei Noodle Village began to flourish. In the past two and a half years, Xibei Noodle Village has changed its name twice and its signage three times. After spending more than 60 million yuan, Jia Guolong, the founder of Xibei Noodle Village, had to announce that he would give up his plan to open 100,000 stores. The original Xibei Noodle Village was very ambitious and committed to being the first in the industry. By the end of 2017, it had opened more than 200 stores. Annual revenue is expected to reach 4 billion yuan, but it is ambitious, which is not a good thing after all.

The specialty of Xibei Noodle Village is coarse grains, not only coarse grains, but also dishes such as barbecue, game and stew. In China's gourmet food market, there are very few coarse grain brands, and even fewer that do well. Unexpectedly, Xibei Noodle Village made its own signature and became an instant hit across the country. Soon more than 300 chain stores were opened across the country, with annual revenue of 3.5 billion yuan from just one bowl of noodles. Founder Jia Guolong saw such an outstanding performance and became more determined in his ambitions. Even with such good results, he is still not satisfied, and even utters bold words to fill the streets and alleys of the country with Xibei Noodle Village, and to open 100,000 stores nationwide, which is his ultimate dream.

While Xibei Youmian Village is vigorously developing fast food, takeout is also quietly developing. The functions of the two are almost identical, and takeout service has even changed the model of China's catering industry and is in the midst of a boom. Therefore, amid the explosive development of takeout, Xibei Noodle Village could not bear the pressure and shrank again. It is said that the success of something depends on the right time, right place and right people. Going against the trend will not work after all.

In October 2017, Jia Guolong clearly saw this phenomenon, recognized the situation, and decisively decided to terminate the fast food project that had been in progress for 800 days and attack the takeout industry. The results proved that his decision was correct, and a golden opportunity once again saved Xibei Youmian Village. However, a huge challenge came again.

At the beginning of 2020, an unexpected epidemic spread violently, making life difficult for all major companies. The most serious ones are the large fast food companies. More than 400 branches of Xibei Youmian Village have been closed during this epidemic. Even if the remaining branches escaped the bad luck of closing, their business is very bleak. Employees' wages must be paid as usual in accordance with national regulations. Xibei is about to collapse!

Faced with the huge crisis of the overall collapse of the enterprise, when the epidemic was not too serious, Xibei Noodle Village began to open for business. Surprisingly, prices in Xibei Noodle Village are quietly rising. The decision could be a saving grace for the business. However, this was a considerable expense and loss for the guests, so netizens denounced Xibei Noodle Village online, and founder Jia Guolong soon expressed regret for the price increase. All stores across the country have returned to their original prices, whether for dine-in or takeout. However, the mistake has been made and has had a bad impact on people's minds. Customers feel that raising prices during this difficult time for everyone is too excessive and unforgivable. Even if the price is reduced, Won't visit again.

Actually, the epidemic hit so suddenly that no one was prepared, and every industry was in a difficult situation. Xibei Noodle Village’s sudden price increase was indeed inappropriate and difficult for many people to accept.