Jia Guolong, the founder of Xibei, has an annual income of 5 billion and gets 120 million in rewards for employees. Why does he insist not to go public?

Only Xibei founder Jia Guolong himself knows this. When it comes to the most well-known brand in China’s catering industry, the first thing that comes to mind is Haidilao. This hot pot restaurant started in Sichuan. In 2017, it achieved sales of over 10 billion and was successfully listed in 2018. Its founder Zhang Yong has also become the richest man in China's catering industry, with a peak net worth of 60 billion.

Why is Haidilao famous? Mainly in two aspects, one is service and the other is employee welfare. Haidilao is well-known for its good service. Various jokes about Haidilao's service have been widely circulated on the Internet. When you make a call and your phone bill suddenly runs out, an employee will immediately go out to buy a card and deliver it to you; when you suddenly have a stomachache, you will be immediately A pot of ginger coke was served; when a couple was having an argument, the waiter immediately brought a plate of fruit salad with the words "Don't be angry" written on it. It was so popular that humans could no longer stop Haidilao. But in fact, there are free fruits while queuing, you can play cards, get your nails done, etc. During the meal, the waiters are very enthusiastic and there are free fruits, and that's basically it.

In terms of employee benefits, Haidilao provides grassroots employees with good dormitories, air conditioning and other home appliances, and various benefits. Employees will be given 8 million as a gift when they leave to start a business. This needs to be verified. But it is true that Yang Lijuan, the employee who first followed Zhang Yong, became the general manager of Haidilao and was worth 3 billion.

In fact, in the Chinese catering industry, there is another company with extremely good benefits, which is not inferior to Haidilao at all. Dividends are distributed to employees every year, 70 million in 2017 and 120 million in 2018. It is even better for outstanding employees. "Each person has a 1 million allowance per year, but no money is given directly. From parents to grandchildren, everyone is in charge." The company’s founder, Jia Guolong, even requires that 50% of the annual income exceeding 10 million must be used to motivate his team. This company is Xibei Group.

Jia Guolong, the founder of Xibei, is from Inner Mongolia. He has been doing catering in his hometown. He opened cafes, Western restaurants, bars, and square snacks, and saved his first capital. In 1997, Jia Guolong went south to Shenzhen and opened a seafood restaurant. Unexpectedly, he lost more than 1 million and lost all his money. In 1999, he moved to Beijing and contracted a seafood restaurant, and lost another 1 million yuan. Unwilling to be reconciled, he simply switched to selling noodles and mutton, the specialties of his hometown. Unexpectedly, the business picked up.

In 2001, Xibei Catering Company was established. But Jia Guolong began to live a leisurely life, opening a store a year at a snail's pace and slowly doing it. It was not until 2009 that he heard about the extremely rapid development of his counterpart Haidilao, which inspired him to leave Beijing and start the road to national expansion. To this day, Xibei has more than 300 stores, more than 20,000 employees, and annual revenue of more than 5 billion, but it insists not to go public. Why is Jia Guolong so generous to his employees? Are people stupid because they have too much money? Obviously not, he is smarter than most people because he captures human nature. Catering is a low-level service industry. The work is hard and the wages are low. Therefore, the turnover rate of employees is also very high. What should you do if you want to retain people? The money is enough.

Jack Ma also said that there are only two reasons for an employee to resign: one is that he is not paid enough, and the other is that he is not happy with his job. If you want to mobilize the enthusiasm of employees, especially grassroots employees, if you give them enough money, they will work hard for you. Therefore, the wages of Xibei employees are generally 50%-100% higher than those of their peers. In terms of people, Jia Guolong has achieved stable personnel and exerted the enthusiasm of the team. The team's execution ability is also super strong, so there is no need to worry about service quality.