Overview
- Founder Jia Guolong confirmed a retrenchment of 102 outlets, roughly 30% of the network, as the company moves to stem losses.
- Management reports January sales down about 50% year over year despite earlier promotions and price adjustments.
- The chain says wages for affected staff will be honored and stored‑value members can seek refunds or use alternative arrangements.
- The dispute traces to Luo Yonghao’s September criticism of ‘pre‑prepared’ dishes, with the online clash later leading to Weibo muting key accounts and the confirmed resignation of PR vice president Song Xuan.
- Analysts and industry voices call for clear definitions and labeling guidance for pre‑prepared and central‑kitchen items, citing consumer transparency concerns and the sector’s rising costs and thin single‑store margins.