Ask AI · How can Tianbian Claypot Noodles help Xibei overcome difficulties?

Produced by | New Product Insights Finance

Author | Wu Wenwu

The “disappeared” Jia Guolong has quietly practiced his trumpet; his newly established restaurant brand’s first store has opened, which is not surprising. The restless Jia Guolong will certainly not lie flat.

It seems that Jia Guolong has retreated to the background, but it is difficult for him to truly step back, as his three major goals have yet to be achieved.

Jia Guolong has quietly practiced his trumpet

Following the recent turmoil at Xibei involving store closures, salary cuts, and delayed payments, the market has welcomed new trending news related to Xibei, although this time it seems less related to Xibei itself.

According to a report by Daily Economic News on March 19, Xibei founder Jia Guolong has started a new venture, having recently founded the new restaurant brand “Tianbian Claypot Noodles” (store name “Tianbian Claypot”), with its first location quietly opened in Beijing’s 798 Art District.

Since Xibei previously followed a mid-to-high-end dining route with relatively high prices, the market and netizens are certainly concerned about the pricing of Jia Guolong’s newly established restaurant brand.

It is reported that the new store has an average consumer spending of 40 to 50 yuan, mainly focusing on the claypot noodles specialty from Jia Guolong’s hometown of Bamen (Bayannur City, Inner Mongolia).

After being reported by the media, netizens naturally had different opinions about its pricing, with some stating that this price is considered normal in Beijing. Others remarked that a bowl of noodles at Jia Guolong’s new store is a bit expensive.

Claypot noodles should be quite familiar to friends from northern provinces, such as those from Henan, who have been eating them since childhood. Therefore, Jia Guolong’s newly created restaurant brand aligns well with the dietary needs of northern consumers.

Reports indicate that Jia Guolong secured the venue for this store a year ago, initially planning to open a new Xibei restaurant before the company fell into turbulent waters.

When Xibei later encountered a business crisis, it became clear that a new Xibei store could not be opened at that location. This led Jia Guolong to focus on the claypot noodle category, positioning it at an average consumer spending of 40 to 50 yuan.

Jia Guolong’s objective for opening this store is to allow consumers to enjoy authentic, fresh flavors from his hometown of Inner Mongolia without spending too much money.

Due to previous controversies surrounding pre-made dishes at Xibei, the kitchen of this new restaurant brand features an open kitchen design, where the entire process of dish preparation is transparent, allowing customers to clearly see each step of the noodle cooking and broth preparation.

Overall, the business at Jia Guolong’s newly launched restaurant brand seems to be doing well. Reports indicate that on March 14, over 700 customers were served in a single day.

Jia Guolong stated that this newly created mid-to-low-priced restaurant brand aims to take on some of the closed stores and employees from Xibei.

After media coverage of Jia Guolong’s new restaurant brand project, it quickly sparked market attention and discussion, with many headlines reading: “What has Jia Guolong been doing during his two-month ‘disappearance’?”

Now the outside world knows that Jia Guolong has founded a new restaurant brand project, akin to him quietly starting a new venture or practicing his trumpet.

Previously, New Product Insights Finance analyzed that it was highly likely Jia Guolong and Xibei would establish a new restaurant brand project, which had already been anticipated in the market and was not surprising.

This is not Jia Guolong’s first time creating a sub-brand project; in recent years, he has established multiple restaurant sub-brands, such as those selling Chinese hamburgers and pre-made dishes. However, this time Jia Guolong’s innovative brand is particularly noteworthy, given that Xibei is currently facing operational difficulties.

From media reports and Jia Guolong’s expressed views, this newly established restaurant brand project is currently in a trial phase. Once the future model proves successful, the goal is to scale it up, but this remains to be observed in the market.

However, Jia Guolong selling claypot noodles essentially represents a high-end dining enterprise branching out, creating a budget-friendly restaurant sub-brand to seek new business growth curves and establish a secure business foundation.

Jia Guolong is unlikely to truly step back

Jia Guolong founded Xibei, starting from a small restaurant in Inner Mongolia, and has developed it into a large restaurant chain with locations across the country, indeed leading the industry in many aspects.

Of course, Xibei has faced challenges during its development, but the controversy over pre-made dishes last year, sparked by a confrontation with Luo Yonghao, and the subsequent series of events ultimately led to a business crisis that far exceeded Jia Guolong’s and Xibei’s expectations and spiraled out of control.

Jia Guolong has always been a highly active entrepreneur in China’s restaurant industry and among entrepreneurs, known for his candid and straightforward style, which certainly has its dual aspects.

Chinese entrepreneurs are often deeply tied to the companies they found, and Jia Guolong serves as the spokesperson for Xibei; to the outside world, Xibei is Jia Guolong, and Jia Guolong is Xibei.

Even though Jia Guolong appears to have stepped back, it is difficult for him to completely sever ties with Xibei in the eyes of the public. This is also why Jia Guolong’s establishment of a new restaurant project brand continues to draw market attention.

Jia Guolong has also expressed hope that this new restaurant brand can eventually take on some of Xibei’s stores and employees, at least conveying a positive signal to the outside world.

Jia Guolong stated in a media interview at the end of January that he would return to the front lines, focus on the main business, and no longer create a personal brand.

To outsiders, it seems Jia Guolong has taken advice, but the real reason is that Xibei’s current operational difficulties necessitate Jia Guolong temporarily stepping back, allowing a new manager to rescue Xibei and lead it back to normal operations.

Although Xibei is currently actively seeking self-rescue, if it gradually overcomes its difficulties and returns to a normal operational trajectory, a full recovery does not mean Jia Guolong won’t return. It can even be said that at an appropriate time in the future, Jia Guolong will rejoin Xibei.

For instance, the founder of Haidilao, Zhang Yong, will resume the CEO position in January 2026, nearly four years after stepping down, which has attracted market attention and discussion.

From the perspective of sustainable corporate development, Jia Guolong will temporarily be “half-hidden” rather than “fully hidden,” allowing excellent professional managers and teams to handle the company’s daily operations, while the overall strategic direction still needs to be set by Jia Guolong.

Given Xibei’s brand influence and Jia Guolong’s entrepreneur image, the public will continue to pay attention to every move of Xibei and Jia Guolong’s market activities.

Regardless, it is difficult for Jia Guolong to truly retreat to the background, as the pattern of entrepreneurs stepping back and then returning is common.

Jia Guolong’s three major goals have yet to be achieved

Although it seems that Jia Guolong has stepped back, he certainly does not give up easily.

In the view of New Product Insights Finance, it is clear that Jia Guolong’s three major goals have not changed and remain unachieved.

Jia Guolong’s first major goal is to save Xibei.

To the outside world, although Xibei has not officially announced Jia Guolong’s resignation as CEO, in reality, veteran Xibei executive Dong Junyi is already managing the company’s daily operations as CEO.

After Dong Junyi took office, he implemented measures such as store closures and management salary cuts aimed at saving the currently troubled Xibei, hoping to lead it out of its difficulties as soon as possible.

It may appear that Jia Guolong is busy starting a new brand store, but in reality, according to the traditional business thinking and philosophy of Chinese entrepreneurs, Jia Guolong is certainly strategizing behind the scenes to find new paths for Xibei.

Jia Guolong’s second major goal is to build a “Xibei + N” brand restaurant group.

A restaurant business needs a main brand or core business as a pillar, but all restaurant businesses aspire to develop into a comprehensive restaurant group, and Jia Guolong certainly shares this goal.

For example, the Jiumaojiu Group includes brands like Jiumaojiu and Taier Sauerkraut Fish. Similarly, Haidilao has not only its hotpot business but also the listed company Yihai International for upstream hotpot ingredients. Haidilao is also continuously developing new restaurant sub-brands such as barbecue and roadside stalls, hoping to tell new stories.

As mentioned earlier, Jia Guolong has previously established multiple sub-projects in the restaurant sector without success, but his entrepreneurial mindset will remain unchanged.

Ultimately, Jia Guolong aims to create a main brand in Xibei alongside multiple sub-brands in the restaurant sector, and it is expected that he will continue to establish more new restaurant brands in the future.

Jia Guolong’s third major goal is to take Xibei public.

Initially, Jia Guolong did not want Xibei to go public, but due to well-known reasons over the past few years, his attitude toward going public has undergone a significant shift. According to Securities Times, Jia Guolong stated in a 2023 congratulatory message that he plans to complete an IPO by 2026.

Currently, it is unlikely for Xibei, which is facing difficulties, to go public, but that does not mean Xibei does not desire to go public; as long as Xibei returns to normal operations in the future, it will still seek to go public.

Although Xibei is in a business crisis, it has received two rounds of financing within two months, with investors including Zhang Yong, founder of New Rongji, and Lin Lairong, controlling shareholder of Dazhong Mining. This indicates that at least investors still see the commercial value and prospects of Xibei.

With the financing obtained, Xibei will need to prove its ability to create commercial value to investors, and going public is the best answer.

However, from the outside perspective, how Xibei will navigate its future and how it can overcome its difficulties remains a topic of interest. The future development of Jia Guolong’s newly established restaurant brand also awaits observation.

References:

[1] Jia Guolong establishes a new brand, quietly opened, average consumption of 40 to 50 yuan, Daily Economic News

[2] Xibei can still be saved, New Product Insights Finance

(This article does not constitute any investment advice)

Author’s statement: Personal opinion, for reference only.