Business

From Oat Noodles to Billions: The Xibei Restaurant Story

China’s culinary landscape, a vibrant and often bewildering tapestry of flavors for the uninitiated American observer, is a testament to the nation’s vast geography and rich cultural heritage. Beyond the globally recognized Cantonese dim sum or the fiery spice of Sichuan, countless regional cuisines offer unique gastronomic experiences. One such tradition, the hearty, rustic fare of Northwestern China, has found a national champion in Xibei (西贝), a restaurant chain whose story is as compelling as its signature oat noodles. At the heart of this tale is Jia Guolong (贾国龙), a man whose entrepreneurial spirit can be best described by the Chinese phrase “爱折腾” (ài zhēteng) – a relentless desire to tinker, experiment, and stir things up.1 His journey from a small eatery in Inner Mongolia to the helm of Xibei Group, a company boasting revenues exceeding 6.2 billion RMB (approximately $860 million USD) in 2023 1, offers a fascinating window into the dynamism, challenges, and sheer tenacity required to build a national brand in the world’s most populous market.

Jia Guolong’s path is not merely a personal success story; it mirrors the broader, often turbulent, energy of Chinese entrepreneurship in the post-reform era. Many of the nation’s most successful business figures share this characteristic of rapid iteration, a willingness to embrace risk, and the agility to pivot when faced with obstacles. Xibei’s initial focus on Northwestern cuisine, a style perhaps less familiar to the wider Chinese palate compared to the eight great culinary traditions, also demonstrates a shrewd strategy. By championing the “unfamiliar,” Jia carved out a unique selling proposition in a crowded marketplace, a move that might resonate with American audiences who have seen niche ethnic foods blossom into mainstream popularity. This is the story of that relentless ambition, a chronicle of bold experiments, costly failures, and adaptive resilience, all set against the backdrop of China’s dramatic economic transformation.

The Restless Entrepreneur: Jia Guolong’s Formative Years (1967-1998)

Born in 1967 in Bayannur, a city in the Inner Mongolia Autonomous Region 1, Jia Guolong’s origins are deeply intertwined with the cultural and culinary traditions of Northwestern China that would later define his business empire. His early life set the stage for an unconventional path. In 1986, he enrolled in Dalian Fisheries University, a notable achievement in an era when higher education was a rarer privilege.4 However, the structured world of academia could not contain his burgeoning entrepreneurial drive. In 1988, during his second year of university, Jia made the bold decision to drop out and forge his own path in the business world.4 This act, abandoning a secure route for the uncertainties of entrepreneurship, underscored an early impatience with traditional trajectories and a robust self-belief, traits common to many self-made individuals.

At the age of 21, in May 1988, Jia opened his first culinary venture: a modest establishment named “黄土坡风味小吃店” (Huángtǔpō Fēngwèi Xiǎochī Diàn), translating to Yellow Earth Slope Flavor Snack Shop, in the eastern suburbs of Linhe city, Inner Mongolia.2 The name itself, evoking the loess plateaus characteristic of the region, was a subtle nod to the rustic, earthy flavors that would become central to his brand. During these initial years in his home region, Jia didn’t immediately land on his winning formula. He experimented with various culinary concepts, including hot pot and even seafood – a somewhat incongruous offering for landlocked Inner Mongolia.4 This period of trial and error, though likely fraught with its own set of small victories and setbacks, provided invaluable foundational lessons in the restaurant trade.

While his early ventures were rooted in Linhe, offering a familiar environment to learn the intricacies of the business, Jia’s ambitions were clearly not confined to his hometown. These initial experiments with diverse cuisines, even before venturing beyond Inner Mongolia, hinted at his innate restlessness and a desire to explore beyond the immediately obvious. The official establishment of Xibei Catering Co., Ltd. (西贝餐饮有限责任公司) in October 1993 marked a more formal consolidation of his efforts and the true birth of the company that would eventually grow into a national culinary name.5 His Inner Mongolian beginnings served as a crucial testing ground, providing him with the experience and initial capital, but his entrepreneurial spirit was inherently expansionist and experimental from these early days.

The Beijing Gambit: Finding Footing in the Capital (1999-2008)

The year 1999 marked a pivotal turning point for Jia Guolong and his burgeoning Xibei brand. At 32, he made the audacious decision to expand his operations from the familiar territory of Inner Mongolia to the sprawling, hyper-competitive market of Beijing.5 This was no small feat. He was transitioning from being a prominent local restaurateur in Linhe to an unknown quantity in China’s political and cultural capital. Anecdotal accounts suggest a Linhe city official may have spurred this ambition, reportedly challenging him: “How big can the entire Linhe market be for you? Go to Beijing if you have the guts”.6 Whether a direct quote or an apocryphal tale, it captures the spirit of Jia’s bold leap. Demonstrating his commitment and the human capital he had already cultivated, Jia brought a team of 50 chefs and service staff from Linhe to Beijing, a core group that likely carried the DNA of his original vision and service standards.6

His first foray into the Beijing market was managing the “金翠宫海鲜大酒楼” (Jīncuì Gōng Hǎixiān Dà Jiǔlóu – Golden Cui Palace Seafood Restaurant) on Xicui Road.5 The choice of a seafood restaurant was, in retrospect, a misstep. The venture hemorrhaged money for four consecutive months.5 A particularly telling, if perhaps apocryphal, anecdote (similar to a later documented failure with Cantonese cuisine in Shenzhen 7) recounts a customer complaining that the “seafood tastes like mutton.” This highlighted a critical lack of expertise in the chosen cuisine and a failure to adapt to the sophisticated palates of Beijing diners or, perhaps more fundamentally, an inability to prevent cross-contamination or flavor transfer in the kitchen.

Faced with this rapid and costly failure, Jia Guolong made a crucial, identity-defining pivot. Instead of retreating, he transformed the struggling seafood establishment into the “北京金翠宫莜面美食村” (Běijīng Jīncuì Gōng Yóumiàn Měishí Cūn – Beijing Golden Cui Palace Oat Noodle Food Village).5 This became Xibei’s first official outpost in Beijing, though the original location is now defunct. The decision was rooted in a return to authenticity and a focus on what he and his team knew best: the hearty, flavorful cuisine of Northwestern China, with a particular emphasis on oat noodles (莜面 – yóumiàn) and mutton.6 As Jia himself reportedly acknowledged, “Northwestern people are best at mutton and oat noodles”.6

This failure in Beijing was not merely a financial loss; it was a crucible that forged Xibei’s core identity. It taught Jia the invaluable lesson of leveraging inherent strengths and cultural authenticity rather than chasing unfamiliar trends without deep-seated expertise. Northwestern cuisine, at that time, was relatively underrepresented in Beijing’s diverse dining scene, often viewed as a regional specialty rather than a mainstream contender.6 By focusing on this niche, Xibei effectively tapped into what was described as an “empty market”.6 Jia, an outsider from Inner Mongolia, turned his regional heritage from a potential liability into a distinct advantage. Instead of trying to compete with established Beijing culinary traditions on their own terms, his successful pivot introduced something genuinely different, allowing Xibei to carve out a unique space. This period laid the essential groundwork for Xibei to become synonymous with Northwestern Chinese food, first in the capital and eventually across the nation.

Sharpening the Focus: The Rise of Xibei莜面村 (2009-2015)

The years following the initial Beijing foray were characterized by growth and, eventually, a critical strategic refinement. Around 2009, Jia Guolong made a decisive move: he reportedly ordered the closure of all other brand stores under the Xibei umbrella to concentrate singularly on “西贝莜面村” (Xibei Yóumiàn Cūn – Xibei Oat Noodle Village).4 This act of consolidation signaled a maturation in his entrepreneurial approach, moving away from broad, perhaps scattered, experimentation towards a more focused strategy of brand building. In a complex and competitive market, a clear, singular message often resonates more powerfully. This strategic narrowing likely conserved resources, sharpened marketing efforts, and began to build the strong brand recall that Xibei enjoys today.

This period was instrumental in cementing the Xibei莜面村 brand in the public consciousness, driven by several key initiatives. Perhaps the most iconic was the “I ♥ 莜” (I Love Yóu) marketing campaign.8 The logo, a clever adaptation of the globally recognized “I ♥ NY” design, was modern, catchy, and instantly recognizable. “莜” (yóu) refers to naked oats, the humble yet nutritious grain at the heart of Xibei’s signature dishes. The campaign ingeniously used a Western-inspired design to promote a traditional Chinese foodstuff, making oat noodles feel contemporary and fashionable to a modern, urban audience. Xibei has asserted that this logo was a specially designed creation, extensively used across its marketing and store branding, forging a unique and stable association between the design and the company.8

Another hallmark of Xibei’s strategy, which gained prominence during this era of brand building, was the adoption of the open kitchen concept, or “明厨亮灶” (míngchú liàngzào – bright kitchen, clear stove). While the precise timeline for its widespread implementation isn’t pinpointed in the available materials for this specific period, it became a defining feature of Xibei restaurants. This transparency, allowing customers to see their food being prepared, served as a powerful tool to build trust, particularly in a country where food safety has been a recurring public concern.9 It visually underscored a commitment to cleanliness and quality, enhancing the overall dining experience and addressing consumer anxieties directly.

The culinary star of Xibei, of course, is 莜面 (yóumiàn). This type of oat is not just a food but a cultural touchstone in regions like Shanxi and Inner Mongolia. It’s lauded for its health benefits, distinct texture, and versatility.11 There’s an old saying, “四十里莜面” (sìshí lǐ yóumiàn), implying that a meal of oat noodles could give a person the energy to walk forty li (about 20 kilometers), a testament to its sustenance.11 One of the most famous preparations is 莜面栲栳栳 (yóumiàn kǎolǎolao), delicate, steamed oat noodle rolls resembling a honeycomb. The traditional crafting of these rolls—using boiling water to make the dough, skillful kneading, precise rolling of each individual piece, and careful steaming—adds an element of culinary artistry and heritage to the Xibei experience.11

Complementing these strategies was the bold marketing promise, “闭着眼睛点,道道都好吃” (Close your eyes and order, every dish is delicious). This slogan, which became widely associated with Xibei, projected an image of unwavering confidence in the quality and consistency of every item on their menu. The combination of focused branding, unique culinary offerings, and a commitment to transparency and quality allowed Xibei莜面村 to expand rapidly from its Beijing stronghold to other major cities across China 6, becoming a leading and recognizable ambassador of Northwestern Chinese cuisine.

To provide a clearer overview of this journey, the following table summarizes key milestones:

Table 1: Key Milestones in Xibei’s Entrepreneurial Journey

Year(s)Key Event/MilestoneSource(s)Brief Significance/Outcome
1988Jia Guolong opens “黄土坡风味小吃店” in Linhe, Inner Mongolia.2Marks the beginning of his entrepreneurial journey in the restaurant industry.
1993Xibei Catering Co., Ltd. (西贝餐饮有限责任公司) formally established.5Provides a formal corporate structure for his growing ambitions.
1999Moves to Beijing; first venture (金翠宫海鲜大酒楼) fails; pivots to 金翠宫莜面美食村.5A critical learning experience; Xibei finds its core culinary identity in Northwestern cuisine.
Circa 2009Consolidates business to focus solely on the 西贝莜面村 brand.4Strategic streamlining for more effective brand building and national expansion.
Early 2010s“I ♥ 莜” marketing campaign launched.8Iconic branding effort that significantly raised Xibei’s profile and popularized oat noodles.

The Allure of a Global Dream: The Quest for a Second Act (2015-2023)

Despite the remarkable success and national recognition of Xibei莜面村, Jia Guolong’s restless entrepreneurial spirit (“折腾不止”) yearned for something more, something grander. He harbored a powerful ambition to take Xibei onto the international stage, and he became convinced that fast food was the vehicle for this global dream. “只有做快餐才能把企业做成国际大牌” (Only by doing fast food can the company become an international big brand), he once stated, a belief that would drive a nearly decade-long, and ultimately very expensive, series of experiments.1 Jia felt that the Xibei莜面村 model had a natural ceiling, perhaps around 400 to 500 outlets, and he was actively searching for a “brand for the future” that could offer limitless growth.13 This pursuit of a massively scalable, McDonald’s-like empire reflected a common aspiration among successful restaurateurs globally, particularly for Chinese entrepreneurs who witnessed the influx and triumph of Western giants as China opened up.

Starting around 2015, Xibei embarked on an intense period of diversification, launching a succession of fast-food sub-brands.1 The pattern for most of these ventures was depressingly similar: a swift market entry fueled by optimism, followed by stagnation, and eventual quiet disappearance.1 The list of these attempts is long and varied:

  • 西贝燕麦工坊 (Xībei Yànmài Gōngfāng – Xibei Oat Workshop) and 西贝燕麦面 (Xībei Yànmài Miàn – Xibei Oat Noodles fast-food version) were early forays, with the latter reportedly failing within its launch year.1
  • 麦香村 (Mài Xiāng Cūn – Wheat Fragrance Village), another fast-food concept, was shut down in late 2017. Reflecting on this failure, Jia acknowledged a crucial insight: “Fast food is a food industry requiring strong systemic support, fundamentally different from Chinese cuisine (full-service restaurants).” He admitted that his “正餐思维” (full-service restaurant mindset) acted as a “wall,” hindering their ability to crack the fast-food code.1
  • Other attempts included 超级肉夹馍 (Chāojí Ròujiāmó – Super Chinese Hamburger) 1, 西贝酸奶屋 (Xībei Suānnǎi Wū – Xibei Yogurt House) 1, and 弓长张 (Gōng Cháng Zhāng), a brand cleverly named using the constituent parts of Jia’s surname, which reportedly failed even before its official opening.1
  • Perhaps the most telling of his determination was 贾国龙中国堡 (Jiǎ Guólóng Zhōngguó Bǎo – Jia Guolong Chinese Burger), where he put his own name on the brand.1 This venture was later rebranded to “龙堡” (Lóng Bǎo – Dragon Burger) in early 2024 (some sources suggest March 2024 for the rename and pilot, others 2023) with a plan to target smaller, “sinking” markets, starting with a pilot in Hohhot, Inner Mongolia.1 However, this pilot also reportedly failed within just five months, with local stores closing.1

This relentless pursuit of a fast-food breakthrough came at a significant financial cost. According to financial journalist Li Xiang’s book “折腾不止:西贝创始人贾国龙的成败与蓝图” (Relentless Tinkering: The Successes, Failures, and Blueprint of Xibei Founder Jia Guolong), Xibei “spent 500 million” RMB (approximately $70 million USD) on these ventures.1 Jia’s “折腾” nature, so key to his early adaptive successes, in this instance, led to a prolonged and costly chase of an elusive goal, perhaps indicating that the drive to experiment, without timely recognition of fundamental unsuitability, can lead to substantial resource drain.

Amidst these fast-food experiments, another significant diversification emerged: 贾国龙功夫菜 (Jiǎ Guólóng Gōngfu Cài – Jia Guolong Kung Fu Cuisine).15 This was a major pivot towards high-quality pre-prepared meals (预制菜 – yùzhìcài), envisioned as a way to provide “a good meal, anytime, anywhere”.7 Jia hailed this as a “supply chain revolution” and the “industrialization of food,” believing that the future of all industries, including catering, lay in standardization and pre-preparation.15

The initial concept, launched around 2020-2021, was largely retail-focused, offering a range of elaborate dishes from China’s eight great culinary traditions alongside Northwestern specialties. Some dishes were priced at over 100 RMB, aiming for a premium segment.15 The model aimed to reduce reliance on individual chef skill and ensure consistent quality across a wide array of complex dishes.15

However, after consumer feedback regarding high prices, the “功夫菜” model evolved. It transitioned into what Jia termed a “中国小饭馆” (Chinese Small Restaurant) concept, incorporating more affordable, everyday dishes like Mapo Tofu (reportedly for as low as 9.9 RMB) and stir-fried potato shreds, bringing the average per-person cost down to around 50 RMB.15 These outlets featured on-site kitchens for the final heating or simple finishing of the pre-prepared components, blending the efficiency of centralized production with a restaurant dining experience, positioning it somewhere between fast food and formal dining.

Jia expressed immense conviction in this venture, calling it “our company’s future core strategy” and going “all in,” once again using his own name to signify his personal commitment.15 He even set a bold target of 100 billion RMB in revenue within ten years for this arm of the business.15 This pre-prepared meal venture, while still a form of “折腾,” appeared more aligned with Xibei’s core strengths in complex food preparation and quality control than the pure fast-food plays. It sought to industrialize sophisticated cuisine rather than oversimplify it to fit a generic fast-food mold.

The following table offers a snapshot of Xibei’s varied diversification attempts:

Table 2: Xibei’s Diversification Attempts (Beyond Core Restaurants)

Venture Name (Chinese & Pinyin, Translation)Concept/FocusLaunch Period (Approx.)Source(s)Outcome/Status & Key Learning (if cited)
西贝燕麦面 (Xībei Yànmài Miàn – Xibei Oat Noodles Fast Food)Fast-food concept centered on oat noodles.~2015-20161Failed within its launch year.
麦香村 (Mài Xiāng Cūn – Wheat Fragrance Village)General fast-food concept.Shut down late 20171Failed; Jia Guolong cited the “full-service restaurant mindset” as a barrier to success in the fast-food industry.
超级肉夹馍 (Chāojí Ròujiāmó – Super Chinese Hamburger)Fast-food focusing on a popular Chinese street food.~2018-20191Short-lived; part of the broader unsuccessful fast-food experimentation.
贾国龙中国堡 (Jiǎ Guólóng Zhōngguó Bǎo – Jia Guolong Chinese Burger)Chinese-style burgers, branded with the founder’s name.~2022-20231Rebranded to “龙堡” (Dragon Burger) for a pilot in smaller cities, which also failed quickly.
贾国龙功夫菜 (Jiǎ Guólóng Gōngfu Cài – Jia Guolong Kung Fu Cuisine)High-quality pre-prepared meals (initially retail, evolved to hybrid restaurant).~2020-202115Ongoing; has evolved its model. Considered a core future strategy by Jia Guolong, despite initial challenges and model adjustments.

Trials and Tribulations: Navigating Controversy and Crisis (2020-Present)

The period from 2020 onwards presented Xibei and Jia Guolong with a new set of formidable challenges, ranging from an existential industry-wide crisis to public controversies that scrutinized the company’s pricing, work culture, and operational transparency.

The sudden onslaught of the COVID-19 pandemic in early 2020 sent shockwaves through China’s restaurant industry, and Xibei was no exception. With its extensive network of over 400 stores and a workforce exceeding 20,000 employees, the company faced an acute crisis.17 Jia Guolong made a stark and highly publicized admission that Xibei’s cash reserves, even supplemented by loans, could only cover employee payroll for a maximum of three months.17 This candid statement brought the severe plight of even large, established restaurant chains to national attention, highlighting the fragility of an industry reliant on daily cash flow. The vast majority of Xibei’s outlets suspended dine-in services, with meager takeaway orders accounting for a mere 5-10% of their normal revenue.17 In this desperate situation, Jia publicly called for government support, warning of potential social instability if major employers like his were allowed to collapse.17 Despite the dire predictions, Xibei managed to weather the storm and eventually recover, posting strong revenue figures by 2023 1, a testament to its underlying resilience.

Parallel to the pandemic’s impact, Xibei found itself increasingly embroiled in public discontent regarding its pricing strategy, leading to the moniker “Pricey Xibei”.18 Consumers frequently voiced complaints about high prices for seemingly simple dishes. Specific examples that circulated widely included a single mantou (steamed bun) for 21 RMB (approx. $3 USD), a “flower roll” (another type of steamed bread) for 33 RMB, a plate of stir-fried lettuce for 49 RMB, and a vegetable tofu soup for 69 RMB.19 While prices varied somewhat by city, the general perception was that Xibei was becoming increasingly expensive. Online comments captured this sentiment vividly: “I used to be able to afford it on a 3,000 RMB monthly salary, now I can’t even on a 10,000 RMB salary,” and sarcastically, “Xibei’s mantou can definitely assess your IQ”.19 Many customers also felt that portion sizes were diminishing relative to the cost.19 Xibei’s official response typically attributed these price adjustments to the rising costs of raw materials.20

The pricing controversy was further inflamed by comments from a former Xibei Vice President, Chu Xueyou. He appeared to endorse a social media post suggesting that 95% of those complaining about Xibei’s prices earned less than 5,000 RMB per month, implying they were not the company’s target demographic.19 This sparked widespread outrage, with accusations of “income discrimination.” Xibei quickly distanced itself from the remarks, stating that Chu Xueyou had already left the company and that his views did not represent official company policy.19

Adding to the company’s PR woes was a debate over its work culture, ignited by Jia Guolong himself in 2020. He famously stated, “996 is nothing, we are ‘715, white-plus-black, nightclub'”.19 This “715” model referred to working 7 days a week, 15 hours a day, with “white-plus-black” signifying working day and night, and “nightclub” alluding to frequent late-night meetings. The comment triggered a significant public backlash, with many accusing Xibei of promoting an illegal and exploitative work culture, far exceeding the already controversial “996” (9 am to 9 pm, 6 days a week) schedule prevalent in some Chinese tech companies.22

Jia Guolong later defended his statement, clarifying that such intense work was voluntary, undertaken by high-performing employees seeking correspondingly high rewards, and that Xibei would never engage in illegal practices or act against its employees’ will.22 He framed this demanding schedule as part of a “championship game” culture where dedicated individuals were excited to strive for excellence.22 However, public skepticism remained high regarding the truly “voluntary” nature of such hours, and many questioned whether the actual compensation levels justified such commitment, especially after calculations based on Jia’s COVID-era payroll figures suggested an average monthly salary of around 7,500 RMB.22

These candid, sometimes blunt, statements from leadership, amplified by the pervasive reach of social media, caused significant brand damage. It highlighted a potential vulnerability for business leaders accustomed to a less scrutinized public sphere, particularly when public sentiment is highly sensitive to issues like work-life balance and the rising cost of living.

More recently, in early 2024, Xibei faced renewed scrutiny when the topic of its main Xibei莜面村 restaurants using over 85% pre-prepared ingredients (预制菜) trended on Weibo, China’s popular microblogging platform.18 This revelation clashed with the consumer perception of freshness, particularly concerning given Xibei’s growing emphasis on its specialized children’s meals. This raised questions about the price-value equation: if a significant portion of the food was not prepared fresh on-site, was the premium price still justified? This is a classic challenge for brands that scale up and standardize operations while trying to maintain a perception of artisanal quality.

The strategic shift towards becoming a “family-friendly restaurant,” heavily promoting its children’s meals 18, also created a potential values dissonance with the founder’s promotion of an “extreme work culture.” Consumers, especially parents who are the target of the family-friendly messaging, might be sensitive to supporting a brand perceived as not valuing the well-being and family life of its own employees. This underscores the increasing need for companies to ensure their internal culture and external branding are coherently aligned, as modern consumers increasingly factor corporate ethics and social responsibility into their purchasing decisions.

A Return to Roots, A Look to the Future: Xibei’s New Chapter

After years of relentless and costly pursuit of a “second act” through fast food and other diversifications, Jia Guolong appears to have experienced a significant strategic reawakening. He candidly and publicly admitted his failures in the fast-food sector, stating, “在快餐方面我是失败者” (In fast food, I am a loser/failure).1 He acknowledged that despite nine years of persistent effort, Xibei had not succeeded in building a viable second growth curve through these ventures.1 Perhaps more profoundly, he shared a critical realization: “回头看,发现老业务的潜力其实永远没有挖尽” (Looking back, I realize the potential of the old business was never fully tapped).1 This admission signaled not just a tactical retreat but a potential maturation in his entrepreneurial philosophy.

This newfound clarity led to decisive action. Retail operations were largely cut, and the ambitious fast-food development projects were significantly scaled back, with only a small team remaining to explore future possibilities.1 A pivotal company strategy meeting in March 2024 cemented this shift: Xibei decided to halt broad fast-food development and instead channel its full resources into upgrading its core Xibei莜面村 brand and developing “贾国龙小锅牛肉” (Jia Guolong Small Pot Beef) as its two primary full-service restaurant brands.1 This “return of the prodigal son” to the proven strengths of Xibei莜面村 is not merely a regression but a strategic refocusing, presumably enriched by the hard-won lessons of the “折腾” years.

The rejuvenation of Xibei莜面村 involves several key dimensions. A significant branding modernization occurred with a logo change from the full “西贝莜面村” to a simpler “西贝 XIBEI”.24 This move is widely interpreted as an effort to “de-categorize” the brand, allowing for a broader appeal beyond just “oat noodles.” The removal of the character “莜” (yóu), which can be unfamiliar to many, and the inclusion of the Pinyin “XIBEI” also potentially smooths the path for future international expansion by creating a more universally accessible brand name.24

Concurrently, Xibei’s brand positioning has evolved from “Northwestern folk cuisine” (西北民间菜) to “family gathering restaurant” (家庭欢聚餐厅).18 This strategic shift broadens the target audience significantly, focusing on dining occasions and shared experiences rather than solely on a specific regional cuisine. It’s an attempt to associate Xibei with a social event and an emotional connection, making the brand relevant to more people, more frequently.

A cornerstone of this family-centric strategy has been the strong emphasis on children’s meals. Since 2017, the slogan “家有宝贝,就吃西贝” (If you have a baby/child at home, eat Xibei) has become prominent.23 Xibei has invested in developing specialized children’s menus, iterating them multiple times to enhance quality and appeal.23 This focus has paid dividends: in 2023, Xibei restaurants served over 6.4 million child customers.23 By specifically catering to the needs and preferences of children—and the desires of parents for healthy, safe food options, including the use of more organic ingredients 25—Xibei aims to capture the loyalty of the entire family. This is a clever “wedge” into the competitive family dining market.

Product-wise, there’s a renewed emphasis on core strengths and quality ingredients. Xibei is working to reinforce its reputation for dishes like “草原羊” (prairie lamb), aiming to create strong consumer association: “吃烤羊,来西贝” (To eat roast lamb, come to Xibei).3 Oat noodle products are also being upgraded.25 Jia Guolong has also spoken about the increasing importance of “emotional value” in the dining experience. “The new quality productive force in the catering industry is emotional value,” he stated, suggesting that future consumers will choose restaurants based on scenarios and emotional connections rather than just cuisine type.24 The somewhat surprising introduction of Peking Duck to Xibei’s menu, a dish not traditionally associated with Northwestern cuisine, is explained by this logic: it’s a celebratory dish often enjoyed at family gatherings, aligning with the new positioning.24

Financially, Xibei appears to be on solid footing following this strategic refocus. In 2023, the Xibei Group’s overall revenue exceeded 6.2 billion RMB, a record high that surpassed pre-pandemic (2019) levels.1 The Xibei莜面村 brand alone accounted for 2 billion RMB in net sales from its over 300 stores.1 Ambitious goals were set for 2024: Xibei莜面村 aimed for a 10% increase in customer flow and to expand its domestic footprint to over 400 stores, while the newer “贾国龙小锅牛肉” brand targeted growth to over 100 outlets.3 While the previous fast-food path to internationalization proved a dead end, the modernized “XIBEI” branding and broader appeal might signal a renewed, albeit different, approach to exploring overseas markets in the future, though experts rightly advise thorough market research before any such endeavors.23

Conclusion: The Xibei Story – A Taste of Chinese Entrepreneurship

Jia Guolong’s journey with Xibei is a compelling narrative of tenacity, a testament to his “折腾不止” – relentless tinkering – spirit. From a humble eatery on the plains of Inner Mongolia, he has built a national restaurant chain, navigating a path marked by significant successes, high-profile failures like the initial seafood venture in Beijing and the protracted fast-food saga, and an impressive ability to adapt, pivot, and refocus. His recent return to bolster Xibei’s core brand, armed with lessons from past misadventures, speaks volumes about his resilience.

Xibei’s evolution is more than just a business case study; it mirrors the trajectory of modern China itself. Its growth has been fueled by the nation’s burgeoning middle class, rapid urbanization, and the shifting desires of consumers who increasingly seek quality, unique experiences, and family-friendly dining options. The company’s story—its triumphs, its stumbles, and its controversies over pricing and work culture—offers a candid glimpse into the dynamic and often unforgiving landscape of entrepreneurship in contemporary China. It underscores the fierce competition, the ceaseless demand for innovation, the potent impact of public opinion in the age of social media, and the inherent complexities of scaling a business while trying to maintain its soul.

For an American audience, the Xibei saga offers several resonant takeaways. It highlights the critical importance of understanding and leveraging one’s core competencies, a lesson Jia Guolong learned the hard way through his costly diversifications before returning to his Northwestern culinary roots. It demonstrates the double-edged nature of relentless experimentation: while it can spark breakthroughs, it can also lead to significant resource drain if not carefully managed. The power of strong, evolving branding that connects with cultural values and changing consumer needs is evident, from the early success of “I ♥ 莜” to the current strategic shift towards a “Family Gathering Restaurant.” Furthermore, Jia’s experiences underscore the heightened challenges of leadership in a high-visibility consumer-facing role, where every public statement can be amplified and scrutinized.

Jia Guolong’s journey may also reflect an evolving understanding of entrepreneurial success in China. The initial drive for local and then national dominance, followed by the pursuit of a global, perhaps Western-inspired, fast-food empire, has given way to a more nuanced strategy. The current emphasis on deepening the core brand’s value, focusing on “emotional connection,” and fostering sustainable domestic growth might indicate a vision less about replicating a universal template and more about building a deeply resonant, high-quality national champion.

The entire Xibei narrative is an ongoing negotiation between preserving the authentic, somewhat rustic appeal of its foundational cuisine and embracing the scalability and standardization required of a modern, large-scale restaurant chain. Consumer concerns about the use of pre-prepared ingredients in its main restaurants, for instance, highlight this inherent tension. The current strategy of scaling the “brand experience” and the “dining occasion” appears to be an attempt to find a new equilibrium.

Ultimately, the Xibei story is far from over. Jia Guolong’s “折腾” spirit remains a defining characteristic. Whether the current strategy of rejuvenating the core Xibei莜面村 brand and carefully cultivating “贾国龙小锅牛肉” represents a final, stable form, or if the restless entrepreneur will once again seek new horizons, remains to be seen. What is certain is that Xibei offers a rich, ongoing case study in the art and struggle of building a brand with a distinct flavor in the most dynamic and demanding consumer market in the world. It is, in essence, a taste of Chinese entrepreneurship itself – bold, resilient, and constantly in motion.

References

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Aris

Airs in Shanghai, focus on Chinese food, lifestyle and business.

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