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Recently, some netizens discovered that Xiabuxiabu Group's high-end barbecue brand "Chenshao" located in Longhuahui, Shanghai has closed down. "Chenshao" Longhuahui store is not only the last store of the brand in Shanghai, but also its last store in the country.

On July 31, a Beijing News reporter noticed on the Dianping App that the "Chenshao" Longhuahui store is currently showing "closed". When "Chenshao" first opened in 2022, it achieved an average monthly revenue of over 2.5 million yuan for its first store in Shanghai. Xiabuxiabu also announced the expansion plan for "Chenshao", saying that it expects to add at least 30 new stores each year from 2024, but from the current situation, the development of this high-end barbecue brand has encountered setbacks. Regarding the relevant situation of "Chenshao", a Beijing News reporter contacted Xiabuxiabu, but no response was received as of press time.

The expansion plan was not realized and all stores across the country were closed.

Public reports show that "Chenshao" is a high-end barbecue brand launched by Xiabu Group in September 2022. It was created by He Guangqi, the founder of Xiabu Group, and is also the first time that Xiabu has entered the barbecue market. The brand is positioned as "Happy Barbecue", and it is the first one-stop catering collection store model of "barbecue restaurant + bar + tea station". The average customer price is around 250 yuan, which is much higher than Xiabu Xiabu and Coucou. It is the brand with the highest average customer price in Xiabu Group. On September 24, 2022, Chenshao's first store in China opened in Shanghai Sun Moon Light Center. At that time, He Guangqi said in an interview with the media that "Chenshao" plans to open at least 20 stores in 2023. The first batch of stores will be located in first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, with the first choice being popular check-in spots such as Shanghai Tianzifang and Beijing Sanlitun. "From 2024, it is expected to expand at a rate of at least 30 new stores per year, with layouts in cities such as Hangzhou, Chongqing and Tianjin, and plans to exceed 100 stores in the next three years."

In December 2022, Xiabuxiabu released the performance of "Chenshao". Data showed that the average monthly revenue of the first store of "Chenshao" in Shanghai exceeded 2.5 million yuan, the highest turnover rate exceeded 6 times, the annual single store revenue was expected to exceed 30 million yuan, and the annual sales per square meter was expected to exceed 90,000 yuan.

However, "Chenshao" did not "expand its territory" in the barbecue market as Xiabu Xiabu Group planned. It experienced a brief period of glory, but then seemed to be "lacking stamina". According to media reports, in January 2024, "Chenshao"'s Shanghai Wujiao Wanda Plaza store and Hangzhou Hubin Yintai store closed; in February, "Chenshao"'s Shanghai Yuehui Plaza store, Guangzhou Link Shopping Plaza store and Shenzhen Yitian Holiday store all stopped operating; in March, "Chenshao"'s Guangzhou Tianhecheng store closed.

As of now, the status of all "Chenshao" stores, including the first store in Shanghai, is "closed" on the Dianping App.

The Longhuahui store of "Chenshao" is currently showing "Closed". Screenshot of Dianping App

The average customer spending is several times higher than similar brands, and consumers say the meat quality is average.

The "Barbecue Category Development Report 2024" released by the Red Restaurant Research Institute shows that in 2024, the national barbecue brand per capita consumption will account for the largest proportion in the 50 to 100 yuan price range, accounting for more than 60%, among which the per capita consumption of Japanese barbecue is relatively high, at around 150 yuan. According to statistics from the Beijing News, among the many leading brands in the barbecue track, the per capita consumption of "Chengshao" is almost 2 to 5 times that of other brands. For example, the per capita consumption of Xita Laotai's clay oven barbecue is 130.5 yuan, Jiutianjia cuisine barbecue is 99.1 yuan, Beimu Nan barbecue and Jiu are 54.5 yuan. As a cross-border barbecue for hot pot, the per capita consumption of Haidilao's barbecue brand "Yanqing Barbecue Shop" is 100 yuan.

The high-end barbecue with an average price of 250 yuan per person does not seem to give consumers a "quality-price ratio" in terms of quality and service. On Dianping.com, there are currently 1,186 reviews of the "Chen Shao" Longhuahui store, of which 146 are medium and bad reviews. The Beijing News reporter noticed that the more concentrated problem is "average meat quality". Some netizens said, "Although the environment is good, the meat quality is average, which is the last place among the barbecue restaurants I have eaten in the past few years." "Heavy seasoning, can't taste the meat, and it is not fresh enough." "The meat quality is very ordinary, and the selection of ingredients is not good." "Generally, barbecue is not very delicious, but the meat in this restaurant has a smell." At the same time, the service of "Chen Shao" has also been criticized: "The waiter helped to grill the meat, and the meat was too old to eat in the end." "No one said how long to grill it, and I asked the waiter, but no one paid attention to it even if I raised my hand and it was rotten." "The waiting time is too long, and the meat is cooked but no sauce is served." In addition, netizens also questioned issues such as "lettuce charging" and "small amount of vegetables": "This is the first time I have encountered a charge for lettuce" and "3 pieces of lettuce for 12 yuan."

Wen Zhihong, a senior restaurant chain strategy and capital expert, said in an interview with the Beijing News that when Xiabuxiabu Group launched the "Chenshao" brand with an average per capita consumption of 250 yuan, he was "not optimistic". Wen Zhihong said that from the average consumption level, per capita consumption of more than 200 yuan can be defined as mid-to-high-end consumption. If a restaurant brand does not have a very unique experience or unique value, per capita consumption of 250 yuan is not easy to be recognized by consumers.

Wen Zhihong also believes that the barbecue market itself has a low threshold and fierce competition. In addition, affected by factors such as the epidemic, consumers are more cautious in their consumption. It is not easy for new high-end barbecue brands to survive and develop. Overall, the market space for barbecue brands with higher average customer spending is very limited.

Big brand lineWhy is it so difficult to gain a foothold?

The Beijing News reporter noticed that in recent years, Jiu Mao Jiu, Haidilao, Xibei, Lao Xiang Ji and many new tea brands have been very keen on launching sub-brands and sub-brands. In the eyes of many people, the head catering sub-brands that "lean on big trees" have a much higher starting point than new brands, but it is not easy for sub-brands to develop. In March of this year, Xiabu Group mentioned in its latest financial report forecast that it will lose 180 million to 200 million yuan in 2023. Among them, the loss of the Coucou business is one of the main reasons for the net loss in 2023, and its expansion speed has not met expectations. Xiabu Group has also successively launched catering brands in multiple segments such as in xiabuxiabu and Xiazhu Xiatang. Among them, in xiabuxiabu is a mid-range desktop hot pot targeting young consumers, but the brand withdrew from the market less than a year after its launch.

Wen Zhihong told the Beijing News that Xiabuxiabu had tasted the "sweetness" of launching special sub-brands, so it continued to develop multiple brands. "After the epidemic, the business of Xiabuxiabu and Coucou did not look optimistic. They faced great crises and challenges in the fiercely competitive catering market. So we also had to consider giving up other sub-brands."

Another sub-brand that has been "cut off" is Jiu Mao Jiu. In July this year, Jiu Mao Jiu issued a profit warning and adjusted the expansion target for 2024 set at the beginning of the year: the target of opening 35-40 new restaurants of Shuang Hotpot was adjusted to 25. At the same time, the two brands "Na Wei Uncle is a Chef" and "Lai Meili Sour Soup Grilled Fish" have been transferred, and resources will be concentrated on the two main brands of Tai Er Pickled Cabbage Fish and Shuang Hotpot.

Beijing News reporter Wang Ping

Editor Wang Lin

Proofread by Zhai Yongjun