Xiaobu Xiaobu expects losses to narrow by 22.2%-27.2% in 2025, and will improve the "Phoenix Returns to the Nest" partnership mechanism to stimulate organizational vitality.

Recently, the Xiabu Xiabu Group released a profit forecast announcement. The forecast shows that the group expects revenue for 2025 to be approximately 3.8 billion yuan, a 20% decrease year-on-year; net loss of 290-310 million yuan, narrowing by 22.2%-27.2% compared to 399.8 million yuan in 2024.

The announcement states that the expected reduction in net loss is mainly due to the group’s firm efforts within the year to optimize restaurant structure and reduce costs while increasing efficiency, including focusing on regionalized refined operations, orderly closing of inefficient and loss-making restaurants, and consolidating the overall health of the restaurant network. It is estimated that the impairment losses for closed and continuously loss-making restaurants will decrease significantly by about 51.4% compared to the same period in 2024.

The announcement also highlights that the company continues to focus on cost optimization, fully digitalizing and online managing procurement orders, inventory across all regions, and restaurant replenishment. Relying on the centralized supply chain platform to coordinate nationwide distribution centers and logistics providers, achieving overall resource management; and refining member operations to significantly improve new member registration conversion rates and overall member spending compared to the same period in 2024.

In response to challenges in the catering market and changing consumer demands, the group will continue to actively promote front-end business innovations and refine operational management. This includes leveraging the scale advantages of its wholly owned meat processing subsidiary to deepen the integrated model of “source control – centralized processing – multi-brand direct supply,” providing stable and cost-effective supply for newly launched brands such as “Xiabu Pasture” and “Xiabu Steak,” further strengthening the supply chain’s autonomous and controllable long-term competitive barrier.

The Xiabu brand deepens its value concept of “sharing achievements with strivers,” and in the future, will improve the “Feng Huan Chao” partner mechanism, aiming for risk sharing and benefit sharing, which is expected to effectively stimulate organizational vitality and restaurant performance. Meanwhile, the group will break the centralized management model, dividing the nationwide business into multiple regions for management to promote refined restaurant management, improve management efficiency, and respond more quickly to market changes.

Further, the group will deepen the layout of the instant delivery service ecosystem, scaling up business, improving quality, and structuring operational efficiency; and the CuCu brand will fully implement the “Selected Single Point + Happy Dining” dual-operation model, covering diverse consumption scenarios to effectively boost restaurant traffic and table turnover.

It is reported that in 2025, Xiabu Xiabu Group will launch a new brand, “Xiabu Pasture,” focusing on social scenes for young people, creating a high-quality, affordable self-serve hotpot. Additionally, the group is crossing into new sectors with the new brand “Xiaku Steak,” offering a differentiated business model of “Taiwan-style handmade steak + 158 free fusion dishes + afternoon tea drinks.” The goal is to allow consumers to enjoy high-quality steak at around 100 yuan, promoting the transition of high-end steak to an affordable and popular era.

In 2025, Xiabu Xiabu Group will initiate two rounds of the “Feng Huan Chao” partner program, with 13 stores already participating and over 50 people joining as internal partners. Partner stores have achieved a profit margin of 30%.

Heguangqi, founder and chairman of Xiabu Xiabu Group, stated: “The group’s long-term profitability goal is clear. The catering industry has entered a critical stage of refined operation and upgrading, with a more evident trend toward quality in consumer demand. Industry competition is shifting from scale expansion to quality competition. Only by adhering to quality, developing multiple brands collaboratively, strengthening talent empowerment, and deepening innovation can we navigate industry cycles and achieve high-quality, sustainable development.”

(Company Announcement)

(Edited by: Lin Chen)

Keywords: Xiabu Xiabu Catering