The encyclopedia · Strategy & Leadership · Strategic decision · 2022–2024
Xiabu Xiabu launched a ¥250-per-head barbecue brand — it lasted less than two years
The first Shanghai store took ¥2.5M a month. The plan was 30 stores a year. By March 2024, two were left. The last one closed on 31 July.
Xiabu Group · Chenshao · 2024-07-31
What happened
In September 2022, Xiabu Group — the parent of the hotpot chain Xiabu Xiabu — launched Chenshao (趁烧), a high-end barbecue brand positioned at RMB 250 and above per customer, combining barbecue with alcohol and tea. The first store in Shanghai reportedly achieved average monthly revenue of over RMB 2.5 million. The group planned to open at least 30 stores per year from 2024.
The expansion never materialised. Chenshao opened stores in Shanghai, Guangzhou and Shenzhen, but the chain contracted as China's consumption downgrade intensified and competition in the restaurant sector sharpened. By March 2024, only two stores remained. On 31 July 2024, the last store — at Shanghai's Longhuahui mall — was listed as closed on the Dianping platform.
Xiabu Group was itself under financial pressure and moved to stop losses on the barbecue track. The brand lasted less than two years from launch to final closure, a fraction of the timeline needed to establish a high-end restaurant concept.
Why it happened
- The RMB 250+ price point was launched into a market that was actively trading down — the consumption downgrade of 2022-2024 hit high-end dining hardest
- The 30-stores-per-year target assumed the first store's revenue was replicable, but a flagship in Shanghai's best location is not a template for rapid rollout
- Xiabu Group's core hotpot business was itself under pressure, so the parent lacked the financial runway to let a new concept find its footing
- The 'barbecue + alcohol + tea' format added operational complexity without a clear moat against established barbecue chains at lower price points
The lesson
A flagship's first-month revenue is not a business plan — a high-end concept in a consumption downgrade needs a parent with the runway to wait, not a 30-store rollout target.
Aftermath
Xiabu Group abandoned the barbecue track and refocused on its core hotpot brands. The Chenshao closure was cited in Chinese restaurant industry coverage as an example of how the 2022-2024 consumption downgrade killed high-end sub-brands that were launched at the top of the market.
Sources
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