Xi Bei’s Real Rival Isn’t Luo Yonghao

A public feud has erupted between outspoken entrepreneur Luo Yonghao and Jia Guolong, founder of popular Chinese restaurant chain Xibei, igniting a heated debate about the use of pre-prepared ingredients in the restaurant industry. The dispute, which unfolded across social media platforms, has drawn national attention and sparked a wider conversation about transparency and consumer expectations in the dining sector.

The controversy began when Luo Yonghao, known for his sharp critiques and large social media following, criticized Xibei for allegedly using pre-prepared dishes while maintaining relatively high prices. He argued for mandatory labeling of pre-prepared meals in restaurants, asserting that consumers deserve to know what they are paying for.

Jia Guolong, Xibei’s founder, responded vehemently, denying the use of pre-prepared meals and threatening legal action against Luo Yonghao for defamation. In a bold move, Xibei even launched a special menu featuring dishes similar to those favored by Luo Yonghao, complete with options for customization and open kitchen access for customers to observe the food preparation process, a move seen by some as an attempt to leverage the controversy for publicity and bolster Jia’s own public profile amidst a growing trend of restaurateurs becoming online personalities.

Luo Yonghao, refusing to back down, countered with a series of posts, including giveaways and a reward for information, further intensifying the conflict and turning it into a viral sensation. Social media users piled on, scrutinizing Xibei’s past statements, practices, and even its founder’s public remarks.

At the heart of the dispute lies the varying definitions of “pre-prepared meals.” From a consumer perspective, many equate freshness with immediate preparation, valuing the unique flavors and textures achieved through traditional cooking methods. The absence of these qualities raises concerns about the authenticity and value of their dining experience.

However, the legal definition of pre-prepared food, as outlined by the State Administration for Market Regulation in 2024, excludes dishes prepared in central kitchens, adding a layer of complexity to the argument. Xibei initially seemed confident in its adherence to these regulations, but the public outcry suggested a disconnect between legal compliance and consumer perception.

This incident underscores a key challenge for businesses: navigating the gap between regulatory standards and public sentiment. As previously seen with brands like Zhang Xiaoquan, consumer support is just as crucial as regulatory compliance.

The debate surrounding pre-prepared meals is multifaceted, with differing opinions on what constitutes a “pre-prepared” dish. Some define it as anything not made from fresh, raw ingredients on-site, while others take a more lenient view, encompassing items like marinated meats, dumplings, and even some fast-food components.

A recent official document divides pre-prepared food into smaller categories, and it includes ready-to-eat, ready-to-heat, ready-to-cook and ready-to-assemble products.

The core of the matter is this: Many consumers associate pre-prepared meals with lower quality and a lack of culinary artistry, feeling shortchanged when paying premium prices for what they perceive as reheated convenience food. The public yearns for the skill of a chef, the taste of quality and fresh products and the distinct ‘wok hei’ flavour, or ‘breath of the wok’ to give it its English translation.

Xibei’s attempt to address the controversy by showcasing its food preparation processes backfired when online users pointed out the use of pre-packaged ingredients, further fueling the perception that Xibei was not being transparent.

Ultimately, Xibei’s clash with Luo Yonghao highlights a broader frustration among consumers regarding the prevalence and lack of transparency surrounding pre-prepared food in the restaurant industry. Consumers are demanding a combination of fair pricing and clear labeling; either affordable, convenient, and pre-prepared options are clearly identified, or higher-priced meals are prepared fresh and with expertise on-site.

Many restaurants have embraced centralized kitchens and industrial food production， without extending corresponding cost savings to their customer , where costs can be curbed by using non-fresh ingredients, yet menu pricing remains the same.

Transparency is key. Restaurants like Laoxiangji, which openly disclose the use of pre-prepared ingredients and offer commensurate pricing, have earned customer trust and loyalty.

Luo Yonghao’s call for mandatory labeling may prove to be a catalyst for greater transparency and standardization in the restaurant industry.

The consumer, generally, isn’t troubled by pre-prepared meals per se. What riles them is lack of openness.