Luo Yonghao Declares Xibei Incident Resolved, Awaits National Regulations for Prepared Meals

CNBC AI News, September 14th – A dispute between outspoken tech personality and entrepreneur Luo Yonghao and popular Chinese restaurant chain Xibei appears to be drawing to a close. Late on September 13th, Luo posted on Weibo, stating, “The Xibei matter can come to an end. I look forward to the prompt introduction of national regulations related to pre-prepared meals. I need to focus on my primary work, which has been somewhat delayed.”

The controversy erupted recently after Luo Yonghao publicly criticized Xibei for allegedly relying heavily on pre-prepared meals. The situation quickly escalated, with both sides issuing statements and counter-statements.

The founder of Xibei, Jia Guolong, initially threatened to sue Luo Yonghao. In an attempt to address the concerns, Xibei also introduced a “Luo Yonghao Menu,” seemingly in jest, and emphasized that although they use pre-processed ingredients, they do not consider themselves a pre-prepared meal restaurant, citing a stringent national definition for the latter. Xibei went so far as to offer open kitchen access, allowing customers to observe the preparation of dishes.

Luo Yonghao’s pinned Weibo post currently shares a report from China Business News, accompanied by the comment: “Excellent, exactly what everyone is waiting for!!! Let me reiterate my position (to avoid misrepresentation and misunderstanding): 1. I am not against pre-prepared meals. In certain situations, I may even actively choose them, such as when I want to save effort, am in a hurry, or don’t have a strong appetite. 2. Since pre-prepared meals are legal, restaurants certainly have the right to use them, but consumers have the right to know whether a restaurant is using pre-prepared meals.”

This debate highlights a broader trend in China’s booming food and beverage industry. As labor costs rise and competition intensifies, many restaurants are turning to pre-prepared or processed ingredients to streamline operations and maintain profitability. However, this practice raises concerns among consumers regarding transparency and food quality.

Adding fuel to the fire, reports indicate that a draft of the “National Food Safety Standard for Pre-prepared Meals,” spearheaded by the National Health Commission, has completed expert review and is expected to be released for public comment soon. This impending regulation signifies a potential shift in how pre-prepared meals are defined, regulated, and labelled in China.

The core of Luo’s argument revolves around consumer transparency. He advocates for clear labeling practices that inform diners whether a restaurant’s dishes are made from scratch or rely on pre-prepared components. This aligns with increasing consumer demand for honesty and traceability in the food supply chain.

Furthermore, Luo Yonghao also shared a Xinhua News Agency article on Weibo addressing the topic of pre-prepared meals and consumers’ right to know, with the headline: “We’re not afraid of pre-prepared meals, we’re afraid of you not telling us.” This sentiment encapsulates the central issue at stake: the need for greater transparency in the restaurant industry’s use of pre-prepared ingredients.

The outcome of this debate, particularly the forthcoming national standards for pre-prepared meals, could have significant implications for the future of China’s food service industry. Clearer regulations and labeling practices could potentially reshape consumer perceptions and influence restaurants’ decisions regarding ingredient sourcing and meal preparation. Investors are closely monitoring the situation, as the shift could create new opportunities in both the pre-prepared food sector and companies focused on fresh, locally-sourced ingredients.