On September 10, Luo Yonghao posted a complaint on Weibo criticizing Xibei’s use of prepared dishes, unexpectedly igniting a nationwide debate on transparency in the restaurant industry. A plate of roasted lamb ribs, a lawsuit watched by tens of millions, and a fierce clash between two public figures have once again turned prepared dishes into a topic of heated discussion across the country. The confrontation between Luo Yonghao and Xibei’s founder Jia Guolong is not only about the reputation of a single company but also touches on the nerve of the future development of the entire food and beverage industry. Behind this controversy lies the deep desire of Chinese consumers for transparency and the right to know in the dining experience.
1. The Course of Events: From a Weibo Post to a Public Battle
The storm surrounding prepared dishes began with Luo Yonghao’s Weibo post on September 10. He bluntly wrote:
“Haven’t eaten at Xibei in a long time. Had a meal with colleagues after getting off the plane today and found that almost everything was prepared dishes, and so expensive. It’s absolutely disgusting.”
As a popular internet celebrity with tens of millions of followers, his comments quickly attracted widespread attention. Many netizens echoed similar experiences and questioned the justification behind Xibei’s high prices.
Xibei’s founder Jia Guolong responded swiftly. On the night of September 11, he publicly replied:
“Currently, 100% of Xibei stores have no prepared dishes—none at all.”
He further criticized Luo Yonghao for defaming Xibei as a public figure and, in a media interview, declared that while he wouldn’t engage in a war of words, he would certainly sue Luo Yonghao.
Unfazed by Jia Guolong’s firm response, Luo fired back, posting 17 consecutive Weibo posts in one day. He offered a 100,000 RMB (approx. USD 13,700) reward for evidence that Xibei uses prepared dishes and sought to purchase equipment capable of detecting them.
Jia Guolong also upped the ante. Starting September 12, Xibei launched the “Luo Yonghao Menu” across more than 370 stores nationwide. Customers could order any dish from this menu, and if they didn’t find it tasty, they could return it. Furthermore, Xibei opened up its kitchens to all customers, allowing them to observe the cooking process of any dish, as long as hygiene standards were upheld.
2. The Definition Dispute Behind the Rashomon: Central Kitchen ≠ Prepared Dishes?
As the controversy escalated, the debate over the definition of “prepared dishes” became the focal point.
In March 2024, the State Administration for Market Regulation and five other departments jointly issued the Notice on Strengthening the Supervision of Prepared Foods and Promoting High-Quality Industry Development, clearly defining what constitutes a prepared dish. According to the document, prepared dishes refer to pre-packaged meals made from one or more edible agricultural products, without added preservatives, processed through industrial pre-treatment, and only edible after heating or cooking. It excludes staple foods such as frozen noodles and rice products, convenience foods, boxed meals, rice with toppings, steamed buns, pastries, roujiamo, bread, hamburgers, sandwiches, pizzas, etc.
Jia Guolong explained:
“Some ingredients are cut in the store, some are cut at the central kitchen, and the standard is even higher at the central kitchen.”
He gave an example:
“Huangmomo (a type of steamed bun), this is cooked in our central kitchen and sent to the stores. But according to national standards, staple foods and pastries are allowed to be made in factories—they are not considered prepared dishes.”
Xibei emphasizes that “raw materials are delivered to stores, and then cooked on-site,” and therefore should not be classified as finished prepared dishes. However, during a livestream, Luo Yonghao showcased a package of frozen fish and claimed it was used as the raw material for his meal, noting it contained food additives—he argued this qualified as a prepared dish.
The debate over whether Xibei’s central kitchen model counts as using prepared dishes and whether the company is “skirting the line” remains unresolved, with both sides holding firm to their positions and no definitive conclusion in sight.
3. Jia Guolong and Prepared Dishes: Contradictions Between Past Positions and Present Statements
Some media outlets unearthed Jia Guolong’s past remarks stating, “All high-end dishes must be prepared in advance.” Responding to this, Jia said:
“I won’t avoid this point. For example, dishes like braised pork require lengthy pre-processing. There’s no need to avoid talking about pre-processing, but we don’t use prepared dishes.”
In fact, Xibei had once heavily invested in prepared dishes. In September 2019, Xibei launched its first prepared dish product—lamb spine hotpot. By the end of December that year, a prepared dish brand named “Jia Guolong Kung Fu Dishes” was launched, targeting the home consumption market. In a 2022 interview, Jia stated:
“Prepared dishes are definitely the big trend of the future. They offer many advantages, significantly improving cooking efficiency and saving people time.”
In his latest statement, Jia admitted that Xibei stores had indeed offered prepared dishes in past years. Starting in 2020, they actively developed the “Kung Fu Dishes” line, but from 2023, they began gradually scaling down this category. By 2025, he said, prepared dishes had been completely removed from all Xibei locations.
However, as more whistleblowers came forward, Xibei’s suppliers were thoroughly scrutinized. Most of these suppliers had their own public accounts or websites, and many were clearly marked as suppliers of prepared dishes—not exclusive to Xibei. This fueled growing consumer suspicion over Xibei’s use of prepared dishes despite their high prices.
Current public sentiment indicates that consumers are not entirely against prepared dishes—what matters is transparency and pricing.
A study by DT Business Observer found that consumer acceptance of prepared dishes varies depending on the dining context. From chain fast-food restaurants to company cafeterias, standard restaurants, and high-end establishments, acceptance decreases significantly with each step up in venue quality. Over 50% of consumers accept prepared dishes at chain fast-food joints, but in high-end restaurants, less than 10% do. In all other types of restaurants aside from fast-food chains, more than 60% of consumers are unwilling to eat prepared dishes.
Pricing is also a major concern. The survey shows that while residents of first-tier, new first-tier, and second-tier cities can accept prepared dishes in restaurants, the vast majority will only do so if the dish is priced at 50 RMB (approx. USD 6.80) or less. However, Xibei’s average per-customer spending is far above that level—creating a stark gap between psychological expectations and actual prices.
Ultimately, the prepared dish industry, central kitchens, and chain restaurant enterprises are closely linked and symbiotic players in the same supply chain. If this industry is properly regulated and developed with integrity, it still holds promise. This controversy may help push the sector toward greater transparency and standardization. According to reports, the national safety standards for prepared dishes, formulated by the National Health Commission, have passed review and will soon be open for public comment. Provinces such as Guangdong and Hunan have already begun requiring restaurants to indicate on menus whether a dish is a prepared product.
4. Deeper Reflections Behind the Dispute: Balancing Efficiency and Quality
This controversy highlights the growing pains of China’s restaurant industry as it undergoes transformation. With rising costs and growing standardization needs, prepared dishes have gradually become a go-to solution for businesses aiming to boost efficiency and consistency. However, consumers still have emotional expectations tied to freshly cooked meals and the so-called “wok hei” (distinctive aroma of stir-fried food). Many aren’t against prepared dishes per se—they resent the feeling of being deceived by paying “freshly cooked” prices for industrial food.
Consumers have simple and reasonable demands. If a restaurant uses prepared dishes and can’t guarantee ingredient freshness or on-site cooking, it should at least ensure hygiene and safety standards, and clearly disclose the origin of meat, source of vegetables, brand of condiments, etc. Customers should be made fully aware of this information. Moreover, whether a restaurant uses genetically modified cooking oil or other GMO foods should also be transparently disclosed.
Additionally, if all the ingredients are centrally distributed and simply reheated in the back kitchen, then pricing should be reasonable and consistent with a set standard. Restaurants should not market themselves as high-end eateries while selling prepared dishes. If it doesn’t qualify as “freshly made gourmet cuisine,” then it should stop using phrases like “hand-cooked on-site” or “authentic local flavor” as marketing gimmicks. Any business found guilty of false advertising should be held legally accountable.
This storm will eventually pass, but the transparency reform it has sparked in the dining industry may have a lasting impact on our dining tables. Prepared dishes are not inherently bad—they can offer healthy, hygienic meals for busy workers who don’t have time to cook. However, prepared food can never fulfill the expectations of people who want a genuine dine-in experience. It would be better to give more space to those who uphold culinary tradition—let small eateries run with care and skilled chefs continue to shine. Promoting diversity in the restaurant sector is the way forward for Chinese cuisine. Pursuing only standardization and expansion, while losing warmth and craftsmanship, is the true dead end.
[Disclaimer]: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.