Impact Analysis

This controversy significantly impacts Xibei's brand reputation and revenue, with founder Jia Guolong reporting daily losses of 2-3 million RMB. It has amplified consumer concerns about food transparency and authenticity in the restaurant industry, potentially affecting consumer trust across other establishments utilizing similar central kitchen models. Furthermore, it is likely to accelerate regulatory scrutiny and the development of clearer national standards for the pre-prepared meal sector in China, influencing how businesses operate and how consumers perceive restaurant dining.

Timeline

What happened: Luo Yonghao publicly criticized Xibei's dishes as "expensive and pre-prepared" around September 10th.
What's happening now: Xibei released an open letter and preparation guides on September 12th, leading to widespread public debate and criticism that their defense confirmed the accusations. Some Xibei employees admitted to overnight storage and reheating of certain dishes.
What's next: Potential legal proceedings between Xibei and Luo Yonghao. Increased pressure for regulatory bodies to establish clearer standards for pre-prepared meals and central kitchen operations. Restaurants may adopt more transparent practices to maintain consumer trust.

Different Perspectives

Xibei: Denies using "pre-prepared meals" according to national standards, emphasizing their central kitchen prepares semi-finished products for final cooking at restaurants.
Luo Yonghao: Advocates for transparency, believing consumers have a right to know if dishes are pre-prepared, regardless of the preparation method.
Consumers: Many feel Xibei's defense confirmed their suspicions, leading to distrust. Others are more understanding of restaurant operational realities but demand disclosure.
Industry Experts: Highlight the ambiguity in definitions and the urgent need for standardized regulations and transparency in the central kitchen and pre-prepared meal sectors.

What You Need to Know

Xibei's defense involved releasing "operation manuals" for 13 dishes, which backfired by revealing the use of semi-finished products from their central kitchen.
The core issue is the conflict between the official definition of "pre-prepared meals" and consumer expectations of freshness and preparation.
Xibei's central kitchen model is common for efficiency but is now under public scrutiny regarding transparency.
The incident has led to significant financial losses for Xibei and is expected to push for clearer industry regulations.