Luo Yonghao vs. Jia Guolong: The Truth Behind China’s Pre-Made Food Controversy

A viral social media post by tech entrepreneur Luo Yonghao (罗永浩) accusing popular Chinese restaurant chain Xibei of serving expensive pre-made dishes has exploded into a national conversation about food transparency, culinary authenticity, and corporate accountability in China’s booming food service industry. The public clash between Luo Yonghao and Xibei founder Jia Guolong (贾国龙) has drawn attention from consumers, industry leaders, and legal experts, raising fundamental questions about how restaurants operate in the modern era and what obligations they have to disclose their cooking methods to customers. This controversy represents more than just two prominent figures trading insults—it reflects growing consumer anxiety about food quality and the ethical responsibilities of food brands in an age of increasing industrialization. The Spark That Ignited the Fire On September 10th, technology influencer and former smartphone executive Luo Yonghao published a scathing critique on Weibo, China’s equivalent of Twitter. After dining at a Xibei location following a flight, Luo declared he was disgusted to discover that nearly all dishes served appeared to be pre-made, despite carrying premium prices. His post concluded with a call for government legislation that would force restaurants to disclose whether they use pre-made ingredients. Jia Guolong’s Emotional Response Xibei founder Jia Guolong received the news while vacationing with family in Xinjiang. The内蒙古 (Inner Mongolia) native immediately booked a return flight to Beijing, cutting short his holiday to address what he perceived as a direct attack on his company’s integrity. In an emotional interview with Daily Economic News, Jia brandished Luo’s itemized receipt while standing in the very private dining room where the controversial meal had occurred. The restaurant executive described losing sleep over the accusations, particularly objecting to Luo’s use of the word “disgusting” in reference to Xibei’s food. “Those in the restaurant business particularly care about the word ‘disgusting,'” Jia explained. “This has a significant impact on our commercial reputation—it’s essentially destroying our brand.” Xibei’s Transparency Offensive Rather than retreating from the controversy, Jia Guolong announced an unprecedented transparency campaign across Xibei’s 370 locations nationwide. Beginning September 12th, all restaurants would publicly display what became known as “the Luo Yonghao menu” and open their kitchens to customer inspection. The chain promised that any dish from Luo’s order would be available for tasting, with a “not delicious, no charge” guarantee for dissatisfied customers. The Kitchen Open House Policy At a Xibei location in Beijing’s Daxing district, journalists observed kitchen staff preparing ingredients during morning prep hours. The store manager confirmed that while they wouldn’t create special menu designations for Luo’s order (which included 13 dishes like grilled lamb chops and millet cake), they would verbally inform interested customers about the items and welcome kitchen inspections. Through transparent glass partitions, customers could observe chefs cooking with fresh ingredients—adding seasonings, stir-frying in woks, and plating dishes to order. Refrigerators contained recognizable food components: beef ribs, chuck cubes, peeled potatoes, and carrot pieces rather than pre-packaged meal kits. The Pre-Made vs. Pre-Processed Distinction At the heart of the controversy lies a crucial distinction between what constitutes “pre-made” versus “pre-processed” food—a differentiation that Jia Guolong emphatically emphasized throughout his responses to media. According to Jia’s definition, pre-made dishes are fully cooked items produced in central kitchens, frozen, then simply reheated at restaurant locations. Pre-processed ingredients, meanwhile, undergo partial preparation (like cutting meat into strips or blanching vegetables) but require significant cooking and seasoning at the restaurant level to become finished dishes. Xibei’s Previous Venture Into Pre-Made Foods Jia Guolong openly acknowledged that Xibei previously experimented with what they called “Kung Fu dishes”—fully pre-made meals that fell into the category Luo Yonghao criticized. However, consumer resistance led to their gradual phase-out, with Jia claiming that by 2024, Xibei locations were “100% free of pre-made dishes.” “This is the result of consumers voting with their feet,” Jia stated. “I run restaurants—if consumers don’t like or accept something, I gradually remove those items.” The Legal and Reputational Battlefield What began as a customer complaint rapidly escalated into a potential legal confrontation. After Jia Guolong hinted at possible litigation to protect Xibei’s reputation, Luo Yonghao responded defiantly on social media with a challenge: “Okay, bring it on.” The tech entrepreneur then raised the stakes significantly by offering a 100,000 yuan reward for verifiable evidence proving Xibei uses pre-made dishes—transforming the dispute from a war of words into an evidence-based confrontation. Industry Leaders Weigh In The controversy drew commentary from other prominent figures in China’s food and business sectors. Hua Shan (华杉), chairman of marketing consultancy Hua & Hua, came to Xibei’s defense on Weibo, describing the chain as “a company that fights desperately to make good food” and Jia Guolong as “extremely protective of his reputation.” Meanwhile, Pang Donglai (胖东来) CEO Yu Donglai (于东来) offered more measured support, acknowledging that “nothing is perfect” while expressing gratitude for chains like Xibei and Haidilao that provide relatively trustworthy dining options. The Broader Implications for China’s Food Industry Beyond the personal clash between two strong-willed entrepreneurs, this controversy highlights several critical issues facing China’s restaurant industry as it continues its rapid development and modernization. The incident reveals growing consumer skepticism about food quality and transparency, particularly as restaurant chains expand and standardize their operations. With dining out becoming increasingly common in Chinese cities, customers are paying more attention to what they’re eating and how it’s prepared. The Regulatory Gap Luo Yonghao’s call for legislation mandating disclosure of pre-made ingredient usage points to a significant regulatory void. Currently, no national standards require Chinese restaurants to disclose their use of pre-made components, leaving consumers largely in the dark about how their food is prepared. This absence of clear regulation creates confusion not only for customers but for restaurant operators as well, who must navigate ambiguous definitions and changing consumer expectations without formal guidelines. The Economics of Modern Restaurants Jia Guolong’s defense of Xibei’s pricing—claiming the chain maintains average profit margins below 5%—sheds light on the financial pressures facing restaurant operators amid rising rents, labor costs, and ingredient expenses. The controversy raises questions about how restaurants can balance quality, affordability, and transparency in an increasingly competitive market. The Cultural Context of Food in China The strong emotional response to this controversy reflects deeper cultural values surrounding food in Chinese society. The concept of “锅气” (wok hei)—the distinctive flavor imparted by quick cooking in a hot wok—holds significant cultural importance, representing freshness, skill, and culinary authenticity. Many traditional Chinese cooking techniques emphasize last-minute preparation and serving dishes immediately after cooking to preserve texture and flavor. The perception that restaurants might bypass these traditions in favor of convenience threatens deeply held cultural values around food and dining. The Future of Food Transparency in China This very public dispute may accelerate moves toward greater transparency in China’s food service industry. Whether through voluntary measures by restaurants or government mandates, consumers appear increasingly interested in understanding how their food is prepared. Some industry observers suggest that rather than treating pre-made ingredients as something to hide, restaurants might benefit from openly discussing their food preparation methods and emphasizing whatever fresh elements they do incorporate into their dishes. International Perspectives on Pre-Made Foods Jia Guolong correctly noted that pre-made foods have gained significant acceptance in other developed markets, particularly Japan where such items account for 60-70% of home meals. The key distinction lies in quality standards, transparency, and consumer education about what they’re purchasing. In Western markets, many successful restaurant chains openly incorporate pre-made components while emphasizing other aspects of freshness and quality. The lesson for Chinese restaurants might be that transparency rather than denial represents the most sustainable approach. Lessons for Business Leaders This controversy offers several important lessons for business leaders across industries, particularly those in consumer-facing sectors where reputation is fragile and social media can rapidly amplify criticisms. First, it demonstrates the power of proactive transparency—Jia Guolong’s decision to open kitchens rather than simply denying allegations represented a strategic move that potentially mitigated reputational damage. Second, it highlights the importance of clearly defining terms and concepts that might be misunderstood by consumers. Finally, it shows that even successful businesses must continuously adapt to changing consumer expectations around issues like quality and transparency. The clash between Luo Yonghao and Jia Guolong represents more than a personal dispute—it signals a shift in consumer expectations that will likely affect how all restaurants operate in China. As customers become more knowledgeable and concerned about food quality, transparency will increasingly become a competitive advantage rather than a defensive necessity. The resolution of this particular controversy remains uncertain, but its impact on China’s food industry is already evident: questions about food preparation that were once whispered are now being asked openly, and restaurants that cannot provide satisfactory answers may find themselves facing their own version of the challenge Xibei now confronts. For consumers concerned about these issues, the path forward involves educating themselves about food production methods, asking specific questions when dining out, and supporting establishments that demonstrate commitment to transparency and quality. For restaurant operators, the lesson is clear: in the age of social media, secrecy is increasingly difficult to maintain, and transparency may be the most sustainable long-term strategy.