Eliza Wong
When tech entrepreneur Luo Yonghao (罗永浩) publicly criticized Xibei Youmian Village (西贝莜面村) for serving pre-made dishes at premium prices, he ignited a firestorm that reveals deeper tensions in China’s餐饮 industry. This controversy goes beyond one celebrity’s dining experience—it touches on consumer rights, pricing transparency, and the very definition of modern food preparation. As pre-made dishes become increasingly common in Chinese restaurants, customers are questioning whether they’re getting value for money or being served glorified convenience food. The clash between Luo and Xibei founder Jia Guolong (贾国龙) represents a pivotal moment for an industry grappling with standardization versus authenticity.
The Pre-Made Dish Controversy Explained
The dispute began on September 10 when Luo Yonghao took to Weibo to express his disappointment after dining at Xibei. His complaint wasn’t just about the food quality—it was about the revelation that most dishes were pre-made despite carrying premium prices. This sparked immediate backlash from Xibei, with Jia Guolong threatening legal action against Luo for what he called significant damage to the brand.
What Exactly Are Pre-Made Dishes?
The heart of the controversy lies in defining what constitutes pre-made dishes versus standard food preparation. According to China’s March 2024 regulations jointly issued by six government agencies, pre-made dishes are defined as pre-packaged菜肴 that require heating or cooking before consumption. However, ingredients that undergo simple processing like washing, peeling, or cutting—without actual cooking—are classified as agricultural products, not pre-made dishes. This distinction matters because central kitchen operations, which many chain restaurants including Xibei use extensively, don’t fall under the pre-made dish category according to these regulations.
Xibei’s Business Model and Market Position
Xibei has grown remarkably despite mixed customer reviews about taste, operating 400 direct-owned stores with annual revenue reaching 6 billion yuan. The secret to their success lies not in culinary excellence but in strategic positioning as a family-friendly destination.
The ‘Child-Friendly Restaurant’ Strategy
Xibei has masterfully positioned itself as the go-to restaurant for families with children. Their brand proposition centers on ‘giving better to children,’ making them the preferred choice for family dining across Chinese cities. The restaurant has sold over 40 million children’s meals and earned recognition as ‘China’s Number One Children’s Meal Brand.’ This strategy brilliantly converts family traffic into reliable revenue—each child represents parents willing to pay premium prices for convenience and child-friendly amenities.
Beyond the food itself, Xibei offers an experience: staff who give balloons to children, televisions showing cartoons, aromatic ice cream machines, and servers who sing, dance, and perform magic tricks. As one mother shared on social media, her family has established ‘Xibei Day’ for four consecutive weeks because her child eagerly anticipates the entire experience, not just the food.
The Pricing Debate Behind the Pre-Made Dish Controversy
While the public debate has centered on whether Xibei uses pre-made dishes, the underlying issue appears to be pricing. Consumers are questioning why they should pay restaurant prices for food that might be reheated rather than freshly prepared.
Consumer Expectations Versus Reality
The core issue isn’t necessarily that restaurants use pre-made components—it’s that customers expect freshly prepared meals when paying premium prices. When this expectation isn’t met, customers feel misled. Luo Yonghao’s criticism resonated precisely because it highlighted this disconnect between price and perceived value.
Industry data suggests that chain restaurants like Zhen Gong Fu (真功夫), Yoshinoya (吉野家), and Xibei use pre-prepared components for over 80% of their dishes. While this practice helps maintain consistency across locations and reduces operational complexity, it creates tension when prices don’t reflect the preparation method.
Industry-Wide Implications of the Controversy
Luo Yonghao’s criticism extends beyond Xibei to address broader industry practices. His call for legislation requiring restaurants to disclose pre-made dish usage speaks to growing consumer demand for transparency in the food service industry.
The Standardization Trend in Chinese Restaurants
The move toward standardized, centralized food preparation began gaining momentum around 2011 when Haidilao’s exceptional service standards went viral on Weibo. Other chains, including Xibei, followed suit by implementing standardized processes. In 2013, Xibei introduced hourglass timing for meal service, promising complete service within 28 minutes with yogurt compensation for delays.
The establishment of central kitchens became essential for chain restaurants seeking to maintain consistency while controlling costs. Xibei began developing its central kitchen system in 2014, creating facilities across China to supply its growing network of restaurants. While these operations don’t qualify as pre-made dish production under current regulations, they represent the industry’s move toward standardized, efficient food preparation.
Legal and Regulatory Considerations
The controversy highlights the evolving regulatory landscape for China’s food service industry. With pre-made dishes becoming increasingly common, regulators are playing catch-up to establish clear standards and disclosure requirements.
Current Regulatory Framework
The March 2024 notification from China’s regulatory bodies represented the first national-level attempt to define pre-made dishes and establish guidelines for their use. However, as the Xibei case demonstrates, there remains significant ambiguity in how these regulations apply to different preparation methods. The distinction between central kitchen operations and pre-made dish production continues to cause confusion among consumers and industry players alike.
Market Response and Industry Support
The controversy has drawn responses from across the business community, including support for Xibei from unexpected quarters. Pang Donglai (庞东来), CEO of well-regarded retailer Pang Donglai, publicly expressed support for Xibei and similar chain restaurants, acknowledging the challenges of running large-scale food operations while maintaining quality.
This support highlights an important reality: operating successful restaurant chains in China involves tremendous complexity, and perfect solutions are elusive. While consumers deserve transparency, businesses also deserve recognition for the systems they’ve built to serve millions of customers consistently.
The Path Forward for Restaurants and Consumers
This controversy presents an opportunity for the restaurant industry to address growing consumer concerns about food transparency and pricing. Several approaches could help bridge the gap between consumer expectations and operational realities.
Embracing Transparency
Forward-thinking restaurants might proactively disclose their food preparation methods, turning potential liabilities into trust-building opportunities. Rather than hiding their use of centralized preparation, restaurants could educate customers about how these methods ensure consistency and safety across locations.
Reevaluating Pricing Models
The controversy suggests that consumers might accept pre-made components if pricing reflects the preparation method. Restaurants could consider tiered pricing that distinguishes between fully fresh-prepared dishes and those incorporating pre-prepared elements.
The clash between Luo Yonghao and Xibei represents more than a celebrity complaint—it signals a turning point in how Chinese consumers think about restaurant food. As dining out becomes increasingly expensive, customers are scrutinizing what exactly they’re paying for. The restaurants that thrive in this new environment will be those that embrace transparency, align pricing with value, and acknowledge that today’s consumers care as much about how their food is prepared as how it tastes. The conversation started by Luo Yonghao deserves continued attention from consumers, industry players, and regulators alike. Share your thoughts on restaurant transparency in the comments below.
