Xibei Prepared Food Controversy: A Capital vs. Consumer Clash and What It Means for the Future of China’s RTE Industry

Preface: A Wake-Up Call for the Entire Industry

In recent weeks, one of China’s most talked-about food industry controversies has been the public battle between entrepreneur Luo Yonghao and restaurant chain Xibei over the use of prepared food (also known as Ready-to-Eat, or RTE, meals).

This highly publicized dispute reflects a broader and deeper concern: a growing gap between the capital-driven industrialization of food and the expectations of today’s more informed, vocal, and health-conscious consumers.

As public sentiment evolves, this incident has become a catalyst for important questions:

• What does the Chinese consumer actually want?
• Can prepared food be both efficient and trustworthy?
• What role does technology play in rebuilding industry credibility?

As a company specializing in prepared food automation and packaging equipment, we see this as a moment not of crisis, but of opportunity—to build an industry that is transparent, sustainable, and consumer-first.

 

I. A Quick Recap: From a Single Post to a Crisis of Trust

• September 10: Influencer and entrepreneur Luo Yonghao posted a complaint about his dining experience at Xibei, criticizing the food for being “almost entirely pre-cooked, not tasty, overpriced, and not clearly labeled.” His post pushed Xibei’s central kitchen model into the spotlight.

• September 11: Xibei’s founder, Jia Guolong, responded forcefully, claiming the food came from a central kitchen and was not “prepared food.” it should be called “Process Front-loading”. He even said he planned to sue Luo Yonghao. On the same day, Luo offered a 100,000 RMB bounty for anyone who could provide proof of Xibei using pre-made dishes.

• September 12: Xibei opened its kitchen doors to public scrutiny, but online sleuths soon discovered troubling signs:

  • No open flames in the kitchen (only induction stoves)

  • Unskilled staff operations

  • Use of genetically modified soybean oil

  • Chicken Soup bases that heat up in just 6 minutes &without Chicken

  • Broccoli with a 24-month shelf life

  • Grilled fish and frozen buns preserved for 18 months

  • Meat in their famous “Roujiamo” sandwiches is frozen for 9 months

       It’s worth mentioning that Xibei’s kitchen does an excellent job in terms of cleanliness and hygiene. Mostly, suppliers come from different large-scale factories, and objectively speaking, his suppliers represent the high-end segment in China. High-quality control in the supply chain.

• September 13–14: Luo called for greater transparency in the prepared food industry, hoping to ease tensions. However, Jia fired back, accusing him of running an “online mafia,” which reignited backlash. Over 90% of netizens sided with Luo, and Xibei’s PR approach was widely mocked as “corporate suicide.”

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II. The Core Problem with Xibei: A Mismatch Between Consumer and Corporate Perceptions of Prepared Foods

1. Different definitions of “prepared food.”
   Consumers believe that any meal not freshly cooked counts as prepared food. Xibei, however, argues that semi-finished products delivered to restaurants for further processing do not fall under this category and insists this practice is legal. In doing so, the company attempts to reshape consumer perception—effectively putting itself in opposition to its customers.

2. Lack of transparency = lack of respect.
   By refusing to clearly label semi-finished dishes and instead hiding behind regulatory definitions, the company strips consumers of their right to know and their right to choose. In today’s era of information transparency, such dishonesty inevitably backfires.

But what do everyday consumers really care about? They simply ask:

• “Is this meal freshly prepared?”

• “Is it honest?”

• “Is it worth the price?”

In the end, customers pay high prices for Chinese cuisine, only to be served factory-made dishes produced months—or even a year—earlier. This reflects a disregard for the dignity and needs of the very people Xibei depends on.

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This controversy has essentially exposed a shared problem across all chain restaurants:
To maintain consistent flavor, lower costs, and rapidly expand, pre-made food is often the only viable path — just like McDonald’s, KFC, or Wallace.
When these chains are upfront about their use of such food and transparent with pricing, there are no major consumer complaints.

According to a 2024 McKinsey report on Chinese consumer behavior:

72% of respondents said they would stop buying from a brand if they believed it was hiding product origins or ingredients.

Transparency is not a luxury—it’s a necessity.

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3. Prepared Food in China: Huge Growth, But Unique Challenges

Prepared food (also known as RTE meals, pre-cooked dishes, or semi-prepared meals) has grown rapidly in China over the past 5 years, driven by:

• Urbanization
• Dual-income households
• Time-poor young consumers
• Growth in food delivery and takeout services

📊 Market Snapshot: China vs. Global Prepared Food Trends

🍱 Prepared Food Categories in China

• Hot pot bases & soup packs
• Frozen dumplings & buns
• Stir-fry meal kits
• Braised meat pouches
• Bento boxes
• Specialty snacks (e.g., Roujiamo, grilled fish)

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4. The Path Forward: Transparency, Technology, and Trust

🔬 a) Technical Innovations to Enhance Flavor and Safety

New technologies are making it possible to reduce additives, preserve freshness, and deliver “chef-level” flavor through automation.

Examples of key technologies:

• High Pressure Processing (HPP): Preserves food without heat or chemicals

• Flash Freezing (IQF): Locks in texture and nutrients quickly

• Flavor Recovery Systems: Restore aroma compounds lost during processing

• MAP (Modified Atmosphere Packaging): Extends shelf life while maintaining freshness

🏭 b) Automation Equipment: Backbone of RTE Production

Automation is not just about cutting costs—it ensures hygiene, efficiency, and consistency. Our solutions support:

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5. Rebuilding Consumer Trust Through Labeling and Positioning

🏷️ Honest Labels Are the New Brand Loyalty

Chinese consumers are increasingly health-conscious, label-reading, and skeptical.
The smartest brands are no longer hiding prepared food—they’re owning it.

✅ Best Practices for Brands:

• Clearly label which dishes are “prepared” or “central kitchen made”

• Position RTE meals for convenience scenarios like:

  • Family dinners

  • Outdoor camping

  • Office lunches

• Avoid deceptive “made-to-order” messaging

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6. The Call to Action: To Industry Leaders and Food Tech Innovators

If you’re in the business of food—whether as a restaurant chain, private label brand, or OEM factory—this is the time to upgrade:

✔️ You should be investing in:

• Automation equipment customized for your SKUs

• Food-grade facilities with traceability systems

• Short-supply chain logistics for higher freshness

• Clean-label formulation to meet regulatory & consumer demands

As a company specialized in automated RTE meal packaging, we provide end-to-end solutions tailored to your product types, packaging goals, and market positioning.

Whether you’re launching a new product line or upgrading an existing one, our team can help ensure your systems are:

• Scalable and cost-efficient

• Compliant with China’s increasingly strict food laws

• Designed for long shelf life without compromising taste

• Integrated with full transparency and traceability tools

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Conclusion: Industrialization ≠ Dehumanization

The controversy between Luo Yonghao and Xibei will eventually fade. But the lesson it leaves behind is loud and clear:

Prepared food is not the enemy—dishonesty is.

With transparency, technological innovation, and real respect for the consumer, prepared food can evolve into a trusted, loved, and essential part of modern life in China.