In-depth Implications of XiBei's Pre-made Dish Controversy for the Capitalization Path of the Catering Industry

Based on the above research, I now provide you with a systematic and comprehensive analysis report.

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From September 2025 to early 2026, XiBei Catering Group experienced the most severe public relations crisis in its history[1]. The controversy began on September 10, 2025, when renowned entrepreneur Luo Yonghao posted publicly on Weibo, questioning that “nearly all of XiBei’s in-store dishes are pre-made, yet sold at the high price of freshly cooked dishes”, and calling on the state to legislate to mandate catering enterprises to disclose the use of pre-made dishes[3].

XiBei’s founder Jia Guolong responded strongly immediately, claiming that “XiBei does not have a single pre-made dish” and stating that he would sue Luo Yonghao[3]. However, public opinion fermented rapidly: from September 11 to 12, the daily turnover of XiBei’s national stores decreased by 1 million yuan and was expected to decrease by 2-3 million yuan respectively[1]. On September 15, XiBei finally issued an apology letter, admitting that “there is a gap between the production process and customer expectations”, and promised to adjust the central kitchen processing process to on-site preparation in stores[1].

On January 15, 2026, the event escalated further — XiBei announced that it would close 102 stores nationwide in the first quarter of 2026, covering over 30 cities and involving approximately 4,000 employees[1]. Jia Guolong confirmed that the number of stores to be closed accounts for about 30% of XiBei’s total stores, including 19 in Shanghai, 10 in Beijing, 8 in Shenzhen, and 5 in Guangzhou[2].

The essence of this controversy is a game between

. In March 2024, the State Administration for Market Regulation and five other departments jointly issued the “Notice on Strengthening Food Safety Supervision of Pre-made Dishes and Promoting High-quality Industrial Development”, clarifying the official definition of pre-made dishes[1]:

Pre-made dishes are pre-packaged dishes made from edible agricultural products and their products, without added preservatives, processed through industrial pre-processing, and edible only after heating or cooking.

Notably,

[1]. XiBei cited this clause, insisting that it uses “central kitchen food preparation” rather than “pre-made dish packages”, emphasizing that its “quick-frozen organic broccoli” has higher costs and better quality[1].

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According to public information, XiBei originally planned to complete its IPO in 2026, and its capitalization path had already been laid out[4]. Data from Tianyancha shows that XiBei Catering Group was established in October 2017, with Jia Guolong as the actual controller, holding approximately 29.71% directly and a total shareholding ratio of 77.91%[3]. Since 2017, XiBei has completed three rounds of financing, with the latest one in January 2025 from Chengdu Xinchao Media Group[3].

Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, pointed out that XiBei’s IPO plan faces three major uncertainties[4]:

Risk Dimension	Specific Performance
Regulatory Risk	Insufficient supply chain transparency exacerbates capital market concerns about compliance
Brand Trust Crisis	The controversy has weakened XiBei’s brand moat of “high-quality, mid-to-high-end positioning”
Intensified Competition	Consumers shift to competing brands, accelerating market share loss

From a financial perspective, XiBei reached a historical peak revenue of 6.2 billion yuan in 2023, serving over 37.66 million customers[4]. However, the catering market cooled overall in 2024, and XiBei did not disclose specific revenue data. After the pre-made dish controversy, its turnover plummeted: the number of takeout orders at some stores dropped sharply from 30 on normal days to 3-4, and customer traffic at a store in Chengdu decreased by approximately 10%[3].

More critically, the large-scale store closure in January 2026 will directly impact XiBei’s financial statements. According to the store closure list compiled by Interface News, the stores to be closed are mainly concentrated in first- and second-tier cities, with core markets such as Shanghai, Beijing, Shenzhen, and Guangzhou being the most affected[2].

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According to the “2025 Series Report on the Capital Path of Chinese Chain Catering Enterprises”, IPO activities of Chinese catering enterprises in the Hong Kong capital market were extremely active in 2024 and 2025[5]. Successful cases include:

Enterprise	Listing Date	Core Advantages	Estimated Market Value
Guming	February 2025	Stable mid-tier tea beverage model	HK$23 billion
Mixue Bingcheng	2025	Supply chain dominance, extreme low pricing	Approximately HK$200 billion
Hushang Ayi	May 2025	Differentiation in northern sinking markets	HK$20 billion
Niu Daren	2025	Regional champion of Hong Kong-style hot pot	—

However, not all catering enterprises can go public smoothly. Laoxiangji’s three attempts to list on the HKEX, Yujian Xiaomian’s break on listing, and Green Tea Group’s poor performance after listing all reveal that the capital market is increasingly strict in examining catering enterprises[5].

According to the “2025 Catering Enterprise Development Report” released by KPMG, catering enterprises face the following major challenges in going public[6]:

1. High Difficulty in Quality Control
   : It is difficult to maintain highly consistent product quality across different stores of the same chain brand
2. Severe Product Homogenization
   : Weak brand moat, easy to fall into price competition
3. Short Growth Cycle
   : Products are easily copied quickly, making it difficult to sustain competitive advantages
4. High Requirements for Financial Standardization
   : High compliance costs for verifying revenue authenticity, checking capital flows, and identifying related party risks
5. Vulnerability of Single-store Model
   : Over-reliance on the growth illusion of “subsidizing single stores with overall store revenue”

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XiBei’s pre-made dish controversy reveals a key proposition:

[1].

In September 2025, the State Administration for Market Regulation stated that it would accelerate the formulation of national standards for pre-made dishes[1]. This means that in future catering IPO reviews, supply chain compliance, traceability of ingredients, and the boundary between central kitchen and store processing processes will become mandatory inspection items.

: When planning their IPO paths, catering enterprises must establish a clear, complete, and verifiable supply chain information disclosure system in advance to avoid situations like XiBei’s “gap between professional cognition and consumer cognition”[1].

Wen Zhihong, an expert in chain operation industry, pointed out that “pre-made dishes themselves are a relatively new concept with great controversy, and once there is related public opinion, it can easily be amplified”[1]. Zhu Danpeng, a food industry analyst, also emphasized that “consumers have the right to know, and thus the right to choose”[1].

The warning this event brings to all catering enterprises is:

[4]. Listed companies must demonstrate long-term competitiveness, and any brand trust crisis will be directly reflected in stock prices and valuations.

The XiBei case shows that there is a huge gap in consumer perception regarding the “central kitchen food preparation” model commonly adopted by catering enterprises. Although the national level clearly stipulates that dishes from central kitchens are not pre-made dishes, consumers do not have a clear understanding of this[1].

: When promoting industrialization and standardization transformation, catering enterprises must simultaneously carry out consumer education, clearly label the processing methods of dishes, and respect consumers’ right to know and choose. This is not only a moral obligation but also an important consideration factor in IPO reviews and ESG ratings.

Jia Guolong’s reflection during the 2020 COVID-19 pandemic is representative: “The catering industry is a cash flow industry, and it is very vulnerable once it encounters major disasters, so I decided to participate in the capital market”[4]. However, the XiBei case shows that capitalization is not a panacea — even with an IPO plan, a public relations crisis can still lead to large-scale store closures.

: The capitalization path of catering enterprises needs to simultaneously strengthen internal capabilities, including:

• Establish diversified income sources (in-store dining, takeout, retail products)
• Maintain a reasonable asset-liability structure
• Establish crisis public relations mechanisms and public opinion response plans
• Ensure the authenticity and traceability of financial data

According to the analysis of the store closure list, the 102 stores to be closed by XiBei are mainly concentrated in first- and second-tier cities[2]. This reflects the structural pressure faced by mid-to-high-end formal dining brands amid the consumption downgrade trend.

: For catering enterprises planning to go public, they need to clearly explain to the capital market:

• Whether the store network expansion strategy is sustainable
• Profitability of the single-store model at different city levels
• How to balance scale expansion and brand positioning maintenance

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With the accelerated formulation of national standards for pre-made dishes, compliance requirements for the catering industry will increase significantly. It is expected that future IPO reviews will focus on:

• Construction of ingredient traceability systems
• Clear division of processing processes between central kitchens and stores
• Standardized disclosure of pre-made dish usage
• Improvement of food safety management systems

Based on the analysis of the XiBei case, the following recommendations are put forward for catering enterprises planning to go public:

Dimension	Key Actions
Supply Chain	Establish a full-process traceability system and adapt in advance to the upcoming pre-made dish standards
Brand	Proactively establish a transparent communication mechanism with consumers to avoid information asymmetry
Finance	Ensure the standardization and auditability of revenue recognition, capital flows, and related party transactions
Governance	Establish sound crisis public relations mechanisms and public opinion response plans
Strategy	Clearly explain differentiated competitive advantages and growth logic to the capital market

For investors focusing on the catering sector, the XiBei case provides the following risk warnings:

• Brand Trust Risk
  : In the era of social media, any brand reputation crisis can be amplified rapidly
• Model Sustainability Risk
  : Structural vulnerability from over-reliance on a single product or customer group
• Regulatory Compliance Risk
  : The industry may face reshuffle after the introduction of pre-made dish standards

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XiBei’s pre-made dish controversy is a landmark event in the development of China’s catering industry. It not only exposes the cognitive gap of traditional catering enterprises in industrial transformation but also profoundly reveals the critical importance of brand trust, supply chain transparency, and compliance governance in the catering capitalization process.

The core insight of this controversy for the catering capitalization path is:

. Against the dual background of accelerated formulation of national standards for pre-made dishes and the awakening of consumers’ awareness of the right to know, enterprises that can establish clear supply chain transparency, maintain brand trust, and demonstrate sustainable profitability will stand out in the capitalization competition[5][6].

XiBei can rebound from the crisis and restart its IPO process only if it truly practices its corporate philosophy of “truthfulness, sincerity, and authenticity” and achieves fundamental breakthroughs in supply chain transparency and consumer communication. The final outcome of this case will also provide a valuable reference sample for the capitalization path of the entire catering industry.

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[1] Sina News - “Should Luo Yonghao Be Held Responsible for XiBei’s Pre-made Dish Controversy? Lawyer’s Interpretation” (https://news.sina.cn/gn/2026-01-17/detail-inhhqhwc4894238.d.html)

[2] Securities Times - “XiBei’s Jia Guolong Speaks Out Again to Vindicate Hua Shan” (https://www.stcn.com/article/detail/3596399.html)

[3] 21st Century Business Herald - “Escalation of the Controversy Between Luo Yonghao and XiBei’s Pre-made Dishes: IPO Plan Faces Uncertainty Amid Bounty and Legal Confrontation” (https://www.21jingji.com/article/20250913/herald/23d5e998482d9dd038693955a90a06d4.html)

[4] Securities Times - “Reputation Plummets, Revenue Suffers, IPO Plan Shrouded in Uncertainty” (https://www.stcn.com/article/detail/3340850.html)

[5] China Chain Store & Franchise Association - “Release of the 2025 Series Report on the Capital Path of Chinese Chain Catering Enterprises” (http://www.ccfa.org.cn/portal/cn/xiangxi.jsp?id=446885&type=33&imageType=0)

[6] Linkshop - “Nine Major IPO Events in the Catering Industry in 2025” (https://finance.sina.com.cn/roll/2026-01-14/doc-inhhfvyt5205122.shtml)