Chinese restaurant chain Xibei (西贝) has landed itself in hot water. The cause? Enraging entrepreneur-influencer Luo Yonghao (罗永浩). The problem? ‘Pre-prepared food’.
The controversy began with a disappointing meal, prompting Luo to take to his Weibo account of 1.4 million followers and declare that at Xibei, food was almost all pre-made and still so expensive (”发现几乎全都是预制，还那么贵“).
What began as an angry social media post became a heated battle between one influencer and a company of nearly 400 stores with revenue exceeding RMB 6.2 billion (about $860 million USD).
It quickly slid into a mudslinging match. Xibei denied the claims that their meals were pre-prepared. Luo hit back again with a mocking comment that said ‘Plastic bags are cut fresh, the microwave is operated fresh, and the pre-prepared scripts are freshly read.’ The same day the topic began to trend on Weibo.
Founder and chairman of Xibei, Jia Guolong (贾国龙), got involved. To stem the flow of negative press, he opened the kitchens of Xibei branches nationwide so that customers could see for themselves the preparation of their dishes. He also said he’d sue Luo Yonghao for defamation, to which Luo replied ‘Bring it on’ and offered a RMB 100,000 reward (about $14,000 USD) for anyone that came forward with evidence that Xibei pre-prepared food.
At the heart of the matter is a debate about the definition of the words ‘pre-prepared’. Xibei’s argument is that their food doesn’t fit the strict legal definition of the term. The loophole works by separating food that is prepared – as in cut, portioned, seasoned etc. – offsite from food that is actually cooked offsite and then reheated in store.
Something broader is at play too. Xibei gained a lot of market share by strategically positioning itself as a family restaurant. They actively targeted households with young children with extensive marketing campaigns and kid’s dinner options.
The fact that Xibei uses legal loopholes to skirt around the definition of a pre-prepared meal leaves customers who trusted the brand to feed their families feeling cheated. Luo Yonghao has hit a raw nerve. For Chinese consumers, transparency around the industrial food industry is serious business.
