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He Huifeng

In the run-up to National Day, a week-long celebration viewed as a litmus test for the strength of China’s domestic consumption, a fiery feud between a celebrity entrepreneur and one of the country’s best-known restaurant chains has drawn widespread attention to cost-saving practices in the food industry.
The drama began on September 10, when influencer Luo Yonghao – a former teacher known for his outspoken views – blasted the popular Xibei restaurant chain on social media, claiming his “disgusting” meal featured pre-made food sold at premium prices.
Luo used his platform to urge mandatory menu labelling for dishes not made to order, drawing millions of comments about transparency and food quality in the country’s restaurants.
Xibei founder Jia Guolong soon fired back, insisting the chain only offers “semi-processed” items and opening the kitchens at its nearly 400 outlets. Under intensified scrutiny, videos of restaurants using packaged and frozen ingredients circulated rapidly, further validating Luo’s complaints.
With millions joining the fray online, many of the country’s eateries fear the controversy will shrink their already narrow margins and depress turnout during one of their busiest times of the year.
From January to August, the National Bureau of Statistics reported the catering industry’s income reached 3.6 trillion yuan (US$505.2 billion), an increase of 3.6 per cent over the same period in the previous year. But in 2024, the bureau’s year-on-year growth rate for the same span of months was 6.6 per cent, and 2023’s figure was 19.4 per cent.
This year, the National Day break overlaps with the Mid-Autumn Festival, extending the seven-day holiday into an eight-day “super golden week” that should have proved lucrative for China’s restaurateurs.


But weeks after the initial flare-up, social media continues to buzz with posts about pre-made dishes, with many attracting hundreds or thousands of comments criticising restaurants deemed as offenders.
The chain appears to have made a direct appeal to consumers’ pocketbooks to quell the discontent. Various Chinese media outlets reported that on Wednesday, Xibei restaurants nationwide had cut the prices of some dishes by 20 to 40 per cent. The Post confirmed the price change on Friday by using the chain’s ordering platform.
Despite the uproar, more people are turning to pre-made meals as a quicker and more convenient food source. According to China Fortune Securities, their per capita consumption rose from 5.4kg in 2013 to 9.1kg in 2022, with an expected market value of 475.7 billion yuan (US$66.8 billion) this year.
Not all of China’s diners appear eager to adapt to the trend, however. A poll by news outlet New Express found one-third of 70,000 respondents would never consume pre-made food, with over 40 per cent demanding clear labelling.
Regulatory gaps make such labelling a challenging proposition, as China lacks national standards for these dishes.
A March 2024 notice from the State Administration for Market Regulation defines them as “pre-packaged food products made from agricultural ingredients” that need to be “heated or cooked before eating”. But binding safety or labelling rules have yet to be created.
On September 21, in response to public concern, the State Council Food Safety Office said it would speed up the application of standards and labelling rules for restaurants, though it did not provide a timeline for this process.
What consumers really resent isn’t pre-made dishes, but paying premium prices for them
Wu Yi, restaurant investor
Pre-made dishes are not a sin in themselves, but a response to new economic realities, said Wu Yi, a restaurant investor in the southern province of Guangdong.
“Shifts in Chinese households and the economy mean pre-made dishes will only grow more popular. Chains need consistency and cost control, delivery platforms need faster turnaround and higher margins, smaller families and younger consumers prefer convenience.”
But some consumers remain frustrated by the trend.
“I went to a restaurant recently and found many freshly cooked dishes were gone. Only pre-made dishes remained. The waitress said, ‘It’s our last day, we are just clearing stock,’” said Guangzhou diner Qiu Rui.
“Honestly, it’s no surprise it was shutting down.”
In dining and beyond, the approaching holiday will serve as a test of consumer sentiment, with businesses of all kinds learning to adapt to changing preferences in quality, transparency and value.
“What consumers really resent isn’t pre-made dishes, but paying premium prices for them,” Wu said. “With incomes tightening, their presence in high-end restaurants strikes an especially sensitive nerve.”


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China’s National Day holiday, traditionally a busy time for restaurants, could see underperformance amid wave of online comments over food quality


China’s National Day holiday, traditionally a busy time for restaurants, could see underperformance amid wave of online comments over food quality.


China’s struggling restaurants feeling queasy as debate rages over pre-made food

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}China’s National Day holiday, traditionally a busy time for restaurants, could see underperformance amid wave of online comments over food quality

China’s National Day holiday, traditionally a busy time for restaurants, could see underperformance amid wave of online comments over food quality