Xibei founder Jia Guolong urges regulator action as chain shrinks from 397 to 228 stores
Chinese restaurant chain Xibei has closed 169 stores, dropping from 397 to 228 locations, amid a crisis triggered by a September 2025 public dispute with tech entrepreneur Luo Yonghao over pre-made dishes. Founder Jia Guolong appeared publicly on September 20, 2026, urging regulators to clarify boundaries for high-traffic online accounts. The company reported over 600 million yuan in losses from September 2025 to March 2026 and has furloughed employees. Xibei denies imminent bankruptcy.
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Cross-source coverage
Common ground
- Both sides agree that Xibei's use of pre-prepared ingredients and its response to criticism caused significant harm, including a 600 million yuan loss and 4,000 job displacements.
- Both acknowledge that founder Jia Guolong's PR response was mishandled and contributed to the crisis.
- Both agree that the 4,000 workers affected by delayed severance payments are the real victims in this situation.
Points of contention
- The Regional Agent sees Xibei's ingredient switch as a deliberate lie and breach of trust, while the Eastern Agent views it as a normal supply chain evolution that was poorly communicated.
- The Regional Agent argues social media outrage is a necessary tool for consumer accountability in China, while the Eastern Agent calls it mob rule that destroys businesses without due process.
- The Regional Agent believes corporate accountability should come from public pressure, while the Eastern Agent insists on stronger regulatory frameworks to protect businesses from viral scandals.
- The Eastern Agent frames the debate as a geopolitical issue where Western media uses such scandals to attack China's economy, but the Regional Agent rejects this as a distraction from corporate responsibility.
Blind spots
- Neither side fully addresses how to balance consumer rights with business stability in a way that protects workers during restructuring.
- Both overlook the role of Chinese media and regulators in either enabling or preventing such crises before they escalate.
- The debate ignores the possibility that Xibei could have been transparent about its supply chain changes without losing customer trust.
WorldAttention’s read
The Xibei saga reveals a deep divide over how accountability should work in China. The Regional Agent argues that the company broke a clear promise to customers by secretly switching to frozen ingredients, and that social media is the only tool ordinary people have to hold powerful companies accountable, especially when workers' severance is delayed. The Eastern Agent counters that this is a normal business evolution blown out of proportion by viral outrage, and that destroying a national champion over a marketing mistake hurts the very workers both sides claim to defend. Ultimately, both agree the 4,000 displaced workers are the real victims, but they disagree on whether the solution is more public pressure or stronger institutional safeguards. The blind spot is that neither offers a practical path forward that ensures both corporate honesty and economic stability without relying on either mob justice or corporate protectionism.
Reporting timeline
Xibei founder Jia Guolong speaks out after blogger claims chain faces bankruptcy and lawsuit against Luo Yonghao
A Chinese blogger with over 5.4 million followers, 'Liji', posted on September 19, 2026, claiming that Xibei, a major Chinese restaurant chain, would completely collapse within two to three months. The blogger alleged founder Jia Guolong would personally assume most debt, give up equity, and leave about 100 profitable stores for employee self-management. Xibei customer service responded that all stores are operating normally. On September 20, Jia Guolong made a rare public appearance, urging regulators to clarify the boundary between normal supervision and malicious defamation by high-traffic online accounts. The crisis traces back to September 2023, when Luo Yonghao criticized Xibei for using expensive pre-made dishes, sparking a public dispute. Xibei subsequently sued Luo. Data shows Xibei's store count dropped from 397 to 228, with 169 closures. Employees at a Beijing branch were notified of furlough until end-2026 at minimum wage. Jia's wife pledged all her 5.4 million shares to ICBC. An audit report suggests Xibei's valuation may have fallen from 10 billion yuan to about 1.47 billion yuan.
Read sourceInfluencer 'Liji' Blames Luo Yonghao for Xibei's Collapse, Threatens to Expose Secrets
On September 20, 2025, prominent Chinese social media influencer 'Liji' published a series of posts on Weibo blaming tech entrepreneur Luo Yonghao for the impending collapse of the restaurant chain Xibei. Liji accused Luo of destroying the company through a public complaint about its use of pre-made dishes (预制菜), which triggered a PR crisis. Liji claimed Luo's actions cost thousands of jobs and threatened to expose Luo's secrets using connections to writer Feng Tang. The article notes that Xibei's founder, Jia Guolong, exacerbated the crisis by denying the use of pre-made dishes and inviting public scrutiny, which backfired when frozen ingredients were discovered. Xibei reportedly lost over 600 million yuan between September 2025 and March 2026, closed 102 stores, and deferred severance payments to 4,000 employees until 2028. The company denies imminent bankruptcy but acknowledges it is struggling to survive. Many online users rejected Liji's claims, attributing the crisis to Xibei's own mismanagement.
Read sourceInfluencer 'Liji' Blames Luo Yonghao for Xibei's Collapse, Threatens to Expose Him
On September 20, Chinese social media influencer 'Liji' published a series of posts blaming tech entrepreneur Luo Yonghao for the impending collapse of restaurant chain Xibei. Liji accused Luo of destroying the company with a single critical comment about its use of pre-made dishes, and threatened to expose Luo's alleged connections to powerful figures, including a cryptic reference to 'Feng Tang.' The article details how Xibei's founder Jia Guolong's aggressive response to Luo's criticism backfired, leading to a public relations disaster. A live-streamed kitchen tour revealed frozen ingredients with long shelf lives, contradicting claims of fresh cooking. This triggered a sharp decline in customers, with losses exceeding 600 million yuan from September 2025 to March 2026, and the closure of 102 stores. Xibei has denied rumors of imminent bankruptcy but acknowledged it is in a difficult self-rescue phase. Many online users rejected Liji's claim that Luo is solely responsible for Xibei's troubles.
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Xibei Closure Blame Sparks Controversy; Influencer 'Liji' Blames Luo Yonghao
On September 20, influential Chinese social media figure 'Liji' published a series of posts on Weibo blaming Luo Yonghao for the impending collapse of restaurant chain Xibei. Liji accused Luo of destroying the company through a public complaint about its use of pre-made dishes, and threatened to expose Luo's alleged connections to powerful figures. The article reports that Xibei's crisis began in September 2025 when Luo criticized Xibei for serving expensive pre-made food. Founder Jia Guolong responded defiantly, claiming '100% no pre-made dishes' and threatening to sue, which escalated the situation. A subsequent open-kitchen tour revealed frozen ingredients with long shelf lives, destroying consumer trust. From September 2025 to March 2026, Xibei lost over 600 million yuan and closed 102 stores. The company has delayed severance payments to 4,000 laid-off employees until 2028 and launched new brands under separate legal entities, raising suspicions of asset transfer. Xibei denies imminent bankruptcy but admits it is struggling to survive. Many netizens rejected Liji's claim that Luo was solely responsible.
Read sourceXibei's Closure Blamed on Luo Yonghao by Influencer 'Liji' in Heated Online Exchange
On September 20, prominent Chinese social media influencer 'Liji' published a series of posts on Weibo blaming tech entrepreneur Luo Yonghao for the impending collapse of restaurant chain Xibei. Liji accused Luo of destroying the company through a public complaint about its use of pre-made dishes, and threatened to expose Luo's alleged connections to powerful figures, including a cryptic reference to 'Feng Tang.' The article details that Xibei's crisis began in September 2025 when Luo criticized the chain for serving expensive pre-made food. Founder Jia Guolong responded defiantly, claiming '100% no pre-made dishes' and threatening to sue, which escalated the dispute. A subsequent live-streamed kitchen tour revealed frozen ingredients with long shelf lives, destroying consumer trust. Between September 2025 and March 2026, Xibei lost over 600 million yuan and closed 102 stores. The company has delayed severance payments to 4,000 employees until 2028 and launched new brands, raising allegations of asset stripping. Xibei denies imminent bankruptcy but admits to struggling. Many online users rejected Liji's attribution of sole blame to Luo.
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