Xibei is closing 102 stores — 30% of its network — after the pre-made food crisis

In September 2025 a storm broke over Xibei's use of pre-made dishes — a charge that stuck to a chain charging premium prices for what customers assumed was fresh cooking. Founder Jia Guolong called it the biggest external crisis since the company was founded. Xibei answered with an apology letter and nine adjustments — children's meals cooked fresh, non-GMO soybean oil — cut prices by about 20% from October 1, and handed out more than ¥300 million of vouchers across October and November.

None of it bought the traffic back. In January 2026 store business fell 50% year-on-year, and on January 15 Jia Guolong confirmed to China Newsweek that Xibei will close 102 stores in one move — 30% of a network of roughly 340 locations.

In December the founder made the admission himself: 'I admit my mistakes — to our customers, to our employees, and to myself.' Analysts described the closures as a phased strategic contraction and self-rescue after an opinion crisis; the vouchers were meant to recover blood before generating new blood. About 240 stores stay open while Xibei tests a new slogan and logo in what Jia Guolong called a small-scale trial.