Report on the Degree of Brand Value Damage to Xibei

Based on the collected data, I will systematically analyze the degree of brand value damage to Xibei.

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On September 10, 2025, well-known KOL Luo Yonghao publicly criticized Xibei Youmian Village on Weibo, saying “Almost all dishes are prepared dishes, and they are so expensive. It’s disgusting,” triggering a severe brand crisis[1][2]. Jia Guolong, founder of Xibei, referred to this incident as “the biggest external crisis since Xibei’s establishment”[3]. This turmoil not only caused a cliff-like drop in short-term revenue, but also caused in-depth damage to brand reputation and consumer trust, and had a major impact on its 2026 IPO plan[1][2].

According to data publicly disclosed by Jia Guolong himself, Xibei’s turnover suffered a direct impact after the controversy broke out[1][2]:

Time	Turnover Loss
September 10	Decrease of 1 million RMB
September 11	Decrease of 1 million RMB
September 12	Estimated loss of 2-3 million RMB

Latest data from January 2026 shows that since the controversy broke out in September 2025, none of Xibei’s stores have been profitable, with cumulative losses exceeding 500 million RMB as of now[4][5]. To cope with continuous losses, Xibei was forced to close 102 stores nationwide, accounting for about 30% of its more than 370 stores, affecting approximately 4,000 employees[4][5].

According to public opinion monitoring data[1][6]:

• On the day the incident broke out
  : The related discussion volume reached 590, interaction volume was nearly 20,000, negative sentiment accounted for as high as 85.87%, and the Net Sentiment Ratio (NSR) plummeted to -97%
• During the entire incident
  : Negative sentiment accounted for nearly half of the discussion and interaction volume, with the NSR remaining in the low range of -77% to -97%
• Public trust in Xibei
  : A severe trust crisis was evident

Xibei has long positioned “freshly cooked on-site” as its core selling point to attract consumers who pursue quality and health. However, the exposure of a large number of prepared dishes in kitchen live streams made consumers feel “deeply deceived”[7]. In addition, Xibei used genetically modified soybean oil without clearly informing consumers, which is suspected of violating relevant regulations, further touching on consumers’ sensitive nerves regarding food safety[7].

Several measures taken by Xibei in crisis response have instead exacerbated brand damage[1][3][6][7]:

Wrong Measures	Negative Impacts
Strong Response and Lawsuit Threats	Triggered public opinion backlash, seen as “a big business bullying customers”
Disclosed Luo Yonghao’s Consumption Bill	Was accused of violating consumer privacy, triggering ethical disputes
Launched “Luo Yonghao Menu”	Was criticized as emotional kidnapping and marketing speculation
Flippant Language in Apology Letter	Was criticized as “an epic failure in public relations”
Sentimental Article in the Tone of a 7-Year-Old Child	Was criticized by netizens as emotional manipulation

The “2025-2026 Research Report on Influencing Factors of Corporate Reputation” released by the Institute of Media and Public Affairs of Communication University of China pointed out that some entrepreneurs have prominent shortcomings in public opinion handling capabilities, mainly reflected in three aspects: misplaced communication, misjudgment, and inappropriate decision-making[6]. Xibei’s case exactly confirms this research conclusion.

Jia Guolong clearly stated in his 2023 New Year’s address that he planned to “achieve high-quality development from 2023 to 2025, complete a high-quality IPO by 2026, and become a listed company with a market value exceeding 100 billion RMB”[2][8]. However, this “prepared dishes” incident has undoubtedly cast a shadow over Xibei’s listing path:

• Damaged brand reputation
  : May affect investors’ confidence in the company and valuation judgments
• Loss of consumer trust
  : Directly affects future revenue growth expectations
• Regulatory pressure
  : Prepared dish labeling standards may lead to increased compliance costs
• Fluctuations in financial data
  : Short-term losses may affect listing financial indicators

Assessment Dimension	Degree of Damage	Explanation
Short-term Revenue	Severe	Daily loss of 2-3 million RMB, cumulative losses exceeding 500 million RMB
Consumer Trust	Extremely Severe	NSR remained in the range of -77% to -97%, negative sentiment accounted for nearly half
Brand Image	Severe	Core selling point collapsed, inappropriate PR response exacerbated damage
Capital Market Confidence	Moderate to Severe	IPO plan cast a shadow, valuation may be affected
Long-term Development Potential	To Be Observed	Depends on the effectiveness of subsequent trust repair and business adjustments

According to public opinion research data, consumers’ trust in Xibei still faces huge challenges in recovery[1][7]:

1. Cognitive Gap on Prepared Dishes
   : There is a huge deviation between Xibei’s definition of “prepared dishes” and consumers’ general perception
2. Transparency Requirements
   : Consumers expect clear labeling of prepared dishes and price transparency
3. Sustained Public Opinion Pressure
   : The two parties clashed again remotely in January 2026, and the controversy continued to ferment

Xibei needs to rebuild trust from the following aspects:

• Proactively inform consumers whether dishes use prepared dishes
• Establish a transparent supply chain information disclosure mechanism
• Respond to consumer questions with a sincere attitude
• Continuously improve product quality and service levels

Based on comprehensive assessment, the degree of brand value damage to Xibei is

. This crisis not only caused direct financial losses (cumulative losses exceeding 500 million RMB, closing 102 stores), but also caused in-depth damage to brand reputation and consumer trust. Although Xibei has taken a series of remedial measures, it still needs to make long-term efforts to fully restore brand reputation and consumer trust.

This incident also reflects the dilemma for catering enterprises in balancing standardization, scale, and consumer experience, as well as the importance of communication strategies in corporate crisis management. For Xibei, which is preparing for IPO, how to repair brand trust and rebuild consumer confidence will be a key challenge for its future development.

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[1] Datastory Index - Public Opinion Research Report on the Controversy Between Xibei and Luo Yonghao Over “Prepared Dishes” (https://index.datastory.com.cn/article/88)

[2] Jiemian News - Xibei’s Prepared Dishes Controversy Escalates! Customer Flow Plummets with Daily Losses of 2-3 Million RMB, 2026 IPO Plan Cast in Shadow (https://m.jiemian.com/article/13344618.html)

[3] Securities Times - Luo Yonghao Responds to “Xibei Store Closures”! Jia Guolong: See You at 10! (https://www.stcn.com/article/detail/3597621.html)

[4] China.com - Jia Guolong: Request Luo Yonghao to Sincerely Apologize and Compensate for Corresponding Losses (https://news.china.com/socialgd/10000169/20260116/49171364.html)

[5] DoNews - Luo Yonghao “Slams” Jia Guolong! Catering Bosses Lean Left, the Public Leans Right (https://www.donews.com/article/detail/6130/89997.html)

[6] Southern Plus - “Corporate Public Opinion Post” 2025 Review: Top 10 Events, Four Types of Crises, Four Trends! (https://www.nfnews.com/content/16VLgxnjyr.html)

[7] DoNews - Xibei’s “Prepared Dishes” Triggers Trust Crisis, Who is Secretly Competing in the Catering Industry? (https://www.donews.com/article/detail/8215/90164.html)

[8] OFweek Weike - From Confrontation to Apology: Enlightenment from Xibei’s “Prepared Dishes” Turmoil (https://mp.ofweek.com/Internet/a056714667547)