Following the “pre-packaged food scandal,” a series of public relations blunders and food safety incidents have shattered consumer confidence in the mainland chain restaurant Xi Bei, leading to a sharp decline in business and a wave of news about closures.
Since the pre-packaged food scandal, there have been continuous reports on social media platforms of Xi Bei stores closing down, including the stores in Fuhua Center in Suzhou, Yiwu Heart in Zhejiang, Beijing Shijingshan Jingxi Jewelry City, Shantou Wanxiang City in Guangdong, Happy Harbor in Liuhe, Nanjing, and Wanke Cloud City in Xili, Shenzhen. The reasons cited for the closures include adjustments in store development plans or lease expirations.
According to statistics from Red Star Capital Bureau, since October, Xi Bei has closed nearly 10 stores in multiple locations. In response to this, Xi Bei staff stated on November 9th that the closures were part of a unified arrangement, with the reasons matching the information displayed outside the stores, and currently, there is no further information available.
Industry analysts believe that since the pre-packaged food scandal, some stores have experienced a decrease in customer traffic. From an operational cost perspective, each Xi Bei store needs to serve around 300 customers per day to break even, but many stores have been unable to meet this target recently. Therefore, closing these poorly performing stores is seen as a necessary measure to stop further losses.
The official website reveals that Xi Bei Catering was founded in 1988, and as of March 2025, it had nearly 400 direct-operated stores. Despite being valued at over 10 billion, the chain stumbled in the pre-packaged food scandal.
In mid-September this year, internet celebrity Luo Yonghao criticized Xi Bei for extensively using pre-packaged food. In response, Xi Bei’s founder Jia Guolong firmly countered, “According to national regulations, we do not use any pre-packaged food,” and opened the kitchen for inspection to prove their innocence. However, the media captured images of bagged chicken soup, frozen fish, and other pre-packaged items, revealing the fact that Xi Bei was indeed using a large quantity of pre-packaged food.
While the pre-packaged food scandal has not yet subsided, a mother in Zhengzhou reported finding a live worm in her noodles while dining at Xi Bei, adding to the mounting challenges faced by the chain.
Despite Xi Bei launching a series of discount promotions starting from late September, with some stores improving their dishes, lowering prices, and engaging in promotional activities, customer traffic has shown some recovery. However, some stores severely impacted by the scandal or facing operational issues continue to experience a steep decline in customer numbers.
At one point, a store manager in Chengdu informed the Red Star Capital Bureau, “Customer traffic has dropped by around one-third.”