A spat between a restaurant and an influencer was out of control. Then Beijing stepped in

CHONGQING – It is lunch hour in central Chongqing in China and eateries inside the popular Paradise Walk mall are starting to fill up.

But on this weekday, one restaurant in the mall remains mostly empty, with only a handful of tables occupied by diners.

The Xibei outlet, which can accommodate 100 guests, specialises in north-western Chinese delicacies such as grilled lamb and oat noodles. Employees stand attentively at the few occupied tables, some performing magic tricks for children.

But sleight of hand might not be enough to save the dented reputation of this 38-year-old chain restaurant, which is closing 102 – or 30 per cent – of its outlets after a drawn-out spat with an influencer that raised questions about food transparency.

The incident also appeared to spark government scrutiny of the power wielded by influencers who could affect the bottom line of businesses.

Xibei has outlets across China.

Influencer Luo Yonghao, who has some three million followers on microblogging platform Sina Weibo, first accused the eatery chain of charging premium prices for pre-made meals in September 2025.

Xibei’s founder Jia Guolong denied the allegations and invited the public to scrutinise his kitchens, in what was considered by many to be arrogant behaviour.

But evidence soon emerged that Xibei used frozen ingredients with a long shelf life of up to two years, such as sea bass and broccoli, triggering a public outcry.

While it is not illegal for restaurants to use central kitchens and cold-chain logistics, Chinese consumers tend to prefer cooked-to-order meals using fresh, not frozen, ingredients.

Xibei’s reputation took a hit, with many of its customers siding with Mr Luo.

When Mr Jia posted on Weibo on Jan 16 that he was going to respond to Mr Luo, netizens pointed out that despite the fall in business, the eatery founder had continued to insist that he was right and had not learnt his lesson.

Both sides subsequently found their accounts on microblogging site Sina Weibo suspended.

The authorities had apparently stepped in.

Without giving names, Weibo chief executive Wang Gaofei posted on Jan 16 that “those who want to organise debates should do so through interviews with traditional media outlets”.

He included a link to new guidelines issued on Dec 22, 2025, by the Cyberspace Administration of China, which called for platform companies to tighten inspection over accounts with large followings that “organise online disputes and incite hostility due to personal disputes or conflicts of interests, misappropriating public resources”.

The official newspaper of the ruling Communist Party of China – People’s Daily – has since published a series of commentaries calling for companies to improve their public relations skills and for influencers to help maintain social and economic stability instead of chasing traffic.

One commentary said it was “worrying that social media posts can plunge an established company into crisis”.

Another commentary urged influencers to exercise self-discipline and refrain from “irresponsible words and actions”, such as giving excessively biased views and defaming businesses for personal interest.

On Jan 22, state media reported that a draft to roll out national definitions for pre-made meals would be opened up for public feedback soon.

The government subsequently announced on Feb 6 that the draft is ready for public comments. Encouraging restaurants to disclose their food processing and preparation methods is among the proposed changes.

Official intervention in the spat sparked by an influencer offers insights into the limits of online speech in China.

For one thing, the commentaries by People’s Daily on the quarrel have highlighted the importance of maintaining China’s economic stability, especially at a time when the country is trying to boost the slowing economy.

Employment is another concern, as some 4,000 jobs will be lost with Xibei outlets closing down due to loss of business.

The saga has compelled the authorities to release news that they were addressing the gap between the widespread use of pre-made food for convenience and the expectations of consumers who prefer meals that are cooked upon ordering.

Pre-made food is officially defined as meals that are cooked in advance and require only reheating, but the label does not apply to frozen ingredients meant for parts of a meal – which many consumers disagree with.

Xibei’s Mr Jia, who has 72,900 followers on Weibo, promised to improve operations by having more food prepared on site when footage revealed that Xibei also used central kitchens. But this failed to quell negative sentiments online.

Netizens have decried the suspension of Mr Luo’s social media account, viewing the move as a chilling signal to suppress whistle-blowing.

This was despite the authorities demonstrating an appetite for online criticism of Chinese companies and regulations as recently as 2022, when public uproar over Chinese soya sauce maker Haitian selling products with fewer additives in Japan, compared with China, resulted in the government tightening industry standards.

Diners at the Xibei outlet at Chongqing’s Paradise Walk mall told The Straits Times that they were largely supportive of the ban on Mr Luo’s and Mr Jia’s social accounts.

Ms Pan Meiye said “the spat had outlived its usefulness, given that the authorities have already promised to improve the situation”.

“Any more back and forth between the two is just gossip for netizens,” she added.

Another diner, who gave his name only as Mr Li, said he “trusted Xibei more after the saga”, noting that the chain may have just “become the industry’s scapegoat”.

“The restaurant would not dare to foul things up again, given all the public scrutiny,” he added.