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Xibei Confirms 102 Restaurant Closures After Steep January Slump

The company faces a reputational crisis tied to premade‑dish allegations amplified by influencer Luo Yonghao.

Overview

  • Founder Jia Guolong said Xibei will shutter 102 outlets—about 30% of its footprint—with closures completing in the first quarter.
  • He disclosed that January 2026 sales fell roughly 50% year on year, underscoring how 3%–5% single‑store net margins left many locations vulnerable.
  • The closure list focuses on underperforming sites in non‑core areas of top‑tier cities and newer neighborhoods, according to media reports.
  • After Jia announced a planned response on Jan. 16, Weibo muted both his and Luo Yonghao’s accounts, and their exchanges moved to private WeChat Moments on Jan. 17.
  • PR vice president Song Xuan confirmed her resignation on Jan. 16, while Jia pledged full wages for affected staff and immediate refunds or cross‑store use of stored‑value cards.