From Viral Top Stream to Collapse in 15 Days: Liu Wenxiang Malatang's Fall Exposes a 100-Billion-Yuan Sector's Fault Lines

Rapid rise, abrupt fall

A month after Liu Wenxiang Malatang (刘文祥麻辣烫) briefly halted new franchise inquiries, the brand rocketed to national attention — and then imploded — within weeks. It has been reported that a short online drama line sent curious customers queuing at more than 2,600 outlets, forcing some stores to suspend delivery and the brand to pause franchise consultations. But the boom turned sour: on March 14, just before China’s consumer-rights day (3·15), videos and complaints alleging that some stores sold duck as beef surged online, and the topic dominated social media.

Inspections and immediate fallout

Local market regulators moved quickly. It has been reported that Fujian authorities launched surprise inspections the night the scandal broke and ordered affected outlets to rectify problems, with some franchises facing contract cancellations or temporary closures. Reportedly, investigators found inconsistent product labelling and supply-chain lapses — from packaging that showed duck while delivery platforms listed beef, to staff disputing the meat’s origin by citing weight or pricing claims. Whether every allegation proves accurate remains under investigation, but public trust has undeniably slipped.

Systemic problems, not just one bad actor

This episode is symptomatic of a wider malaise in the malatang (麻辣烫) category: rapid franchising, partial central supply for soup bases but heavy local procurement for perishables, and weak onsite controls. Liu Wenxiang’s “partly centralized, partly local” sourcing model — headquarters provides core soup and some staples while franchisees buy other meats and vegetables locally — reportedly left quality control thin at scale. Industry veterans point out the same structural weakness has felled other brands: inconsistent supply chains and lax franchise oversight can turn a viral hit into a reputational crisis overnight.

What the sector must learn

The lesson is stark. China’s malatang market has already surpassed the 100-billion-yuan mark, but scale alone no longer guarantees resilience. Head brands that moved toward vertical integration and standardized supply — such as Yang Guofu (杨国福) and Zhang Liang (张亮) — have sought to lock down ingredients and expand overseas, while the collapse of other franchise-heavy names has shown how quickly consumer trust can evaporate. Can a category long viewed as “street food” upgrade into a quality-driven, trusted national brand? The answer will depend less on fleeting traffic and more on tightened franchise screening, traceable supply chains, and rigorous, independent inspection regimes.