Xibei (西贝) founder reportedly steps back as veteran CEO returns and company digs in to survive

Leadership shake-up and the immediate cause

It has been reported that Xibei (西贝), a high-profile Beijing-origin restaurant chain, is undergoing a leadership reset: founder Jia Guolong (贾国龙) has stepped back from the company's main-brand CEO role and former CEO Dong Junyi (董俊义) is reportedly running day-to-day operations again. The change follows a bruising six-month public feud — known in China as the “Luo–Jia” dispute — over Xibei’s use of central-kitchen ingredients and the broader “pre-made dishes” (预制菜) debate that dented consumer trust and traffic.

Deep cuts, delayed pay and operational triage

Xibei has rolled out emergency cost-control measures. It has been reported that the company delayed wage payments for many mid- and front-line managers, instituted across-the-board salary reductions for store managers and head chefs (reportedly up to 30%), and plans to close dozens of outlets — a circulating figure of 102 stores (about 30% of its network) was confirmed by the founder in a social post. Management says departing staff who leave before a cutoff will receive salaries normally; the company also warned cumulative losses from September 2025 to March 2026 could exceed 600 million yuan. Front-line staff describe intensified multi-role duties as the chain pares headcount to maximize short-term survival.

Return of a company veteran and questions ahead

Dong Junyi, a long-time Xibei executive who joined in 1992 and rose through store-level and regional roles to COO and divisional CEO, is being cast as the pragmatic stabilizer. Under his earlier tenure Xibei reported strong customer metrics and expansion: the company cited growth in five-star stores and millions of annual visits as recently as 2023. But will back-office austerity and internal competition-based bonus schemes restore consumer confidence? Many analysts say these are stopgap moves; rebuilding reputation, product quality and public trust will take longer than cost cutting.

What Western readers should know

Xibei is emblematic of a broader dynamic in China’s consumer sector: viral disputes on social platforms can trigger rapid reputational damage, and platforms and regulators have moved to curb inflammatory “organized” online fights — both Xibei’s and Luo Yonghao’s accounts were reportedly restricted by Weibo under a “negative-list” policy. For foreign observers, the episode underscores how brand risk in China now combines social-media volatility, aggressive public personalities, and a regulatory appetite for policing online discourse — all of which can swiftly translate into financial stress for even well-known domestic chains.