Chinese people are shy about processed foods during Tet

As Chinese families gather to celebrate the New Year of the Horse, processed dishes at New Year’s Eve meals are causing controversy across the country.

Chinese families, with a tendency to tighten spending, are increasingly cautious after a scandal over transparency and food quality involving a celebrity with millions of followers on social networks and a large restaurant chain.

“I work overtime all year round and often eat processed foods, but they always feel cheap and lacking in sophistication. No processed foods are worthy of appearing on the New Year’s Eve dinner plate,” said Ma Shuai, sales manager in Henan province, central China.

The New Year’s Eve meal for Chinese people is considered the most important meal of the year, an occasion when they are willing to spend more heavily.

Su Yu, a translator in Guangzhou, also agreed with Ma’s point of view and said she had just tried some new processed dishes, but felt unsatisfied.

“The quality compared to the price, as well as the presentation, do not meet the expectations for a New Year’s Eve meal, let alone a treat for guests. If a restaurant uses pre-processed food, I will immediately judge that place as cheap and unluxurious,” Su said.

A recent online survey by Yicai, a financial news website in Shanghai, showed that 39% of respondents were willing to accept processed dishes at year-end meals, while the rest opposed or remained cautious.

The results show a clear change in public opinion towards a more cautious direction compared to a similar survey in 2024, when more than 50% of families asked said they used prepared dishes at Tet meals.

Changes in Chinese consumer psychology are closely related to the wave of controversy that broke out at the end of last year.

The incident began on September 10, 2025 when La Vinh Hao, an influential person on social networks with frank comments, accused the Xibei restaurant chain of serving “horrible meals” with processed food but selling it at too high prices.

La Vinh Hao calls on restaurants to publicly disclose their cooking methods on their menus. The proposal quickly took social media by storm, drawing millions of people into a fierce debate about transparency and food quality in the food service industry.

Jia Guo Long, founder of Xibei, immediately responded and affirmed that their dishes only use “pre-processed ingredients” and opened the doors for diners to visit the kitchens at nearly 400 branches.

However, when the incident became the focus of attention, videos showing the use of packaged and frozen foods spread online, further increasing public skepticism and proving that La Vinh Hao’s accusations were well-founded.

On January 15, Jia Guolong said that the Xibei restaurant chain would close 102 branches in 30 cities nationwide in the first quarter of this year, equivalent to about 30% of the total number of restaurants, affecting about 4,000 jobs.

According to a survey from Yicai, 60.48% of respondents said the scandal related to Xibei affected their decision to choose a dish for their New Year’s Eve meal.

The survey cited opinions from industry insiders revealing that sales of ready-to-eat holiday menus had boomed in previous years, with growth almost doubling every year, but had leveled off markedly this year with a modest increase of about 10%.

In a report published last month, experts at research group iiMedia Research in China said that the debate about Xibei has gone beyond the scope of any single brand. Analysts note that transparency, building trust and ensuring a positive consumer experience are becoming decisive competitive factors.

According to financial company China Fortune Securities, per capita consumption of processed foods in China has increased from 5.4 kg in 2013 to 9.1 kg in 2022, with the market value last year estimated at 66.8 billion USD.

Late last month, social network Weibo prevented a public quarrel between La Vinh Hao and Jia Guo Long by restricting their personal accounts.

The Food Safety Office of the State Council, in coordination with the National Health Commission and the General Administration of Market Regulation of China, has jointly drafted national standards for processed foods, which are scheduled for public consultation later this year.

The draft prohibits the use of preservatives, stipulates a maximum shelf life of 12 months and requires products to be labeled with instructions for reheating or further processing before eating, and excludes foods, essential foods, ready meals, pre-processed vegetables and dishes prepared by central kitchens from the list of processed foods.