Core Viewpoint - He Xian Group has opened its first lotus root powder dessert shop "Ou Xiao Man," marking its expansion from a supplier to a direct retailer in the food industry, raising questions about the impact on the restaurant sector [1][6]. Company Overview - He Xian Group specializes in the processing of lotus root and has been providing comprehensive solutions to various restaurants, exporting products to Japan, the US, Europe, Southeast Asia, and major cities in China [1]. - Founded in 1993, He Xian Group has developed a complete industrial chain for lotus root, including planting, production, processing, and sales, with nearly 30 food production lines and extensive cultivation bases [6][8]. Product Offering - The "Ou Xiao Man" store features a menu focused on lotus root powder desserts, including fresh lotus root drinks, lotus root powder soup, and various fried snacks, emphasizing local ingredients from Baoying [3][5]. - The pricing strategy is competitive, with most items priced between 8 to 16 yuan, making it more affordable compared to local competitors [5]. Market Context - The lotus root industry in Yangzhou is competitive, with several existing restaurants offering lotus root-based products, indicating a growing market for such offerings [6]. - The trend of upstream companies entering the downstream restaurant sector is becoming common as they seek new growth avenues amid increasing competition in the restaurant industry [8][9]. Competitive Landscape - The dessert market is seeing increased participation from various brands, including tea brands that have launched dessert lines, indicating a crowded and competitive environment [11][15]. - While the lotus root powder dessert may find a niche in the Yangzhou area, expanding its market presence nationally could pose challenges due to differing consumer habits in other regions [16].

Core Insights - The Fuyang District Market Supervision Administration conducted a food safety inspection, testing 28 batches of various food products, all of which passed the safety standards, indicating a 100% compliance rate [4]. Group 1: Inspection Results - A total of 28 food samples were tested, with all samples deemed compliant with national food safety standards, resulting in 0 non-compliant batches [4]. - The inspected food categories included restaurant foods, bean products, tea and related products, pastries, and grain processing products [4]. Group 2: Sample Details - The inspection included various products from local businesses, such as: - Passion fruit drink from Hangzhou Fuyang Yuting Drink Shop - Various milk tea flavors from Hangzhou Inspiration Tea Restaurant Management Co., Ltd. - Stinky tofu from Hangzhou Fuyang Stinky Tofu Shop - Tea products from multiple local tea processing workshops [4][5].

Overall Situation - A total of 768 food samples were tested, with 762 passing and 6 failing the national food safety standards [2] - Categories tested included vegetables, seasonings, fruits, grain products, aquatic products, alcoholic beverages, poultry meat and by-products, fresh eggs, starch and starch products, among others [2] Compliance Summary - Vegetables: 229 samples tested, 5 failed - Seasonings: 85 samples tested, all passed - Fruits: 78 samples tested, 1 failed - Poultry meat and by-products: 74 samples tested, all passed - Grain products: 60 samples tested, all passed - Fresh eggs: 30 samples tested, all passed - Aquatic products: 26 samples tested, all passed - Edible oils and fats: 25 samples tested, all passed - Meat products: 23 samples tested, all passed - Vegetable products: 20 samples tested, all passed - Catering food: 15 samples tested, all passed - Starch and starch products: 15 samples tested, all passed - Beverages: 15 samples tested, all passed - Dried nuts and seeds: 13 samples tested, all passed - Alcoholic beverages: 12 samples tested, all passed - Sugar: 9 samples tested, all passed - Frozen foods: 8 samples tested, all passed - Legumes: 7 samples tested, all passed - Convenience foods: 5 samples tested, all passed - Biscuits: 4 samples tested, all passed - Bean products: 4 samples tested, all passed - Canned foods: 4 samples tested, all passed - Dairy products: 4 samples tested, all passed - Tea and related products: 2 samples tested, all passed - Egg products: 1 sample tested, all passed [2][4][5] Non-compliance Details - The non-compliant samples primarily involved ginger and scallions, with the pesticide residues of "Thiacloprid" and "Pyridaben" exceeding the national food safety standards [3][4] - Specific companies involved in non-compliance include: - Beijing Leshiwu Catering Co., Ltd. for ginger - Beijing Fudesheng Catering Co., Ltd. for ginger - Beijing Mingshengzhai Catering Management Co., Ltd. for scallions - Beijing Xiangheshengsi Catering Co., Ltd. for chili peppers - Beijing Zhonghangzhiyuan Trading Co., Ltd. for ginger - Beijing Meiwu Lian Trading Co., Ltd. for red heart papaya [3][4][5]