Core Viewpoint - The controversy surrounding pre-prepared dishes in the restaurant industry has intensified, particularly following a public spat between entrepreneur Luo Yonghao and the restaurant chain Xibei, which has led to significant public scrutiny and backlash against Xibei's practices [4][5][12]. Group 1: Company Response and Public Perception - Xibei's owner, Jia Guolong, has publicly denied using pre-prepared dishes, claiming that their food is made using a central kitchen model, which he argues is different from pre-prepared dishes [9][10]. - Despite Xibei's claims, consumers have expressed skepticism, citing evidence of packaged ingredients being used in their meals, leading to a disconnect between the company's narrative and public perception [12][14]. - The pricing strategy of Xibei, which is perceived as high, has compounded the issue, as consumers feel uncomfortable paying premium prices for what they believe to be pre-prepared meals [13][14]. Group 2: Industry Context and Regulatory Framework - The Chinese government has defined pre-prepared dishes in a 2024 notice, emphasizing that they should not contain preservatives and must be pre-packaged for heating or consumption [6]. - The State Administration for Market Regulation has clarified that dishes made in central kitchens by chain enterprises do not fall under the category of pre-prepared dishes, which Xibei is leveraging in its defense [8][10]. - The ongoing debate highlights a broader industry challenge regarding transparency and consumer trust in food sourcing and preparation methods [12][14]. Group 3: Historical Context and Future Aspirations - Xibei has faced previous public relations challenges, including backlash over price increases during economic hardships, which have affected its reputation [15][17]. - Jia Guolong has ambitious goals for Xibei, aiming for an IPO by 2026 and a revenue target of 100 billion yuan by 2030, but the current controversies may hinder these aspirations [19][20].

Core Insights - Yoshinoya aims to become the world's largest ramen restaurant by the fiscal year ending February 2035, as stated in its latest mid-term business plan (2025-2029) [1] - The company plans to transform its ramen business into a significant third business segment alongside its existing domestic and overseas operations, targeting a fourfold increase in ramen revenue within five years [1][2] Business Strategy - Yoshinoya has set a target to increase ramen sales from 8 billion yen (approximately 0.4 billion RMB) to 40 billion yen (approximately 1.99 billion RMB) by the fiscal year 2029, representing an annual growth rate of 38% [1][2] - The company aims to expand its ramen store count to 500 locations by 2029, increasing the ramen segment's contribution to total sales from 4% to 13% [1][2] Financial Goals - The ramen business's profitability is expected to grow tenfold, from 400 million yen to 4 billion yen over the next five years [2] - Yoshinoya's overall sales target is set at 300 billion yen by 2029, with a compound annual growth rate (CAGR) of 7.9% [2] Recent Acquisitions - The company has acquired 17 ramen brands, including Setagaya and Kirameki, to strengthen its ramen supply chain [3][5] - Yoshinoya's acquisition of Takara Sangyo, a supplier of noodles and sauces, is intended to enhance production capacity and sales resources for its global ramen expansion [5] Market Challenges - Yoshinoya's previous attempts to expand its Udon brand in China were unsuccessful, leading to its exit from the market in 2022 [8][9] - The company faces challenges in the Chinese market, where Japanese ramen has struggled with issues such as lack of cost-effectiveness and insufficient product innovation [9]