(Yicai) Sept. 15 -- New national standards for pre-cooked meals have passed review in China and will soon be open to public comment, an expert involved in drafting them told Yicai, with consumers still debating a recent controversy over restaurant food.

For the first time, whether and how restaurants use pre-made dishes will be subject to information disclosure requirements. “The standards primarily focus on defining the product and setting food safety indicator requirements,” the expert said.

Controversy was sparked last week when online influencer Luo Yonghao told his millions of followers about a visit to a branch of Xibei, a well-known restaurant chain popular in northeastern China. “Almost all pre-made dishes. Still so expensive. Disgusting!,” he wrote.

Xibei reacted furiously, promising to sue for defamation and opening its kitchens for inspections. But subsequent media visits uncovered numerous issues, including broccoli that had been frozen for two years and a lack of clarity over what was freshly prepared and what was pre-cooked.

Revenue plummeted across 400 outlets and Xibei founder Jia Guolong said it was “the biggest external crisis” in the company’s history. Luo said he was not necessarily opposed to pre-cooked foods, but said there should be more transparency.

The new standards aim to detail the raw materials, processing techniques, storage, and transportation of pre-cooked foods, as well as what inspection methods will apply. There will be a tighter focus on safety compared with the existing standards, and a clear legal basis for regulatory enforcement, the expert said.

The standards also introduce mandatory requirements for the first time, including a “no added preservatives” rule and cold chain upgrades. But industry insiders warn that this will drive up costs, and could trigger a sector shakeout.

A clampdown on the use of preservatives and cold chain requirements will increase costs by 15 percent to 30 percent, they said, adding that smaller factories that cannot afford the required upgrades may be acquired or exit the market within two years of the standards taking effect, while leading brands could use scale advantages to further expand their market shares.

Editor: Tom Litting