"Before '3·15' Rollover! Reporter Investigates 'Liu Wenxiang Spicy Hot Pot': Beijing Store Encounters Surprise Inspection, Multiple Locations Urgently Clean Kitchens, Staff Say "Got Quite a Scare"

“Who knows, it gave me a scare too.” On the afternoon of March 15, inside a Liu Wenxiang Spicy Hotpot restaurant at Beijing Guomao Jianwai SOHO, a staff member quietly revealed in response to a reporter from Daily Economic News questioning the sudden visit of market regulation authorities. At this moment, staff dressed in uniforms of the market regulation department were entering and leaving the store, demanding the business license and inspecting products such as beef balls and fish balls.

Market regulation authorities inspect a Liu Wenxiang store in Beijing. Image source: Daily Economic News reporter Zheng Xinwei

Just before this “unexpected” inspection took place, multiple Liu Wenxiang spicy hotpot stores in Fujian were exposed for irregularities. The topic “Liu Wenxiang duck meat sold as pork and beef” trended on social media, and local market regulation departments launched surprise inspections of Liu Wenxiang hotpot stores.

According to Jiupai News, a staff member from Liu Wenxiang responded to the incident, stating that the exposure involved only a few stores, which have been ordered to cease operations and undergo rectification. Some have even canceled their franchise agreements and stopped cooperation.

“If the whole world criticizes you, I’ll take you to eat Liu Wenxiang…” This viral line, made famous by the short video character “Purple Sweet Potato Spirit,” has not yet faded in popularity. This hot new hotpot brand, with over 2,800 stores, achieved a phenomenal breakout in early 2026 but faced a turning point during “3.15.”

When the flow of traffic is shattered by reality, what surfaces are not only violations by a few stores but also structural hidden dangers concealed within a rapidly expanding franchise system.

Multiple surprise inspections: reporters investigate—Beijing stores quickly clean kitchens

According to media reports, many Liu Wenxiang hotpot stores in Xiamen, Zhangzhou, and other parts of Fujian have serious issues with substandard ingredients. Several products labeled as “beef” or “pork” on delivery platforms and in-store promotions are actually made from low-cost duck meat.

It is reported that the current market purchase price for pure beef rolls is about 28 yuan per jin, while the wholesale price for duck-flavored rolls used as substitutes is only 7 yuan per jin, a difference of several times. In response, some store staff even confidently asked undercover reporters, “Beef costs three or four tens of yuan per jin, and we sell it for twenty yuan. Do you think it’s pure beef?”

On the evening of March 14, market regulation authorities in multiple parts of Fujian launched operations, conducting surprise inspections of hotpot stores. Some involved stores were ordered to make immediate corrections. The authorities stated they would strictly investigate false advertising and misrepresentation, and conduct comprehensive checks of all chain stores in the area. On the same day, the Urumqi High-tech Zone Market Regulation Bureau released a video of a surprise inspection of Liu Wenxiang hotpot stores. In the video, a product labeled “Real Beef Bacon Slices” on the delivery platform was found to be “beef-flavored product,” with ingredients listed as “duck meat.” The inspected stores also had issues such as dirty storage environments, improper storage of opened products, and expired items not being removed.

Interior of a Liu Wenxiang hotpot store in Beijing. Image source: Daily Economic News reporter Zheng Xinwei

On March 15, the Daily Economic News reporter visited several Liu Wenxiang hotpot stores in Beijing and found many stores cleaning kitchens and organizing refrigerated cabinets.

The reporter noticed that the refrigerated cabinets and meat slices or rolls on delivery platforms contained few varieties, with most meat products being processed meatballs or similar items. A staff member at one store told the reporter that meat is hard to store, so they buy less. Regarding a product labeled “beef roll” on the platform, the staff said, “It’s beef, and we have a testing report.” When asked about reports that the same brand used duck meat as a substitute, the staff responded, “We don’t do that.”

At the Liu Wenxiang Guomao store in Jianwai SOHO, the reporter happened to encounter staff dressed in market regulation uniforms demanding the store’s business license and inspecting products like beef balls and fish balls. When asked if they knew the reason for the inspection, the staff said they were unaware and looked “scared to death.”

Early in the year, the brand gained rapid popularity due to “Purple Sweet Potato Spirit,” but behind this expansion lies a “relaxed” franchise model that has become a risk point

While regulatory authorities across various regions are investigating Liu Wenxiang hotpot, the brand’s myth of traffic and popularity is being reexamined. Less than a month before this incident, Liu Wenxiang had just experienced a “phenomenal” breakout.

The viral success originated from short video creator “Zhou Xiaonao,” who portrayed the “Purple Sweet Potato Spirit” in the series “The Restaurant’s Winter Break Worker.” In the series, Zhou’s character “Sun Xiaoxiao” (nicknamed “Purple Sweet Potato Spirit”) repeatedly makes mistakes and gets punished, and her companions comfort her with a line: “If the whole world criticizes you, I’ll take you to Liu Wenxiang.”

This unconditional, biased phrase quickly became a popular meme online, with “When can I eat Liu Wenxiang, too?” trending on social media. Multiple media outlets reported that Liu Wenxiang stores nationwide experienced “explosive sales.”

According to Liu Wenxiang’s official website, the brand originated from a small shop called “Manjiexiang Big Bowl Hotpot” opened by Liu Wenxiang and his wife at the entrance of a school in a county in Jiamusi, Heilongjiang Province. Since starting franchise operations in 2017, the number of franchise stores reached 1,800 by January 2025, and surpassed 2,800 by January 2026. Data from Hongcan Big Data shows that Liu Wenxiang ranks second in the hotpot sector behind Zhang Liang Hotpot and Yang Guofu Hotpot, and recent data indicates it has topped the list of newly opened stores for nearly a year.

Lin Yue, chief consultant at Lingyan Management Consulting and industry analyst in catering and FMCG, believes that Liu Wenxiang’s rapid expansion mainly relies on two “selling points”: first, a bold approach that avoids the traditional bone broth segment dominated by Yang Guofu and Zhang Liang, instead emphasizing Northeast-style spicy hotpot with “strong flavors” and “sticky textures” to create a differentiated brand image; second, a “relaxed” franchise system—besides designated base ingredients and seasonings, many ingredients are purchased by franchisees themselves, and even store decor can be self-designed, which somewhat reduces initial investment pressure.

However, this “relaxed” franchise model is a double-edged sword. Lin Yue pointed out that the lack of a core ingredient supply chain has led to a loss of control over franchise stores. “To maximize profits, franchisees have more room to cut corners, and substituting duck meat for beef is a typical problem.” Additionally, the lax decor standards lead to inconsistent store images, quickly eroding brand value and reputation. “If these structural ‘top-level designs’ are not well implemented, ‘time bombs’ will explode even faster.”

Lin Yue suggests that Liu Wenxiang should reconsider how to balance “control and autonomy.” “For example, gradually integrating key ingredients into a unified distribution system, conducting regular inspections and spot checks, zero tolerance for violations or illegal activities, and proactively disclosing ingredient sources and promoting transparent kitchens.” Regarding store appearance, standardizing decor and strengthening review processes can help eliminate consumer confusion and doubts.

He emphasizes, “These are basic skills for chain operations and apply to all brands. Without a solid foundation and proper checks, rushing to expand will definitely lead to ‘accidents.’”

Daily Economic News