The business was carried out under the instructions or consent of the restaurant owners for months, the report said.
There were no immediate indications that the convicted would appeal against their sentences.
Chinese media have regularly reported on cases of "gutter oil" being used in restaurants and Sichuan food eateries which use a lot of chilli oil have often been involved.
A large Sichuan hotpot sometimes contains more than 1kg of chilli oil.
The report said some of the restaurants in Wenzhou were very popular, generating revenue of more than 1.5 million yuan (NZ$290,000) a month.
- South China Morning Post