*Chinese bubble tea and ice cream giant Mixue Bingcheng has become the world’s largest food and beverage chain, topping McDonald’s and Starbucks in store count.
According to Newsweek, as of September 2024, the company operates over 45,000 locations worldwide, with nearly 90% of them in China. Its expansion has also reached countries like Indonesia, Vietnam, and Malaysia.
Founded in 1997 by Zhang Hongchao in Zhengzhou, Henan province, Mixue Bingcheng, which translates as Mixue Ice Cream & Tea, started as a shaved ice business and evolved into a global brand thanks to its cost-effective franchising model. One of Mixue’s biggest advantages is its affordability. It sells soft-serve ice cream for as little as 1 yuan (15 cents) and beverages for 30 cents to $1.20. Unlike traditional restaurant chains, Mixue generates most of its revenue by selling ingredients like milk, syrups, and coffee, along with equipment, to its franchisees. With 99% of its stores franchised, this strategy has fueled its success.
Following its IPO on the Hong Kong Stock Exchange, Mixue’s stock surged over 40%, raising $444 million. However, despite its massive footprint, its sales still lag behind brands like Starbucks and Dunkin’.
Per Newsweek, Kenny Ng Lai-yin, a strategist at Everbright Securities International, told food outlet Eat This, Not That: “As market capacity can be uncertain in the industry, the fact that Mixue can sell raw materials to its own franchisees and have a clear understanding of their demand gives it a lot of agency compared to others.”
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Looking ahead, Mixue is considering expansion into the U.S. market, which could disrupt industry giants with its low prices and efficient supply chain. Learn more in the clip below.
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