Mixue Bingcheng, a bubble tea and ice cream chain from China, has officially dethroned McDonald’s and Starbucks to become the world’s largest food and beverage chain by store count. Founded in 1997, the brand’s rapid rise is fueled by its affordability, aggressive expansion, and unique franchise model. With tens of thousands of locations worldwide and a recent blockbuster IPO in Hong Kong, Mixue is reshaping the global beverage landscape. But how did this once-small shaved ice shop grow into an industry giant? Here’s everything you need to know about Mixue Bingcheng’s remarkable journey.
How many Mixue Bingcheng stores are there worldwide?
As of September 2024, Mixue Bingcheng—translated as “honey snow ice city”—operates over 45,000 outlets globally, surpassing McDonald’s 43,000 and Starbucks’ 40,576 locations. The budget-friendly bubble tea giant made a strong debut on the Hong Kong Stock Exchange, with its shares surging more than 40% on Monday following a $444 million initial public offering last week.
Mixue’s listing marked the largest IPO in Hong Kong this year and ranked among the top five over the past 12 months. Known for its affordable drinks, priced between 2 to 8 yuan (30 cents to $1.20), its catchy theme song, and its signature snowman mascot, the brand has cultivated a massive following since its founding nearly three decades ago in Henan province, China.
The company’s franchise-driven model fuels its rapid expansion, with over 99% of its stores operated by franchisees. Unlike traditional chains, Mixue generates most of its revenue from selling food ingredients, equipment, and packaging to franchise owners, while franchise fees contribute only a small portion of its earnings.
Financially, Mixue continues to thrive. In the first nine months of 2024, its net profit soared 42% year-over-year to 3.49 billion yuan ($479 million), while revenue climbed 21% to 18.7 billion yuan ($2.6 billion), highlighting the brand’s growing dominance in the global food and beverage industry.
The Secret to Mixue Bingcheng’s Success
Born into poverty, Mixue Bingcheng founder Zhang Hongchao built his business on a simple yet powerful vision. “Let people around the world eat well and drink well for just two American dollars,” he once told Chinese state media. This commitment to affordability has remained the brand’s biggest strength, particularly as China grapples with an economic downturn.
Mixue’s journey began in 1997 in Zhengzhou, the capital of Henan province, as a modest shaved ice shop. However, success did not come immediately. Zhang, along with his brothers, came from a farming background, and as a college student struggling financially, he built his own shaved ice machine and launched a business under the name Coldsnap. When that venture failed, he shifted gears and opened a restaurant called Mixue.
A turning point came in 2005 when Zhang introduced a small snack counter at the front of his restaurant, selling ice cream cones for just 1 yuan. The affordable soft serve quickly became a sensation, drawing in customers and allowing him to expand to 20 outlets. This low-cost strategy helped Mixue gain traction, particularly among students and budget-conscious consumers in China’s lower-tier cities.
As bubble tea’s popularity surged across the country, Mixue capitalized on the trend by adding boba drinks to its menu. In 2017, Zhang further expanded the business by launching Lucky Cup, a coffee brand under the Mixue umbrella.
The company’s growth accelerated at an astonishing pace. In 2019, Mixue had fewer than 10,000 stores, but in just a few years, it skyrocketed into a global giant, according to Singapore-based market research firm Momentum Works.
Zhang’s younger brother, Zhang Hongfu, joined the business in 2007 and became its co-founder. Today, he serves as Mixue’s CEO, while their older brother is no longer involved in day-to-day operations.
With Mixue’s recent IPO, Zhang Hongchao and Zhang Hongfu’s combined fortune has soared to $8.1 billion, according to the Bloomberg Billionaires Index—placing them ahead of former Starbucks CEO Howard Schultz, who is worth over $6 billion.
Source: CNN