Chinese bubble tea company 'Mixuebingcheng' has emerged as the world's largest food chain. Mixue sells ice cream and drinks at prices below $1 (approximately 1,500 won) with a 'value-for-money' strategy and has quickly grown to become the food chain with the most stores in the world.
On the 3rd (local time), a report from The Wall Street Journal (WSJ) citing data from the research firm Technomic stated that Mixue's global store count reached 45,282 as of last year, surpassing McDonald's (43,477) and Starbucks (40,199). About 90% of Mixue's stores are located in China, with the remaining 10% in South Korea, Japan, Australia, and other countries.
Mixue was launched in 1997 by founder Zhang Hongchao, who was attending university at the time, starting from a bingsu shop he opened in Zhengzhou, Henan Province. Mixue gained popularity by selling products at low prices to target consumers whose wallets had become slimmer due to the economic downturn. Mixue's ice cream cone costs only 3 yuan (approximately 600 won).
Hernán Chuy, an analyst from research firm Gabe's Cal Draconomics headquartered in Beijing, noted, "People are looking for value-for-money products," explaining that Mixue has gained immense popularity in China's mid-small cities. The number of Mixue stores has increased nearly fourfold since 2020.
Mixue's menu is simple. Its representative items include ice cream cones, various flavors of bubble tea, and lemonade, which made Mixue the largest LEMON purchaser in China. The franchise fee is also lower than other franchises, allowing for Mixue's rapid expansion. Mixue generates revenue by directly supplying materials and supplies to its franchise stores.
Reuters reported, "Mixue operates more like a raw materials supplier than a traditional beverage brand," adding, "While Starbucks operates 53% of its total stores directly, Mixue operates almost all of its stores as franchises."
However, Mixue's success cannot be attributed solely to low prices. WSJ reported, "It is difficult to explain Mixue's deep entrenchment in Chinese pop culture purely by its low prices," stating that the credit goes to its mascot 'Snow King' and its advertising music.
The mascot 'Snow King,' which resembles a snowman dressed in a red cloak, is as iconic in China as Ronald McDonald from McDonald's or Colonel Sanders from KFC. The advertising music that constantly echoes in the stores has also left a strong impression on consumers. The lyrics in English repeatedly say, "I love you, you love me, Mixue ice cream and tea."
Mixue's growth is expected to continue in the future. On the 3rd (local time), Mixue, which listed on the Hong Kong stock market, announced in its initial public offering (IPO) report that it plans to expand into other countries. However, there was no mention of entering the U.S. market.
The stock price of Mixue Group, the operator of Mixue, rose 47.1% to 298 Hong Kong dollars compared to the initial public offering price of 202.5 Hong Kong dollars on its first day of trading. Mixue closed that day at 290 Hong Kong dollars. The Financial Times (FT) reported that "this IPO has proven that there is significant investor interest in value-for-money consumers in mainland China."