From
Roadside Stall
to
Global Empire
How Mixue Ice Cream & Tea conquered the world through affordability, franchising, and strategic expansion
Global Reach
First overseas store in Vietnam 2018, now spanning Southeast Asia to Europe
Ultra-Affordable
¥2 ice cream, ¥4 lemon water - making quality treats accessible to all
Franchise Power
99% franchise-owned stores driving rapid, capital-efficient expansion
Supply Chain
Vertically integrated with 60%+ in-house production across 7.3M sqm facilities
The Rise of a Global Beverage Giant
From Humble Beginnings to Global Dominance
Founded in 1997 in Zhengzhou, China, by Zhang Hongchao, Mixue began as a modest ice cream stall near a university campus. What started as affordable frozen treats for students has transformed into the world's largest fresh tea drink maker by store count, surpassing even McDonald's and Starbucks with over 46,000 stores globally.
Mixue's dominance isn't just about scale—it's about strategic positioning. While competitors pursued high-end markets, Mixue carved its niche by targeting third and fourth-tier cities with highly affordable products, typically priced under ten yuan, tapping into a vast, underserved consumer base.
"Let people around the world eat well and drink well for just two American dollars"
- Zhang Hongchao, Founder
The Two Pillars of Success
Aggressive Affordability
¥2 ice cream cones, ¥4 lemon water, and ¥6 bubble tea make quality treats accessible to budget-conscious consumers, particularly students and young workers.
Franchise-Driven Growth
Extensive franchising model with low entry barriers, comprehensive support, and turnkey store operations enabling rapid global expansion.
Phased International Rollout
Mixue's global expansion followed a strategic sequence: Southeast Asia first, then developed markets, mastering each region before moving to the next frontier.
Expansion Timeline
2017-2018: Strategic Planning & Vietnam Launch
Established Southeast Asia Overseas Business Division. First overseas store in Hanoi, Vietnam - a strategic choice due to cultural proximity and price-sensitive consumers.
2020-2022: Southeast Asia Consolidation
Rapid expansion across Indonesia, Cambodia, Myanmar, Laos, Thailand, Malaysia, Philippines, and Singapore - refining operations and building supply chains.
2022-2023: Developed Market Entry
Entered South Korea, Japan, Australia, and Canada - testing the model in more mature and competitive environments with higher price points.
2024-2025: Global Diversification
Expansion into Europe (France), Middle East (UAE), and plans for South America (Brazil) with local supply chain investments.
Market Selection
Prioritized markets with young demographics, growing consumption, and price sensitivity that aligned with Mixue's value proposition.
Risk Management
Phased approach allowed learning and adaptation in culturally similar markets before tackling more complex developed economies.
Operational Excellence
Each phase served as a foundation for the next, building supply chain infrastructure and operational expertise.
The Franchise Engine
Mixue's franchise model is the primary engine driving unprecedented global expansion, with over 99% of stores operated by franchisees.
Why Franchisees Choose Mixue
Low Initial Investment
Significantly lower entry costs compared to other international franchises, making it accessible to first-time entrepreneurs.
Comprehensive Support
Turnkey store model, location selection assistance, standardized design, employee training, and ongoing operational guidance.
Proven Business Model
Strong brand recognition, established customer base, and efficient supply chain support franchisee success.
Franchise Requirements (Indonesia Example)
Provincial Capital
- Deposit: IDR 40M
- Management Fee: IDR 24M/year
- Equipment: ~IDR 183M
- Raw Materials: ~IDR 130M
- Training: IDR 3M
City/Regency
- Deposit: IDR 40M
- Management Fee: IDR 18M/year
- Equipment: ~IDR 183M
- Raw Materials: ~IDR 130M
- Training: IDR 3M
Additional: Minimum 25m² space, 3.7m width, adequate water/power, NPWP tax ID
The Revenue Model
of revenue comes from selling ingredients and packaging materials to franchisees (2019-2021)
This vertically integrated approach creates a symbiotic relationship: franchisees benefit from established supply chains while Mixue ensures quality control and generates steady revenue streams.
Supply Chain Mastery
Mixue's vertically integrated supply chain is the backbone of its low-price strategy and global operations.
Vertical Integration at Scale
Production Facilities
Five large production bases in China covering 7.3 million square meters, producing over 60% of raw materials in-house.
Sourcing Power
China's largest lemon buyer, sourcing approximately 105,000 tonnes annually.
Global Supply Chain Challenges & Solutions
Challenges
- Longer lead times and higher transportation costs in international markets
- Customs regulations and import/export complexities
- Quality control risks with long-distance shipping
- Varying infrastructure standards across markets
Solutions
- Establishing local production bases in key regions
- Forming strategic partnerships for regional distribution
- Building new logistics hubs in Southeast Asia
- Brazil Investment: $556.3M in agricultural products and local factory
Financial Performance
Remarkable revenue and profit growth driven by aggressive expansion and operational efficiency.
Financial Analysis
Revenue Growth Drivers: Increased sales of goods and equipment to franchisees, enhanced supply chain efficiency, and expanded international operations.
Profitability Improvement: Gross profit margin increased from 28.8% in 2023 to 31.6% in 2024, driven by enhanced supply chain efficiency and decreased raw material costs.
Cash Position: Strong financial health with RMB 11.6 billion in cash and cash equivalents by Q3 2024, providing ample resources for continued expansion.
Store Strategy & Network
Strategic site selection and dense network placement drive market penetration and brand visibility.
Site Selection Strategy
Target Demographics
Strategic placement near universities and areas with high youth foot traffic. Examples include South Korea (Chung-Ang University), Japan (Rikkyo University), and Singapore (near schools).
Store Specifications
- • Compact size: 20-40 square meters
- • Store width: 3-4 meters
- • Streamlined, cost-effective operations
- • Easy replication in various locations
Network Density Approach
Market Saturation
In successful markets like Indonesia and Vietnam, multiple Mixue stores within 500-meter radius maximize market coverage and brand visibility.
Innovative Partnerships
In Indonesia, OPPO and vivo phone dealers transformed parts of their retail stores into Mixue outlets, leveraging existing high foot traffic.
Overseas Store Distribution
Branding & Marketing
The "Snow King" mascot and value-for-money positioning create emotional connections with consumers globally.
The "Snow King" Mascot
Introduced in 2018, the cheerful snowman-like character with a crown has become an iconic symbol deeply ingrained in Mixue's identity. More than just a logo, it's a dynamic brand IP used across all touchpoints.
雪王
Snow King
The universal brand ambassador connecting with consumers worldwide
Value-for-Money Positioning
"Let people around the world eat well and drink well for just two American dollars"
- Zhang Hongchao, Founder
Digital Marketing Success
Social Media Engagement
- #mixueindonesia: 2.6 billion TikTok views
- Active campaigns on Douyin and Weibo
- Tens of thousands of likes on promotions
Engagement Strategies
- Humor and meme-based content
- User-generated content campaigns
- Localized holiday promotions
Localization Strategy
Balancing global brand consistency with deep local adaptation to resonate with diverse markets.
Menu Customization
Indonesia: Halal Adaptation
- • All stores halal certified
- • Prayer rooms for customers and staff
- • Respect for Muslim customs
- • Perceived as "pseudo-local brand"
Singapore: Taste Adaptation
- • Adjusted portion sizes for local preferences
- • Modified flavors to suit local taste buds
- • Maintained core pricing strategy
Cultural Marketing
Vietnam: Cultural Events
Snow King participated in Children's Day painting event, generating ~70 million social media views and significant local buzz.
Indonesia: Social Campaigns
Valentine's Day promotions with "couple's certificates" for buying two cups, driving engagement and social sharing.
Localization Framework
| Market | Product Adaptation | Marketing Approach | Cultural Sensitivity |
|---|---|---|---|
| Indonesia | Halal certification, prayer rooms | Social media engagement, local events | High - religious customs respected |
| Vietnam | Price optimization, local flavors | Cultural event participation | Medium - local celebrations |
| Singapore | Portion size, taste preferences | Student-focused, high-traffic areas | Medium - demographic targeting |
| Japan/Korea | Premium positioning, quality focus | University proximity, young adults | Medium - quality expectations |
Challenges & Future Outlook
Navigating intensifying competition, maintaining quality, and addressing sustainability concerns.
Key Challenges
Intensifying Competition
Facing local and regional chains in value segment, established giants in premium markets, and constant innovation pressure in bubble tea category.
Quality Consistency
Maintaining consistent product quality and service standards across 46,000+ franchised stores with diverse cultural norms and operational practices.
Sustainability Concerns
Addressing environmental impact of packaging, ethical sourcing of ingredients, and labor practices while maintaining affordability.
Strategic Priorities
Global Expansion Focus
Deepening presence in existing markets (Southeast Asia), entering new territories (Brazil, Europe), and building local supply chains.
Supply Chain Enhancement
Building more production and logistics hubs overseas, improving efficiency, reducing costs, and ensuring ingredient freshness.
Brand Building & IP
Expanding the "Snow King" content matrix, implementing omni-channel marketing, and strengthening global brand influence.
Vision 2030
"Solidify Mixue's position as a leading global F&B brand and formidable supply chain platform"
The Mixue Phenomenon
Mixue's journey from a single ice cream stall to the world's largest restaurant chain by store count demonstrates the power of strategic focus, operational excellence, and unwavering commitment to affordability. By mastering the franchise model, building an integrated supply chain, and adapting to local markets while maintaining global consistency, Mixue has created a blueprint for global expansion that transcends cultural and economic boundaries.
As the company continues its ambitious global expansion, supported by its successful IPO and strategic vision, Mixue is well-positioned to redefine the global beverage landscape and prove that quality and affordability can coexist at unprecedented scale.