In a remarkable shift within the global fast-food industry, Mixue Ice Cream & Tea, a Chinese franchise specializing in ice cream and tea-based beverages, has emerged as the world’s largest food-and-beverage chain by number of locations, surpassing giants like McDonald’s and Starbucks.
Mixue’s Meteoric Rise
Founded in 1997 by Zhang Hongchao in Zhengzhou, Henan province, Mixue began as a humble street stall selling shaved ice and cold drinks. Over the years, it has experienced exponential growth, particularly in the last decade. As of September 30, 2024, Mixue reported a total of 45,302 stores worldwide, marking a significant increase from its earlier counts. This expansion has not only solidified Mixue’s dominance in China but also extended its reach across Asia and into Australia.
Affordable Offerings Fuel Growth
A key factor in Mixue’s rapid expansion is its commitment to affordability. The chain offers ice cream and beverages priced under $1, appealing to cost-conscious consumers, especially during economic downturns. This pricing strategy has resonated with a broad customer base, driving foot traffic and franchise interest.
Franchise-Friendly Model
Mixue’s business model emphasizes low franchising fees and a simplified menu, making it an attractive option for entrepreneurs. The company generates substantial revenue by supplying ingredients and products to its franchisees, ensuring consistency and quality across all locations.
Global Expansion and Future Plans
Beyond its domestic success, Mixue has been actively exploring overseas markets. The brand has established a presence in several Southeast Asian countries, including Vietnam, Indonesia, and the Philippines, as well as in Australia. To support its ambitious growth plans, Mixue is preparing for an initial public offering (IPO) in Hong Kong, aiming to raise approximately $443 million. This move is expected to provide the capital necessary for further international expansion and innovation.
Conclusion
Mixue Ice Cream & Tea’s ascent to becoming the world’s largest food-and-beverage chain by store count underscores the effectiveness of its affordable pricing, franchise-friendly model, and strategic global expansion. As it continues to grow, Mixue is poised to reshape the global fast-food landscape, offering valuable insights into consumer preferences and successful franchising strategies.
