Chinese beverage giant to debut in US
Chinese brand Mixue Ice Cream and Tea, the world's largest fastfood chain by number of stores, is set to open its first location in New York as it continues to expand its overseas presence.
The beverage giant had 46,479 locations globally at the end of last year, with 41,584 of them located in China, according to the company's annual report. Elsewhere in Asia, where its store count is 4,895, around 2,600 storefronts are located in Indonesia, with others in Vietnam, Thailand and Malaysia. About 70 percent of its overseas revenue comes from Indonesia and Vietnam, Bloomberg reported.
The fast-food outlet, known for its brightly colored menu, is most famous for its range of offerings — from bubble teas and ice cream to coffee or fruity concoctions often costing under $1. This makes them popular with university students, people on a tight budget or those who enjoy a bargain.
The chain signed a 10-year lease for its new store, located at 266 Canal Street in Tribeca, New York. The premises are around 195 square meters, according to the Commercial Observer.
The company has not released an exact date when it will open, and the store was completely empty as of Sept 22. Many passersby on the busy street told China Daily that they did not know the store would soon become a Mixue shop.
Once open, it will be the latest offering by Chinese beverage brands in the US — including HeyTea and Luckin Coffee — that have come from China and are attempting to capture the lucrative US market.
Jacob Cooke, CEO of WPIC Marketing + Technologies, an e-commerce consulting firm with offices in Beijing, told China Daily: "Mixue, like Luckin Coffee and HeyTea, succeeds because of value for money, fast iteration and deep digital engagement. These aren't legacy brands trying to retrofit themselves into the digital age; instead, they were born in it, which makes them more agile in connecting with digital-native consumers in both China and other markets."
The US has, for many years, been dominated by homegrown brands such as McDonald's, Starbucks and others. Globally, Mixue overtook McDonald's 41,800 stores and Starbucks' 40,200 last year.
Mixue, whose full brand name is Mixue Bingcheng, meaning "Honey Snow Ice City" in Chinese, is owned by the Mixue Group.
In 1997, then-college student Zhang Hongchao first sold shaved ice adorned with syrups and jam named Mixue Bingcheng, from a little stall in Zhengzhou, Henan province. He also sold ice cream 20 percent cheaper than local competitors, local reports said.
His brother, Zhang Hongfu, joined the company in 2007, and it is now worth $8.1 billion, according to an IPO document seen by Bloomberg. The group has two brands — Mixue, which sells fresh tea drinks, and Lucky Cup, which offers coffee products.
Since its humble beginnings, it has grown fast mainly due to franchising, experts said. It supplies most of these franchises with ingredients for innovative sounding drinks like Mango Oats Jasmine Tea and Coconut Jelly Milk Tea, The Associated Press reported.
Mixue is now so ubiquitous that people often poke fun at its number of locations. Some users of social media platform RedNote, or Xiaohongshu, joke that if they have any spare space at home or elsewhere, then it can become a Mixue storefront.
Mixue's move into the US comes as more Chinese brands showcase what they have to offer to overseas markets and those in Southeast Asia, said Cooke.
"For Mixue, the formula is clear: Deliver a product that feels indulgent but is priced to be accessible daily, then supercharge awareness through social-first marketing, influencer activations and viral content," he said.
belindarobinson@chinadailyusa.com
