Mixue Bingcheng (蜜雪冰城), meaning “honey snow ice city”, is a freshly-made tea drinks brand under Mixue Group, alongside coffee brand Lucky Cup (幸运咖). On March 3rd, 2025, the Group went public on the Hong Kong Stock Exchange and its shares surged by over 40% on the first trading day, receiving global attention. As of September 2024, it has over 45,000 stores in China and 800 stores in 11 other countries, making it the largest fast-food chain in the world by store count, even surpassing McDonald’s, Starbucks, and Subway. The Group was able to achieve such success through its competitive pricing, low-cost franchise network and efficient supply chain management, and innovative marketing and branding strategies. Having a large presence in tea market in China, the Chinese fast-food chain Mixue is also expanding overseas as lower-tier cities become more saturated.
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Mixue’s history dates back earlier than McDonald’s and Starbucks
Mixue Group’s history dates back to 1977, when Zhang Hongchao, a student at Henan University of Economics and Law, opened a small shaved ice shop named “Cold Snap Ice” (寒流刨冰) in Zhengzhou, Henan province. He started this as a part-time gig to help with his family finances. However, it didn’t turn out well, eventually leading to its close.
In 1999, however, Zhang opened a second store and formally registered it as Mixue Bingcheng (蜜雪冰城). This time it sold soft-serve cone treats and rapidly attracted nearby students and locals of low incomes. Over the years, it expanded by building centralized factories in 2012, introducing new products like bubble tea, launching Lucky Cup in 2017. Since 2018, it started expanding to other countries, opening its first store in Vietnam.
Low costs and prices make Mixue Bingcheng accessible
Mixue Bingcheng’s flagship products, such as lemonade and milk tea, are priced around RMB 2 to 8 (about USD 1 or less), making them appealing amid the economic slowdown and accessible to a wide range of consumers.
This pricing strategy is possible due the company’s ability to keep costs low through supply chain optimization. Mixue Group controls its entire supply chain, from raw material sourcing to production and distribution. 60% of the ingredients it supplies to its franchisees are self-produced. This reduces the costs and ensures consistent product quality. For example, its procurement costs for milk powder and lemon of the same type and quality were 10% and 20% lower, respectively, than the average of its competitors.
Mixue focuses on emerging markets
As of September 30th, 2024, Mixue Group is the largest freshly-made drinks company in China and in the world in terms of number of stores. It has over 45,000 stores in China and about 4,800 stores in 11 other countries.
Mixue has extensive presence in lower-tier cities
In China, Mixue Group focuses on sinking markets. As of September 30th, 2024, out of its 40,510 stores in mainland China, 57% of its stores were in third-tier and lower-tier cities. Only 5% of its stores were in first-tier cities, 20% in new first-tier cities, and 18% in second-tier cities.
Mixue has succeed in growing in lower-tier cities and rural areas due to the lower operating costs, untapped demand, and rapid expansion. The rent and labor costs are significantly lower in smaller cities, allowing Mixue to keep its low-price strategy. Consumers in these areas have less access to trendy food and beverage options, making Mixue an attractive choice. Moreover, Mixue’s franchise model allows it to rapidly expand in low-tier cities, often outpacing its direct competitors who focus on first-tier and second-tier cities. For instance, as of September 2023, 56% of Mixue Group’s stores were in third-tier cities and below. This outpaces Shuyi (书亦烧仙草, 79%), Auntea Jenny (沪上阿姨, 56%), and Good Me (古茗, 54%), and Cha Panda (茶百道, 38%).
Mixue expands to other countries
With competition intensify in lower-tier cities, Mixue Group is expanding to other countries. Most of its overseas stores are in Indonesia (2,667 stores) and Vietnam (1,304), which together generate around 70% of the overseas. It also has presence in other regions beyond Southeast Asia, including South Korea and Australia.
Mixue’s franchise model enables rapid expansion
Mixue Group’s franchise model is a cornerstone of its success. According to Mixue Group’s prospectus, 99% of its stores are franchised as of September 2024. It charges a lower franchise free, making it accessible to small business owners and enabling it to expand rapidly, especially in lower-tier cities. The initial budget fee is about RMB 210,000, lower than Tianlala’s RMB 150,000 and Good Me’s 230,000.
Moreover, Mixue Group’s revenue mainly comes from selling supplies, including ingredients and packaging, and equipment, such as ice cream makers and refrigerators, to its franchisees, not retail sales.
Mixue’s mascot “Snow King” builds a fan base
Mixue Bingcheng has built a strong brand identity, particularly through its strong Intellectual Property (IP) strategy and viral marketing efforts. In 2018, it introduced Snow King (雪王), its snowman mascot and developed Snow King-themed stores, merchandise, and animated series. This makes the brand more approachable and helps build a deeper emotional connection with its fans.
One of Mixue’s most recognizable element is its catchy theme song saying “You love me, I love you, Mixue Bingcheng is so sweet” (“你爱我，我爱你，蜜雪冰城甜蜜蜜”). It became a social media sensation, spreading on platforms like Douyin (Chinese version of TikTok) and Xiaohongshu (also known as RedNote), with netizens creating memes, covers and parodies, effectively promoting the brand for free.
Mixue Bingcheng leverages co-branding in China to refresh its experiences
To expand its consumer base and build a fun and refreshing experience, Mixue engages in co-branding in China. For example, in 2024, Mixue teamed up with Garfield to launch a series of orange-colored drinks like the Cheese Milk Cap Osmanthus Tea and Osmanthus Glutinous Rice Tea, along with a packaging featuring Garfield and Snow King. Additionally, this collaboration introduced limited-edition merchandise like cups, fridge magnets, and Good Luck Machine toy, creating an urgency for people to go to its stores.
This collaboration coincided with the release of the movie Garfield on Children’s Day on June 1st, 2025, appealing to both children and families alike. One RedNote user said, “Mixue collaborated with our childhood friend Garfield, and it looks absolutely stunning!”
Chinese fast-food chain Mixue grows from a humble shop to a giant empire
- Mixue Group is the world’s largest fast-food chain by store count, surpassing McDonald’s, Starbucks, and Subway. As of September 2024, it has over 45,000 stores in China. While its
- Mixue Bingcheng’s success lies in its low-cost franchise model and supply chain efficiency, innovative branding and marketing, and competitive pricing strategy.
- Mixue follows a low-cost franchise model, making it accessible to small business owners. The initial budget is about RMB 210,000, which is lower than its competitors. In 2012, it started building its centralized factories. As of 2025, it produces 60% of its ingredients in-house, allowing it to maintain low prices and consistent quality while also making delivery to franchisees more efficient.
- Mixue has built a strong brand identity through its mascot Snow King, viral theme song, and co-branding efforts. Its catchy theme song went viral on social media, and it collaborated with Garfield following the release of the Garfield movie.
- Mixue is known for its budget-friendly products, which especially appeals to lower-tier consumers in China, who have lower incomes and have less access to trendy food and beverage options compared higher-tier cities.
