Mixue’s franchise business growth has taken the global F&B industry by storm, surpassing McDonald’s and Starbucks in store count. What started as a small ice cream shop in China has now become a dominant player in the affordable beverage market. Mixue’s aggressive expansion and low-cost strategy have allowed it to scale rapidly, particularly in Southeast Asia.
Mixue Franchise Business Growth: A Record-Breaking Expansion
In just a few decades, Mixue has grown to over 45,000 outlets worldwide, surpassing McDonald’s (43,077) and Starbucks (40,199). While McDonald’s and Starbucks have long been considered industry leaders, Mixue’s ability to expand at a faster rate has shifted the landscape. As of September last year, around 40,000 of Mixue’s stores were in China, while 4,800 were spread across 11 countries. Indonesia and Vietnam emerged as key international markets, hosting 2,667 and 1,304 outlets, respectively.
Despite its massive footprint, Mixue still trails behind Starbucks, Inspire Brands (Dunkin’ and Baskin Robbins), and Tim Hortons in total revenue. However, its accessible pricing model continues to drive strong consumer demand, making it a formidable competitor.
How Mixue’s Low-Cost Strategy Challenges Global F&B Giants
One of Mixue’s key advantages is its affordability. Unlike McDonald’s and Starbucks, which cater to a premium market segment, Mixue offers drinks priced between 2 to 8 yuan ($0.30–$1.20). This strategy has made Mixue particularly successful in countries where consumers prioritize budget-friendly options.
In Hong Kong, a customer named Wang Li shared his experience: “I don’t even bother checking the price,” he said, laughing, while adding that he wished he had known about Mixue’s Initial Public Offering (IPO) earlier. His sentiment reflects the brand’s appeal—offering quality products at an unbeatable price.
By focusing on affordability, Mixue has positioned itself as the go-to brand for cost-conscious consumers. This approach has also fueled rapid franchise growth, allowing it to scale at an unprecedented rate.
The Role of Franchising in Mixue’s Global Success
Mixue’s franchise model has been instrumental in its expansion. More than 99% of its outlets operate under a franchise system, where revenue primarily comes from selling ingredients, equipment, and packaging to franchise partners. This model ensures consistent brand quality while enabling rapid international growth.
For aspiring entrepreneurs in Indonesia, opening a Mixue franchise requires an estimated investment of IDR 400–494 million ($26,000–$32,000). This cost covers deposits, equipment, initial raw materials, and training. The franchise process includes a location assessment, contract signing, and intensive training on store operations.
Mixue’s founder, Zhang Hongchao, has maintained a simple yet powerful vision: “Let people all over the world eat and drink well for just two U.S. dollars.” His strategy has resonated with consumers and business owners alike, driving the brand’s continued expansion.
Can Mixue Sustain Its Rapid Growth?
While Mixue’s growth has been remarkable, the brand faces challenges in maintaining profitability. Despite having more stores than McDonald’s and Starbucks, its total sales remain lower.
Investor demand for Mixue’s IPO was strong, with Reuters reporting that it was oversubscribed by more than 5,200 times from retail investors. However, concerns remain about whether Mixue can sustain its expansion. June Zhao, an investor in Beijing, acknowledged the risks: “Mixue’s future growth will depend heavily on its international expansion.” The company’s ability to adapt to different markets while maintaining low costs will be key to its long-term success.
The Future of Mixue in the F&B Industry
Mixue’s franchise business growth has reshaped the global F&B industry, proving that an affordable pricing model can disrupt even the most established brands. While challenges remain, its strong market presence and rapid expansion suggest a bright future. As Mixue continues to scale internationally, its ability to balance affordability and profitability will determine its long-term dominance in the industry.
Source: cnbcindonesia.com
Image: Instagram/ Mixue Indonesia
