Pearled tapioca, the key ingredient in bubble tea.© Nancy Kennedy/Shutterstock.comMixue Bingcheng, commonly known as Mixue, is a Chinese fast-food company specializing in ice cream, tea-based drinks, and other inexpensive menu items. Founded in Zhengzhou, China, Mixue has grown from a small local business into a large franchise with thousands of locations. Its rapid expansion, low pricing strategy, and highly recognizable marketing have made it a prominent name in China’s food and beverage industry and an emerging presence in international markets.

　　Founding and early developmentPronounced MEE-shway, Mixue began in 1997 as a single ice cream stall operated by Zhang Hongchao near a university campus in Zhengzhou. The original business focused on offering affordable frozen treats to students and locals. After several years of small-scale operations, Zhang formally established Mixue Bingcheng as a company in 1999.

　　By the early 2000s, the company began expanding through franchising. It introduced milk tea, bubble tea, and other beverages to complement its ice cream offerings, positioning itself as a low-cost option within China’s growing tea shop market.

　　Expansion and international reachMixue has expanded steadily within China, focusing on smaller cities and rural areas where other major businesses had limited presence. This strategy has helped the company build a broad customer base while facing less competition from higher-priced international chains.

　　The franchise model has played a significant role in Mixue’s domestic growth. Franchisees pay relatively low start-up fees and buy ingredients directly from the company, allowing Mixue to maintain control over its supply chain and product consistency. By early 2025, the company had opened tens of thousands of locations across China and expanded into several countries in Southeast Asia, including Vietnam, Indonesia, and Thailand. International locations typically adapt the menu slightly for local tastes while maintaining the company’s focus on low prices.

　　As of March 2025, Mixue operated more stores (over 45,000) than global fast-food chains such as McDonald’s (MCD), Subway, and Starbucks (SBUX).

　　Business model and operationsMixue’s business model prioritizes affordability and scale. To support its low pricing, the company has invested in its own plants to produce ingredients such as fruit syrups and dairy products, helping to keep costs down by making many of its ingredients in-house. Franchisees must purchase supplies through Mixue’s centralized system, which helps the company manage quality standards while creating an additional revenue stream.

　　Marketing and public imageMixue’s marketing centers on its snowman mascot, the Snow King, which appears prominently on storefronts, packaging, and advertisements. The company uses a lighthearted, cartoonish aesthetic and often promotes its products through jingles and animated videos shared on social media.

　　This approach has helped Mixue attract younger customers, particularly students and young adults looking for inexpensive drinks and snacks. Its focus on low prices sets it apart from more expensive competitors.

　　Challenges and criticismsAs Mixue has expanded, it has faced scrutiny over quality control, labor practices, and the sustainability of its low-cost strategy. Reports in Chinese media have highlighted issues such as inconsistent product quality between locations and concerns about working conditions for employees and franchisees.

　　Mixue’s reliance on a high-volume, low-margin business model also exposes it to risks during inflationary periods or supply chain disruption. Increases in ingredient or labor costs could put pressure on franchisees and limit the company’s ability to maintain its pricing strategy.

　　IPO and international growthIn early 2025, Mixue completed an initial public offering (IPO) on the Hong Kong Stock Exchange, raising about $444 million. The company’s shares surged by more than 40% on their debut on strong investor interest. According to regulatory filings, Mixue reported a net profit of 3.5 billion yuan ($479 million) in the nine months ended September 30, 2024—an increase of 42.3% year over year. The company has indicated that international growth remains a priority, with plans to enter additional markets beyond its presence in Southeast Asia.

　　David Schepp