Although McDonald’s has worn the crown as the world’s biggest fast food chain, that reign has officially ended. The new food and beverage king isn’t one selling burgers or fries, but bubble tea and ice cream.
Specifically, it’s a Chinese brand called Mixue Bingcheng, known locally as 'Honey Snow Ice City', that has quietly built an empire of over 45,000 outlets worldwide. What’s more, it’s setting its sights on the United States food market, too.
Earlier this year, Mixue overtook McDonald’s and Starbucks in store count, claiming the top spot as the largest food and beverage chain on the planet, when it hit 45,302 as of September 2024 — as reported by analysts at The Low Down Momentum Works.
For perspective, McDonald’s was sitting at 43,000 stores worldwide, whilst Starbucks had just over 40,000 — knocking both down to second and third place, respectively.
The reason you might not have heard of Mixue until now is that most of its outlets - around 40,000 stores - are in China. Nevertheless, that hasn’t stopped the chain’s aggressive expansion across the rest of Asia.
For instance, Indonesia leads the overseas tally with more than 2,600 stores, while Vietnam counts over 1,300. In fact, Mixue alone has contributed more than 70 per cent of the 6,100+ Chinese F&B outlets now operating in Southeast Asia.
It has become such a common sight that, as one Indonesian customer reportedly joked on TikTok, 'any empty shophouse would soon turn into a Mixue store.'
When it comes to the secret to Mixue’s success, the answer comes down to the chain selling drinks and desserts at ultra-low prices, drawing in young customers in droves. A soft-serve ice cream cone can cost as little as 15 cents in some markets, while drinks such as milk teas and fruit teas usually sit under the one-dollar mark.
Ideal for young people with low income, or single parents struggling to make ends meet, with brown sugar milk tea costing just $1.10. That’s around a third cheaper than rival Taiwanese chains. Another option, a simple vanilla ice cream, can be picked up for around 50 cents, undercutting McDonald’s by at least 100% in US territories.
Mixue has also benefited from a fast-moving franchising model, where entrepreneurs can break even in as little as six months to a year, depending on location. Nearly all of its outlets are run by franchisees, with the parent company supplying the ingredients for signature items such as Creamy Mango Boba, Coconut Jelly Milk Tea and Kiwi Jasmine Tea.
This lean and highly efficient approach has allowed the brand to outpace Western competitors, who often take longer to develop local partnerships.
And now, Mixue is taking its biggest leap yet. It's now been confirmed that Mixue is opening first US store - a 2,100-square-foot location near Manhattan’s Chinatown on Canal Street, signing a 10-year lease.
While an official launch date is yet to be confirmed, New Yorkers, used to double-digit coffee prices, may soon be lining up for bubble tea and ice creams at a fraction of the cost.
Around the world, Mixue’s reputation has been built not only on affordability but on consistency. On Reddit, customer u/tooncake noted: “Aside from the budget-friendly price, the quality is not compromised.”
Whether this Chinese giant can crack the notoriously tough American fast food market remains to be seen. That said, with its mix of rock-bottom prices, rapid rollout and a menu that blends bubble tea culture with classic soft-serve, Mixue is about to give the Golden Arches a new kind of competition on its home turf.
Featured Image Credit: May James/SOPA Images/LightRocket via Getty Images
Ben Williams