Mixue Ice Cream and Tea, a name that may not resonate globally, has emerged as a giant in the food and beverage sector, surpassing McDonald’s and Starbucks in the number of outlets. On Monday, the Chinese bubble tea chain made a strong market debut with its shares surging by nearly 30% on the Hong Kong Stock Exchange. This marked the largest initial public offering (IPO) in Hong Kong this year, raising $444 million. Despite China’s economic challenges, including a property crisis and low consumer confidence, Mixue has thrived by offering affordable treats at an average price of six Chinese yuan ($0.82; £0.65).
Founded in 1997 by Zhang Hongchao, a student seeking to support his family’s finances, Mixue has grown exponentially. Known as “Honey Snow Ice City” in Chinese, the brand’s stores feature the Snow King mascot and play the company’s theme song continuously. With over 45,000 stores across China and in 11 other countries, including Singapore and Thailand, Mixue dwarfs McDonald’s “over 43,000 locations” and Starbucks’ 40,576 outlets.
Unlike Starbucks, which directly operates more than half of its stores, Mixue functions more like a raw-materials supplier, with nearly all outlets run by franchisees. This operational model has contributed to its robust market entry, contrasting with smaller rival Guming, whose shares dropped on its first trading day in February. Similarly, shares of bubble tea chain Chabaidao’s owner fell on their debut last year.
— news from BBC.com