How a Chinese company beat Starbucks, McDonald’s to become world’s largest fast-food chain

This bubble tea chain has more locations than McDonald’s and Starbucks.

The Chinese company operates across Asia and Australia.

It has now surpassed McDonald’s and Starbucks to become the world’s largest food and beverage chain by store count.

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As of last September, it had over 45,000 outlets across **China** and 11 other countries, including Thailand, Singapore, and Australia.

Meanwhile, McDonald’s has more than 43,000 restaurants in over 100 countries, while Starbucks operates around 40,000 stores worldwide.

Which company is it? And how did it grow to become the world’s largest food and beverage chain?

The world’s largest food chain is…

Mixue Ice Cream and Tea.

It is pronounced as ‘ME-schway.’

According to research firm Technomic, the chain ended last year with 45,000 stores, more than doubling its locations in just three years.

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Mixue (pronounced MEschway) started as a store in 1997, selling shaved ice (Indian Gola). Raised $400m in its IPO on Monday. Surpassed McDonalds in terms of number of outlets. It’s mind blowing that a lot of people in the world have hardly heard the brand’s name. pic.twitter.com/MJqHfbpAWS

— Bhupesh Pangti (@bpangti) March 4, 2025

This bubble tea and ice cream chain was founded in 1997 in China’s Henan province and made its debut on Hong Kong’s stock market on Monday. It offered nearly 17.1 million shares, raising 3.45 billion Hong Kong dollars.

A key factor behind its success is affordability. Notably, Mixue sells ice cream and sugary drinks for less than $1.

Often regarded as China’s largest chain for iced drinks, milk tea, and ice cream, Mixue operates differently from a typical beverage brand.

Instead of focusing solely on retail, it functions more like a raw-material supplier.

Unlike Starbucks, which directly runs 53% of its stores, Mixue relies almost entirely on franchising, with more than 99% of its locations operated by franchisees.

Mixue’s growth comes at a time when many in China are facing **economic difficulties** , including a property crisis and declining consumer and business confidence.

How Mixue became world’s largest fast food chain

Mixue is now the world’s largest fast-food chain by store count.

Its affordability is its biggest draw, as customers in Singapore told Business Insider. The chain has around 20 outlets in Singapore, all operating as takeaway counters.

Founded in 1997 by Zhang Hongchao, Mixue began as a small shaved ice shop in Henan, a province in China’s heartland.

Its rapid expansion is attributed to the simplicity of its bright red stores, often found as small stalls alongside phone repair kiosks or dumpling shops.

The menu is short and sweet, featuring its signature ice cream cone, various bubble tea options, and lemonade, making Mixue China’s largest buyer of lemons. It also keeps franchising fees lower than competitors, generating most of its revenue by supplying ingredients to franchisees.

Affordability remains a key factor in its success, especially as China’s economy faces challenges. At a Mixue outlet in Hong Kong’s Causeway Bay, 42-year-old retail worker Wang Li told CNN she loves its budget-friendly treats.

“I don’t even bother checking the price,” she said.

However, low prices alone do not explain Mixue’s cultural impact in **China** . The brand’s mascot, Snow King, and its catchy theme song have helped cement its place in popular culture.

According to The Wall Street Journal, Snow King - a round, cartoon-like character, has become as recognisable in China as Ronald McDonald or Colonel Sanders. Mixue’s theme song, which plays in its stores, has an equally strong brand recall, with an English version that goes: “I love you. You love me. Mixue Ice Cream and Tea.”

In its IPO filing, Mixue stated its intention to expand globally but did not mention plans to enter the U.S. Currently, about 90% of its stores are in China, with the remaining outlets spread across 10 other Asian countries and Australia.

Ernan Cui, a Beijing-based analyst at research firm Gavekal Dragonomics, told the newspaper, “People are chasing more cost-efficient products.” She added that Mixue is particularly popular in smaller cities, where it has focused its expansion.

According to Business Insider, the cheapest item on the menu in Singapore is the Signature King Cone ice cream, priced at SGD 1.50 (approximately Rs 97.40). The most expensive is the cheese strawberry drink at SGD 4 (Rs 259.72), while most beverages range from SGD 2.50 to SGD 3.50 (Rs 162.33 to Rs 227.26).

Eden Loke, 23, who works in communications, first heard of Mixue when a person dressed as Snow King went viral for prancing around a shopping complex in Singapore. The mascot’s antics, including a dance-off with another brand’s mascot, has gone viral on TikTok.

“The viral marketing, likeable branding, word of mouth from family, and unbeatable prices resonated with me,” Loke told the media outlet.

Her go-to order is the kiwi oolong tea, which costs SGD 3.50 (Rs 227.26). She said the low price was the biggest reason she chose Mixue over other brands.

The story behind Zhang’s Mixue

Founded in Zhengzhou, the capital of Henan province, Mixue started as a small shaved ice shop in 1997. However, success did not come immediately.

Zhang Hongchao and his brothers came from a farming family, Caijing reported. As a college student struggling financially, Zhang built a shaved ice machine and started selling his creations under the name Coldsnap.

That venture failed, leading him to shift to opening a restaurant called Mixue. In 2005, he set up a snack counter at the front of the restaurant, selling 1-yuan ice cream cones.

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The affordable soft serve was an instant hit. Customers flocked to his shop, and he quickly expanded to 20 outlets.

His pricing strategy helped Mixue attract students and lower-income consumers, particularly in China’s smaller cities.

As bubble tea gained popularity, Mixue added it to its menu. In 2017, Zhang launched a coffee brand called Lucky Cup.

In 2007, Zhang’s younger brother, Zhang Hongfu, joined Mixue as co-founder. He is now the company’s CEO, while their older brother is no longer involved in day-to-day operations.

According to the Bloomberg Billionaires Index, the company’s IPO has given Hongchao and Hongfu a combined fortune of $8.1 billion. That makes them wealthier than former Starbucks CEO Howard Schultz, whose net worth is over $6 billion.

With inputs from agencies