In a surprising turn of events, Mixue Bingcheng has overtaken McDonald’s as the world’s largest fast food chain by the number of locations, despite having no presence in the United States.
As of September 2024, the Chinese bubble tea and ice cream chain boasts more than 45,000 outlets globally, surpassing McDonald’s 41,800 restaurants as of 2023. The rise of Mixue Bingcheng marks a significant shift in the fast food landscape, with the chain primarily known for its affordable soft-serve ice cream and beverages.
Founded in 1997 by Zhang Hongchao, the chain initially focused on shaved ice and cold drinks. Today, it serves items such as soft-serve ice cream cones priced at just one yuan (about 15 cents) and drinks ranging from 2 to 8 yuan (30 cents to $1.20). While Mixue Bingcheng’s location count is impressive, it is important to note that approximately 90% of its stores are based in China, with additional outlets spread across the Asia Pacific region, including Indonesia, Vietnam, and Malaysia. Notably, Mixue Bingcheng does not have any locations in the United States.
Zhang Hongchao’s business model focuses on keeping prices low, with a stated goal of allowing people around the world to “eat well and drink well for just two American dollars.” The company operates primarily through franchising, with over 99% of its stores franchised. Its revenue mainly comes from selling food materials, equipment, and packaging to franchisees.
Despite its vast global footprint, Mixue Bingcheng’s revenue still trails behind that of major beverage chains like Starbucks and Tim Hortons, which dominate the American market.
The news of Mixue Bingcheng’s rise comes just days after McDonald’s released a quirky commercial featuring celebrity breakfast orders. The campaign, which aired on YouTube, featured stars like Colman Domingo, Julia Fox, Teyana Taylor, and Rosalía revealing their morning-after McDonald’s breakfast choices.
As Mixue Bingcheng continues to grow, it will be interesting to see how it challenges established brands in both the global and domestic markets.
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