Michelle ThompsonMixue Ice Cream and Tea may not be widely known, but the Chinese company has more locations than McDonald’s and Starbucks.
On Monday, its stock surged nearly 30% as trading began on the Hong Kong Stock Exchange. The bubble tea chain secured $444 million (£352 million) in the city’s largest IPO of the year.
Mixue’s success comes amid China’s economic struggles, including a property crisis and weak consumer confidence. Offering ice creams and drinks at an average price of six yuan ($0.82; £0.65), the brand was founded in 1997 by Zhang Hongchao, then a student at Henan University of Finance and Economics, to support his family financially.
Its full name, Mìxuě Bīngchéng, translates to “honey snow ice city.” Stores feature the Snow King mascot and continuously play the company’s theme song.
Mixue operates over 45,000 outlets across China and 11 other countries, including Singapore and Thailand, and plans further expansion. In comparison, McDonald’s has “over 43,000 locations,” while Starbucks has 40,576.
Despite being viewed as China’s leading chain for bubble tea, iced drinks, and ice cream, Mixue functions more as a raw-materials supplier than a conventional brand. Unlike Starbucks, which directly manages more than half of its stores, nearly all Mixue locations are franchise-owned.
The company’s strong market debut contrasts with smaller competitor Guming, whose shares dropped on its first trading day in February. Similarly, last year, shares in Chabaidao’s parent company also declined upon listing.
