The world’s largest fast-food chain, Mixue, made its public debut on Hong Kong’s stock market, and it jumped 30% from its IPO price in the first day. The company, founded in 1997 in China’s Henan province, operates over 45,000 stores worldwide, outpacing Starbucks and McDonald’s.
Mixue’s success lies in its affordable products, with ice cream starting at $1 and drinks priced between $2 to $4. The chain has attracted customers with cheap bubble tea, thanks to its pricing strategy under RMB 10 ($1.40) in China’s highly competitive market. This approach has captured a significant customer base among students, who frequent these outlets.
The company’s founder, Zhang Hongchao, and his brother, CEO Zhang Hongfu, have combined net worth of $8.1 billion after the share sale. Mixue’s branding is catchy, with its “Snow King” mascot being a viral sensation on TikTok. The chain’s success is attributed to small shops in high-traffic areas, ensuring high foot traffic and brand loyalty among students.
While other bubble tea brands focus on premium positioning, Mixue has successfully established its presence in lower-tier cities where competition is less intense. This debut marks another bubble tea IPO boom in China, following companies like Guming Holdings and Sichuan Baicha Baidao Industrial Co.
Source: https://www.businessinsider.com/world-biggest-fast-food-chain-mixue-china-bubble-tea-ipo-2025-3