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Mixue Opens First US Locations: The World's Biggest Fast-Food Chain...
Lifestyle

Mixue Opens First US Locations: The World's Biggest Fast-Food Chain...

Business Insider1h ago
3 min read
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Key Facts

  • ✓ Mixue operates over 46,000 stores globally, making it the largest fast-food chain in the world by store count, surpassing both Starbucks and McDonald's.
  • ✓ The company's first American locations opened in December in New York City and Los Angeles, with another New York store currently under construction.
  • ✓ During a visit to the Herald Square location, a combination of a soft-serve cone and an oolong tea cost only $3.63 after a 15% rewards program discount.
  • ✓ A similar oolong tea at a nearby Gong Cha would cost approximately $7.10, while a McDonald's vanilla cone is priced at $3.29—more than the entire Mixue order.
  • ✓ Mixue had a blockbuster IPO on the Hong Kong stock exchange in March, with its shares rising over 60% from their initial price by the end of the first week of trading.
  • ✓ The brand is part of a growing wave of Chinese food and beverage companies, including Luckin Coffee and Chagee, expanding into the United States market.

In This Article

  1. A New Contender Arrives
  2. The Herald Square Experience
  3. A Price Point That Undercuts
  4. A Global Giant's Ambition
  5. The Competitive Landscape
  6. What This Means for NYC

A New Contender Arrives#

The American fast-food landscape has a formidable new competitor. Mixue, the Chinese chain that has become the world's largest fast-food brand by store count, has officially crossed the Pacific to open its first locations in the United States.

With a global footprint of more than 46,000 stores, the brand's arrival in New York City and Los Angeles marks a significant moment for the industry. It represents the latest wave of Chinese companies, following in the footsteps of Luckin Coffee and Chagee, aiming to capture the American consumer market with a compelling combination of low prices and recognizable products.

The Herald Square Experience#

The brand's first American outpost in Midtown Manhattan's Herald Square is impossible to miss. Its bright red exterior and prominent signage have already become a photo opportunity for passersby, while the "Snow King" mascot—a snowman wearing a crown—adds to the store's distinctive character.

Even two weeks after its grand opening, the location was bustling. On a recent Friday afternoon, a line of over 20 people snaked outside the entrance and continued inside, where a long banner celebrated the store's launch. The atmosphere was energetic, though the looping promotional song proved to be a persistent soundtrack for those waiting.

Inside, the process is a mix of digital and personal service. Customers navigate a menu via tablets, with a human cashier also available. While the setup is efficient, the visit revealed a common challenge for new, popular openings: inventory shortages. Of the nine fruit tea offerings listed, only three were available, and a total of ten items were marked as sold out.

A Price Point That Undercuts#

The most striking aspect of the Mixue experience is the pricing. The menu, which focuses on soft-serve ice cream, coffee, and boba teas, is designed for affordability. The available items were priced to give established American chains a run for their money.

During the visit, a cone of soft serve and an oolong tea with coconut jelly were ordered. By signing up for the store's rewards program via the ordering tablet, an immediate 15% discount was applied. The final total for both items was a mere $3.63.

This price point creates a stark comparison with nearby competitors:

  • A similar oolong tea at a nearby Gong Cha location would cost approximately $7.10 on Grubhub.
  • A vanilla soft-serve cone at a nearby McDonald's is priced at $3.29—more than the entire Mixue order.

The quality of the items matched the price point. The soft serve was described as sweet, creamy, and exactly as expected—solid for the price, if not miraculous. The oolong tea was noted as delicious, with the coconut jellies providing a pleasant texture.

A Global Giant's Ambition#

Mixue's expansion into North America is backed by significant financial momentum. The company went public on the Hong Kong stock exchange in March with a blockbuster debut, seeing its shares jump 30% on the first day of trading.

By the end of its first trading week, the stock was up over 60% from its IPO price. This public offering raised approximately 3.45 billion Hong Kong dollars (about $444 million), providing ample capital for its global ambitions.

While its presence is heavily concentrated in China, Mixue already has a significant footprint in Southeast Asia, with outlets in Singapore, Thailand, Malaysia, Indonesia, and Vietnam. The US expansion is a calculated move into a highly competitive market, positioning itself against giants like Starbucks and McDonald's, which have approximately 40,000 and 43,000 stores worldwide, respectively.

The Competitive Landscape#

Mixue is not the first Chinese food and beverage brand to test American waters. Its arrival is part of a broader trend of international chains seeking to undercut traffic to established US companies with their low-cost models.

Its competitor, Luckin Coffee, known for its budget-friendly coffee and aggressive promotions, opened its first two New York City stores in June and has since expanded to five outlets. Similarly, the bubble tea brand Chagee, which also went public this year, opened its first US store in Los Angeles in May.

This influx of new options presents a fresh challenge for American consumers and incumbents. The strategy is clear: offer familiar products at a fraction of the price, leveraging scale and efficient operations to compete in a market where convenience and cost are paramount.

What This Means for NYC#

The opening of Mixue's US locations is more than just a new store; it's a test of a global business model in one of the world's most competitive food markets. The immediate lines and customer interest in Herald Square suggest a strong appetite for what the brand offers.

For New Yorkers, it means another affordable option in a city known for high costs. For the fast-food industry, it signals that the era of global competition is intensifying. With another New York location already under construction, Mixue's American story is just beginning.

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