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Mixue Ice City

Food · Zhengzhou, China · Founded 1997 · IPO 2025

Mixue Group, the parent company of the popular beverage brand Mixue Ice Cream & Tea, was established in 1997 by Zhang Hongchao. Initially a humble shaved ice stall in Zhengzhou, Henan province, the business has evolved into a global fast-food franchise. Zhang's entrepreneurial journey began while he was a university student, using his grandmother's savings of 4,000 yuan (approximately $550) to launch his first venture. After some early struggles and business model adjustments, he focused on ice cream, discovering a lucrative niche by offering high-quality soft-serve at the remarkably low price of 2 yuan (about 30 cents) when competitors were charging over 10 yuan. The company's business model is centered on a franchise-dominant structure, which has fueled its rapid expansion across China and into international markets. Mixue generates revenue primarily by selling ingredients, packaging materials, and equipment to its vast network of franchise stores, rather than relying on royalties or franchise fees. This approach ensures quality control and cost advantages, which are passed on to consumers through affordable pricing. The business operates its own production facilities, research and development centers, and warehousing and logistics, creating a highly integrated and efficient supply chain. The product portfolio extends beyond its signature ice cream to include fresh fruit drinks, milk tea, and coffee, all positioned at a low price point to attract a broad consumer base, particularly students and young adults. This strategy of offering high value for money has been a cornerstone of its success, enabling it to open tens of thousands of stores globally. The company filed for an initial public offering (IPO) on the Hong Kong Stock Exchange in early 2024, signaling its ambition for further growth and solidifying its position in the competitive beverage market. Keywords: beverage franchise, ice cream, bubble tea, affordable pricing, supply chain management, franchise model, food and beverage, quick-service restaurant, global expansion, value for money