China Mixue Profits Spike 40% in 2024

Mixue Group Reports Spike in Profits, Expands Global Presence

China’s Largest Food and Beverage Chain

Hong Kong-based Mixue Group, a Chinese bubble tea and drinks firm, has reported a significant increase in profits, surpassing McDonald’s and Starbucks in store count to become the world’s largest food and beverage chain.

Financial Results

The company’s financial results show a 22% increase in revenue to US$3.4 billion in 2024, attributed mainly to "increased revenue generated from sales of goods and equipment, and to a lesser extent, from franchise and related services". Profit for the year jumped 40% to US$613 million.

Expansion Plans

The company, founded by two brothers in 1997 as a shaved ice shop, has expanded rapidly across China and globally, with a total of 46,479 stores in 12 countries as of the end of last year. Mixue plans to continue elevating the breadth and depth of its supply chain in China, while focusing on cultivating the South-east Asia market.

Business Model

Mixue relies on a franchise model to grow its brick-and-mortar network, but "franchise and related service fees are not our primary sources of revenue". The company makes most of its money from supplying food materials, equipment, and packaging needed to run its stores.

Global Presence

The Zhengzhou-headquartered firm has a significant presence in lower-income Chinese cities, with nearly 60% of its stores in cities categorized as "third-tier or below". Its stores, recognizable by their bright red signs and smiling snowman mascot, offer freshly made fruit drinks, tea drinks, ice cream, and coffee.

Conclusion

Mixue’s success is a testament to its ability to disrupt the beverage industry, which was once dominated by premium brands. The company’s focus on providing affordable and high-quality products has resonated with consumers, particularly in lower-income cities.

Frequently Asked Questions

Q: What is Mixue’s primary source of revenue?
A: Mixue makes most of its money from supplying food materials, equipment, and packaging needed to run its stores.

Q: How many stores does Mixue have globally?
A: Mixue has a total of 46,479 stores in 12 countries as of the end of last year.

Q: What is Mixue’s business model?
A: Mixue uses a franchise model to grow its brick-and-mortar network, but "franchise and related service fees are not our primary sources of revenue".

Q: What is Mixue’s plan for the future?
A: The company plans to continue elevating the breadth and depth of its supply chain in China, while focusing on cultivating the South-east Asia market.