The world’s largest food and beverage chain, China’s Mixue, experienced a decrease in its international outlets in 2021. A significant number of these closures occurred in Indonesia and Vietnam, as the company strived to enhance its operations and efficiency.
Strategic Store Closures
While the exact number of closed outlets in Indonesia and Vietnam were not made public by Mixue, the company emphasised in its most recent financial statement a strategy to enhance the performance of their existing stores, to facilitate long-term, sustainable, and stable operations.
Expansion in Other Territories
Concurrently, Mixue expanded its reach in other countries including the United States and Kazakhstan, and launched its maiden stores in Malaysia and Thailand under a different brand, Lucky Cup.
As of the end of last year, Mixue had a global presence with 59,823 outlets, the majority of which, 55,356, were located in mainland China. Indonesia and Vietnam are its two largest overseas markets. As of September 2024, Mixue had 1,304 outlets in Vietnam according to documents filed for its Hong Kong Initial Public Offering (IPO) in early 2025.
Shifting Retail Strategy
Mixue is in the process of transitioning from a traditional small-store format to larger outlets in Vietnam. The new locations will feature expanded preparation counters, street-facing storefronts, and more expansive floor areas than their predecessors. The company is also giving preference to prime locations for its outlets.
The company made its debut in Vietnam in 2018, with an initial focus on Hanoi and the northern provinces. Since then, it has expanded its footprint nationwide. Some of its core offerings include lemonade, ice cream, milk tea, and fruit tea, all priced within an affordable range of VND10,000–30,000.
Mixue credits its ability to maintain low prices to its control over the supply chain, which extends from raw material production and logistics to research and development and quality control.
In a 2024 report, it was noted that Mixue has been instrumental in reshaping Vietnam’s milk tea market. The company has played a significant role in growing the affordable beverage segment and pursues an aggressive franchising strategy.
Future Plans and Financial Performance
Mixue has expressed plans to continue expanding its presence in Southeast Asia by further enhancing its franchisee network in the region.
In terms of financial performance, Mixue saw a significant increase in its revenues and net profits last year. Revenues shot up by 35% to RMB33.56 billion (US$4.9 billion), and net profits rose by 33% to RMB5.93 billion.
Questions & Answers
What is Mixue’s current strategy in Vietnam?
Mixue is transitioning from a traditional small-store format to larger outlets, with prime locations, expanded preparation counters, and larger floor areas.
What are some of Mixue’s key products in Vietnam?
Mixue’s core offerings in Vietnam include lemonade, ice cream, milk tea, and fruit tea.
How has Mixue’s financial performance been in recent years?
In the previous year, Mixue’s revenues increased by 35% to RMB33.56 billion (US$4.9 billion), and net profits rose by 33% to RMB5.93 billion.
