Step aside Starbucks and McDonald’s: China’s Mixue and other chains gain popularity in Southeast Asia
HONG KONG (AP) — Chinese food and beverage chains are making remarkable strides across Southeast Asia, presenting strong competition for well-established American names and bolstering China’s economic and cultural presence throughout the region.
Mixue Group, a Chinese drinks conglomerate, has risen to become the world’s largest food and beverage franchise chain by number of locations, surpassing international giants Starbucks and McDonald’s.
The brand, known in Chinese as Mixue Bingcheng or "Honey Snow Ice City," is tapping into Southeast Asia’s love for sweet treats, offering budget-friendly selections like ice cream, coffee, and bubble tea.
“There’s a popular meme going around on TikTok and similar platforms here — any vacant storefront is inevitably the next Mixue,” joked Rahma Yuliana, referring to the craze in Indonesia, where Mixue operates more than 2,600 locations.
A customer selects a drink at a Mixue shop in Jakarta, Indonesia, on Wednesday, Feb. 19, 2025. (AP Photo/Achmad Ibrahim)
A customer selects a drink at a Mixue shop in Jakarta, Indonesia, on Wednesday, Feb. 19, 2025. (AP Photo/Achmad Ibrahim)
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Yuliana, a single mom who owns an online store, says she enjoys treating her daughter to affordable sweets — like brown sugar milk tea for just $1.10, roughly a third less than similar drinks from Taiwanese chain Chatime. A cone of ice cream? Just 50 cents — cheaper than what McDonald’s offers.
Industry watchers report that by September, Mixue had surpassed 45,000 locations worldwide serving its signature teas, soft-serve ice cream, and Lucky Cup coffees. About 40,000 of those are located within China.
In a larger context, Chinese food brands had launched over 6,100 outlets across Southeast Asia by December, according to Singapore-based research firm Momentum Works. India and Vietnam host the majority, but Chinese franchises are more visibly present in countries like Singapore and Malaysia, which have significant Chinese-speaking populations.
Almost all Mixue shops operate under franchise agreements, purchasing ingredients for menu items like Creamy Mango Boba, Jasmine Tea with Mango Oats, and Milk Tea with Coconut Jelly from the parent company.
In addition to Mixue, other fast-growing names include Haidilao (a hotpot giant), Fish With You (serving sauerkraut fish), and beverage innovators such as Luckin Coffee, Heytea, and Chagee.
Mixue's stock value has doubled since its debut on the Hong Kong Stock Exchange on March 3.
Momentum Works CEO Jianggan Li noted that Chinese food operators are venturing abroad after encountering intense domestic rivalry.
Customer service worker Saleha Baharuddin purchases a drink from a Mixue location in Sepang, Malaysia, following her shift at a nearby shopping center, Tuesday, Feb. 25, 2025. (AP Photo/Vincent Thian)
Customer service worker Saleha Baharuddin purchases a drink from a Mixue location in Sepang, Malaysia, following her shift at a nearby shopping center, Tuesday, Feb. 25, 2025. (AP Photo/Vincent Thian)
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This movement by F&B upstarts sheds light on a broader narrative — Chinese exports today go beyond electronics and are becoming lifestyle mainstays.
These companies are nimble, tech-savvy, and utilize streamlined systems to stay efficient, said Li. While Western competitors often take longer to adapt to new markets, Chinese brands are known for their urgency and aggressive rollouts.
In Bangkok, Thailand, businesswoman Siya Han has invested approximately $1.37 million across 12 Mixue stores and another 10 outlets offering sauerkraut fish, spicy soups, and fried chicken. Mall locations take longer to recover the upfront rent, but most of her outlets reach break-even within 6–12 months, excluding lease deposits.
“You can’t be slow opening Chinese restaurants — you won’t make it,” she explained.
In Kuala Lumpur, Malaysian capital, Fish With You’s VP Liu Liujun sees vast potential in a region with sizeable Chinese communities and booming economies.
One $235,000 investment into a local outlet already returned its cost within nine months, he shared, with queues forming outside nearly every day as the company continues expanding throughout the region.
Customer Victoria Kovalan says China’s culinary entrants have motivated her to try new flavors. “They’ve broadened our taste buds,” she said, referring to favorites like Sichuan hotpots with bold and spicy profiles.
Nguyen Thu Hoài, a student in Hanoi, admitted she was wary of Mixue at first due to its Chinese origin, but the prices and above-average quality turned her into a loyal visitor.
These F&B ventures mark a shift in how Chinese products are seen — not merely as cheap but as increasingly dependable and desirable, said Gordon Mathews, anthropology professor at the Chinese University of Hong Kong.
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Referencing the cultural sway of McDonald’s during its international rise, Mathews remembered a conversation outside the fast food chain’s first location in Guangzhou during the 1990s. A local clerk told him, “I want to go to America.”
While it remains uncertain whether Chinese food chains will achieve similar symbolic power, the groundwork is certainly being laid, he said.
“China still faces challenges in building soft power, but through its consumer products, it’s steadily making progress,” Mathews remarked.
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Reporting by Thian in Kuala Lumpur and Ji in Bangkok. Additional contributions from Associated Press reporters Eileen Ng and Syawalludin Zain in Kuala Lumpur; Edna Tarigan and Andi Jatmiko in Jakarta; and Hau Dinh and Aniruddha Ghosal in Hanoi.
