In a major shake-up of the global food and beverage (F&B) industry, American giants Starbucks and McDonald’s are facing unprecedented competition from Mixue Bingcheng. This rapidly expanding Chinese brand has disrupted the market with its aggressive pricing, extensive franchise network, and technological innovations.
A Rising Contender in the Global F&B Market
Mixue Bingcheng, which is popular for its low-cost ice creams, bubble tea, and coffee, has surpassed McDonald’s and Starbucks in the number of total outlets. The company had over 45,000 stores globally as of September 2024, with close to 40,000 locations in China alone. As of December 2024, it had grown to over 6,100 stores in Southeast Asia, with 2,600 of those in Indonesia. It is a market leader in the region.
The brand’s popularity stems from its ultra-competitive pricing model. A Mixue Bingcheng tea costs nearly one-third the price of competing products, while its ice cream offerings significantly undercut McDonald’s in terms of affordability.
Challenges for Western F&B Giants
With Mixue Bingcheng’s rapid expansion, analysts suggest that established Western brands like Starbucks and McDonald’s may be forced to rethink their pricing strategies and business models to maintain market share.
The affordability factor plays a crucial role in developing markets, where cost-sensitive consumers are increasingly drawn to budget-friendly, high-quality alternatives. In China and Southeast Asia, Mixue Bingcheng’s hyperlocal business strategy—which includes customized regional flavors and efficient supply chain models—has helped it win over millions of consumers.
Could Mixue Bingcheng Force Closures of Starbucks and McDonald’s?
Although there is no short-term threat of mass-store closures for Starbucks and McDonald’s, industry experts opine that underperforming stores, especially in price-conscious markets, are likely to face restructuring or downscaling.
“If Mixue Bingcheng sustains this aggressive expansion trend, it will compel dominant F&B players to reassess their business plans, implement more competitive pricing mechanisms, and innovate alternative revenue channels,” said a market analyst.
Future of the Global Fast-Food Market
Mixue Bingcheng’s success story is a mirror to the broader shift in world consumer patterns, whereby price-conscious consumers in developing economies are rewriting the future of the fast food and coffee shop industry.
With its cutting-edge strategy and record-breaking growth, Mixue Bingcheng is demonstrating that global F&B leadership no longer belongs to Western brands alone. As the fast-food battle heats up, it remains to be seen how industry leaders like Starbucks and McDonald’s will respond to this formidable Chinese challenger.
Also Read: Rebel Foods’ 15-Minute Gamble
