Franchise News
How Jo's Cha Won Over Gen Z with a Wooden Fish GiftDuring this year’s 520 Festival (a popular online Valentine’s Day in China), a Guangdong-born tea brand called Jo's Cha caught everyone’s attention with a fun and quirky promotion: buy tea, get a free wooden fish.According to social media posts, customers who bought Jo's Cha’s signature drink could add a small peach-blossom wooden fish for just ¥3.8. The product description said: “Tap it every day—make a wish, gain good karma.” Many young consumers loved the idea and were happy to pay a little extra.Unsurprisingly, the wooden fish quickly became a hit on Xiaohongshu (Little Red Book). On the first day of the promo, posts about Jo's Cha were just as popular as those about bigger tea brands.Comments included:“Jo's Cha knows how to have fun with merch!”“Jo's Cha really gets what young people want! Tapping the wooden fish every day makes me feel so peaceful.”In today’s competitive tea market, big brands dominate. To attract young customers, newer brands often use limited-time collabs and creative marketing.But as customers become more selective, it’s getting harder to stand out.Jo's Cha’s 520 campaign worked because it connected with the lifestyles and values of young people. This emotional connection helped the brand break through and drive sales.From product development to naming, packaging, and marketing, Jo's Cha shows a deep understanding of youth culture.Let’s break down their strategy:1. Product Development: Fun, Fresh & Healthy DrinksTo keep customers interested, tea brands need both great marketing and great products. Unique flavors and healthy options help create a lasting appeal.Data shows that 60% of tea brands don’t last more than 3 years. One reason is that many drinks taste the same. Young customers want new experiences.Jo's Cha stands out with its fruit and vegetable teas. Its Bitter Melon Lemon Tea became a hit, selling over 4 million cups a year and starting a new trend.Another popular drink is the Tomato Guava Tea. Made with fresh tomatoes and red guava, it’s visually appealing and tastes light and refreshing.After the pandemic, more young people are choosing healthy, low-sugar options. Jo's Cha uses vegetables and fruits to create unique flavors that are both tasty and good for you. This keeps customers coming back.Other brands are also focusing on health. For example, Auntea Jenny promotes slow-cooked, preservative-free teas with no artificial flavors. This health-first approach is very popular.Low-sugar, light, and natural teas are the future.2. Packaging & Naming: Speak the Language of YouthToday’s young people often feel stress from fast-paced lifestyles. “Lying flat” (a trend of rejecting overwork) and Buddhist-style calming (seeking peace) are popular mindsets.Young consumers use shopping to relieve stress and find joy. They don’t just buy products—they buy feelings.To reach them, tea brands need to understand this mindset and use language and designs that resonate.Jo's Cha does this well. Their drink names use internet slang and relatable phrases like “Overtime LOL” or “Struggle Life.” This makes customers smile and feel understood.When young people feel a brand “gets them,” they become loyal fans and share it online—giving the brand free promotion.3. Creative Merchandise Boosts Hype & SalesIn a world of ads, brands must create “wow moments.” Limited merchandise is a classic way to do this.Successful merch can make a brand memorable and even become collectible.A great example is McDonald’s. Their Happy Meal toys and special collabs are hugely popular—sometimes even resold online.Jo's Cha’s wooden fish promo worked because it tapped into the “digital wooden fish” trend popular among Gen Z. Turning a digital meme into a real gift made it shareable and fun.The key takeaway: good merch is fun, relatable, and tied to youth culture. It keeps the brand in customers’ minds long after the campaign ends.ConclusionThe tea market is crowded. Online hype alone isn’t enough.A strong brand needs:Great productsSmart marketingCultural understandingJo's Cha shows how combining these can win young consumers' hearts and wallets.
Taning Lemon Tea: A Digital Transformation Success StoryBackgroundTaning is a lemon tea brand that started in Guangzhou. In just three years, it has grown to over 380 company-owned and franchised stores with a survival rate of more than 90%. From the beginning, Taning invested heavily in building a strong supply chain. The brand began testing digital tools to support its growth as digital transformation trends emerged. While these efforts helped, Taning—like many new tea brands—soon faced growth challenges that required a more advanced digital strategy.Business ChallengesTaning’s digital transformation hurdles included:Separate sales channels – online/offline, WeChat, Alipay, own stores, and third-party platforms weren’t connected.Basic customer loyalty programs – no strong system for membership levels, rewards, or repeat purchases.Poor use of data – customer and sales data were scattered and incomplete. Marketing and financial data weren’t accurate.Inefficient operations – slow store opening process, heavy reliance on manual work, and poor communication between HQ and stores.Slow tech response: IT updates took too long. Multiple external providers made it hard to integrate systems.Solutions1. Built a unified digital platformTaning integrated all its separate systems—including membership and sales data—into one central platform. This helped turn data into useful insights and created a full loop from sales to marketing to customer analysis.2. Connected all sales channelsThe brand linked its POS systems, self-run mini-programs, and third-party platforms into one multi-channel network. As platform fees kept rising, shifting traffic from public to private channels became essential. This integration helped Taning build its own customer base and strengthen brand loyalty.3. Improved marketing with smart toolsTaning set up a complete customer loyalty system with membership tiers, user incentives, and tagging. It used automated marketing tools to run better campaigns and used data to improve strategies over time.4. Used data to make better decisionsThe company created dashboards to track key business, customer, and behavioral data. HQ could monitor franchisee performance—like sales, member activity, and voucher usage—while franchisees could see how HQ’s campaigns were boosting their growth.ResultsIn 2021, Taning began working with Yunchi Tech to accelerate its digital transformation. Using Yunchi’s full-range solutions, Taning integrated front-end and back-end data into a multi-channel management platform. This improved the user experience, simplified operations, and enabled more creative marketing.Most importantly, data began to guide business decisions—making management easier, speeding up responses, and helping Taning meet its growth goals in a new expansion phase.
Can You Drink 20 Bubble Teas in One Day? Moge Tee in Allston Put to the Test!You might have heard about that pop idol who claimed she drinks 8 cups of bubble tea a day. But that’s nothing—Lobster Guy here actually tried over 20 cups in one day, all to show you how amazing Moge Tee in Allston really is!Let’s be real—no one should pretend to be a bubble tea expert just for show, but there’s some truth to the idea that “bubble tea keeps us going.” Anyone else out there who forgets to drink water all day but never says no to bubble tea?At Moge Tee, great taste comes from care. Their drinks are healthy, delicious, and full of creative ideas—all served in cute cups with real, high-quality ingredients you can actually see.Even mom says: It’s Okay!Mochi & Tofu Pudding SeriesMoge Tee’s most popular drinks feature Mochi and Tofu Pudding. These days, regular bubble tea isn’t always enough. If you want to make your drink more fun, Moge Tee has you covered with stretchy mochi and smooth tofu pudding—even better than classic boba!Black Sesame Mochi Milk Tea: Made with rich black sesame mochi at the bottom, it tastes like semi-solid black sesame paste and is soft and chewy.Taro Mochi Bubble Tea: Uses fresh taro paste and pure milk mochi. It’s so smooth you won’t notice how good it is until it’s gone!Tofu Pudding DrowsiesUnlike the thick texture of mochi, Tofu Pudding is light, sweet, and made from soy—almost like a soft,豆浆-flavored pudding.Taro Tofu Pudding: Dreamy and creamy with taro paste.Red Bean Tofu Pudding: Sweet and energizing with red bean sauce.Take your pick—both are delicious!New: Yogurt Tea SeriesMoge Tee’s new Yogurt Tea is a game-changer.Yogurt cheese isn’t easy to keep fresh, so Moge Tee makes it by hand every day. They pair it with creamy avocado, strawberry, or mango—all super fresh and flavorful.Plus, each drink includes White Bubble (crystal boba). It’s bouncier, chewier, and more fun than regular boba—not to mention how good it looks!Like It Light or Rich? Moge Tee Has You Covered.Some like refreshing teas; others prefer something rich and chocolatey-smooth. Luckily, Moge Tee knows how to please everyone.Their cold-brewed tea method brings out more natural sweetness and reduces bitterness. Topped with hand-whipped sea salt cheese foam, it takes the tea experience to a new level.Try the:Cheese Foam Peach Oolong TeaCheese Foam Osmanthus TeaThe creamy foam enhances the peach and osmanthus flavors—making each sip unforgettable.
Bao's Pastry Opens First Overseas Store in Singapore, Leading Chinese Food Brands’ Global ExpansionPork floss buns, butter rice cakes, mochi… These popular Chinese baked goods have now arrived on the streets of Singapore. On May 11th, Bao's Pastry officially opened its first overseas store at Paya Lebar Square in Singapore, as announced on its official social media.More Chinese food brands have been expanding abroad in recent years, creating a new wave of global growth.Chinese Brands Going GlobalBao’s Pastry isn’t alone. Just over a month ago, Yan Zhi Wu (a bird's nest specialty brand) opened its first Singapore location. In December 2024, Yuan Ji Dumpling also launched its first overseas shop in the same city.Why Are Brands Choosing Southeast Asia?There are several reasons why Chinese brands are focusing on Southeast Asia:Young Population: Countries like Indonesia, Malaysia, the Philippines, and Vietnam have a large youth population (under 35) with strong spending power.Lower Costs: Being close to China reduces shipping and logistics expenses.Cultural similarity: Shared food culture makes it easier for brands to gain acceptance.Singapore, in particular, is a popular choice. Over 70% of its population is ethnic Chinese, creating a familiar environment for Chinese brands. It also offers a mature consumer market, clear regulations, and a mix of Eastern and Western cultures.After Singapore, Bao's Pastry plans to expand into the US, Australia, and France.As China’s global influence grows, more Chinese brands are gaining the confidence to enter international markets.Challenges of Global ExpansionGoing global isn’t easy.Bao's Pastry had been planning overseas expansion since 2023, but faced several challenges:Copycat Stores: Fake “Bao's Pastry” shops appeared overseas before the real brand arrived.Trademark Theft: Others tried to register the Bao's Pastry name abroad first.This is a common issue—many Chinese companies struggle to protect their brands overseas.Compliance is another major challenge. Different countries have different food safety rules. Brands must adapt to new quality standards in each market.Supply chain management is also difficult. Most brands choose between:Traditional exportLocal manufacturing overseasBuilding their own factories abroadLocal production can help reduce costs and adapt to local tastes, but building a supply chain takes time and investment.The Road AheadDespite the challenges, Chinese food brands are determined to grow internationally. With careful planning and strong branding, brands like Bao's Pastry are ready to bring Chinese flavors to the world.
Binxi Time: From Local Tea Shop to 3,000+ Store National Brand Now Expanding GloballyAfter nine years of growth and innovation, Binxi Time has successfully expanded from a local bubble tea brand into a major national chain. With over 3,000 locations across all 31 provinces in China, the brand is now taking its next big step: international expansion into Southeast Asia. Growing interest from overseas markets confirms the strong global potential of Binxi Time. With its memorable brand identity and high-quality, affordable products, Binxi Time is quickly becoming a rising star in the global fresh tea scene. Rapid Growth Built on Quality and ConsistencyBinxi Time’s journey to 3,000 stores in just nine years is a testament to its focus on product quality and understanding customer needs. The brand carefully manages every detail of store operations to ensure a consistent, high-quality experience at every location. Full Support for Franchise PartnersBinxi Time believes its success depends on the success of its franchisees. That’s why the brand offers highly competitive franchise policies and places partner needs first. Key support includes: Product Innovation: A dedicated R&D team continuously develops new products to keep the menu fresh and exciting.Strong Supply Chain: A self-operated supply system guarantees stable, high-quality ingredient delivery.Comprehensive Training: Full training programs for staff and management help franchisees start strong.End-to-End Assistance: Help with everything from site selection and store design to grand opening preparations.Marketing & Operations: Ongoing marketing campaigns and operational guidance to maximize ROI.Proven Success and Strong ReturnsThanks to its experience and successful business model, Binxi Time offers a handsome return on investment. Many franchise locations have reported record-breaking daily sales, especially during holidays and store anniversaries, with some even exceeding ¥10,000 per day. A Strong Foundation for Future GrowthWith nine years of experience, a network of over 3,000 stores, and a growing international presence, Binxi Time offers franchisees a reliable and well-supported business opportunity. The brand’s strength lies in its scale and strict quality control, customer-first approach, and unwavering support for its partners. Binxi Time is committed to bringing delicious, innovative drinks to customers worldwide while creating rewarding business opportunities for its franchisees.
Meet Mixue: The Chinese Ice Cream Brand With More Stores Than McDonald'sYou might think McDonald's or Starbucks is the world's largest fast-food chain. However, the title for most locations belongs to a brand that has exploded across China and Asia: Mixue, an ice cream and tea shop founded in 1997 by Zhang Hongchao, who started with a single street stall as a university student.McDonald's, founded over 85 years ago, is a global powerhouse with more than 40,000 restaurants. Yet, in terms of sheer store count, it has been surpassed.As of March, Mixue is the world’s largest fast-food chain by number of stores, boasting over 46,000 locations across Asia, Australia, the Middle East, and South America. With nearly 40,000 of those in mainland China, the company has massive room for global growth.Twenty-eight years ago, when Zhang Hongchao opened his first small stall, he likely never imagined it would become a global giant.Humble BeginningsWhile studying at the Henan University of Economics and Law, Zhang had the idea to sell cold drinks and shaved ice. He borrowed 3,000 RMB (about $362 at the time) from his grandmother to open a stall on the streets of Zhengzhou, a major city in central China.The stall was an early success. According to a report by Sina News, he was able to make a significant profit margin, selling drinks for over $14 that cost him around 21 cents to make.However, his lack of experience and Zhengzhou's rapid modernization created serious obstacles. As the city developed, his stall was demolished three times in a single year. He also struggled to sell cold drinks in the winter, forcing him to sell oranges just to make ends meet.Building a Winning FormulaDespite the setbacks, Zhang persevered. He invested in better equipment, expanded his menu, and introduced the product that would define his brand: a soft-serve ice cream cone that cost only 1 RMB (about 14 cents). This unbeatable price made Mixue a massive hit with budget-conscious consumers.The company’s operations leveled up in 2007 when Zhang’s younger brother, Zhang Hongfu, joined the business. Before, franchise management was informal. Hongfu, now the CEO, implemented a structured system. A key move was introducing professional store managers, which helped the brothers professionalize the franchise network beyond family and friends.As the brand expanded to hundreds of stores, it faced inconsistencies and supply chain shortages. Zhang pushed through by launching new bestsellers like bubble tea and, in 2014, established a warehouse to buy raw materials directly from farmers. This move to create their own supply chain fixed their shortages for good.Mastering the Supply ChainBy 2022, Mixue had built a network of logistics centers across 22 provinces. The company controls almost everything, from store location and design to staff training and food safety protocols.This vertically integrated model is their superpower. According to a recent study, Mixue's in-house supply chain keeps its costs at just 30% of sales revenue, far below the industry average of 45-55%. This allows them to maintain their famously low prices while remaining highly profitable.Performance and Business Model TodayIn 2024, Mixue Group’s profits hit 4.4 billion RMB (approx. 615 million USD), a 226.15 million USD), 22% increase from the previous year. Revenue reached 24.8 billion RMB (approx. 615 million USD),a 223.43 billion USD), up nearly 40%.The company continues its rapid expansion. Last year, Mixue opened over 10,000 new stores, with a very low closure rate of just 3.5%.Interestingly, even though over 99% of its 46,000+ stores are franchises, franchise fees make up only a small part of its revenue. The bulk of its income comes from selling ingredients and equipment directly to franchisees, who are required to source everything from the parent company.
Cha Panda Reports Strong Growth in First Half of 2025Chengdu, August 29—Chinese tea brand Cha Panda announced impressive results for the first half of 2025, showing significant growth in both revenue and profit. The company reported a total revenue of ¥2.5 billion RMB (approx. 345millionUSD),a4345 million USD), a 4% increase year-over-year. Profits saw a massive surge, climbing 40% to **¥333 million RMB** (approx. 345millionUSD),a446 million USD).As a key player in the mid-market tea industry, Cha Panda’s success is driven by product innovation, operational efficiency, and a solid supply chain. These efforts have boosted performance across its national network, which grew to 8,444 stores by the end of the period.The company also recently opened its "Explore Sichuan" flagship store in Chengdu's popular Kuanzhai Alley. Looking ahead, Cha Panda plans to focus on upgrading store quality and strengthening its core business capabilities to ensure long-term, high-quality growth.Advanced Supply Chain Delivers Freshness and EfficiencyCha Panda has made significant progress in its supply chain. Key achievements include:•Expanded Network: The number of national distribution centers has grown to 26.•Next-Day Delivery: A powerful logistics system now enables next-day delivery for nearly 94% of its stores.•Fresh Ingredients: Cha Panda is one of the few brands capable of delivering fresh milk and delicate fruits (like lychee and mulberries) to its stores nationwide, with fresh fruit now accounting for 80% of its unified supply.•Cost Control: By operating its own packaging and tea processing factories, the company has better control over quality and costs.This robust network lowers costs, improves efficiency, and ensures that customers enjoy the freshest tea, no matter the location.New Products and 160 Million MembersIn the first half of 2025, Cha Panda launched 55 new products. Popular hits like Bamboo Scented Oolong, Grape with Fresh Perilla, and Lychee Iced Milk quickly became customer favorites.The brand's innovative "Fresh Iced Milk" series sold nearly 20 million cups, setting a new trend for healthier options in the industry. These successful new products helped Cha Panda grow its registered membership to 160 million users, an increase of over 40%.Global Expansion is AcceleratingCha Panda is making fast progress in its international growth strategy, using a "one region, one policy" approach to customize its offerings for local markets.•Global Footprint: Signed agreements for over 40 stores across eight countries, including South Korea, Spain, and Singapore.•Success in South Korea: The brand now has 18 stores in South Korea and has earned its franchise license, allowing for large-scale expansion. New stores have opened beyond the capital, including on the popular tourist destination of Jeju Island.•Coming Soon: Cha Panda has announced its first stores in France and the United States will open soon, marking a key milestone in its global journey.*Analysts are giving a "Outperform" RatingMarket analysts view Cha Panda's first-half results as a positive turning point. Its strong performance, particularly during marketing campaigns like "Fall's First Cup of Milk Tea," suggests this momentum will continue. A recent report from CICC gave Cha Panda an "Outperform" rating, citing its diverse product lineup, national supply chain, and effective franchise management as key drivers for future growth.
Zhangliang Malatang: Bringing China's Beloved Street Food to the WorldFor many in China, malatang is more than just a popular street food—it’s a warm, comforting bowl full of life and flavor. Packed with various ingredients in a rich, spicy broth, every steamy bite carries the love and joy of everyday life. Now, this iconic Chinese dish is traveling beyond borders, winning the hearts of food lovers around the globe.In Thailand, students flock to Zhangliang Malatang after school, sharing stories over bowls of aromatic soup. Inside the stores, people of all backgrounds gather around boiling pots, laughing and connecting through the universal language of good food. Bowl by bowl, Zhangliang Malatang brings authentic Chinese taste to the world.Since starting its global expansion in 2019, Zhangliang Malatang has over 6,000 stores in more than 350 cities across 21 countries, with over 100 locations overseas. Through rapid growth and strong branding, it has become a globally loved name.A Global Leader in Chinese CuisineAs Chinese food continues to gain worldwide popularity, Zhangliang Malatang stands out with five key strengths: scale, product quality, supply chain, customer experience, and industry recognition.Scale Leadership: 6,000+ Stores WorldwideFrom its first store in Harbin in 2008 to now, spanning New York, London, Sydney, and Southeast Asia, Zhangliang Malatang serves over 200 million bowls yearly. Its global presence makes it one of the most recognized Chinese food brands internationally.Product Leadership: Traditional Taste, Global AppealThe secret lies in its broth—slow-cooked using only the best beef bones. With 17 years of perfecting recipes, the brand stays true to its roots while adapting to local tastes worldwide. Every bowl delivers authentic flavor with a thoughtful touch.Supply Chain Leadership: Safe, Fresh, GlobalSourcing top-quality ingredients from trusted international suppliers, Zhangliang Malatang ensures every meal is safe, consistent, and delicious—no matter where you are.Experience Leadership: Enjoy Your Own PotThe single-serving pot system lets everyone customize their meal from over 100 ingredients. Stores are designed for comfort and efficiency, making each visit easy and enjoyable.Authority Leadership: Officially RecognizedAwarded the “Global Leading Malatang Brand” by top consulting firms, including Frost & Sullivan and China Sampling, Zhangliang Malatang is certified for its influence, scale, and quality across international markets.Global Launch Event: Introducing Master BrothsOn April 19, Zhangliang Malatang hosted a major global launch in Singapore, unveiling three new “Master Broths”—Classic Spicy Bone, Sunny Tomato, and Rich Dry Mix—each developed with renowned chefs. The event strengthened its mission to share high-quality Chinese flavors with the world.As Zhangliang Malatang grows, it carries more than just food—it brings culture, connection, and warmth to tables everywhere. This is more than a meal; it’s a shared experience transcending borders.
Tianlala Accelerates Indonesian Expansion, Opening 10 New StoresDuring the recent Dragon Boat Festival holiday, Chinese tea brand Tianlala celebrated a major expansion in Indonesia by opening 10 new stores across the North Sumatra province. The new locations, launched in key areas like Ayahanda, HM Joni, and Kapten Muslim, were an immediate success.To kick off the grand openings, the company launched a special “Bear Mascot Tour,” bringing its popular mascot to each new store to engage with excited customers. Tianlala has signed agreements for 127 stores across Indonesia, establishing a strong presence in Jakarta and other major cities.A Strong Debut with Booming SalesThe new stores saw impressive results in their first three days, with some locations reporting sales figures close to ¥30,000 RMB (approx. $4,100 USD). The most popular items among local consumers were the Jasmine Milk Tea, Yogurt Ice Cream, and Oreo Sundae.“In May alone, across our active Indonesian stores, we sold over 47,000 cups of Jasmine Milk Tea and more than 40,000 units of Yogurt Ice Cream,” said Guo Fei, Tianlala’s Indonesia Brand Manager. “We are thrilled to achieve this success in such a short time. It's a powerful endorsement of our brand and a great reward for our team's hard work.”High Quality at Friendly PricesSince its founding, Tianlala has built its brand on a simple philosophy: offer high-quality products at affordable prices. This strategy is best seen in its signature one-liter “bucket series," including best-sellers like the "Fruit Tea Bucket" and new summer flavors like Watermelon, Green Plum, and Peach—all priced around 10 RMB (approx. $1.40 USD).While bringing this high-value model to Indonesia, Tianlala has carefully adapted its menu to suit local tastes, creating a menu that feels both familiar and new. The brand has also focused heavily on the customer experience, designing its stores with bright, vibrant "dopamine decor” to create a fun, stylish, and happy environment for everyone.Riding the Wave of a Growing MarketAccording to a recent industry report, the Southeast Asian ready-to-drink beverage market is one of the fastest-growing in the world, with a projected compound annual growth rate (CAGR) of 19.8% between 2023 and 2028.Building on its strong momentum in Indonesia, Tianlala plans to deepen its presence across Southeast Asia before expanding into North America, Europe, and the Middle East."Tianlala's success is thanks to every one of our customers and partners," said Xu Zhou, the company’s Head of Overseas Operations. "We will continue to innovate our products and services to share the charm of Chinese tea culture with more countries. Our goal is to make the world fall in love with Chinese tea!"As it looks to the future, Tianlala is focused on its journey from regional success to a global network. By working closely with local partners, the brand aims to evolve from simply a product exporter to a cultural ambassador, sharing the unique taste of "modern Chinese tea" with the world.
CHAGEE Goes Public on NASDAQ, Brewing a New Era for Chinese TeaCHAGEE, a leading modern Chinese tea brand, successfully debuted on the NASDAQ stock exchange under the "CHA." This landmark IPO marks a new chapter for China’s rapidly growing tea industry, signaling strong recognition from the international investment community.The company's stock opened strong, closing its first day of trading at 32.44,a15.8632.44 a 15.86% increase that pushed its market valuation past 32.44, a 15.865.9 billion. More than just a financial milestone, CHAGEE’s public offering represents a fresh, global expression of Chinese tea culture.From a Single Shop to a Global PowerhouseCHAGEE's journey has been nothing short of remarkable. In 2017, founder Zhang Junjie opened the first location—a modest 30-square-meter shop in Kunming, China. In just seven years, the brand exploded from that single store to a global network of over 6,440 locations, becoming the first Chinese tea franchise to list on a major U.S. exchange.From the beginning, CHAGEE set out to be different. Instead of focusing on traditional bubble tea or fruit-centric drinks, the brand committed to creating "Modern Oriental Tea." By blending ancient tea traditions with contemporary brewing techniques, stylish design, and immersive in-store experiences, CHAGEE made heritage tea culture exciting and accessible for a new generation.The market has enthusiastically embraced this vision. According to its prospectus, in 2024 alone, CHAGEE recorded:A Gross Merchandise Volume (GMV) of ¥29.5 billion, a 173% year-over-year increase.A net profit of ¥2.515 billion, reflecting an impressive net profit margin of 20.3%.Building on this success, CHAGEE reported it had reached 1.7 billion registered members worldwide as of January 2025. This scale is supported by a robust supply chain that sourced 13,000 metric tons of premium tea leaves in 2024 from top-tier origins like Yunnan, Fujian, and Sri Lanka, creating over 60,000 jobs in the process."The rise of new tea brands has been a massive boost to China's tea industry," said Wang Qing, President of the China Tea Marketing Association. "Most importantly, it has successfully made tea popular among young people. It's thanks to innovative brands like these that nearly 45% of tea drinkers in 2022 were between 18 and 38, a demographic that was largely untapped before."A Global Vision: Taking Tea Culture WorldwideA simple tea leaf can be a powerful cultural ambassador. For CHAGEE, every cup of tea is an opportunity to share a piece of its heritage and build connections across the globe.CHAGEE’s international expansion has already shown significant promise. In August 2024, the brand opened three stores in Singapore. The following month, it launched a new flagship model in Malaysia. Both debuts attracted long lines and immediate popularity, providing a blueprint for further growth. As of the end of 2024, CHAGEE operated 156 international locations and plans to add another 1,000-1,500 stores globally in 2025.A clear, dual-focused model drives the brand's go-to-market strategy:Cultural Leadership: Using its "CHA" identity to build a strong, recognizable brand rooted in authentic tea culture.Commercial Excellence: Ensuring global quality control through standardized equipment and delivering strong financial results to prove its business value.This powerful combination redefines how Chinese brands can succeed on the world stage. As CHAGEE steps onto the global capital market, it is helping to usher in a new age for China's entire tea industry.When customers around the world enjoy a best-selling "Bo Ya Jue Xian," they are sipping more than just a perfectly brewed tea—they are experiencing a modern interpretation of a timeless culture. CHAGEE proves that tradition and innovation can blend seamlessly, creating a new story of modern tea for the world to enjoy.
IPO Race Heats Up: Why is Shanghai Brand Auntea Jenny a Shandong Sensation?Auntea Jenny (Shanghai) Industrial Co., Ltd. has officially filed for an IPO on the Hong Kong Stock Exchange, joining a wave of Chinese new-style tea brands—including ChaPanda, Gomay, and Mixue Ice Cream & Tea—seeking to go public.But there’s a fascinating twist to Auntea Jenny’s story. While founded in Shanghai, the brand’s largest and most successful market is hundreds of miles away in Shandong province. What’s behind this surprising success?A Shanghai Brand with Shandong RootsAs of September 2023, Auntea Jenny operates the fourth-largest tea shop network in China with 7,297 stores. Strategically, 3,752 of these are in northern China, making it the #1 mid-priced tea brand in the North.Mid-priced tea brands are defined as those with an average product price between 10 and 20 RMB (approx. 1.40−1.40 - 1.40−2.80 USD).Within this northern stronghold, Shandong stands out with 1,024 locations—the only province where Auntea Jenny has surpassed the thousand-store mark.The reason for this regional dominance is surprisingly personal. Although Auntea Jenny was founded in Shanghai, its founders have deep connections to Shandong. Co-founder Shan Weijun and his wife, Zhou Rongrong (a Shandong native), lived and worked in the province for years before starting their entrepreneurial journey.In 2013, after launching their first store in Shanghai, they made a strategic decision to expand into Shandong early, opening a shop in Zhou Rongrong’s hometown of Yantai. "We wanted to give back to the place where we lived for over a decade," Shan once explained.This early foothold gave them a massive first-mover advantage. According to franchise recruiters, the market in most Shandong cities is now saturated, making it difficult for new competitors to find prime locations.A Smart Product Strategy for Nationwide ExpansionAuntea Jenny's initial menu was perfectly suited for its northern expansion. The brand became famous for its unique "Five Grains Milk Tea," featuring ingredients like purple rice, red beans, and oats. These warm, hearty drinks were an instant hit in the colder northern climate.Recognizing the growing demand for fresh fruit teas across China, the company expanded its menu in 2019. This move allowed Auntea Jenny to rapidly grow its footprint nationwide, particularly in southern markets. Today, its top three provinces by store count are Shandong (1,024), Guangdong (840), and Anhui (521).Clash of the Titans: Which Tea Brand is Most Profitable?With Auntea Jenny’s filing, four of China's top five tea brands are now racing to the public market. Except for the low-priced Mixue, the other three (Auntea Jenny, Gomay, ChaPanda) compete in the mid-priced category. Let's compare their financial performance.By Revenue and Profit (2022):Mixue Ice Cream & Tea: With its massive store count, Mixue leads with ¥13.58B in revenue and ¥2.01B in profit.Gomay: ¥5.56B revenue, ¥372M profit.ChaPanda: ¥4.23B revenue, ¥965M profit.Auntea Jenny: ¥2.20B revenue, ¥149M profit.Unsurprisingly, revenue and profit align with the total number of stores. However, the story changes when we look at profitability.By Profit Margin (2022):ChaPanda: 22.8%Mixue Ice Cream & Tea: 14.8%Auntea Jenny: 6.8%Gomay: 6.7%Despite having fewer stores than Gomay and Mixue, ChaPanda emerges as the most profitable brand on a percentage basis.A Market with Enormous Room to GrowThe Chinese ready-made beverage market is poised for explosive growth. According to a China Insights Consultancy report, the market is expected to surge from ¥421.3 billion in 2022 to ¥1.18 trillion by 2028.A key driver is এখনো relatively low consumption per capita.China (2022): 18 cups per person, per year.United States: 322 cups.United Kingdom: 222 cups.By 2028, China's per-capita consumption is projected to nearly triple to 52 cups per year, signaling a massive opportunity for market leaders like Auntea Jenny.
Beyond the Drink: How Molly Tea Captures Gen Z with its Own Brand IconIn today's market, young consumers are looking for more than just a product—they want cultural experiences and emotional connections. The explosive popularity of collectibles like art toys and character merchandise shows that a new generation is eager to express their individuality and find brands that speak to them on a deeper level.Molly Tea, a modern beverage brand, brilliantly tapped into this trend by creating something more than just great tea. It built a world around its own proprietary intellectual property (IP): a brand mascot named Mao Xiao Bai.Introducing Mao Xiao Bai: The Eastern Tea MessengerTo forge a genuine connection with Gen Z, Molly Tea developed a unique brand character. Mao Xiao Bai is designed as a charming personification of a jasmine flower, blending modern anime aesthetics with timeless Eastern culture. Holding a traditional tea cup that symbolizes the brand’s commitment to quality, she is both a cultural ambassador and a fashion-forward icon.Mao Xiao Bai is more than just a cute cartoon; she is a powerful storyteller. Her narrative is woven around the art of Eastern tea culture, presented in a fun and accessible way that allows young customers to appreciate tradition while enjoying a modern brand.A Strategy Built on Design and ConnectionThe design of Mao Xiao Bai is carefully crafted to resonate with its target audience. She wears traditional clothing styled in a modern way, reflecting the grace of Eastern femininity while appealing to Gen Z’s desire for unique and stylish design. The teacup she holds is a constant reminder of Molly Tea's dedication to craft and flavor, embedding the brand’s core values into its mascot.Molly Tea brings this character to life through a smart mix of online and offline engagement:Limited-Edition Merchandise: The brand regularly releases exclusive Mao Xiao Bai-themed products that become instant must-haves for collectors and loyal fans.Interactive Storytelling: Molly Tea invites its followers on social media to participate in creating new stories and adventures for Mao Xiao Bai, making customers part of the brand's journey.Building a Bridge Between Culture and CommerceThe successful launch of Mao Xiao Bai has done more than just increase brand awareness; it has ignited a new cultural trend among young consumers. It allows them to enjoy a delicious product while connecting with the beauty and depth of traditional culture, satisfying both their material wants and their desire for meaning.By creating its own original IP, Molly Tea has successfully built a bridge between traditional heritage and a new generation of consumers. As Mao Xiao Bai becomes an even more beloved character, Molly Tea is set to introduce even more young people to the unique charm of Eastern culture, one cup of tea at a time.
Meet the World’s #1 Sauerkraut Fish Brand: How ‘Fish with You’ is Building a Global EmpireA new wave of Chinese restaurant brands is rapidly expanding across the globe, tapping into a vast international market hungry for new culinary experiences. Leading this charge is Fish with You, a global sauerkraut fish brand that was recently named a “2025 Top 40 Global Chinese Restaurant Brand” by the prestigious China Chain Store & Franchise Association.This award recognizes the brand’s exceptional market performance, celebrates its contribution to sharing Chinese culinary culture, and signals its arrival as a major player on the world stage.A Proven Model with Explosive International ROISince its founding in 2017, Fish with You has redefined the traditional slow-cooked sauerkraut fish dish for a modern audience by creating a fast-casual model. In just eight years, this winning formula has fueled the opening of over 2,500 stores worldwide, earning it official certification from Frost & Sullivan as the #1 sauerkraut fish brand globally by store count.Building on its domestic success, Fish with You began its overseas expansion in 2022 and has since established a presence in over 10 countries, including the United States, Canada, Malaysia, Thailand, Singapore, and the UAE.The results have been phenomenal. New international stores are consistently outperforming domestic locations in both revenue and return on investment, leading to what can only be described as immediate, viral success upon opening.A Prime Growth Market: The restaurant market in six key Southeast Asian countries is projected to grow at a CAGR of 12.65% from 2024 to 2029.Case Study in Success: When the first Fish with You location opened in Thailand, it generated over 192,000 THB (over $5,200 USD) on its first day and achieved 12 full table turnovers, making it the busiest restaurant in the entire shopping center.A Global Brand Upgrade: Modern Design Meets Eastern CultureFish with You recently announced a major global brand upgrade to support its international vision. This initiative completely reimagines the customer experience through a new brand identity, visual system, and store design.The new design aesthetic thoughtfully blends traditional Eastern cultural elements with a modern, premium feel. This strategy elevates the dining experience, transforming each restaurant into a destination where guests can savor unique flavors while connecting with the charm of Eastern culture.A Universally Appealing Product, Intelligently LocalizedThe core flavor of Fish with You’s sauerkraut fish—a perfectly balanced sour and spicy profile—is already popular in many international markets, especially in Southeast Asia. This natural product-market fit is amplified by the brand’s highly standardized operating procedures, which ensure fast service, stable quality, and a consistent taste in every bowl, in every country.To further deepen its connection with local customers, the company is developing new menu items tailored to regional tastes, such as the upcoming Thai Coconut Curry Fish and Tom Yum Sauerkraut Fish. This shows a smart, flexible approach that goes beyond simply exporting a product—it’s about creating true cultural resonance.Leading a New Wave of Global Chinese BrandsBeing named a Top 40 brand is a major milestone in Fish with You’s global journey. With its newly upgraded store image, a universally appealing flavor profile, and a deep respect for cultural integration, the brand is perfectly positioned to accelerate its international expansion.Fish with You is not just selling food but building a global brand that serves as a rich cultural bridge, setting a new standard for modern Chinese restaurant chains worldwide.
How a School Dropout Built a 6,000-Store Empire by Reinventing a Classic Dish: The Yangguofu Malatang StoryChina’s most popular malatang—a classic spicy street food—doesn’t come from its birthplace in Sichuan. It comes from Northeastern China and was created by a man named Yang Guofu.How did a recipe from China’s spicy heartland get reinvented by an outsider? By revolutionising the dish with a single innovative idea—a new soup base—Yang Guofu built a global empire of over 6,000 stores that sells 200 million bowls a year. This is the story of how he did it.The Humble Beginnings of a VisionaryYang Guofu was not a typical entrepreneur. Born in 1970 in a small county near Harbin, he grew up in a poor family with many siblings. He dropped out of school at 15 with no formal education or special skills.To survive, he took on any difficult job he could find, from farming to collecting scrap. But he refused to accept a life with no future and was determined to find a bigger opportunity.After years of working odd jobs and helping his relatives at a night market, Yang Guofu and his wife finally opened their own small food stall. It was a difficult life of long hours and little security. Every day, he looked for a chance—a single idea—that could change their lives.The Breakthrough: Identifying a Market GapIn 2000, Yang Guofu noticed something: local malatang shops were always busy. He saw it as a potential opportunity and immediately rented a small space to start his own.He quickly identified a critical problem. Most malatang on the market followed the traditional Sichuan recipe: overwhelmingly spicy and numbing. This flavour profile was too intense for many customers in Northeastern China who preferred richer, milder tastes.He realised the key to success was to create a better soup. This began a three-year obsession. Most difficult of all, Yang Guofu himself couldn’t handle spicy food well, but he forced himself to taste-test countless recipes day after day.As he later said, “I didn't have an education or a powerful background. This was my only way out.”Three Innovations That Changed EverythingFinally, his persistence paid off. Yang Guofu developed a revolutionary version of malatang based on three simple but groundbreaking innovations:The Broth reinvented: He abandoned the traditional spicy oil base and created a creamy, savoury broth using Northeastern beef bones, whole milk powder, and a touch of rock sugar. This created a rich, satisfying soup that was flavorful without being overpoweringly spicy.A New Way to Pay: Instead of selling a fixed bowl for a set price, he allowed customers to choose their own ingredients and pay by weight. This empowered diners and gave them complete control over their meal.Modern and Hygienic: He replaced the traditional, unsanitary communal cooking pot with an individual pot for each order. This simple change made the experience cleaner, more modern, and more appealing to a wider audience.This new style of malatang was an instant success.Building a Global Franchise EmpireIn 2003, the first official Yangguofu Malatang restaurant opened in Harbin. By 2007, Yang officially trademarked the name and began offering franchise opportunities. With its low investment cost and high potential profit, people eagerly signed up.However, as the brand exploded in popularity, Yang Guofu noticed that inconsistent quality among franchisees was damaging his brand’s reputation. He made a difficult but brilliant decision: he paused all new franchising to reorganise and build a stronger support system.This focus on quality over reckless growth paid off massively.By 2017, the brand was opening 2,500 new stores in just five years.As of 2023, Yangguofu Malatang has over 6,000 stores across China and in 10 other countries.The System: How to Successfully Manage 6,000 StoresThe secret to Yangguofu’s scalable success lies in its world-class management system for its franchisees, most of whom run their own stores. The company ensures every location is successful through:Comprehensive Training: Franchisees receive extensive training on operational excellence and can connect with other owners through an internal forum to solve problems together.Centralised Supply Chain: A sophisticated procurement system allows the central office to monitor each store’s performance indirectly. When issues arise, headquarters can immediately provide solutions.Direct Oversight and Support: The company uses a system of store audits and performance ratings to understand the detailed situation at each location. This allows headquarters to provide tailored advice and support to every franchisee.By ensuring its partners have the tools to succeed and make a profit, the Yangguofu Group created a stable and resilient business that continues to grow rapidly. His story is a powerful lesson in how innovating a timeless product can build a global legacy.
How a $1.50 Fruit Tea Built an 8,000-Store Global Empire: The Tianlala StoryHow can a fruit tea that sells for around ¥10 (approx. $1.50 USD) fuel a global beverage empire with 8,000 locations? Meet Tianlala, a brand that has turned a simple philosophy of “low price, high value” and a unique franchise model into a dominant force in the global tea market. The brand’s power was on full display in August 2025 during its “First Cup of Autumn” promotion, where it shattered records with delivery GMV surpassing ¥20 million and daily sales skyrocketing over 500%. At the same time, Tianlala’s international footprint is expanding rapidly, with over 200 signed stores overseas, including 127 in Indonesia alone. This is how a brand from the small city of Bengbu in Anhui province is quietly taking over the world. 1. Market Strategy: Dominating Uncontested SpacesWhile most tea brands fought fiercely in hyper-competitive Tier-1 cities, Tianlala pursued a different path: mastering underserved markets. Over 80% of its stores are in Tier-2, Tier-3, and smaller towns. This brilliant strategy allowed Tianlala to avoid direct conflict with premium brands. By understanding that consumers in these high-growth regional markets are price-sensitive but open to new brands, Tianlala quickly captured market share by offering high-quality products at an unbeatable price point. 2. Franchise Model: A Low-Risk, High-Support PartnershipTianlala is famous for its accessible franchise model. The initial franchise fee is just ¥30,000-¥60,000 (approx. 4,000−4,000−8,000 USD), with a total initial investment of ¥150,000-¥300,000 (approx. 21,000−21,000−42,000 USD). This is a fraction of the cost required by competing brands. This affordability, combined with robust support, led to over 1,200 new franchise signings in the first half of 2025 alone. Key to this success is the brand’s support policies, which include: Tiered product subsidies ranging from ¥20,000 to ¥50,000 based on the city level.A ¥5,000 referral bonus for existing franchisees who bring in new partners.This model makes entrepreneurship accessible and creates a powerful network effect where successful franchisees drive further growth. 3. Product Strategy: Creating Viral "Hero" DrinksAt the heart of Tianlala’s success is its killer product lineup. Its iconic "Bucket Tea" series became a viral sensation thanks to its massive size, generous toppings, and refreshing taste. Another hero product, the "Jasmine White Fresh Milk Tea," uses a seven-step scenting process to infuse premium tea leaves with a delicate jasmine aroma. It has sold over 80 million cups to date. During the recent autumn campaign, the classic Bucket Tea series sold over one million units in a single day. Looking ahead, Co-founder Xu Zhou states, "We will continue to launch more 'zero-additive' healthy drinks to meet the growing consumer demand for clean-label products." 4. Supply Chain: An ESG-Driven PowerhouseTianlala has built a sophisticated, ESG-driven supply chain that ensures quality, efficiency, and sustainability. Through partnerships with leading cold-chain and ambient logistics firms, the company guarantees reliable and fresh delivery to its thousands of stores. Quality control is managed from end-to-end, starting with sourcing ingredients from core production regions and using advanced HPP technology to ensure food safety naturally. Furthermore, the company leverages top-tier software like SAP and an SRM system to create a smart, digitized supply chain that enables automated intelligent restocking for every store. 5. A Proven Success Story: From Near-Failure to a 200-Store EnterpriseTianlala's commitment to its franchisees is best told through the story of Li Lei. In 2020, Li became a regional agent for Tianlala. When the pandemic hit, his stores were losing money. At his lowest point, Tianlala's corporate headquarters stepped in directly. The Director of Marketing personally visited Li’s city to help him develop promotions and business strategies. This hands-on support, combined with a "buy one, get one free" campaign for the Bucket Tea launch, turned his business around. In May 2021, his store’s revenue broke ¥150,000. Today, Li Lei manages over 200 Tianlala stores in multiple regions, employing more than 1,000 people. 6. Global Expansion: A Smart, Phased ApproachTianlala takes a cautious and strategic approach to international expansion. Before opening a market to franchisees, the company first opens and operates its own corporate stores to prove the business model is viable and profitable. This "test first, then franchise" method minimizes risk and provides future partners with a proven, turnkey solution. The brand has already opened stores in Indonesia, Cambodia, the Philippines, and Uzbekistan, with plans to add over 200 new international locations in 2025 and expand into Europe and the Middle East in the next three years. The Tianlala Blueprint for SuccessTianlala’s rapid rise is not an accident. It is the result of a powerful "dual-engine" strategy built on an industry-leading supply chain and an unbeatable franchise model. By combining social media marketing, celebrity endorsements, and cause marketing campaigns, the brand has built a deep connection with its audience. Powered by a robust digital infrastructure that uses proprietary apps and AI to standardize operations and ensure quality control, Tianlala has created a scalable, low-risk, high-support platform for entrepreneurs worldwide. It stands as a powerful testament to how a clear vision can turn a simple cup of tea into a global phenomenon.
Blooming Fiercely: How Auntie Shanghai’s “Dark Night Rose” Tea Celebrates Female EmpowermentFor this year’s International Women’s Day, modern tea brand Auntie Shanghai launched its “Dark Night Rose” series under the theme “Blooming Fiercely.” In a powerful homage to the iconic Mexican artist Frida Kahlo, the campaign uses tea as a medium to celebrate female strength, freedom, and the journey of self-realisation.More Than a Drink: A Message of StrengthIn recent years, brand marketing has moved beyond products to connect with consumers on a deeper, emotional level. Auntie Shanghai recognised this cultural shift and designed its Women’s Day campaign to address the theme of female empowerment.The “Dark Night Rose” series was created to answer a core question: How can a cup of tea tell her story? The answer lies in using the rose—a symbol of passion, freedom, and resilience—as the central element. This approach aligns perfectly with the modern woman’s desire for products that reflect her values and support her self-care journey.The new series features two drinks:Dark Night Rose Velvet Purple: A rich and refreshing fruit tea blending rose, black mulberry, strawberry, lemon, and premium jasmine tea.Dark Night Rose Glow Bottle: A wellness-focused drink featuring edible red rose petals and five antioxidant-rich “black” superfoods, including black goji berry, aronia berry, and black grape.The campaign was a massive success. From its initial launch to date, the “Dark Night Rose” series has sold over 15 million cups. On International Women’s Day alone, 1.5 million cups were sold, with merchandise sold in many stores by noon. The campaign generated over 200 million impressions on social media.Frida Kahlo: The Spirit Behind the “Dark Night Rose”Frida Kahlo, known as the “Rose of Mexico,” is the inspiration for the campaign. As one of the 20th century’s most influential female artists, her life was one of pain and perseverance.After surviving polio and a devastating bus accident, she endured dozens of surgeries and constant pain. Yet, she transformed her suffering into powerful, raw, and beautiful art. Her iconic self-portraits are a testament to her unbreakable spirit. The campaign’s theme, “Dark Night Rose, Blooming Fiercely," is inspired by her 1940 self-portrait, where she wears a necklace of thorns, yet flowers bloom defiantly from her head.Auntie Shanghai connects this powerful image to the female journey. Like a rose in the dark, women can bloom brilliantly even when surrounded by thorns. The campaign aims to share Frida’s fearless spirit with every woman: to live passionately, embrace your true self, and bloom freely, no matter the circumstances.A Long-Term Commitment to "Her Story"Auntie Shanghai's support for women extends far beyond a single campaign. The brand is a long-standing advocate for female-focused charities. In 2023, it launched a "Women's Health Care Plan" to support women in need, and this year it partnered with a non-profit on the "Send Her a Little Red Flower" program.This commitment is also built into the brand's identity. In a recent brand upgrade, Auntie Shanghai introduced a new visual style inspired by the "Modern Shanghai Woman" and launched an IP called the “Cheetah Lady" to symbolise the beauty, freedom, and courage of women today.From product innovation to cultural collaborations and social responsibility, Auntie Shanghai is building a brand that truly champions women. The "Dark Night Rose" is more than a drink—it’s a conversation about freedom, resilience, and the light that shines within every woman.
From Farm to Cup: How Cha Panda Empowers Rural Communities Across ChinaCha Panda carefully selects the finest local ingredients from across China, turning them into the delicious drinks its customers love. But beyond serving city consumers, Cha Panda’s mission has a more profound impact: its sourcìng model directly supports rural farmers and contributes to community development.By partnering with local agriculture, Cha Panda helps bring prosperity to the countryside. Year-round, the brand’s sourcìng team travels to different regions to find the best seasonal ingredients, building a powerful link between the farm and the cup. Caption: Cha Panda’s fresh “Juicy Orange Blast,” made with seasonally-sourced fruit.A Journey Through the Four Seasons of SourcìngSpring: A New Future for an Ancient GrainIn spring, we find Cha Panda in Guangdong province, home to a rare, wild grain called ‘Hemi' rice. The brand discovered its unique, natural aroma was perfect for its new rice mochi drinks.This grain is harvested only once a year and yields much less than common rice, so it was traditionally used only for making wine. By creating a new use for it in their drinks, Cha Panda opened up a new market for the farmers and helped increase their income.Summer: Building “Jasmine Houses" in GuangxiHengzhou, Guangxi, is the jasmine capital of the world, producing 60% of the world's supply. This is where Cha Panda sources the jasmine for its signature tea bases. The brand partners with a master tea producer, "Zhang Yiyuan," whose traditional techniques are recognised as a national intangible cultural heritage.The tea leaves must go through a delicate scenting process five times to achieve their rich, unique fragrance. This demand for quality has led to the creation of a nearly 1,000-acre jasmine tea park and factory, creating jobs and encouraging organic farming. Last year, Cha Panda's orders boosted the local economy significantly. "A few years ago, we sold jasmine for 7-8 RMB per pound. Now, we get more than double that," said a local official. "Many families have built new homes with their income. We call them the ‘Jasmine Houses.’" Caption: The jasmine fields in Hengzhou, where Cha Panda sources a key ingredient for its tea base.Fall: Removing Barriers for Apple FarmersIn the fall, Cha Panda sources apples from the high mountains of Sichuan and Yunnan. Farmers here are often small growers who once had to walk for a full day just to reach a town to sell their fruit.Cha Panda changed that. By setting up a direct purchasing point in the region, the company provides a reliable market, saves farmers valuable time, and helps standardise production for a higher-quality final product.Winter: Saving the Strawberry HarvestWinter brings sweet, fragrant strawberries from Sichuan. But these delicious berries are delicate and must be sold fast. Cha Panda works with local cooperatives to purchase strawberries that meet strict standards for size and sweetness. The fruit is quickly transported to its regional warehouse and delivered to stores, helping farmers sell their harvest without worrying about spoilage.A Partnership for Quality and GrowthIn 2021 alone, Cha Panda purchased over 80,000 tons of agricultural products directly from farms. It plans to nearly double its sourcìng of fruit and tea this year.This consistent demand gives farmers stability and encourages them to grow higher-quality produce. Through its work, Cha Panda brings once-hidden local treasures from the mountains and fields of China into the hands of customers, creating a win-win partnership that empowers farmers and enriches rural communities.
Mixue Bingcheng: A Behemoth With Billions in Revenue and 53,000 Stores Faces Its Toughest Challenges YetFollowing strong earnings reports from sector peers, Chinese beverage giant Mixue Bingcheng has delivered impressive results.On August 27, the company released its first semi-annual report since its IPO, revealing powerful growth. For the first half of 2025, Mixue reported:Revenue: ¥14.88 billion (approx. $2.05B USD), a 39.3% year-over-year increase.Profit: ¥2.72 billion (approx. $375M USD), a 44.1% year-over-year increase.This explosive growth is driven by relentless store expansion. As of June 30, Mixue operates over 53,000 stores globally—an increase of nearly 10,000 locations in just one year. This translates to an average of 27 new stores opening every single day.However, while the company's performance proves its scale model is far from C, “Snow King"—as the brand's mascot is known—is not without its problems. Beneath the surface, Mixue faces declining profitability per store and a rising tide of food safety crises. Can its low-cost empire continue to thrive?1. How Sustainable Is Mixue's Profit Machine?When Mixue went public on the Hong Kong Stock Exchange, its massive 45,000-store footprint raised a key question for investors: had the company already hit its growth ceiling?The latest report suggests the profit engine is still running strong. Gross profit for the first half of 2025 grew 38.3% to ¥4.71 billion. Interestingly, the gross margin on selling goods and equipment to franchisees dipped slightly from 30.5% to 30.3% due to higher raw material costs. However, the margin on franchise fees and services rose from 81.7% to 82.7%, a direct benefit of its massive scale.Having already surpassed Starbucks in store count to become the world’s largest beverage chain by locations, Mixue continues to push its domestic advantage. A staggering 57.6% of its nearly 50,000 mainland China stores are in third-tier cities and below, establishing a dominant presence in every corner of the country’s sinking market. Meanwhile, only 4.9% of its stores are in first-tier cities, signalling major room for growth in urban centres.A key to Mixue's profitability is its remarkably low marketing spend. The brand's mascot, "Snow King," has become a cultural icon in China, achieving a viral IP status that drives enormous organic traffic. The character is so recognizable that it significantly shortens the customer's decision-making process. The "Mixue Bingcheng" topic on Douyin (China's TikTok) has accumulated over 54 billion views. This brand power reduces the need for expensive advertising campaigns.2. The Race for 10,000 Stores: Can Lucky Cup Challenge the Coffee Kings?While Mixue's overall store count grew, its international footprint quietly shrank from 4,895 to 4,733 stores in the year's first half. The company stated this was a strategic "optimization" of existing stores in key markets like Indonesia and Vietnam. Expansion remains on the agenda, with a new store opening in Kazakhstan signalling a push into Central Asia.Beyond its main brand, Mixue is betting on its coffee subsidiary, Lucky Cup, to create a second engine for growth.Originally an independent brand that struggled, Lucky Cup was fully acquired by Mixue and rebranded to mirror its parent company’s strategy: rock-bottom prices. Targeting the same low-cost market as coffee giants Luckin and Cotti, Lucky Cup has aggressively expanded. Building on its strength in lower-tier cities, the brand is now pushing into major urban centres.To fuel this expansion and hit an ambitious internal target of 10,000 stores by year-end, Lucky Cup is offering significant incentives to new franchisees in top cities like Beijing and Shanghai, including waiving two years of franchise and management fees—a discount worth ¥34,000 (approx. $4,700 USD) per store.As of late July, Lucky Cup had reached 7,000 locations, meaning it needs to open another 3,000 stores—or 600 stores per month—to hit its year-end goal.3. The Cracks in the Empire: Declining Store Revenue and Food Safety ScandalsDespite its scale, concerning trends are appearing at the franchisee level.The number of Mixue store closures is rising significantly. In the first half of 2025, 1,187 stores shut down, a 48.6% increase from the 799 closures during the same period last year. This trend points to a critical underlying issue: declining single-store profitability.While the latest report omitted this data, Mixue’s IPO filings show that the average daily retail sales per store have been falling. This suggests that while top-performing franchisees with multiple stores may still be profitable, smaller owner-operators are feeling the financial squeeze of market saturation.Since Mixue’s primary revenue comes from selling supplies to its franchisees, a rising number of closures directly threatens its business model.In response, Mixue is taking action. It has significantly increased the “protection zone” between stores from as little as 200 meters to a uniform 1,000 meters, a move designed to prevent new locations from cannibalizing sales from existing ones.Furthermore, the brand is plagued by frequent food safety incidents. In the last three months alone, Mixue has been cited for:Flies were found in a drink.A cockroach was found in a sealed beverage.Excessive bacteria levels at a Hong Kong location.Remarkably, these scandals have not dented Mixue’s soaring profits. The brand’s ultra-low prices have given it a level of public tolerance that other brands would not enjoy. However, this goodwill is not unlimited and erodes consumer trust over time.Mixue’s strong cash flow and world-class supply chain give it a powerful foundation for continued growth. However, the company’s future success will depend on its ability to solve two critical problems: ensuring its franchisees can remain profitable and fixing its systemic food safety issues. After all, even the largest giant can’t afford to ignore the base it stands on.
New Tea Brand SHANYE Launches with 7,000Daily Sales Per Store,Secures 7,000 Daily Sales Per Store, Secures 7,000 Daily Sales Per Store, Secures 14M+ in FundingWith just three stores open for two weeks, a new tea brand from Suzhou, SHANYE Tea, is already generating daily revenues of nearly ¥50,000 (approx. $7,000 USD) per location.What's more, the company's co-founder, Lu Xiao, confirms the project has already secured over ¥100 million (approx. $14 million USD) in funding. This massive financial backing for a brand in its infancy signals a powerful new contender in the competitive global tea market. So what makes SHANYE Tea stand out?A Winning Start in a Crowded MarketLaunched in mid-April in prime locations in Suzhou and Nanjing, SHANYE Tea immediately attracted long lines and massive attention. The brand's instant popularity, with over 2,000 cups sold daily per store, is remarkable in a market filled with innovative tea brands.Established in late 2024, SHANYE Tea’s mission is clear: to seek out the world's finest teas and build a globally recognized beverage brand.According to co-founder Lu Xiao, the concept was born from a fundamental question: what is the essence of modern tea? "Our goal is to gather the best ingredients and tea cultures from around the globe, craft them into a perfect cup of milk tea, and take that product to the world," he explains.The brand's unique selling proposition is its intense focus on the "return to tea," using leaves of a quality typically reserved for premium, pure-tea brewing. Customer feedback praises the drinks for having a strong, rich tea flavor without any bitterness, leaving a clean and refreshing finish.Reinventing Milk Tea for the Next 30 YearsWhile many new-style tea brands have moved away from the term "milk tea," SHANYE Tea is embracing it. Lu believes that from a consumer perspective, whether it's a traditional boba tea or a modern créma tea, "it's all milk tea."SHANYE aims to "remake milk tea" by shifting the focus back to the core ingredient: the tea itself."Our primary category is fresh-brewed milk tea made with whole tea leaves," Lu notes. He sees this "light" or premium milk tea as the natural, healthier evolution of the category. "We believe it will eventually capture 70% of the milk tea market," he predicts. "This upgraded version of milk tea isn't at its peak yet—it has at least another 30 years of growth ahead."The "National Geographic of Milk Tea"To deliver on its promise, SHANYE Tea is sparing no expense on ingredients.Exceptional Tea: Its signature "Xizi Biluochun" uses a custom-ordered Biluochun green tea grown in a unique microclimate, delivering notes of orchid and sweet fruit. Another popular drink uses high-altitude rock tea. All teas are naturally scented with real flowers and fruits—no artificial flavorings are ever used.Premium Ingredients: The brand uses top-tier A2 fresh milk and 100% HPP natural fruit juices instead of concentrates, aligning with modern consumer demands for health and quality.Lu Xiao summarizes the brand's ambitious vision: "We are on a mission to find the best teas from mountain to sea. We want to be the National Geographic of the milk tea world." This includes showcasing China's six major tea types to a global audience and bringing unique international tea cultures—like the spice-infused tea from the Middle East—back to China.An "Over-Staffed" Team Built for Hyper-GrowthWith a clear direction, SHANYE Tea is accelerating its expansion at an incredible pace. To support its global ambitions, the company has built a structure far beyond its current size.A Powerhouse Team: With only three stores currently open, the company headquarters already employs a full team of over 70 professionals across R&D, operations, marketing, and finance.National Network: The company has already established 8 regional branch offices in key provinces across China, each empowered to make local decisions and drive regional growth.Immediate Global Expansion: SHANYE Tea is not waiting to go international.The company plans an aggressive rollout of both company-owned and franchised stores, aiming for several hundred global locations by the end of the year.While the tea market is more competitive than ever, SHANYE Tea's immense funding, clear vision, and powerful operational structure make it a brand to watch. With a focus on quality and a plan for massive scale, it may very well become a new global ambassador for Chinese tea culture.
The Babi Bao Story: How a Steamed Bun Built a Billion-Dollar Brand—And Why It Now Faces a CrisisBabi Bao is a familiar sight for millions of commuters grabbing breakfast in China’s bustling cities. This seemingly ordinary steamed bun brand achieved a remarkable feat: it turned a simple, 3 RMB bun into a publicly traded company worth billions.But behind this incredible success story, Babi Bao faces significant challenges threatening its future.From Humble Beginnings to Shanghai SuccessThe story began in 2001 when founder Liu Huiping opened his first small shop in Shanghai. Initially, the brand didn’t resonate with the city’s sophisticated palates. Shanghai locals preferred a different style of bun—one with fresh, hand-cut meat, vibrant green vegetables, a fluffy wrapper, and a lighter flavor profile.Recognizing this, Liu quickly adapted. He made two critical decisions:Localized the Flavor: He began sourcing fresh pork from his home province and insisted on hand-cutting the fillings to perfect the taste and texture for his new customers.Strategic Location: He paid very high rent to open stores in prime, high-traffic areas. He believed the visibility would quickly build brand recognition.The strategy worked. Babi Bao captured the breakfast market by being fast, convenient, affordable, and delicious. It quickly became a local favorite.The Real Secret: Industrializing the BunWhile good flavor got Babi Bao started, its real competitive advantage came from revolutionizing its production process.Traditional bun shops rely on chefs waking up at 2 AM to prepare dough and fillings by hand—a process that is slow, inconsistent, and impossible to scale.Babi Bao completely changed the model by building a central kitchen with a cold-chain delivery system. In its modern production facilities, every step—from fermenting dough to preparing fillings and steaming the buns—is automated. A single facility can produce 2 million buns daily, an output far beyond what traditional shops could ever achieve.This massive scale lowered production costs and, most importantly, ensured a perfectly consistent product at every single store. Babi Bao’s core strength isn’t the bun itself; it’s the incredibly efficient supply chain behind it.Rapid Growth Through FranchisingTo expand nationwide, Babi Bao chose a low-barrier franchise model. This strategy was key to its explosive growth. According to the company’s financial filings, franchise sales account for roughly 90% of its total revenue.This approach allowed the brand to spread rapidly across China, growing to over 3,000 locations. The franchise system delivered massive revenue and turned Babi Bao into a dominant force, easily out-competing thousands of traditional “mom-and-pop” bun shops.Signs of Trouble: Stagnant Profits and Unhappy FranchiseesHowever, the period of rapid growth has stalled. From 2022 to 2023, Babi Bao's net profit declined sharply. More alarmingly, the average revenue per store has been steadily falling.This decline directly impacts franchisees, and as a result, many are choosing to leave the system. Last year alone, over 800 Babi Bao stores closed down. For a company that relies almost entirely on its franchise network, this is a serious threat.In response, the company has tried to improve franchisee support and management. It also announced an aggressive plan to open 1,000 new stores this year, hoping to make up for declining single-store sales with higher overall volume.Facing Intense Competition and a Crowded MarketThis expansion plan faces major hurdles. The breakfast market is now a hyper-competitive "red ocean.” Babi Bao is no longer just competing with local food stalls. Its rivals now include:Convenience store giants like 7-Eleven and FamilyMart.Fast-food leaders like McDonald's and KFC have strong breakfast offerings.Even popular tea brands like Guming and HeyTea are now adding food to their menus.Babi Bao also attempted to diversify by launching a hamburger concept called “Babi Fun Bao.” The brand failed to gain any traction against powerful competitors and proved to be a costly distraction.Recent financial data suggests the company's recovery efforts are not yet working. In the first quarter of this year, net profit declined by another 6.13%.Babi Bao’s history is a legendary startup story. But with its core business struggling and competition on all sides, the brand that perfected the steamed bun now needs to find a new recipe for growth.
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