A tea brand even cheaper than Mixue (from ¥3/cup) has opened 1,000+ stores?

After Mixue Ice City, I Found Another Budget Drink Brand

This brand is called Bing Chun Tea. Its drinks start at just 3 RMB per cup — even cheaper than Mixue.

For the past 4 years, they’ve run a permanent promotion: “Second cup only 1 RMB, every day of the year.”

And this isn’t just a few small shops. Bing Chun Tea has already opened over 1,000 stores in lower-tier cities.

Can another 10,000-store chain really come from the ultra-low-price market?

A Brand “Cheaper Than Mixue”

Already Has 1,000+ Stores in Smaller Cities

I first heard about Bing Chun Tea from someone in the industry. I was curious because it’s said to be cheaper than Mixue — and already has over 1,000 locations.

Many brands try to copy Mixue’s model, but very few are cheaper and still manage to build a large chain. So I decided to visit one of their stores.

The storefront is clean and fresh, with blue and white branding. Their mascot is a little blue cow named “Niu Xiaobao.”

The signs everywhere catch your eye: “Second Cup for 1 RMB, 365 Days a Year.” It’s on posters, stickers, menus, and LED screens.

Looking at the menu, I confirmed the prices really are lower than Mixue’s:

• Ice cream (original or matcha): 2 RMB
• Strawberry sundae: 4 RMB
• Fresh lemon water: 5 RMB (but with the promotion, it’s 3 RMB per cup when you buy two)

That day, they’d just launched a new bucket-sized fruit tea with six types of fruit. It costs 15 RMB, but with the second cup for 1 RMB, it comes out to just 8 RMB per cup — an offer that’s hard to refuse.

The staff told me this promotion has been running for 4 years and will likely continue forever.

Which made me wonder:

Can they really make money like this?

Is this a business where only the head office profits, and franchisees lose money?

To find out, I visited Bing Chun’s headquarters and spoke with the founder, Cheng Dong.

Can You Really Profit with “Second Cup for 1 RMB” All Year?

Cheng Dong shared two pieces of data:

1. They have over 1,000 stores across Henan, Shandong, and Anhui. 81% are in townships, 19% in counties. “If every store were losing money, we wouldn’t have reached this scale.”
2. Repeat franchisees are increasing. Last year, 43% of existing owners opened additional stores. In the first half of this year, that number reached 72%. This is a key indicator of healthy unit economics.

The “second cup 1 RMB” strategy wasn’t a quick decision. Cheng was inspired by Zhengxin Chicken Cutlet and McDonald’s, which offer similar products. He also tested it in one store first — and saw sales double within months.

2019 Bing Chun made “365 days second cup 1 RMB” a core strategy. The headquarters also reduced its profit margin on ingredients to only 10%, sharing more profit with store owners so they could offer lower prices.

At the time, most of their 200+ franchisees were against the idea. Cheng and his team had to convince them one by one with data from the test store.

Bing Chun’s average gross profit is around 55% — lower than the industry average. However, since most stores are run by families in small towns, labor and rent costs are much lower.

The average store makes a profit, with daily summer revenue around 1,500 RMB. In 2021, 95% of stores remained open.

But is permanent discounting a good long-term strategy?

Is “Always-On Promotion” a Smart Move?

Many in the industry say no. They believe customers get used to discounts and stop responding.

However, Bing Chun has grown significantly thanks to this strategy. Here’s why:

1. Extremely low prices attract extreme traffic. In small cities, cheap prices are still a huge draw. “Second cup 1 RMB” is more effective than any fancy poster or new product.
2. It helps customers share and spread the word. When someone buys two cups, they often give one to a friend or family member. This helps the brand reach new people faster.
3. Low item price, higher order value. Few people order just one cup. Most buy 2, 4, or 6 at a time. So even though each drink is cheap, the average order value is around 10 RMB.

With this “simple but effective” method, Bing Chun has quietly built a 1,000-store chain in less competitive markets.

Cheng Dong aims to reach 5,000 stores in 3 years and 10,000 in 5.

Can the budget drink market really support another giant?

Can Another 10,000-Store Chain Emerge?

This year, many believe the bubble tea market is saturated. Most brands are slowing down. New brands hardly have a chance.

However, throughout business history, there have always been opportunities for new players if they find the right angle and execute well.

For Bing Chun, becoming a large chain depends on operational strength and brand building.

Cheng Dong’s team has created an 81-page operations manual with more than 30,000 words. It includes 36 marketing tactics— gift giveaways to social media campaigns — designed to help store owners attract customers.

They also have a team of supervisors: 60 people for over 1,000 stores. Each supervisor is responsible for 15–20 stores and must visit each at least twice a month to ensure quality.

On the branding side, Bing Chun is just starting to promote itself on Douyin, Xiaohongshu, and Weibo.

If they can maintain store-level execution, build a reliable supply chain, and create a brand that people know and trust, Bing Chun may become the next big name in tea.