Latest news with #ZhangHongchao
Yahoo
7 days ago
- Business
- Yahoo
A 21-year-old asked his grandmother for money to open a street-food stall. Now, it's the world's largest fast-food chain, eclipsing McDonald's
It may surprise you to learn that the world's largest fast-food chain isn't an American staple like McDonald's or Starbucks. It's actually Mixue, an ice cream and boba shop founded in 1997 that has exploded in popularity in China and throughout Asia. Zhang Hongchao was a university student when he created the first Mixue stall; now he's a billionaire. McDonald's was founded 85 years ago in San Bernardino, Calif. It's the world's second-largest private employer—behind only Walmart, No. 1 on the Fortune 500 again this year—and has over 40,000 locations worldwide. Yet, McDonald's still falls behind one company in terms of footprint: Mixue Ice Cream & Tea. Mixue, as of March, is currently the world's largest fast-food chain by store locations, with over 46,000 sites across Asia, Australia, the Middle East, and South America. Roughly 40,000 of its total locations exist in mainland China, meaning the company has even more room to run globally. And the company's performed well since its March debut on Hong Kong's stock exchange, soaring from its opening price of $290 HKD per share to $584.50 HKD as of Monday morning. Zhang Hongchao probably didn't expect to be the founder of such a behemoth when he opened his first street-food stall 28 years ago. Zhang was attending the Henan University of Economics and Law when he had the idea to open a food stall, mainly to sell beverages like cold drinks and shaved ice. He asked his grandmother to borrow 3,000 yuan—around $362 back then, or $417 today—to open up a small stall on the streets of Zhengzhou, the capital of China's Henan province and a major international transport hub. The stall was successful, even early on. According to a lengthy profile about Mixue in China's state-run outlet Sina News, Zhang was able to sell products worth up to 1.5 yuan for more than 100 yuan; in other words, he could make a drink that cost around 21 cents and sell it for more than $14. Unfortunately, Zhang's inexperience, and the rapid modernization of Zhengzhou, would become obstacles. The villages of Zhengzhou were constantly subject to demolition efforts as the area grew more urban, which resulted in Zhang's store getting demolished three times in a single year, according to Sina News. And he learned the hard way how difficult it is to sell cold treats during the winter season, which forced him to sell mandarin oranges for extra cash. Despite the setbacks, Zhang kept at it. He bought more machines, added more sugary drinks to his menu, and notably introduced a soft-serve ice cream cone for just 1 yuan, or roughly 14 cents, which solidified the brand among budget-conscious consumers. The company also got stronger operational chops when Zhang brought in his younger brother, Hongfu, to help run the company in 2007. Since so many of Mixue's franchisees were run by friends or family, few enforced Zhang's rules or regulations; that changed when Hongfu, who now acts as the company's CEO, took the reins. (Elder brother Hongchao Zhang, the founder, serves as chairman.) One of the most important things Hongfu did was introduce store managers, which ultimately helped the two brothers avoid disputes with family members who operated some of their franchises. As Mixue added hundreds of stores over the years, the company grappled with quality and consistency issues, as well as supply-chain woes when fruits or milk powder ran in short supply. But sales rebounded as Zhang pushed for new products like boba tea, and supply issues were ameliorated when Zhang decided to establish a storage base in 2014 that would collect raw materials from farmers, and produce its own materials like powders and snacks, essentially consolidating a large portion of its supply chain. In 2022, Mixue reported having warehouse and logistics bases in 22 different provinces, and the company has stepped up quality-control efforts to avoid store closures. Mixue controls site selection, store decoration, personnel training, raw material supply, and food safety to ensure the success of its franchisees. In 2024, Mixue reported 4.4 billion yuan ($615 million) in profit, up 22% over the year before, on 24.8 billion yuan (about $3.43 billion) in revenue, which was a near-40% jump year over year. Its earnings per share, 12.3 yuan ($1.71), was also up 41% from 2023. The company's vertically integrated supply chain and proprietary logistics network have helped keep costs low at just 30% of its sales revenue, compared to the industry average of 45%–55%, according to a recent study published in the Journal of Fintech and Business Analysis. Crucially, the company continues to expand. It added 4,192 new franchisees in 2024 and opened over 10,000 new stores, with a closure rate of just 3.5%. While over 99% of its 45,000-plus stores are franchised, franchise fees only make up a small percentage of its revenue. According to the company, the bulk of its income comes from selling merchandise and equipment to franchises, which are required to buy these items directly from Mixue. Earlier this year, Mixue celebrated a successful initial public offering, one of the biggest IPOs of Hong Kong's Stock Exchange this year so far, raising $3.45 billion HKD, or $444 million. As for the Zhang brothers, Hongchao and Hongfu maintain relatively low profiles, but reportedly have a combined net worth of $8.1 billion. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
17-03-2025
- Business
- Bloomberg
How to Make Billions Selling $1 Lemonade
One can become a billionaire selling ice cream, lemonade and fruit smoothies — all for less than $1. Zhang Hongchao and Zhang Hongfu, two brothers who founded China's largest freshly made drinks chain, are making a fortune by taking advantage of China's fast-shifting labor dynamics. Mixue Group's blockbuster HK$3.5 billion ($444 million) public listing is a marvel for a difficult food and beverage industry where even the likes of Starbucks Corp. and McDonald's Corp. are revamping their operations. With its share price surging, the Zhang brothers are now richer than Starbucks' founder Howard Schultz.
Yahoo
07-03-2025
- Business
- Yahoo
McDonald's dethroned as world's largest fast food chain by company with no restaurants in the US
McDonald's is no longer the largest restaurant chain in the world. Mixue Bingcheng is a Chinese bubble tea and ice cream chain with more than 45,000 restaurants worldwide as of September 2024, while the number of McDonald's restaurants all over the world is around 41,800, according to Statista via Chowhound. The Asia-based fast-food chain is known for selling soft-serve ice cream cones for one yuan (15 cents) and drinks ranging from between 2 to 8 yuan (30 cents to $1.20). Despite its huge number of locations, 90 percent of them are in China. There are also outlets in Indonesia, Vietnam, and Malaysia. There isn't a single location in the United States. Mixue Bingcheng was founded in 1997 by Zhang Hongchao, and originally started out as a store selling shaved ice and cold drinks. 'Let people around the world eat well and drink well for just two American dollars,' Hongchao previously told Chinese state media about his strategy for the business. Over 99 percent of the bubble tea chain's stores are franchised, with most of their revenue coming from selling food materials, equipment, and packaging to its franchisees. Although Mixue Bingcheng does have the highest number of locations worldwide, its revenue is still behind other large drink chains in the U.S., such as Starbucks and Tim Hortons. Its growth is rapid, though. According to its prospectus, Mixue's net profit jumped 42 percent to 3.49 billion yuan ($479 million) in the first nine months of 2024 from the same period in the previous year. Its revenue increased 21 percent to 18.7 billion yuan ($2.6 billion) in the first nine months of 2024. Earlier this week, McDonald's revealed the breakfast orders of various celebrities the day after the Oscars celebrations. The commercial started with the time stamp of 9:14 a.m. at a McDonald's restaurant in Hollywood. The clip showed a receipt machine churning out the orders, such as Colman Domingo's Egg McMuffin meal — which comes with hash browns and a coffee — with strawberry jelly and ketchup on the side. Actor Teyana Taylor, who attended the Vanity Fair Oscar Party on Sunday, scarfed down McDonald's Hotcakes (pancakes) with egg and sausage, a McChicken Biscuit with cheese, and a side of strawberry jelly and butter. Singer Rosalía, who also attended the after-party, ordered a McGriddles — a breakfast sandwich with bacon, egg, and cheese — with a mango-pineapple smoothie and a mayo packet. In February, McDonald's reported a fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier. The fast food chain's sales suffered after the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers.
Yahoo
07-03-2025
- Business
- Yahoo
McDonald's dethroned as world's largest fast food chain by company with no restaurants in the US
McDonald's is no longer the largest restaurant chain in the world. Mixue Bingcheng is a Chinese bubble tea and ice cream chain with more than 45,000 restaurants worldwide as of September 2024, while the number of McDonald's restaurants all over the world is around 41,800, according to Statista via Chowhound. The Asia-based fast-food chain is known for selling soft-serve ice cream cones for one yuan (15 cents) and drinks ranging from between 2 to 8 yuan (30 cents to $1.20). Despite its huge number of locations, 90 percent of them are in China. There are also outlets in Indonesia, Vietnam, and Malaysia. There isn't a single location in the United States. Mixue Bingcheng was founded in 1997 by Zhang Hongchao, and originally started out as a store selling shaved ice and cold drinks. 'Let people around the world eat well and drink well for just two American dollars,' Hongchao previously told Chinese state media about his strategy for the business. Over 99 percent of the bubble tea chain's stores are franchised, with most of their revenue coming from selling food materials, equipment, and packaging to its franchisees. Although Mixue Bingcheng does have the highest number of locations worldwide, its revenue is still behind other large drink chains in the U.S., such as Starbucks and Tim Hortons. Its growth is rapid, though. According to its prospectus, Mixue's net profit jumped 42 percent to 3.49 billion yuan ($479 million) in the first nine months of 2024 from the same period in the previous year. Its revenue increased 21 percent to 18.7 billion yuan ($2.6 billion) in the first nine months of 2024. Earlier this week, McDonald's revealed the breakfast orders of various celebrities the day after the Oscars celebrations. The commercial started with the time stamp of 9:14 a.m. at a McDonald's restaurant in Hollywood. The clip showed a receipt machine churning out the orders, such as Colman Domingo's Egg McMuffin meal — which comes with hash browns and a coffee — with strawberry jelly and ketchup on the side. Actor Teyana Taylor, who attended the Vanity Fair Oscar Party on Sunday, scarfed down McDonald's Hotcakes (pancakes) with egg and sausage, a McChicken Biscuit with cheese, and a side of strawberry jelly and butter. Singer Rosalía, who also attended the after-party, ordered a McGriddles — a breakfast sandwich with bacon, egg, and cheese — with a mango-pineapple smoothie and a mayo packet. Sign in to access your portfolio
Yahoo
07-03-2025
- Business
- Yahoo
McDonald's dethroned as world's largest fast food chain by company with no restaurants in the US
A new restaurant has bested McDonald's in the number of locations they have worldwide. Mixue Bingcheng is a Chinese bubble tea and ice cream chain with over 45,000 restaurants worldwide as of September 2024, according to CNN, while the number of McDonald's restaurants all over the world is around 41,800 as of 2023, according to Statista via Chowhound. The fast-food chain is known for selling soft-serve ice cream cones for one yuan (15 cents) and drinks ranging from between 2 to 8 yuan (30 cents to $1.20). Despite its high number of locations, 90 percent of them are in China. There are also locations in the Asia Pacific region, including Indonesia, Vietnam, and Malaysia. There isn't a single location in the United States. Mixue Bingcheng was founded in 1997 by Zhang Hongchao, and originally started out as a store selling shaved ice and cold drinks. 'Let people around the world eat well and drink well for just two American dollars,' Hongchao previously told Chinese state media about his strategy for the business. Currently, over 99 percent of the bubble tea chain's stores are franchised, with most of their revenue coming from selling food materials, equipment, and packaging to its franchisees. Although Mixue Bingcheng does have the highest number of locations worldwide, its revenue is still behind other large drink chains in the U.S., such as Starbucks and Tim Hortons. The news of the fast food chain's success comes just days after McDonald's revealed celebrities' morning-after breakfast orders. On Monday the home of the Big Mac uploaded a YouTube video revealing the orders of stars from Colman Domingo to Julia Fox. The commercial started with the time stamp of 9:14 a.m. at a McDonald's restaurant in Hollywood. The clip showed a receipt machine churning out the orders, such as Domingo's Egg McMuffin meal — which comes with hash browns and a coffee — with strawberry jelly and ketchup on the side. He also ordered a bottle of water and a strawberry-and-banana smoothie. Actor Teyana Taylor, who attended the Vanity Fair Oscar Party on Sunday the night before she scarfed down some fast food, ordered McDonald's Hotcakes (pancakes) with egg and sausage, a McChicken Biscuit with cheese, and a side of strawberry jelly and butter. She also got a syrup packet and a large orange juice. Singer Rosalía, who also attended the Vanity Fair after-party, ordered a McGriddles — a breakfast sandwich with bacon, egg, and cheese — with a mango-pineapple smoothie and a mayo packet. Nope star Keke Palmer got oatmeal with fruit and maple syrup, and a side of hash browns. Emilía Perez star Édgar Ramírez's treated herself to a breakfast of McGriddle with bacon, egg, and cheese, an order of hash browns, and a cup of coffee. Sign in to access your portfolio
