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With Investment of R$ 3.2 Billion and Promise of 25 Thousand Jobs, Mixue Will Be the First Major Chinese Fast-Food Chain to Operate in Brazil
The visit of President Luiz Inácio Lula da Silva to China yielded a series of economic announcements, including the arrival of the Chinese chain Mixue in Brazil. The company, specialized in ice creams and cold beverages, plans to invest R$ 3.2 billion in the country. The plan includes the creation of up to 25 thousand jobs by the end of the decade. This will be the brand’s first operation in Brazil.
Chinese Investment in Brazil
The announcement is part of a broader package of agreements and rapprochement between the two countries. Lula traveled accompanied by 11 ministers, the President of the Senate, Davi Alcolumbre, and around 200 Brazilian businessmen. He is expected to meet with Chinese President Xi Jinping this Tuesday (13/5).
In addition to Mixue, other Chinese companies have announced expansion plans in Brazil. Among them are car manufacturer GWM, energy giant CGN, and the delivery app Keeta, from Meituan.
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The total of Chinese investments announced during the presidential mission amounts to R$ 27 billion, covering areas such as energy, mobility, technology, and food.
First Major Chinese Fast-Food Chain in the Country
Mixue will be the first major Chinese fast-food chain to operate in Brazil. The brand’s arrival may pave the way for other Asian companies to explore the Latin American market. However, success will depend on the acceptance of the Brazilian public and the ability to adapt to the local market.
Other Chinese brands have already tried to establish themselves in the country, with varying results. Seres, for example, suspended its operations after a year of sales below expectations. In contrast, BYD found success in the electrified vehicle sector.
Success Story of Mixue
Founded in 1997 in the Chinese province of Henan, Mixue started as a snow cone stand. The founder, Zhang Hongchao, was a student of Finance and Economics.
His first business attempt did not succeed. Two years later, he resumed the project by selling snow cones at a stand called Mixue Bingcheng — which means “sweet snow palace.”
From there, the company adopted a franchise model, offering ice creams, teas, lemonades, smoothies, and coffee at very low prices. The strategy of affordable pricing combined with strong visual appeal fueled the brand’s expansion.
Bigger Than McDonald’s and Starbucks
Today, Mixue has over 45,000 locations in China and 11 other countries, such as Singapore and Thailand. This number exceeds the stores of McDonald’s, which has around 43,000 locations worldwide, and Starbucks, with 40,500.
Although seen as a bubble tea chain, Mixue operates more as a supplier of ingredients than as a direct operator of stores. Most units are managed by franchisees. The brand’s mascot, called Snow King, is compared in China to Ronald McDonald.
Lean Franchise Model
One of the factors explaining the rapid growth of the chain is the fees charged below the market average. The company profits mainly from selling equipment and ingredients to franchisees.
The stores are known for their eye-catching visuals and the repetitive music that plays continuously. The menu is streamlined, focusing on sweet teas and simple ice creams. The proposal aims to reach a young audience.
Food Safety Issues
Despite its success, Mixue has faced allegations of food safety issues in China. In 2023, an investigation by The Beijing News revealed irregularities in franchise stores in the city of Nanjing.
Among the issues were the use of expired ingredients, tampering with expiration dates, and hiring employees without registration or health exams.
There were also instances of discarded food being used. Experts point out that the franchise model, combined with low prices, may weaken quality control.
The Nanjing Market Supervision Department conducted inspections and mandated corrections in the stores involved.
Billion-Dollar Profit
Despite the issues, the company’s figures are impressive. In 2022, Mixue had a net profit of over US$ 300 million. The result was driven by high margins, even with low prices, and a strong presence on social media.
In March, the company launched its shares on the Hong Kong Stock Exchange. The shares rose more than 40% on the first day of trading. The initial public offering raised US$ 444 million, the largest IPO of the year in the city so far.
Fines for Child Labor
The chain has also been subject to sanctions for violating labor laws. In China, it is forbidden to employ minors under 16 years old. In April 2022, a Mixue store in Tiantai was fined 12,500 yuan for employing a 15-year-old girl.
In July of the same year, another unit in Liaocheng was also fined. The penalty amount was 5,000 yuan. These cases drew attention to the challenges of the franchise model with accelerated expansion.
Arrival in Brazil with High Impact
Mixue’s entry into Brazil promises to shake up the food and beverage sector. With an investment of R$ 3.2 billion and a forecast of up to 25 thousand jobs, the company arrives with ambitious plans.
It remains to be seen how it will adapt to the Brazilian market and its ability to maintain quality with rapid growth.
With information from BBC.
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