Chinese food and drink brands are making significant strides throughout Southeast Asia, providing viable options to prominent U.S. chain restaurants and broadening China's economic and cultural impact on nearby markets.
The prominent Chinese drink company Mixue Group has emerged as the global leader in food and beverages regarding the number of outlets, surpassing both Starbucks and McDonald’s.
The company, whose brand name Mixue Bingcheng means "Honey Snow Ice City," in Chinese, is capitalizing on the region-wide sweet tooth with affordable offerings of ice cream, coffee and bubble tea drinks.
"Even on platforms such as TikTok and others, there’s a jest that every vacant shop will quickly become a Mixue outlet," Rahma Yuliana stated, echoing a common phrase in Indonesia, which boasts over 2,600 Mixue locations.
A working mom managing an internet-based company spoils her child with affordable after-school snacks. For instance, they might enjoy a cup of brown sugar milk tea priced at $1.10, which is roughly 30% less expensive compared to what rivals like Taiwanese brand Chatime offer. Additionally, an ice cream can be purchased for just 50 cents, making it more budget-friendly even when compared to fast-food giant McDonald’s prices.
By September, Mixue Group operated through more than 45,000 outlets selling their Mixue beverages, ice cream, and Lucky Cup coffee items, surpassing the number of locations for both Starbucks and McDonald’s, according to market observers. Approximately 40,000 of these establishments were located within China.
By December, according to reports from Singapore-based research firm MomentumWorks, Chinese food and beverage companies had established more than 6,100 stores across Southeast Asia.
Approximately two-thirds of the market share is held by India and Vietnam, whereas China has a stronger presence in Singapore and Malaysia due to their considerable Chinese-speaking communities.
Almost all of Mixue's outlets operate as franchises, receiving their drink ingredients from the company. These beverages include Creamy Mango Boba, Mango Oats Jasmine Tea, and Coconut Jelly Milk Tea. Besides Mixue, notable players in the market also encompass major hotpot chain Haidilao, Fish With You sour cabbage fish eateries, along with popular drink brands such as Luckin Coffee, Heytea, and Chagee.
Jianggan Li, the CEO of Momentum Works, stated that Chinese companies are aggressively exploring fresh opportunities for expansion within Southeast Asia as they grapple with intense rivalry in their domestic markets.
The initiative taken by food and beverage sellers has highlighted that China can provide much more than inexpensive electronics.
Li mentioned that the firms are well-prepared, leveraging automation for improved productivity and excelling in digital advertising strategies.
Major Western enterprises often require considerable time to identify local collaborators and formulate enduring strategies. In contrast, Chinese food and beverage firms exhibit “greater impatience,” according to him.
In Bangkok, the capital of Thailand, Chinese businessman Siya Han has poured more than $1.37 million into establishing 12 Mixue shops along with roughly 10 additional locations offering dishes such as spicy broths, pickled cabbage fish, and breaded chicken cutlets within approximately six years.
She mentioned that stores located in shopping centers require considerable time to recoup expenses because of substantial rental deposit requirements. However, her other locations usually achieve profitability within six to twelve months, not factoring in the benefits from lease agreements.
"If you enter the Chinese restaurant business gradually, you won't be able to make it," she stated.
In Kuala Lumpur, the capital of Malaysia, Liu Liujun, the vice president of the Chinese pickled cabbage fish franchise Fish With You, saw potential in Southeast Asia’s substantial Chinese community and expanding economies.
The company's $235,000 investment in one of its branches in Malaysia yielded returns within merely nine months, as reported by Liu, who manages the firm’s international growth throughout the area. The outlet saw long queues forming almost every day.
Victoria Kovalan mentioned that the arrival of new Chinese brands has made it simpler for her to explore different culinary options.
"She mentioned that it has broadened our taste preferences," she said, speaking about the rise in popularity of Sichuan hotpot, famous for its spicy tastes.
Nguyen Thu Hoai, a Vietnamese student from Hanoi, was originally doubtful about Mixue due to it being a Chinese brand. However, she has now turned into a frequent visitor, attracted by its reasonable prices and superior quality exceeding her expectations.
The growth of Chinese food and drink brands is indicative of a larger pattern wherein Chinese products are now recognized for their genuine worth rather than being viewed solely as inexpensive options, according to Gordon Mathews, an anthropology professor at the Chinese University of Hong Kong.
Mathews recalled the cultural impact of McDonald’s worldwide growth, mentioning his visit to its inaugural location in Guangzhou, the financial center of South China, during the 1990s. There, a staff member shared with him, “I wish to go to America.”
"If Chinese food brands were to become global phenomena, they could wield significant influence, although the extent of this effect is yet to be determined," he stated. "While China faces challenges in gaining soft power, it is performing exceptionally well with its product offerings," he added.