Mixue Bingcheng, the ubiquitous discount tea and ice cream behemoth that has blanketed China with nearly 60,000 outlets, is undergoing a profound structural pivot. In a move that surprised market observers, the 42-year-old founder Zhang Hongfu has stepped down as CEO to focus on long-term strategy, handing the reins to 35-year-old Zhang Yuan. The new chief executive, a Tsinghua-educated former investment banker with a pedigree at Hillhouse and Bank of America, represents a shift from the brand’s 'grassroots' origin toward a more disciplined, elite-led management style.
The leadership transition comes at a precarious moment for the world’s largest beverage chain by store count. While the company’s 2025 revenue rose 35.2% to 33.56 billion RMB, the math at the storefront level tells a more sobering story. Despite its global dominance, the average daily net profit per store sits at just under 270 RMB (approximately $37). This razor-thin margin stands in stark contrast to industry peers; Luckin Coffee generates more than triple that amount per store, while global giants like Starbucks and McDonald’s operate on a different financial plane altogether.
Zhang Yuan’s first act has been to 'apply the brakes' on domestic expansion. The strategy has shifted from aggressive land-grabbing to a 1.6 billion RMB upgrade of the supply chain, moving toward fresh milk and real fruit. This is a direct attempt to shed the 'cheap' label that has defined the brand’s rise but now threatens its longevity. By sacrificing immediate growth for quality, Mixue is attempting to fix a model where franchisees bear the brunt of the risk while the corporate headquarters reaps the rewards of bulk material sales.
Investors remain unconvinced by this expensive pivot. Since the 2025 financial disclosure and the leadership announcement, Mixue’s share price has experienced a precipitous decline, losing nearly 30% of its value in early 2026. Market capitalization has evaporated by some 110 billion HKD from its 2025 peak. This cooling sentiment reflects a deeper anxiety: can a brand built on 4-RMB lemonade survive an era of rising rents, surging labor costs, and a consumer base that is becoming increasingly health-conscious and demanding?
The massive scale of Mixue Bingcheng—which now operates more locations than McDonald’s or Starbucks—has become a double-edged sword. While its vertically integrated supply chain in Henan and Hainan provides a formidable moat, the saturated market has led to an uptick in store closures. In 2025 alone, over 2,500 franchised locations shuttered their doors, a 57% increase from the previous year. For Zhang Yuan, the challenge is no longer about building more shops, but ensuring that the 60,000 already in existence can actually turn a meaningful profit.