This Mixue is getting popular in Singapore...

[disconsolate]

Inside the Mixue Business Model in Singapore

mixue.asia

Mixue has become a familiar name in the food and beverage industry across Asia. With its affordable ice cream and tea drinks, the Chinese dessert giant has rapidly expanded into countries like Indonesia, Vietnam, Malaysia — and more recently, Singapore. In this article, we’ll explore the Mixue business model in Singapore, what drives its success, how it differs from competitors, and why it continues to attract customers and franchisees alike.

Overview of Mixue’s Entry into Singapore​

Mixue officially entered the Singapore market in 2022 and quickly gained popularity, especially among students and young adults. The brand’s approach was simple yet effective: sell affordable treats in high-footfall areas, such as MRT stations and near campuses.

With prices significantly lower than typical dessert shops in Singapore, Mixue stood out immediately. Its business model was designed to scale fast while keeping overhead low — a strategy that aligns perfectly with Singapore’s dense urban layout and consumer behavior.

How the Mixue Business Model Works​

The success of Mixue in Singapore can be attributed to a few core elements in its business model:

1. Low Price Strategy
Mixue offers ice cream and drinks at prices that are often 30–50% cheaper than competitors. In a country where food and drink can be expensive, this low-cost approach attracts a wide customer base.

2. Simple Product Line
By focusing on a small number of core products — such as milk tea, fruit tea, and ice cream — Mixue keeps inventory and operational complexity minimal. This improves speed and consistency across stores.

3. Scalable Franchise System
Mixue’s franchise model allows rapid expansion with relatively low startup costs. In Singapore, franchisees are given support in training, logistics, and branding, making it appealing for small investors.

4. Centralized Supply Chain
To keep costs down and quality consistent, Mixue uses centralized production for ingredients and supplies. This reduces variation and increases efficiency across all outlets.

5. High Foot Traffic Locations
Mixue targets locations with heavy pedestrian traffic. In Singapore, most outlets are located near public transportation, universities, or within busy shopping centers.

Why the Mixue Model Works So Well in Singapore​

Singapore is a strategic market for Mixue because it has a young, tech-savvy population that is price-sensitive but quality-conscious. The city-state’s compact urban structure also makes it easier for Mixue to manage logistics and supply chains effectively.

Moreover, Singaporeans are adventurous with food trends and often open to trying new brands. Mixue’s viral social media campaigns and quirky branding appeal to this audience perfectly.

Unlike luxury-oriented bubble tea brands, Mixue focuses on mass accessibility — and that is its biggest competitive edge.

Conclusion​

The Mixue business model in Singapore thrives on affordability, operational simplicity, and smart franchising. By offering tasty, low-cost products and targeting high-traffic areas, the brand has carved out a niche in a competitive market.

With more outlets planned across the city, Mixue is not just a passing trend — it’s building a sustainable footprint using a model that’s proven effective throughout Asia.

For entrepreneurs and investors, Mixue offers an interesting case study of how a well-executed low-price strategy can lead to high returns, even in a saturated market.

FAQ​

What makes Mixue different from other bubble tea brands in Singapore?
Mixue emphasizes affordability and simplicity. Its prices are much lower, and its menu is streamlined to keep costs and operations efficient.

Is Mixue a franchise in Singapore?
Yes, Mixue operates under a franchise model, allowing individuals to open their own branches with support from the main company.

How much does it cost to open a Mixue outlet in Singapore?
While exact costs vary, initial investment is generally lower than other F&B franchises due to Mixue’s simple setup and low inventory requirements.

Why is Mixue so popular with students and young people?
The brand’s low prices, catchy marketing, and presence near schools and MRT stations make it especially attractive to younger consumers.

Does Mixue have plans to expand further in Singapore?
Yes, the company has already announced plans to open more stores in various neighborhoods across the city-state.

If you’re studying food business trends or looking into franchise opportunities, Mixue’s model in Singapore is a perfect example of how low-cost doesn’t mean low-quality — it means smart strategy.

 

[disconsolate]

in European Journal of Law and Political Science
Legal Analysis of the Success of Mixue Franchise Schemes in Singapore, South Korea, and Japan Linked to the Success of Mixue Franchise Schemes in Indonesia and Vietnam
Pan Lindawaty Suherman Sewu

Tresnawati

Calista Rachelia


DOI: 10.24018/ejpolitics.2024.3.2.126
Abstract
Franchising is a system of marketing goods and services and technology, which is based on closed and continuous cooperation between independent actors (meaning the franchisor and individual franchisee) and is separated both legally and financially, where the franchisor grants rights to the individual’s franchisee and imposes an obligation to carry out its business following the franchisor’s concept. The franchise business that is currently going viral is the Mixue franchise, which offers luxury ice cream at very cheap prices. Mixue became a franchise that had very rapid growth during the 2020 pandemic. In the 2020–2023 period, its outlets reached 1000 in Indonesia. So it is called the angel that takes away empty shophouses because the rapid development of Mixue also helps the property business. Even though it targets third and fourth-ranked cities, Mixue dominates provincial capitals in Indonesia. Mixue’s phenomenal success in Indonesia, after having had great success in Vietnam since 2018, has caused Mixue to expand to Singapore, South Korea, and Japan. In this research, the author will analyze the franchise laws from a legal perspective and compare them with those of the three countries, which may be a factor in the success of the Mixue franchise, which was previously achieved in Indonesia and Vietnam.

This research is normative juridical research that uses secondary data in the form of primary legal materials, namely various relevant laws and regulations, and secondary legal materials, namely books and legal literature. The approaches used are statutory and conceptual.

Results from research are hoped to provide one-stop article input for entrepreneurs, businesspeople, and legal academics regarding the comparison of franchise law, especially in Singapore, South Korea, and Japan, which Indonesia and Vietnam also complement.

Main Text
1.
Introduction
The increasingly rapid development of the business world means that companies always face intense competition. Therefore, in order to achieve maximum profits, it is essential for companies not only to sell products at low prices and place products that are easily accessible to consumers but also to develop their business wings to expand the market internationally. In order to develop a business to reach international markets, Warren J. Keegen, in his book Global Marketing Management, suggests five ways to achieve this, including through exporting, licensing, franchising, forming joint ventures, or total ownership, namely complete ownership through direct ownership or acquisition (Slamet, 2011). From several methods above, the franchising system emerges as a system that is considered quite optimal compared to other systems because it does not rely on socio-political factors such as exports, forms of joint ventures, direct investment, or business acquisitions, and the mechanism is not as rigid as the grant system license.

Franchise (or franchising) is basically a franchise system of marketing goods and services and technology, which is based on closed and continuous cooperation between independent actors (meaning the franchisor and individual franchisee) and is separated both legally and financially, where the franchisor grants rights to individual franchisees and imposes obligations to carry out its business in accordance with the franchisor’s concept (European Franchise Federation, 2016). A Franchisor, within a certain period, allows the franchisee to operate a business distributing goods and services in the name and identity of the franchisor in a particular area. This business must be carried out according to the procedures and methods determined by the franchisor. Franchisors can offer assistance (assistance) to franchisees. In return, the franchisee will pay a certain amount through an initial fee and royalties. The franchise system offers various benefits for franchisees because company branding, logos, marketing, production methods, brands, and business systems have been built from scratch, so franchisees do not need to start a business. The franchise business model can also open up opportunities for small and medium entrepreneurs, create jobs, and improve a country’s economy (Nugroho & Kusumasari, 2022). The franchising system was first born in the United States a century ago, and the Singer sewing machine company introduced it to develop the distribution of its products (Santiago, 2012). This system then quickly dominated the model for distributing goods and services in the United States (Suharnoko, 2009). The International Franchise Association states that one in twelve forms of trading business in the United States is a franchise. According to existing data, in 2022, franchises will even provide 8.5 million jobs for the entire population of the United States (Paluteder, 2022). This certainly illustrates the substantial role of franchises in supporting the economy of this superpower.

The rapid development of the franchise system has made this system a popular business model in various business fields throughout the world, including Indonesia. In the last ten years, the franchise system seems to be becoming a business model that continues to grow and is very popular in Indonesia, especially for those who want to start a business without having to go through the hassle of starting a new business from scratch. The legal basis for operating franchises in Indonesia is the Government Regulation of the Republic of Indonesia Number 42 of 2007 concerning franchising (from now on referred to as PP Franchise). The definition of a franchise is contained in Article 1 point 1 PP Franchise, as follows:

“A franchise is a special right owned by an individual or business entity to a business system with business characteristics in order to market goods and services that have been proven successful and can be exploited and used by other parties based on a franchise agreement.”


In this regulation, it is explained that the franchise business system has criteria, namely that it must have business characteristics, be proven to provide profits, have standards for services and goods and services offered which are made in writing, be easy to teach and apply, have continuous support, and registered Intellectual Property Rights. A franchise business must also be carried out based on a written agreement between the franchisor and the franchisee, considering Indonesian law.

A franchise contains the following main elements:

• The franchisor is the owner/producer of goods or services that already have a certain brand and grants or licenses certain exclusive rights for the marketing of those goods or services.
  
  
  
• The franchisee is the party who receives exclusive rights from the franchisor.
  
  
  
• There is an exclusive transfer of rights (in practice including various kinds of intellectual property rights/industrial property rights) from the franchisor to the franchisee.
  
  
  
• There is a determination of a certain area/franchise area where the franchisee is given the right to operate in a certain area.
  
  
  
• There is a reward for performance from the franchisee to the franchisor in the form of an initial fee and royalties as well as other costs agreed upon by both parties.
  
  
  
• There are quality standards set by the franchisor for franchisees as well as regular supervision in order to maintain quality (quality control).
  
  
  
• The franchiser organizes initial and ongoing training to improve skills (Sewu, 2020).
  
  

Like a trend, the franchise system is currently widely discussed and loved by the wider community. Franchising is growing so rapidly because it is very attractive and profitable for the business world. Many foreign franchises then decide to enter the Indonesian market and expand their market in this country, so we often see the proliferation of foreign franchise businesses around us. Even though many investors have succeeded in running their franchise businesses, it cannot be denied that many of them have failed. The Chairman of Indonesian Franchising and Licensing said that the average growth of foreign franchise businesses in Indonesia could reach 12%–13% per year with a failure rate of 2%–3% (Sudarmiatin, 2011). One of the most strikingly successful foreign franchise businesses is Mixue.

Mixue is a franchise business operating in the food and beverage sector. Mixue was founded in 1997 by Zhang Hongchao under “Mixue Ice Cream & Tea”. While completing his studies, Zhang worked part-time at a shaved ice shop. Armed with this experience, Zhang then dared to open his own shaved ice shop with the help of his grandmother. However, as his business developed, Zhang began to encounter problems where his products were so affected by the seasons that he failed, and his first shop was forced to close. Zhang didn’t immediately give up. He opened another shaved ice stand in 1999 under the name Mixue Bingcheng (MXBC). Over the years, he experienced many difficulties before finally, in 2007, when he could develop the Mixue franchise system. A year later, 180 Mixue outlets were present in all corners of China (Detik Finance, 2022).

As if to repeat its success in China, Mixue is currently being widely discussed on various social media because of the aggressiveness of opening its branches in Indonesia. The incessant opening of new branches in a short period of time and development in adjacent areas made Mixue a topic of conversation, leading to the emergence of jokes or jokes regarding the nickname “Angel of Empty Shophouses” from Indonesian netizens Mixue. This term appeared because almost every empty shophouse in Indonesia will soon turn into a new Mixue branch.

In this regard, several requirements must be met first by people who are interested in becoming franchisees of this Mixue franchise. The franchisee must provide initial capital of IDR 700 million to IDR 800 million as initial investment costs until opening the store, where these costs include the provision of equipment (machines) and the first batch of raw materials from the franchisor (Nuri, 2023). Apart from that, franchisees must also provide adequate operational space for future Mixue outlets. This outlet must be built according to the interior requirements set by Mixue Indonesia, starting from furniture, water, electricity, neon signs, and other elements. The requirements include a minimum clean building area of 25 square meters, with a minimum front width of 3.8 meters, a minimum ceiling height of 2.7 meters, sufficient clean water source, and 33,000 watts of electricity. Then, before opening a Mixue franchise, prospective franchisees must also confirm first with the franchisor so that later a survey can be carried out on the area or area of the outlet that will be opened (Salsabilla, 2022). Even though they are required to fulfill several requirements above, Mixue franchisees are estimated to be able to obtain a Return on Investment (ROI) in just 12 to 18 months (Ardini, 2023).

In Indonesia itself, PT Zisheng Pacific Trading holds Mixue franchise rights. In principle, Mixue does not provide special requirements to prospective franchisees. The Mixue franchise system is an independent business where no royalties or profit sharing are paid to the franchisor so the franchisee can fully enjoy all profits. However, matters related to employee management, licensing, taxes, promotions, and social media must be governed by central regulations. Mixue also immediately provides a contractor who will redesign the outlet to be changed to meet standards (Kumparan Food, 2022).

Behind Mixue’s success, of course, there is a business strategy implemented by Mixue to promote its products, one of which is based on good supply chain management. Good supply chain management includes:

Profitable prices and quality of raw materials,

Establishing its own logistics center with a large capacity and

Ensuring that the quality of products that reach consumers is of the best quality.

To ensure the quality of each ice cream and drink, Mixue is supported by various supporting companies, including Mixue Bingcheng Co., Ltd., which is engaged in management and operations, Henan Daka Food Co., Ltd., which operates in R&D (Research and Development) and production, as well as Shangdao Intelligent Supply Chain Co., Ltd., which operates in warehousing and logistics services. This industrial chain was formed to protect Mixue and accelerate its development.

Regarding this, even Raymond Chin, CEO of Ternak Uang (a financial literacy education platform), said on his YouTube channel that Mixue is not an ice cream company but a supply chain company. Mixue’s financial reports show that most of its income comes from selling raw materials and packaging. So, the strategy implemented by Mixue to grow quickly is to change the mindset from a food and beverage company to a supply chain company. Through the Economic of Scale formula, Mixue seeks to increase its production of ice cream and drinks by using other people’s capital through a franchise system so that the capital Mixue spends reduces.

https://www.ej-politics.org/index.php/politics/article/view/126/112

 

[ChopSengHuat]

Low price
Another 内卷

 

[laksaboy]

Come on boys and girls, let us sing along!