HOLLYWOOD, CA – A new challenger has entered the American beverage arena, and it comes armed with $1 ice cream cones and a global empire of over 53,000 stores. Mixue, the Chinese beverage behemoth, has officially planted its flag on U.S. soil with a new store in Hollywood, Los Angeles, which opened its doors on December 20, 2025 [1]
The move has sent ripples through the industry, sparking a compelling question: could Mixue, with its aggressive low-price strategy, be the next Luckin Coffee, which famously unseated Starbucks as the top coffee chain in China? [2]
Mixue’s American debut is not a tentative step but a confident stride from a company that was the only restaurant chain to be named one of Time magazine’s “100 Most Influential Companies in the World” in 2025 [3]
The Hollywood store, located on the iconic Walk of Fame, introduces American consumers to its signature menu of fresh ice cream, fruit teas, milk teas, and coffee. The pricing is the most striking feature, with a signature ice cream cone at just $1.19, iced lemonade at $1.99, and lattes at $2.99 [3]
This value-focused proposition is the cornerstone of Mixue’s strategy, which has already propelled it to dominate markets across Asia and beyond.
The Disruptor’s Playbook: A Tale of Two Strategies
The comparison to Luckin Coffee is inevitable. Luckin’s meteoric rise in China was fueled by a tech-driven, grab-and-go model and a relentless barrage of deep discounts, which ultimately saw it surpass Starbucks in store count and revenue in the country [2]
While both Mixue and Luckin represent a new wave of Chinese consumer brands going global, their playbooks for disruption have crucial differences.
Feature | Mixue | Luckin Coffee |
Primary Product | Ice Cream & Tea | Coffee |
Pricing Model | Everyday Low Prices | Aggressive Couponing & Discounts (30-50% off) |
Store Model | Traditional In-Store Service | App-Only Ordering, Cashier-less |
Profitability | Focus on Supply Chain Efficiency for Margins | Willing to Operate at a Loss for Market Share |
Market Entry | Single Flagship Store (Hollywood) | Multi-Location Blitz (e.g., 5 stores in NYC) |
Luckin’s strategy was one of rapid, cash-burning expansion to acquire customers and build brand awareness, a model that proved effective but also led to a major accounting scandal [2]
In contrast, Mixue’s power lies in its formidable, vertically integrated supply chain. The company controls nearly every aspect of its production, from sourcing raw materials to operating its own factories and logistics. This “farm-to-table” approach allows it to maintain exceptionally low costs and consistent quality, which are then passed on to the consumer [4]
“Mixue is actively advancing its global strategy. Given the substantial market potential in the United States, the first store serves as a starting point. Moving forward, the company will steadily expand its store footprint, allowing more local consumers to enjoy high-quality, affordable drinks,” the head of Mixue U.S. stated at the opening [3]
A New Front in the Beverage Wars
Mixue is entering a U.S. market that is not only dominated by giants like Starbucks but is also seeing a surge in demand for bubble tea and other alternative beverages. The U.S. bubble tea market was valued at nearly $500 million in 2024 and is projected to grow to over $865 million by 2032 [5]
This trend provides a fertile ground for Mixue’s tea-focused offerings.
However, the path to domination is not without obstacles. Mixue will face stiff competition not only from established American players but also from fellow Chinese brands like HEYTEA and CHAGEE, which have already begun their own U.S. expansions [6]
Building brand loyalty among American consumers, who are accustomed to the premium experience offered by Starbucks, will be a significant challenge.
While Luckin focused on disrupting the daily coffee ritual, Mixue is targeting a broader, more price-sensitive consumer base with a wider range of indulgent treats. Its success will depend on whether its low-price, high-efficiency model can resonate in the competitive American landscape. If it does, the arrival of the “Snow King” mascot on Hollywood Boulevard may be remembered as the opening salvo in a new battle for the American consumer’s wallet, one that could reshape the beverage industry for years to come.
References
[4] CKGSB. (2025, December 2 ). Mixue’s Low-Cost Business Model & Strategy. Retrieved from
