HONG KONG (AP) — Chinese food and beverage brands are making strides in Southeast Asia, offering alternatives to well-known American chains and expanding Beijing’s commercial and cultural influence in neighboring economies. The Chinese beverage giant Mixue Group has surpassed Starbucks and McDonald’s to become the world’s largest F&B chain in terms of outlets. The company, known as Mixue Bingcheng in Chinese, is capitalizing on the region’s love for sweets by offering affordable ice cream, coffee, and bubble tea drinks.
Rahma Yuliana, a single mother running an online business, frequents Mixue outlets in Indonesia with her daughter for budget-friendly afterschool treats like a cup of brown sugar milk tea for $1.10, significantly cheaper than rival Taiwanese tea chains. Mixue’s ice cream is priced as low as 50 cents, undercutting McDonald’s prices. As of September, Mixue Group had over 45,000 stores globally, surpassing Starbucks and McDonald’s. The majority of these stores are located in China.
Chinese F&B brands have expanded rapidly in Southeast Asia, with over 6,100 outlets reported by research firm Momentum Works in December. India and Vietnam make up the majority, while Singapore and Malaysia, with significant Chinese-speaking populations, also host many Chinese brands. Mixue Group mainly operates through franchises, providing ingredients for popular drinks like Creamy Mango Boba and Coconut Jelly Milk Tea.
In addition to Mixue, other notable Chinese F&B brands include Haidilao hotpot, Fish With You sauerkraut fish restaurants, and well-known beverage companies like Luckin Coffee, Heytea, and Chagee. Mixue’s shares have doubled since its March IPO in Hong Kong, signaling strong market performance. Momentum Works CEO Jianggan Li highlighted Chinese companies’ aggressive expansion into Southeast Asia, leveraging automation and online marketing for growth.
Entrepreneurs like Siya Han in Bangkok and Liu Liujun in Kuala Lumpur have invested in Mixue and other Chinese F&B outlets, recognizing the potential in Southeast Asia’s Chinese population and growing economies. While facing challenges such as high rent deposits in shopping malls, these entrepreneurs have seen positive returns on their investments within months. The agility and efficiency of Chinese F&B companies have enabled them to quickly establish a presence in new markets, outpacing some Western counterparts in Southeast Asia.
Lines snaking out the door are a common sight almost daily, according to Liu, who is in charge of the company’s expansion efforts across the region. Victoria Kovalan, a customer, mentioned that the introduction of new Chinese brands has made it more convenient for her to experiment with different cuisines. “It has broadened our culinary horizons,” she remarked, particularly noting the increasing popularity of Sichuan hotpots known for their fiery flavors. Initially skeptical about Mixue as a Chinese brand, Vietnamese student Nguyen Thu Hoài from Hanoi has since become a loyal patron, drawn in by its affordability and unexpectedly high quality. This surge in Chinese food and beverage brands is indicative of a larger trend where Chinese products are no longer just considered inexpensive but are recognized for their true value, explained Gordon Mathews, an anthropology professor at the Chinese University of Hong Kong. Reflecting on the cultural impact of McDonald’s global presence, Mathews recounted visiting its inaugural store in Guangzhou, China’s economic nucleus in the 1990s, where a staff member expressed a desire to visit America. If Chinese food brands were to proliferate globally, they could potentially wield similar influence, although the extent of their impact remains uncertain, he noted. “While China faces challenges in building soft power, it is making remarkable strides with its merchandise,” he added. ___ Reporting by Thian in Kuala Lumpur, Malaysia and Ji in Bangkok. Contributions to this report were also made by Associated Press journalists Eileen Ng and Syawalludin Zain in Kuala Lumpur, Edna Tarigan and Andi Jatmiko in Jakarta, Indonesia, and Hau Dinh and Aniruddha Ghosal in Hanoi, Vietnam.
