Mixue founders surpass Starbucks’ billionaire ex-CEO Howard Schultz in wealth with $8.1 billion fortune

Schultz’s net worth exceeds $6 billion, according to the Bloomberg Billionaires Index.

Mixue’s IPO debuted on March 3, raising $444 million and marking Hong Kong’s largest listing of the year. The brothers control 82% of Mixue, making them the latest super-rich entrants, as reported by Bloomberg.

Bubble tea continues to shine amid China’s economic slowdown. According to Momentum Works, Mixue, with over 45,300 stores worldwide, has surpassed McDonald's and Starbucks to become the world’s largest food and beverage chain by store count.

Beyond China, Mixue has expanded across Asia-Pacific, with Indonesia and Vietnam accounting for 70% of its international revenue. The company offers tea, fruit drinks, coffee, and ice cream, with products priced at an average of $1.

Mixue's founder Zhang Hongchao. Photo from X

Founded in 1997, Zhang Hongchao initially struggled to run a beverage stall in Henan Province. In 1999, he pivoted to selling shaved ice with fruit syrup under the name Mi Xue Bing Cheng. His strategy of undercutting competitors by 20% led to the expansion into smoothies, fruit teas, and bubble tea.

His brother, Zhang Hongfu, joined in 2007 to manage operations and franchise development. He is now the company’s CEO.

Mixue operates two brands: Mixue (tea drinks) and Lucky Cup (coffee). The company’s 99% franchise model has driven its rapid growth.

In 2023, Mixue sold 7.4 billion cups, and in the first nine months of 2024, it sold 7.1 billion cups.

Its net profit for the first nine months of 2024 rose 42.3% year-on-year, reaching CNY 3.5 billion ($479 million), according to regulatory filings, as reported by Reuters.