The Sweet Success of China’s Bubble Tea Titans: The Zhang Brothers’ Journey
In a remarkable tale of entrepreneurial triumph, Zhang Hongchao and Zhang Hongfu have emerged as new entrants on Forbes’ prestigious list of China’s Richest 2025, with each brother commanding an impressive net worth of $8.5 billion. Their creation, Mixue Group, has revolutionized the beverage landscape in China and beyond, becoming a global phenomenon through its remarkably affordable offerings. The company’s wildly successful March IPO raised $444 million, but that was just the beginning—since then, their shares have doubled in value, reflecting investor confidence in their business model. What makes their story particularly compelling is the accessibility of their products: Mixue Bingcheng, their flagship brand, has won millions of hearts by selling ice creams, bubble teas, and coffees for just $1, making premium refreshments available to the masses. This democratization of treats has propelled Mixue to become one of the world’s largest food and beverage chains, with an astonishing 47,000 stores at the time of their Forbes listing.
The brothers’ ambition shows no signs of slowing down. In the first half of 2025 alone, Mixue Group expanded its empire by nearly 9,700 additional shops across mainland China, while also planting flags internationally with around 130 new overseas locations. This aggressive growth strategy has resulted in a total network of 53,000 stores—a number that continues to climb at a breathtaking pace. The vast majority of these outlets operate under a franchising model, allowing the company to scale rapidly while maintaining consistent quality and pricing. Their portfolio isn’t limited to the Mixue Bingcheng brand either; they’ve diversified with Lucky Cup, a coffee chain that already boasts 6,000 locations. This multi-brand approach has allowed the Zhang brothers to capture different segments of the beverage market, establishing dominance across various refreshment categories while maintaining their core philosophy of affordable indulgence.
The financial results of their expansion strategy speak volumes about the brothers’ business acumen. In the first half of 2025, Mixue Group reported revenue of 14.9 billion yuan (approximately $2.1 billion), representing a stunning 39% increase over the same period in the previous year. Even more impressive is their profitability—net profit surged by 44% to reach 2.7 billion yuan, demonstrating that their low-price strategy hasn’t come at the expense of margins. This financial success can be attributed to three key pillars of their business model: their rapidly expanding store network, which provides tremendous economies of scale; a robust and efficient supply chain that keeps costs low despite inflationary pressures; and their unwavering commitment to affordable pricing, which continues to draw in customers across all demographic groups. The brothers have proven that volume can more than compensate for slim per-unit margins when executed with precision.
Looking toward future growth, the Zhang brothers are venturing beyond their traditional offerings. In September 2025, Mixue Group made a strategic move into the alcoholic beverage market, signing a deal to acquire a 53% stake in craft beer chain Fulujia for $42 million. This acquisition is particularly interesting as it involves Hongfu’s wife, Tian Haixia, who controls the beer chain—keeping expansion within the extended family circle. This diversification into craft beer represents a calculated step to capture yet another segment of the beverage market, potentially introducing Mixue’s signature affordable pricing model to craft beer, a category typically associated with premium pricing. The move suggests the brothers see potential in applying their successful formula to disrupt additional beverage categories beyond their current offerings.
The Zhang brothers’ journey from humble beginnings to billionaire status embodies the quintessential Chinese entrepreneurial dream. Their success comes at a time when China’s consumer market is undergoing significant transformation, with younger generations increasingly embracing affordable luxury and convenience. Mixue has positioned itself perfectly within this cultural shift, offering products that feel premium but remain accessible to students, office workers, and families alike. Their formula of combining quality products, affordable pricing, ubiquitous availability, and efficient operations has created a business model that competitors find difficult to replicate at scale. While many Western coffee and beverage chains have struggled to penetrate the Chinese market fully, the Zhang brothers have demonstrated an intimate understanding of local consumer preferences and purchasing power.
As Mixue continues its remarkable growth trajectory, questions naturally arise about its international potential. While the company has already begun expanding beyond China’s borders, the true test will be whether its low-price model can translate successfully to markets with different cost structures and consumer expectations. However, the brothers’ track record suggests they shouldn’t be underestimated. Their ability to scale operations while maintaining quality and affordability presents a formidable challenge to established global players in the beverage industry. The Zhang brothers’ story represents not just personal success but a shift in global business dynamics, where Chinese consumer brands are increasingly setting trends rather than following them. Their inclusion in Forbes’ China’s Richest 2025 list marks not just a personal milestone but signals the rising influence of homegrown Chinese brands on the world stage—companies that understand how to deliver affordable luxury at unprecedented scale.
