China's boba behemoth lands in Hollywood

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China’s boba behemoth has landed in Hollywood.Mixue, the fast-growing megachain that boasts a bigger global retail footprint than McDonald’s, opened its first U.S.outpost on Hollywood’s Walk of Fame last month, selling drinks for less than $5 and ice cream for about $1.Mixue spokesperson Xu Ping said in a written statement in Chinese that the company chose Hollywood as its first U.S.

location because the “movie capital of the world” attracts both international tourists and local consumers year-round.The store, Ping added, “aims to serve a diverse global consumer base and demonstrates the brand’s commitment to the American market.”The Hollywood opening was followed in quick succession with locations in New York City’s Brooklyn, Koreatown and Chinatown neighborhoods.More Mixue stores are coming to California, Ping said.The megachain’s entry into Los Angeles’ boba market comes at a time when local shops are struggling with rising costs driven by tariffs and economic uncertainty.Mixue was founded as a shaved ice stand in 1997 in Zhengzhou, China, by college student Zhang Hongchao, who used money lent from his grandmother.

The store’s Chinese name, Mi Xue Bing Cheng, translates roughly to “sweet snow palace.”The store has more than 53,000 stores worldwide.The lion’s share are in China, but the company also has 4,700 locations across Australia, Japan, South Korea, Thailand, Malaysia and Singapore.By comparison, McDonald’s has more than 44,000 stores worldwide, and Starbucks has more than 40,000.

Founder Zhang and his brother Zhang Hongfu, who control the company, have a combined fortune of $8.1 billion, according to the Bloomberg Billionaires Index.Mixue is able to keep costs low because it is vertically integrated, said UCLA business administration professor Christopher Tang, a supply chain management expert.Mixue owns the factories in China that pro...