Chinese food and drink brands are making significant strides throughout Southeast Asia, providing viable options to well-known American franchises and broadening China's commercial and cultural impact on surrounding markets.

The prominent Chinese drink company Mixue Group has surged ahead to become the global leader in food and beverages based on the number of outlets, surpassing both Starbucks and McDonald’s.

The company, whose brand name Mixue Bingcheng means "Honey Snow Ice City," in Chinese, is capitalizing on the region-wide sweet tooth with affordable offerings of ice cream, coffee and bubble tea drinks.

"Even on platforms such as TikTok and others, there’s a joke suggesting that every vacant shop will quickly become a Mixue outlet," explained Rahma Yuliana, alluding to a common phrase in Indonesia, where Mixue boasts over 2,600 locations.

A working mom managing an internet-based company spoils her child after school with affordable treats like a cup of brown sugar milk tea priced at $1.10, which is roughly 30% less expensive compared to what rivals like Chatime offer. She can also get an ice cream cone starting at just 50 cents, making it more budget-friendly even when compared to fast-food giants like McDonald’s.

By September, the Mixue Group operated through more than 45,000 outlets selling their Mixue beverages, ice creams, and Lucky Cup coffee items—a number surpassing both Starbucks' and McDonald's locations according to market experts. Approximately 40,000 of these establishments were located within China.

In broader terms, by December, Chinese food and beverage companies had established more than 6,100 stores across Southeast Asia, according to a report from Singapore-based research firm Momentum Works.

Approximately two-thirds of the market share is held by India and Vietnam, whereas China has a stronger presence in Singapore and Malaysia due to their substantial Chinese-speaking communities.

Almost all of Mixue's outlets operate as franchises, receiving their drink ingredients from the company. These drinks include Creamy Mango Boba, Mango Oats Jasmine Tea, and Coconut Jelly Milk Tea. Besides Mixue, notable players in the market also encompass major hotpot chain Haidilao, Fish With You sour cabbage fish eateries, along with popular beverages like Luckin Coffee, Heytea, and Chagee.

Jianggan Li, the CEO of Momentum Works, stated that Chinese companies are aggressively exploring fresh opportunities for expansion within Southeast Asia following intense rivalry in their domestic markets.

The initiative taken by food and beverage sellers has highlighted that China can provide much more than inexpensive electronics.

Li mentioned that the firms are well-prepared, leveraging automation to boost their productivity and excelling in digital advertising strategies.

Major Western brands often require considerable time to identify local collaborators and establish enduring strategies. In contrast, Chinese food and beverage firms exhibit “greater impatience,” according to him.

In Bangkok, the capital of Thailand, Chinese businessman Siya Han has committed more than $1.37 million over approximately six years into establishing 12 Mixue locations along with roughly 10 additional eateries serving spicy soup broths, pickled cabbage fish, and breaded chicken cutlets.

She mentioned that stores located in shopping centers require considerable time to recoup expenses because of substantial rental deposit requirements. However, her other locations usually achieve profitability within six to twelve months, not factoring in the benefits from their lease agreements.

"If you enter the Chinese restaurant business gradually, survival will be difficult," she stated.

In Malaysia's capital city, Kuala Lumpur, the vice president of the Chinese pickled cabbage fish franchise Fish With You, Liu Liujun, saw potential in Southeast Asia’s substantial Chinese community and expanding economies.

The company's $235,000 investment in one of its branches in Malaysia yielded returns within merely nine months, as queues formed daily at the outlet nearly every day, noted Liu, who manages the firm's international growth throughout the area.

Victoria Kovalan, a customer, mentioned that the arrival of new Chinese brands has made it simpler for her to explore different culinary options.

"She mentioned that it has broadened our taste preferences," she said, speaking about the widespread appeal of Sichuan hotpot, famous for its fiery tastes.

Nguyen Thu Hoai, a Vietnamese student from Hanoi, initially had her doubts about Mixue due to it being a Chinese brand. However, she now frequents their stores regularly, having been convinced by both their affordable prices and superior quality.

The growth of Chinese food and drink brands is indicative of a larger pattern wherein Chinese products are now recognized for their genuine worth rather than being viewed solely as inexpensive options, according to Gordon Mathews, an anthropology professor at the Chinese University of Hong Kong.

Mathews recalled the cultural impact of McDonald’s worldwide growth and mentioned that he went to its inaugural location in Guangzhou, a major financial center in southern China, during the 1990s. There, a staff member shared with him, “I wish to visit America.”

"If Chinese food brands were to expand globally, they could potentially wield significant influence; however, the extent of this effect is yet to be determined," he stated. "While China faces challenges in building soft power, it is performing remarkably well through its product offerings," he added.