McDonald’s has long held its position as one of the world’s largest fast-food chains, with more than 43,000 restaurants across over 100 countries.
However, a newer competitor has quietly surpassed the American giant. Established in 1997, this Chinese ice cream and bubble tea chain has over 46,000 stores throughout China and Southeast Asia.
Despite being founded more than 57 years after McDonald’s, Mixue Bingcheng’s rapid expansion has earned it the title of the world’s largest fast-food chain by store count. And now, the company is preparing to make its mark in the U.S.
Mixue (pronounced “mee-shoo-ay”) Bingcheng is opening its first-ever U.S. store in New York City at 266 Canal Street in Tribeca, Manhattan. The store spans 2,100 square feet at street level and was signed under a 10-year lease, according to Commercial Observer.
An official opening date has not been revealed, but with permits and filings already completed, the debut is expected very soon.
Image source: Yi Haifei/China News Service/Getty Images
McDonald’s vs. Mixue Bingcheng
Both McDonald’s and Mixue Bingcheng are incredibly successful, but their recent performance might indicate what’s to come.
McDonald’s (MCD) has faced recent challenges in the U.S. market, with slower foot traffic and sales declines. However, its turnaround efforts are starting to show progress, as comparable sales in the U.S. increased 2.5% year-over-year in the second quarter of fiscal 2025.
Meanwhile, Mixue Bingcheng continues to climb. In fiscal 2024, its revenue surged 22.3% to nearly $25 billion, compared with McDonald’s modest 2% growth to almost $26 billion.
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While McDonald’s still generated around $1 billion more in revenue, Mixue Bingcheng’s business model is drastically different. It specializes in ice creams, teas, and beverages, and does not serve savory food items such as burgers and fries.
Most of its menu items in Asia sell for under $1, primarily due to economic conditions and currency differences (1 CNY = $0.14 USD). As a global chain, McDonald’s adjusts pricing based on the market.
Mixue Bingcheng’s U.S. menu pricing has not yet been disclosed, but with New York being among the most expensive cities in the world, prices will likely be higher than those in its Asian stores to remain profitable.
However, just because the chain is popular in Asia doesn’t guarantee the same reception in the U.S.
“One of the most significant challenges international companies face is understanding and adapting to the cultural nuances of the U.S. market. The United States is a melting pot of cultures, and consumer behavior can vary widely across regions. What works in one country may not resonate with American consumers,” according to Business Consulting Agency.
Starbucks faces similar competition from a Chinese rival
McDonald’s isn’t the only American giant facing new competition from China. Starbucks (SBUX) has also felt the same pressure from Luckin Coffee (LKNCY) , which entered the U.S. market in June with two New York City stores.
Founded in 2017, 46 years after Starbucks, Luckin Coffee quickly gained traction and became China’s largest coffee chain in 2023, surpassing Starbucks in the region.
Today, Starbucks has over 40,000 stores across 80 countries, while Luckin Coffee operates over 26,000 in Asia alone.
Like Mixue Bingcheng, Luckin Coffee built its empire on affordability in Asia. However, in its U.S. locations, its prices are closer to Starbucks, with a 16-ounce drip coffee costing $3.45. Its menu also features handcrafted coffee beverages, frappes, matcha drinks, and refreshers.
So far, Luckin Coffee has been well received in the U.S. During opening week, lines were out the door, with many people eager to try the new competitor. The company has since expanded to five New York City locations.
Starbucks has also been struggling with continuous slowdowns. In the third quarter of fiscal 2025, global comparable store sales fell 2% year-over-year, with North America down 2%.
In comparison, Luckin Coffee reported 47% revenue growth in the second quarter of fiscal 2025.
