Once dominating Vietnam’s cities with its red-and-white storefronts, low-cost tea and ice cream chain Mixue is now seeing a sharp pullback, with a growing number of stores closing quietly or being offered for resale.

Mixue, originally from China, rose to prominence across Vietnam during 2022–2023 by offering affordable drinks and an easy-to-access franchise model tailored for small investors. Within a short time, it captivated the market and reached a scale few could match.

According to Mixue Group’s own data, Vietnam is now the brand’s second-largest international market, with around 1,300 stores by September 2024.

Globally, Mixue operated 53,014 stores by mid-2025 - an increase of nearly 10,000 from the previous year. Revenue reached 2.1 billion USD in the first half of 2025, up 39.3% year-on-year, while net profit grew 44.1% to 380.8 million USD.

Besides China, Indonesia and Vietnam remain Mixue’s most important markets.

But in recent months, a shift is happening.

In Vietnam, Mixue locations have been quietly shutting down, with former storefronts either vacant or quickly replaced by other businesses. Social media groups dedicated to tea shop entrepreneurs are now flooded with resale listings and photos of Mixue-branded equipment up for liquidation.

On KrAsia, a Mixue Group spokesperson confirmed that closures in Vietnam are happening concurrently with those in Indonesia. While specific national data wasn’t provided, the company reported that its overseas store count had dropped by 162 locations by June 2025 compared to the end of 2024.

Mixue’s Chief of End-to-End Supply Chain, Cai Weimiao, said the closures were part of a “leaner operations” strategy. Low-performing stores were eliminated, and relocated stores in Vietnam and Indonesia reportedly saw a 50% increase in average revenue.

The reasons behind the decline

Within the tea shop community, the news of Mixue’s pullback didn’t surprise many. Several members pointed to the brand’s overheated expansion over the last few years, leading to oversaturation and internal competition.

In densely populated areas, there were reportedly as many as four to six Mixue stores within a single square kilometer - driving down the average revenue per location.

“It’s no surprise,” one user wrote. “By 2023–2024, Mixue owners were already complaining about high rent costs and raw ingredient prices that didn’t scale with retail prices.”

Customers also voiced concerns about inconsistent product quality and subpar service across some Mixue outlets.

On Facebook, listings offering complete Mixue stores - including equipment - have become increasingly common. One shop was recently offered at 80 million VND (approx. 3,300 USD), with the full setup, including three TVs and two air conditioners.

Franchise fatigue and margin squeeze

Speaking to VietNamNet, industry expert Tran Khanh Minh Son noted that franchise models naturally operate on a “survival of the fittest” basis - those who can’t keep up are phased out, but that doesn’t mean the brand is withdrawing entirely.

What’s happening, he explained, is a classic case of over-expansion. The dense network of stores divided revenues too thinly, and many individual locations could no longer break even.

Add to that rising operating costs, fixed ingredient sourcing, and diminishing profits - and franchise owners began exiting en masse.

Some were disillusioned after investing 800 million to 1 billion VND (32,000–40,000 USD) upfront, only to earn slim profits of just 30 million VND (around 1,200 USD) per month - even in peak seasons. At that rate, it could take nearly three years just to break even.

Owners also had to pay rent ranging from 10 to 25 million VND monthly, further straining margins. For many, the economics simply no longer made sense.

Looking ahead: what’s next for Mixue?

With fresh F&B trends like fruit tea, healthy drinks, and Instagram-friendly “check-in” cafés gaining ground, experts believe Mixue will face even tougher competition in Vietnam’s evolving market.

Though the brand remains one of the top tea chains by size, it now must grapple with profitability, retention, and consumer tastes that are changing faster than franchisees can adapt.

Duy Anh