What You Need To Know Before Setting Up A Mixue Franchise

Having entered the Malaysian market in 2022, Chinese food and beverage company Mixue had since rapidly proliferated and signed on over 300 stores in the country now. Since Mixue first launched in Malaysia, it has garnered popularity among the locals due to its affordably priced menu, offering iced drinks like medium-sized bubble milk tea at RM5 and large-sized fresh lemonade at only RM3. 

This is significantly cheaper than prices of bubble milk tea offered at other popular chains that range from around RM9.50 to RM13.50. For consumers who want to enjoy a cold drink for a cheap price, Mixue makes for a viable option. Aside from drinks, Mixue also offers an ice cream selection such as vanilla cone ice-cream at RM2 and strawberry crispy sundae at RM5. Recently, the beverage chain also launched a new coffee menu. 

While ”teh tarik” or pulled tea is considered by some as the unofficial national drink of Malaysia, there has been a shift towards other types of tea drinks in recent years such as iced bubble tea that has a huge presence in shopping malls and on the streets. If you’re interested in setting up a Mixue franchise, here’s what you need to know. 

Read Also: Starting A Company In Malaysia: What Singapore Businesses Need To Know 

Costs Of Opening A Mixue Store

Mixue Malaysia do offer franchise opportunities and provide support at various stages including staff training, renovation and design, marketing and operations to its partners. The specific cost of opening a Mixue outlet varies depending on the location and size of the store. 

You can choose to either open a kiosk in a shopping mall or a standalone shop. The kiosk needs to have a usable area of more than 300 sq ft, while the shop must be of more than 400 sq ft in size. 

The estimated cost of opening a Mixue outlet in Malaysia is RM300,000, which includes the purchasing of equipment at around RM60,000 and renovation fees ranging from RM100,000 to RM150,000, depending on the shop. Other costs include a royalty fee of RM14,000 a year and a security deposit of RM10,000. You may also need to take into consideration rental deposits, which vary according to location. 

The following table includes the costs required to set up a Mixue store.

Requirements To Open A Mixue Outlet  

There are a few requirements before you can set up a Mixue store.

Firstly, the person who approaches and deals with Mixue Malaysia to open a franchise outlet needs to be involved in the setting up process himself or herself. 

If you’re the one who approached Mixue Malaysia for a franchise deal, you need to be registered as the director with the Companies Commision Malaysia. You will also be required to participate in training and manage the store for at least four hours every day. There’s also an age requirement whereby the franchisee needs to be between 18 and 50 years old.       

Process Of Opening A Mixue Store 

First, you can approach Mixue Malaysia through the hotline or WhatsApp chat for a consultation to learn more about opening a franchise. 

For better understanding, you will also be invited to an online or physical brand briefing session to learn about the company. Then, you can make an application to join, which will be reviewed for approval. 

In addition, you are also responsible in finding a kiosk or store that adheres to Mixue Malaysia’s requirements. If you’ve found a store, you can file an application to get your store reviewed, which may also include a field assessment. 

After getting all necessary approvals, you will sign an agreement with Mixue Malaysia.  The company will assist you with designing and renovating your store in accordance to the company’s requirements. Mixue Malaysia has also acquired halal certification from the Department of Islamic Development Malaysia also known as Jabatan Kemajuan Islam Malaysia (JAKIM), so you don’t have to worry about this.  

Prior to the launch of your shop, you need to send two of your staff members on a six and a half-day training. Mixue Malaysia advises store owners to plan for four or five staff members during the initial phase, but you can adjust according to your needs later on based on the number of walk-ins.  

The estimated salary for staff members typically range from RM2,000 to RM3,000. However, you can always adjust according to the relevant salary range in your area. 

Zero Commission Model 

Mixue practices a zero commission business model, which means that all sales belong to store owners. As mentioned, store owners need to pay an annual royalty fee of RM14,000. 

This is perhaps one of the reasons Mixue outlets have rapidly increased over the years. According to several news reports, Mixue has become one of the largest food and beverage chains in the world with more number of outlets than household names like McDonald’s. While Mixue has achieved huge growth, globally, Mixue’s sales are still below that of other well-known chains such as Subway and Tim Hortons.   

Read Also: Guide To SME Business Loans In Malaysia     

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