China’s Mixue Escalates U.S. Tea War With Prime Hollywood Store
China’s budget beverage giant Mixue Ice Cream & Tea is aggressively expanding its U.S. presence with a new, high-profile store in Hollywood, escalating the intense competition among Chinese tea brands vying for dominance in the rapidly growing American market.
Hot on the heels of its New York City debut in September 2025, the company is preparing to open its second U.S. location and first on the West Coast. The new store will be situated on Hollywood Boulevard, directly opposite the TCL Chinese Theatre and Madame Tussauds, placing the brand at the heart of one of the world's most famous tourist hubs.
The strategic placement is poised to provide Mixue with massive brand exposure, tapping into an estimated 10 million annual visitors in the area. The move also comes as Hollywood’s retail sector shows signs of a robust recovery, giving the chain a solid foundation in a key commercial district while other parts of Los Angeles face a market contraction.
While the 752-square-foot space is modest, a representative from Matthews Real Estate Investment Services noted its potential for significant brand-building impact. The store, currently under renovation, is expected to open by the end of 2025 or early 2026.
Tapping a Resurgent Market
Mixue’s Hollywood entry is timed to capitalize on a localized retail upswing. According to data from CoStar, the retail vacancy rate in the Hollywood commercial district has fallen from 9% to 8% over the past year. The area recorded a net absorption of 76,000 square feet of new retail leases, indicating that new openings are significantly outpacing closures.
This trend stands in stark contrast to the broader Los Angeles market, which saw a net tenant move-out of 1.7 million square feet over the same period. By establishing a presence during a period of rising commercial activity, Mixue is positioning itself for sustained growth and brand recognition in the competitive Southern California landscape.
A Blueprint for American Growth
The Hollywood store is a key part of Mixue’s broader U.S. expansion strategy. The company reportedly plans to open another five to ten stores in Los Angeles next year, targeting high-street locations, shopping centers, and airports. It is also considering a franchise model for the U.S. market, with potential store sizes ranging from 500 to 3,000 square feet, and has shown interest in acquiring sites formerly occupied by Starbucks.
This push reflects the company’s strong global momentum. In the first half of 2025, Mixue recorded revenue of RMB 14.875 billion yuan (approximately US$2.04 billion) and a net profit of RMB 2.718 billion, year-over-year increases of 39.3% and 44.1%, respectively. As of June, the company operated over 53,000 stores globally, including 4,733 overseas locations. While its overseas store count has seen some optimization, particularly in Indonesia and Vietnam, the company reports that relocated stores have seen an average daily sales increase of over 50%.
An Increasingly Competitive Landscape
The U.S. has become an undeniable battleground for Chinese beverage brands, with more than 45 chains having established a presence overseas. Several major players have already staked claims on both U.S. coasts, each with a distinct strategy.
Heytea has focused on a premium model, with over 30 of its nearly 100 overseas stores located in core U.S. commercial districts in New York and Los Angeles, offering drinks priced between 6.90and6.90and9. Chagee targets the mid-to-high-end market, reporting daily sales of over 5,000 cups at its first U.S. store. Meanwhile, Nayuki's Tea has adopted a more pragmatic approach, launching its first stores in Flushing, New York, to tap into the large Chinese-American community.
The market has proven receptive. In October, Nayuki’s Tea’s first U.S. store reported over RMB 620,000 in its first three days, while Charming Tea, another new entrant, saw single-day revenue exceed RMB 80,000 during a soft opening in California.
The Untapped Potential of the U.S. Market
The rush into the U.S. is fueled by the market’s significant growth potential. A 2025 report from MenuSifu projects the American bubble tea market is expanding at a 9.1% compound annual growth rate and could reach a scale of over $8 billion by 2030, with room for five to ten times the current number of stores.
American consumer tastes, which trend toward sweet and dairy-rich beverages, provide a natural customer base for Chinese-style tea drinks. Furthermore, while the U.S. coffee market is dominated by giants like Starbucks, the tea-based beverage sector lacks a national leader, creating a crucial opening for new brands to establish a foothold and compete for market share.