Chinese tea brands taste success on US main streets

Bubbling along

How have these beverage chains, once a common sight on China's streets, found a foothold in the United States?

Mixue is not alone in its overseas push. In recent years, a growing number of Chinese new-style tea brands, including HeyTea, Naisnow and Molly Tea, have expanded into the US market, often targeting major cities with large and diverse consumer bases.

Observers say the trend may reflect intensifying competition at home, as well as rising interest among younger US consumers in global food and beverage cultures. The US market also carries symbolic value for Chinese consumer brands seeking international recognition, they said.

HeyTea's Times Square store, which opened earlier this year, sold more than 3,500 cups on its first day, with average daily sales exceeding 2,000 cups, according to company figures.

By comparison, independent coffee shops typically sell 200 to 300 beverages per day, while large chains such as Starbucks sell up to 700 cups daily at high-traffic locations, according to the National Coffee Association.

HeyTea's expansion in the US illustrates the global acceleration of Chinese tea brands' spread. After opening its first US store in New York in late 2023, HeyTea has grown its footprint rapidly, increasing from just a couple of locations in early 2024 to more than 30 stores today.

Other brands have reported similar early success. Chagee sold more than 5,000 cups of tea on the first day its US store opened. Auntea Jenny's first US location, in the Flushing neighborhood of Queens borough in New York, recorded 3,024 orders and gross merchandise value of $65,000 during its initial opening period.

Molly Tea has also posted strong figures. The company said its first New York store generated average monthly revenue of about $480,000, while its San Francisco Bay Area location earned $28,000 on opening day and $82,000 within its first three days, setting a new benchmark for Chinese tea brands overseas.

The number of bubble tea shops in the US has risen rapidly in recent years, according to market research firm IBISWorld. There were 3,096 bubble tea shops nationwide in 2022, a 23.4 percent increase from the previous year. By 2024, that number had grown to 6,635 locations, and is expected to double again by 2028.

A decade ago, bubble tea in the US was largely confined to Asian neighborhoods and college towns. Today, it is increasingly part of mainstream urban consumption.

During a recent visit to HeyTea's Times Square store, staff told China Daily the brand's growing appeal is reflected in its day-to-day operations.

Jiovani Arroyo, a barista at the location, was seen unloading boxes of ingredients outside the busy shop, many of them labeled in Chinese, suggesting the supplies were imported directly from China. "You would think that customers would be Chinese or Asian, but it's actually a good mixture of different cultures," he said.

Arroyo said some customers go straight to the pickup counter, while others are still getting familiar with Chinese tea drinks. He noted that the most common questions from customers are "what's your favorite drink" and "what's the popular drink inside the store", adding that afternoons tend to be the busiest time.

While the brand comes from China and the company's headquarters are there, "it still feels like another business in America", he said.

Around 60 percent to 70 percent of the store's employees are Chinese, and Arroyo said management has made an effort to hire more local staff. "The manager tries his best to see if he can bring in more locals than just people from China. … We don't want there to be a language barrier here for people who are feeling uncomfortable," he said, noting that the store aims to be international rather than staffed only by Chinese employees.