16th June 2026 – (Hong Kong) Mainland beverage chain Mixue Ice Cream & Tea has quietly shut its branch on Nathan Road in Tsim Sha Tsui, fuelling fresh debate over the sustainability of low‑cost dining models in Hong Kong.
The ground‑floor outlet at Lun Shing Building has ceased operations, with its once prominent signage removed and drink‑making equipment inside draped in black cloth. A large “For Lease” notice now covers the storefront, marking a stark contrast to the crowds that gathered there during the brand’s early days in the city.
Property listings indicate the 613‑square‑foot premises are being marketed at a monthly rent of HK$288,000. Based on the chain’s signature HK$9 iced lemon tea, the shop would have needed to sell more than 32,000 cups per month simply to cover rental costs.
Founded in Zhengzhou in 1997 by entrepreneur Zhang Hongchao, Mixue has built a reputation for ultra‑affordable ice cream and tea drinks, with prices in Hong Kong typically ranging from HK$5 to HK$20. The brand entered the local market in December 2023 and expanded rapidly, opening nine outlets within its first year. At one stage, two Mong Kok branches operated less than 300 metres apart.
However, momentum has slowed. In addition to the Tsim Sha Tsui closure, branches in Yuen Long and Shek Mun in Sha Tin have also shuttered earlier this year.
News of the closure sparked animated discussion on social media platforms in both Hong Kong and mainland China. Some customers expressed surprise, with one remarking that business had appeared brisk just a week earlier. Others, particularly students drawn to the chain’s budget pricing, lamented the loss.
Many commentators attributed the closure to the city’s high operating costs. Observers pointed to steep rents and labour expenses, arguing that a high‑volume, low‑margin model leaves little room for manoeuvre. Some also questioned product quality, suggesting that certain drinks relied on pre‑prepared ingredients.
With nearly 60,000 outlets worldwide by the end of 2025, Mixue is regarded as the largest food‑service chain globally by store count.