Supply Chain Finance Franchise Model for Tea Beverage Brands

📌 Background

In 2026, the new-style tea beverage industry entered the 'Quality & Recruitment Era,' shifting franchisee investment logic from reliance on store expansion to a focus on single-store profitability and headquarters empowerment. Brands with over 10,000 stores, such as Mixue Bingcheng, have proven that their core business is supply chain management, generating the majority of their revenue by selling raw materials to franchisees. Amidst intense competition, brands are now offering financial support and lowering initial entry barriers in exchange for long-term supply chain commissions.

👤 Target Customers

Individual franchise investors with limited capital (200,000-500,000 RMB) but lacking business operational experience. Brands focus on earning supply chain profits from them rather than one-time franchise fees.

💰 Revenue Streams

1) Primary profit driver: Continuous sales of core raw materials, packaging consumables, and equipment to franchise stores, accounting for over 90% of total brand revenue; 2) Secondary profit driver: Brand licensing and management service fees; 3) Interest income from providing equipment finance leasing services to franchisees.

🧮 Cost Structure

Main costs: 1. Centralized procurement and production of core raw materials (e.g., self-built sugar, dairy, and tea bases); 2. Construction of a nationwide warehousing and logistics system; 3. Labor costs for franchisee training and operational support teams.

🛡️ Moat

Extreme supply chain cost control and economies of scale. By building proprietary core supply chain factories and leveraging the procurement volume of tens of thousands of stores, the brand minimizes raw material costs. This creates a flywheel effect: 'more stores lead to lower procurement costs, which makes franchisees more profitable, attracting even more stores,' creating a cost barrier that is difficult for latecomers to replicate.

🔑 Keys to Success

• Deeply integrate self-built core supply chains to control costs and quality
• Optimize the single-store profitability model and accelerate the return on investment (ROI) cycle
• Provide low-threshold financial service solutions for potential franchisees

⚠️ Risks

• Uncontrolled food safety crisis management leading to brand collapse
• Widespread franchisee losses triggering a wave of store closures

🏢 Cases

• Mixue Bingcheng's revenue from selling goods (ingredients, packaging) to franchisees accounts for over 95% of its total revenue
• Guoquan Shihui provides store opening guidance and logistics support to franchisees while profiting through the supply chain
• Hushang Ayi achieves significant net profit growth through a multi-brand matrix and flexible franchise schemes

📊 SWOT Analysis