Do you think that the world’s largest fast food chain is an American firm like Burger King, McDonald’s or Starbucks? You have everything wrong! It is the Chinese company, Mixue Ice Cream & Tea, a franchise of ice cream and tea stores created in 1997 by Zhang Hongchao who was only 21 years old. Back on an extraordinary entrepreneurial adventure that made him a billionaire.
A grandmother’s loan to start
As detailed Fortunenothing intended for this young man to launch such a group which now has 46,000 establishments in Asia, Australia, the Middle East and South America. In 1997, Zhang studied at the Henan University of Economy and Law. However, he wants to open a catering stand, mainly to sell cold drinks and crushed ice.
While he does not have savings, he decides to borrow 3000 yuan from his grandmother, or around $ 417 today. What allow him to open a small business in the streets of Zhengzhou, capital of the Chinese province of Henan and major hub for international transport, detail our colleagues.
From the outset, the stand works well and it makes astronomical margins. While a drink costs him only 21 cents, he manages to sell it for 14 dollars! On site, however, many modernization works are carried out, which leads to the demolition of its small store three times.
But the young boss is not discouraged. He widens his offer and improves his operational capacities by recruiting his younger brother, Hongfu. The latter takes things in hand and accompanies it in the opening of hundreds of stores which reproduce the winning formula.
8.1 billion dollars of accumulated fortune
Here again, everything is not easy and entrepreneurs know in particular difficulties in their supply chains in fruit and milk powder. Things end up improving and sales explode over time. The structure is further perfected and mixed opens its storage base in 2014 to collect raw materials with farmers and produce its own creations, such as powders and snacks.
Today it has warehouses and logistics bases in 22 Chinese provinces and an intense quality control effort has done the rest. The company also ensures the choice of sites, the decoration of stores and the training of staff to make its franchisees succeed.
At the end of this incredible epic that started from the base, the Zhang brothers, very discreet, have a cumulative fortune of $ 8.1 billion.
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