The "Snow King" in the Castle and Luckin Coffee in the "Old Money Mansion"

A shift from scale to brand

China’s two efficiency-first beverage giants are staging a conspicuous pivot from scale-driven expansion to brand-driven experiences. Mixue Bingcheng (蜜雪冰城) has opened a fairytale “Snow King” castle flagship in Hangzhou, and Luckin Coffee (瑞幸) has converted a historic Lujiazui building into a hushed “old money” garden store in Shanghai. These moves are less about raising average ticket on a single drink and more about creating landmarks, viral moments and higher-margin retail ecosystems to feed millions of standard stores across the country.

Mixue: monetising the "Snow King" IP

Mixue’s Hangzhou flagship showcases the company’s new strategy: an Instagrammable multi-floor space where low-price drinks sit alongside blind-boxes, plush toys and branded merchandise. It has been reported that the Hangzhou site cost at least RMB 8 million to build, and that the brand’s Zhengzhou global HQ flagship—opened earlier in 2025—saw reported single‑day holiday footfall of about 46,000 and peak daily takings north of RMB 350,000 according to local sources. Mixue is reportedly opening flagship stores via franchise to mature A/S‑grade partners rather than chasing more small stores; the aim is to lift brand “altitude,” capture higher-margin retail, and then funnel that equity back into tens of thousands of neighbourhood outlets.

Luckin: atmosphere without abandoning price

Luckin’s Shanghai “old money mansion” takes the opposite tack in tone but the same strategic spirit: high‑design fit‑outs that preserve the chain’s low-price, high‑rotation DNA. The Lujiazui store—reportedly a retrofit of a former Starbucks—keeps the brand’s standard menu and prices (a RMB 9.9 coffee remains), while stripping out long‑stay incentives such as free Wi‑Fi and plentiful plugs. Luckin’s themed stores so far are company‑operated, concentrated in first‑tier cores, and it has been reported that preparation costs for such flagship rollouts rose sharply in 2025; the company’s Q3 materials showed a notable jump in pre‑opening expenses as it tests premium environments to drive brand affinity.

What does it mean for franchisees and the market?

Do these flagship spectacles pay their way as stand‑alone businesses? Likely not in conventional unit‑economics terms. Analysts and insiders quoted in the coverage suggest these flagships are marketing investments—loss‑making or marginal on the store P&L but valuable for PR, IP monetisation and long‑term brand equity. For franchisees, flagship opportunities are selective and capital‑intensive; it has been reported that Mixue restricts flagship franchising to established partners and prime commercial cores, and Luckin’s themed experiments remain centrally run. The result: a symbolic shift in China’s crowded low‑price beverage segment from pure density to design, experience and IP—but the mass base of millions of small, high‑efficiency stores will remain the earnings backbone.