Milk‑tea and snack shops rush into ice cream — but reportedly 90% pick the wrong route

A hot trend with two clear choices

Milk‑tea and snack chains across China have added ice cream to menus, and the rush looks more strategic than fleeting. TMTPost reports that lines at flagship stores — from Heytea (喜茶) to smaller chains — are often for gelato or premium scoops rather than drinks. Reportedly, 90% of operators adopting ice cream choose the wrong operational model for their business, a mistake that eats margins or kills differentiation.

Two business models: plug‑and‑play or build your own

There are two distinct approaches. One is to stock branded finished products — Haagen‑Dazs (哈根达斯), Magnum (梦龙) and Wall’s/Wall’s‑branded lines (和路雪) are all widening B2B formats such as smaller 2–3.5kg tubs aimed at restaurants, self‑service buffets and milk‑tea shops. It has been reported that Magnum disclosed China revenues of about €317m in 2024 and €270m in H1 2025; retail and wholesale listings show Wall’s 3.5kg buckets selling around ¥120 each. The appeal is obvious: zero technical input, predictable quality, fast rollout. The downside is higher unit cost and homogenized menus.

Or invest: machines, powder or premix — a supply‑chain choice

The other path is self‑production: buying machines and deciding between ice‑cream powder or ready milk‑based slurry. Imported machines such as Stoelting, Taylor and Carpigiani coexist with domestic makers like Dongbei (东贝) and Guangshen Electric (广绅电器), which pitch lower cost and service suited to small chains. Powder is cheap and shelf‑stable (1688 listings show roughly ¥15–25/kg and about 70 servings per kg); slurry/milk‑base costs more but simplifies operations and stabilizes yield. Suppliers from Haichuan (海川食品) to Sanyuan (三元食品) and specialist dairy players now offer turnkey solutions for both routes.

Bigger picture: upstream players are pushing — what should operators do?

Upstream dairy and ice‑cream firms are actively courting restaurant channels, expanding formats and packaging to fit retail fridge space. Domestic heavyweights Yili (伊利) and Mengniu (蒙牛) have launched 3.5kg catering products and co‑brand partnerships, while market analysts forecast China’s ice‑cream sector could top ¥200bn by 2030 with an 8–10% CAGR. Against a backdrop of supply‑chain localization and broader trade frictions that make resilient domestic channels attractive, the strategic question for operators is simple: plug in a ready brand for speed, or build a controllable supply chain for margin and identity? Many have chosen the quick fix. Will they pay for it later?