Chagee, Mixue or Tealive: is the bubble tea war good for your shop?

If you own a well-placed ground-floor shop, the bubble tea war gives you more choice of tenant. Chagee wants strict "1,000% locations", Mixue is chasing volume at low prices, and Tealive is defending more than 900 outlets. The catch is that a price war squeezes margins, so the tenant who bids highest is not always the one who stays longest.

The numbers below are taken from published reports. Each line names its source and date.

The two Mixue figures conflict, so treat Mixue's real count as unconfirmed. Either way, it is a big network.

It is hurting at least one of them. The Edge (27 Apr 2026) reported that Loob's FY2025 revenue (year to 30 Jun 2025) fell to RM489.99m from RM591.24m. Net profit fell more than 58% to RM21.46m. The Edge linked the pressure partly to the "aggressive entry of Chinese beverage brands".

Price is the weapon. The Malaysian Reserve (6 Jul 2026) compared a Mixue classic milk tea at RM6.50 with RM7.55 at Tealive. When a cup sells for about RM6 to RM8, a chain needs a lot of cups to cover a high rent. A shop owner should keep that in mind.

• More bidders for the same unit. Three large chains, plus smaller ones, want frontage near colleges, offices and dense housing. A good ground floor rarely waits long for an enquiry.
• Chains pay for visibility. Chagee's Eugene Lee told Retail Asia (10 Mar 2026) that its site criteria are "significantly stricter than most beverage brands". It wants sites with strong visibility, accessibility and enough space. Corner and front-row units fit that brief, as we explain in corner lot vs intermediate shop.
• Loob is not retreating everywhere. The Edge says Loob is focusing on "high-traffic urban centres as well as underserved suburban markets". That means demand in established towns, not only in Bukit Bintang.

In SS15 Subang Jaya, a student and college hub where drink chains cluster, the middle half of ground-floor asking rents is RM9,500 to RM26,000 a month (RM5.40 to RM8.50 psf, 81 adverts). Source: MCE analysis of recent portal adverts, Nov 2026: last 6 months, shop types only, bait and duplicate adverts removed, middle half of asking prices. See the SS15 Subang Jaya hub for the street-level picture.

For landlords: the Nanyang Siang Pau (7 Jun 2026) warned about "rent rigidity". After a high-paying tenant leaves, landlords keep their high expectations, and vacancies drag on. If you let a unit at a peak-of-the-war rent and the tenant closes, your next tenant may not pay the same.

For tenants: if you run an independent drinks shop, a Mixue or Chagee two doors away changes your sums. Read our guide on bubble tea locations near colleges or housing before you sign.

Use this checklist when two or three chains want the same ground floor:

• Who signs? A directly managed outlet (the Chagee JV model) or a franchisee company. Ask for the company's SSM details and who will guarantee the rent.
• Term and rent steps. A "2 + 2" term with a fixed increase is common. See the tenancy clauses to check.
• Fit-out and reinstatement. Drinks shops need water points and drainage. Agree who restores the unit at the end.
• Rent you can repeat. Ask yourself whether a local tenant could pay the same rent if this chain leaves.
• Upfront offers. Some China brands offer months of rent in advance. Read should a landlord accept rent upfront first.

A chain is often the steadier tenant, but not always. Our post on chain brand or independent tenant sets out the trade-offs.

For a prime ground floor, yes, for now: more competition for your unit usually means better terms. For a secondary unit, the war does less, because the chains want visibility first. In both cases, set a rent that the next tenant can also pay.

If you own a ground-floor shop and want to know which chains are looking in your area, see the brands by trade list or talk to us through the landlords page.

Written by Tok Ginstee (REN 37505), CID Realtors Sdn Bhd (E (1) 1855). Updated November 2026.