Can a Chinese milk tea chain really become the next global Oriental Starbucks?
In short: Founded by an orphan who started as a teenage apprentice, Chagee has rapidly expanded from a Yunnan shop to a multi-billion dollar international powerhouse. By blending traditional Chinese opera aesthetics with modern tea sommelier services, the brand is now aggressively targeting Western markets, including a high-profile debut in Los Angeles.
Chagee was established in June 2017 in Kunming by Zhang Junjie, who rose from poverty and a lack of formal education to build a massive franchise empire. The brand draws heavily on Chinese cultural heritage, with its name and logo inspired by the classic opera The Hegemon-King Bids His Lady Farewell. This aesthetic, which has drawn comparisons to luxury fashion packaging, is central to its identity as it attempts to position itself as an 'Oriental Starbucks.' The company has scaled rapidly, moving its headquarters to Chengdu in 2021 and adopting a dual-headquarters structure by 2024 to manage its growing overseas operations.
The brand’s international strategy is ambitious, spanning Southeast Asia, South Korea, and the United States. In April 2025, Chagee launched its first US location at the Westfield Century City mall in Los Angeles, supported by an Irvine-based headquarters. To differentiate itself in the competitive American market, the chain introduced an evening tea service featuring tea sommeliers and curated tea flights. This expansion is backed by significant capital; in April 2025, the company raised $411 million in a US initial public offering, achieving a valuation of $6.2 billion on its Nasdaq debut.
Despite its commercial success, Chagee has faced significant reputational challenges. In late 2024, a viral video in Malaysia suggested staff were manipulating a 'Tear & Win' lottery, leading to a public outcry and a subsequent shift in the company's promotional systems. Furthermore, the brand has encountered intense backlash in Vietnam and Malaysia over its mobile application's depiction of the nine-dash line, a move that triggered calls for boycotts and accusations of insulting national sovereignty. These controversies highlight the complexities of scaling a culturally-rooted brand into diverse international markets where geopolitical sensitivities can quickly overshadow business operations.
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- Summary by Intellect · source: Chagee
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