Chinese tea beverage brands are accelerating their overseas expansion, with North America becoming a new battleground.

Recently, BANDLUCK's Manhattan store in the United States opened with great fanfare, and its "beverages + light baking" model has ignited the local market. Other stores in New York have achieved peak daily sales exceeding $20,000, with caramel croissant egg tarts contributing to 40% of the revenue.

How do they manage to make "every new store a hit" in the highly competitive U.S. market?

Chinese tea beverages are experiencing overwhelming orders in New York!

Daily sales of $20,000, egg tarts become the "hidden ace"

Chinese tea beverage brands are setting off a new wave of overseas expansion!

Since the beginning of this year, there has been almost monthly news in the beverage circle about "entering the U.S. market." Brands like Luckin Coffee, CHAGEE, Nayuki, Cha Bai Dao, and Auntie Shanghai have all announced their first U.S. stores. Meanwhile, brands that entered the U.S. market earlier, such as Heytea, Jasmine Milk White, and BANDLUCK, are also intensifying their expansion.

On August 15, BANDLUCK's store in Manhattan's Chinatown, New York City, officially opened for business. Reports from the scene indicate long queues on opening day, even causing brief street congestion, creating a very lively atmosphere.

It is understood that this is BANDLUCK's third store in New York, USA. In October 2024, "TEAPULSE BANDLUCK" debuted in the United States, opening stores successively in Flushing and Bayside, Queens, New York, each sparking a trend of visits and social media check-ins.

On social media platforms, some netizens shared their store visit experiences: "Waited over two hours just to get a drink."

"The average single store daily output exceeds 1000 cups, with the highest single-day revenue breaking $20,000," revealed BANDLUCK's overseas representative. "Operating one successful overseas store can rival the performance of 50 stores in China."

Upon closer observation, it's clear that BANDLUCK's U.S. stores differ significantly from their domestic counterparts, both in store model and product offerings.

For example, the store image emphasizes a blend of fashion, simplicity, and international elements. Store sizes range from 50 to 100 square meters, with added dine-in space.

Surprisingly, the caramel croissant egg tart is a must-order item for many local consumers, becoming the store's hidden ace. Some Chinese customers expressed, "Went for the milk tea, but was amazed by the egg tarts."

BANDLUCK's overseas representative confirmed this: "Currently, egg tart products contribute 40% of sales, with a maximum of 2000 sold per day."

Furthermore, BANDLUCK's expansion momentum in New York is strong. Officially, it was revealed that five additional stores are in preparation and will open soon.

How do they achieve "every new store is a hit" in the U.S. market, which is recognized as challenging within the industry?

Gaining a Foothold in the Mainstream U.S. Market

How Exactly is "Comprehensive Localization" Done?

After in-depth investigation, I found that BANDLUCK's good performance overseas is not accidental.

Before entering the U.S. market, the team conducted extensive market research and preparation, starting as early as 2023. "To gain a foothold in this mature market, comprehensive localization transformation is essential."

1. Establish a Local Operations Team, Position as a "U.S. Company"

First, they established a local operations team to gain a deep understanding of the U.S. market characteristics and formulate targeted operational strategies.

"From the very beginning, we positioned ourselves as a U.S. company," explained BANDLUCK's overseas representative. "This means our brand name, store design, and product flavors must align with the characteristics of the U.S. market."

"Although this path is more difficult, it allows us to better understand the needs of the mainstream customer base and clarify what products and services to provide. It will also make us more stable when accelerating expansion later."

2. Focus on High-Potential Cities, Transition Store Openings from Asian-Concentrated Areas

Unlike its focus on lower-tier markets in China, BANDLUCK chose a high-profile entry in the U.S., focusing on commercially concentrated New York.

However, directly targeting the local mainstream consumer groups carries inherent risks. BANDLUCK adopted a gradual market expansion strategy.

The first two store locations were in Asian-concentrated areas of New York, serving as market tests. They continuously collected feedback, accumulated operational experience, and only after receiving positive market response did they advance into the mainstream market.

"Open one store, ensure its success." Among the five new stores BANDLUCK plans to open next, four are in Manhattan, demonstrating their determination to penetrate the New York market thoroughly.

3. Streamline the Menu, Highlight Chinese Tea Beverage Characteristics, Add Light Baking

In terms of products, BANDLUCK has also made bold innovations.

"During our preliminary research, we found significant differences between the U.S. market and China. In China, almost every category can give rise to major brands, while U.S. consumers tend towards diversified consumption, pursuing rich experiences," said BANDLUCK's overseas representative.

Based on this, BANDLUCK adopted a "beverages + light baking" model, adding egg tarts and providing dine-in space.

The beverage line downplays the "herbal jelly" label. Compared to the rich SKUs domestically, the menu is streamlined to around 16 items, covering fruit tea, light milk tea, classic milk tea, cheese tea, and other categories. Localized products account for 20% to 30%.

While retaining the characteristics of Chinese tea beverages, they adjusted cup sizes and sweetness levels according to American consumption preferences. "Lemon tea accounts for 40% of beverage sales."

BANDLUCK U.S. Store Menu

Next, BANDLUCK plans to integrate local elements like toffee, caramel, and cinnamon to create signature drinks, and will also launch baked goods like donuts that better align with local eating habits.

4. Heavy Investment in Supply Chain to Reduce Costs, Laying the Foundation for Future Development

Additionally, BANDLUCK prioritized the construction of an overseas supply chain.

"The cost structure in the U.S. is different from China; labor, logistics, warehousing costs are much higher than domestically. So we invested significant effort in building a local supply chain and central factory to improve overall gross margin," stated BANDLUCK's overseas representative.

Specifically, baked products are made in a unified factory and delivered to stores via refrigerated logistics vehicles. Simultaneously, automated tea beverage equipment was introduced, allowing just two people to support the production line during peak hours. This not only improves store efficiency but also greatly reduces the training difficulty for new staff.

As the representative said: "The more robust the backend, the easier the frontend operations. Currently, the supply chain can support the stable operation of 50 stores in the New York area."

Going Global Isn't Simple Replication

It's Rebuilding a Business from Scratch

As early as 2016, BANDLUCK began its overseas journey, opening stores in countries like the Philippines, Laos, Japan, and the UK.

Now, the breakthrough results and valuable experience accumulated in the United States will feedback into other overseas regions, aiding steady global expansion.

There are no shortcuts in the overseas expansion of tea beverages. BANDLUCK's practice proves that doing business overseas is not simply replicating domestic products; it requires comprehensive localization and finding a store model that fits the local market.

Set aside the successful experience from the Chinese market, and respect local consumer demands with a humble and open mindset.

"Many Chinese F&B brands face challenges when going global, often because the decision-making team might have only visited the local market a few times and felt they understood it," admitted BANDLUCK's overseas representative. Making judgments across time zones and cultural differences easily overlooks many details, naturally increasing the risk.

Furthermore, in the past two years, domestic brands crowded into Southeast Asia, intensifying competition. "Although the barriers to entry in the North American market are high, its consumption power and market potential are huge, meaning greater incremental growth," expressed BANDLUCK's overseas representative.

Chinese tea beverages, as carriers of Chinese tea, serve both as a bridge for cultural dissemination and a sustained commercial force.

It is foreseeable that as more brands like BANDLUCK gain a firm foothold overseas, the true globalization of Chinese tea beverages is only a matter of time.