Chongqing - In a domestic market dominated by "New Beverage" giants like Mixue and HeyTea, a new contender from Southwest China’s Chongqing is proving there is still room for a "dark horse."
Liruotao Yogurt at Shibati, Yuzhong District, Feb. 14, 2026. (Photo/Xie Zhiqiang, Visual Chongqing)
Liruotao Yogurt, founded less than two years ago by industry veteran Lan Meng, has rapidly expanded to over 100 stores nationwide. With 60 locations in Chongqing alone, the brand is aiming for an ambitious milestone: 800 stores across China by the end of 2026.
Finding a "Blue Ocean" in a Red Market
China’s "New Beverage" sector is one of the most cutthroat industries in the world, featuring over 400,000 active outlets. While the "Big Six" brands dominate the milk tea landscape, Lan Meng saw a strategic opening.
"You can't leave your lifeline in someone else's hands," Lan said, reflecting on his 16 years as a beverage brand agent. Having seen franchisors abandon brands or neglect R&D, Lan decided to launch his own label in 2023.
To differentiate Liruotao, Lan pivoted away from traditional milk tea toward specialty yogurt. The decision was based on two factors: strong consumer demand for yogurt drinks in China and the relatively small number of brands specializing in this category. Meanwhile, milk tea — though immensely popular — has increasingly faced criticism over health concerns.
Customers purchase drinks at Liruotao Yogurt in Shibati, Yuzhong District, Feb. 14, 2026. (Photo/Xie Zhiqiang, Visual Chongqing)
Lan also hoped to build a brand with a strong Chongqing identity. “Today’s consumers want more than something that simply tastes good,” he said. “They also care about health and layers of flavor.” To achieve this, Liruotao uses locally sourced fruits from Chongqing — such as Fengjie navel oranges and Wushan plums — as key ingredients, while adding freshly steamed glutinous rice to create a richer texture.
Rapid Expansion Through Smart Strategy
Liruotao’s rapid ascent is the result of a calculated "concentrated bombardment" expansion model. After the first store in Chongqing’s Guanyinqiao district saw monthly sales exceed 300,000 RMB (about 41,000 USD) in April 2024, Lan didn't just look for new cities—he opened three more stores in the same business circle within 30 days.
"In fast-moving consumer goods, visibility is everything," Lan explained. By saturating core shopping districts and university hubs, the brand gained instant social media traction on platforms like Xiaohongshu and Douyin. By 2025, the brand had over 50 stores in Chongqing, with some high-traffic locations reporting wait times of over two hours during peak holidays.
Lean Operations and Local Sourcing
Efficiency has been the bedrock of Liruotao’s profitability. By sourcing fruit directly from local Chongqing farmers, the company eliminated middlemen, significantly reducing the "material cost," which typically accounts for 40% of a store's overhead. This "open source and reduce expenditure" approach allowed many outlets to recoup their initial investment within a single year.
Customers relax with drinks at Liruotao Yogurt in Shibati, Yuzhong District, Feb. 14, 2026. (Photo/Xie Zhiqiang, Visual Chongqing)
As of early 2026, Lan Meng remains a hands-on entrepreneur, personally inspecting high-traffic locations such as the Shibati scenic area during the festive season. His roadmap for 2026 is ambitious: expanding to 100 stores across Chongqing and targeting 800 stores nationwide, initially focusing on high-growth regions such as Fujian, Guangxi, and Hebei, before making a final push into the highly competitive markets of Beijing, Shanghai, Guangzhou, and Shenzhen.
In an industry where many small brands disappear within months, Liruotao’s blend of regional flavor and smart scaling suggests that for the right innovator, the "New Beverage" era is far from over.