Recent reports from within the industry have suggested the dessert brand Miki Milk is on the verge of a major crisis. While the company swiftly issued a denial, numerous complaints from its franchisees paint a different, more troubling picture.
A primary grievance for franchisees is what they describe as headquarters' inaction regarding low sales. Several franchisees point out that daily store revenue often hovers around just one thousand yuan, and repeated requests for performance-boosting support have gone unanswered. Furthermore, the promised gross profit margins of up to 70% made during the franchise recruitment process have proven unattainable. "The actual margin is between 45% and 50%," one noted. "After factoring in costs like rent, there's basically no profit."
Adding to the strain is a stringent penalty system enforced by headquarters, described by many franchisees as a source of "fixed fines." They report that Miki Milk has an extensive list of sanitation violations, with minor infractions frequently resulting in penalties, typically set at 500 or 1000 yuan.
Previously, Miki Milk CEO Xie Yongliang publicly stated that the team operates on a "little bit more" principle, striving to do everything "a little bit more" diligently. However, based on current franchisee accounts, this purported extra effort does not appear to have genuinely benefited its business partners.
Is a 700,000 Yuan Investment Down the Drain?
Recently, sources close to Miki Milk franchisees revealed that stores in shopping malls with rents exceeding 20,000 yuan per month are generating average daily sales of only about 1000 yuan. These sources alleged, "Miki Milk is preparing to abscond; the company is collapsing."
At that time, the company's official customer service clarified that the online rumors of bankruptcy were false, stating the brand was operating normally and continued to accept franchise applications, attributing sales variations to factors like location and foot traffic.
Nevertheless, recent complaints from multiple franchisees have thrust Miki Milk back into controversy.
One franchisee who invested 700,000 yuan to open a store publicly criticized Miki Milk for its "inaction," stating, "During the franchise process, the company promised brand support, continuous new products, and performance guarantees, making us believe that following headquarters would ensure business success. But after actually opening the store, all those promises turned out to be empty talk!"
The franchisee further elaborated, "Daily customer traffic is pitifully low. Revenue can't even cover rent, labor, and ingredient costs. We lose money from the moment we open each day. We've provided feedback to the company many times, hoping for new products, promotional activities, or marketing to boost store performance, but headquarters always gives perfunctory responses."
Notably, this situation is not isolated. Several other franchisees confirmed that Miki Milk has high costs but lacks sufficient brand power, resulting in very low revenue. "Actual daily takings are only one or two thousand yuan. I'll close shop after two more months," one said.
Public information shows that Miki Milk, a brand under Huzhou Xiangmaimai Catering Management Co., Ltd., is a modern dessert brand specializing in Chinese-style sweet soups.
Corporate records indicate Huzhou Xiangmaimai Catering Management Co., Ltd. was established in 2023 with a registered capital of 100,000 yuan. It is wholly owned by Hangzhou Maiyan Enterprise Management Co., Ltd., whose legal representative is Xu Kang, the founder of Miki Milk. Reports state that by early 2025, Miki Milk had fewer than 100 stores nationwide. Currently, its store count exceeds 1,000. It opened its first U.S. store in Los Angeles last October and plans to open its first batch of stores in Australia and Canada.
"After Accounting for Rent and Labor Each Month, There's Basically No Profit"
The brand's宣传 of rapid expansion attracted numerous franchisees to join. However, after investing substantial funds, many discovered the reality was far less rosy than portrayed.
Multiple franchisees point out that the most prominent issue is the gross profit margin being much lower than promised during recruitment, coupled with disappointingly low store sales that make recouping the initial investment very difficult.
According to Miki Milk franchise staff, profit margins differ between dine-in and delivery, with dine-in having the highest potential margin, up to 70%. Delivery margins are generally around 50% to 55%. "Headquarters does not强制 require franchisees to offer套餐; it's up to the store's discretion," they added.
Furthermore, Miki Milk requires a minimum store size of 60 square meters, with a total investment for a single store estimated at 450,000 to 500,000 yuan. CEO Xie Yonglian confirmed in an interview that most Miki Milk stores are between 70 and 120 square meters, with "80% of store investments ranging from 600,000 to 700,000 yuan."
During operations, however, many franchisees found it nearly impossible to achieve the参考 profit margins outlined in the promotional materials. "The actual gross margin is roughly 45% to 50%," one stated.
Moreover, low average daily sales have become a significant obstacle to profitability for franchisees.
Official franchise personnel stated the payback period for a Miki Milk store is only about a year and a half. This claim is disputed by franchisees: "It's almost impossible to recoup the investment on time. The brand lacks口碑 power, and store sales are poor."
One franchisee who reported losses of several hundred thousand yuan revealed average daily sales of only about a thousand yuan. "I've already sold off the equipment. I advise against getting involved with this brand; the so-called support simply doesn't exist." Another franchisee reported a similar situation with average daily sales around three thousand yuan.
A long-time employee at a Miki Milk franchise store in a shopping mall also disclosed that while foot traffic is relatively better there, weekday sales typically only reach three to four thousand yuan. "After accounting for rent, labor, and utilities, you basically don't make any money."
Frequent Fines? Franchisees Resign Themselves: "Finding New Ways to Fine Us Every Month"
Beyond the profit shortfall, the strict penalty system imposed by headquarters is a major source of distress. Many franchisees describe it with terms like "fixed fines" and "frequent penalties."
A food safety offline audit form obtained from franchisees shows Miki Milk's inspections cover numerous categories including personnel management, equipment management, utensil management, material management, shelf-life management, and sanitation. Among these, 12 items are classified as "red line" violations in a separate section. Additionally, besides food safety audits, franchisees also face product quality offline audits, which contain 8 red line and high-risk items.
Franchisees explain that headquarters has set a very high number of sanitation red lines, making it easy to incur fines for minor oversights. A "Store规范 Management Regulations" document used for Miki Milk's theoretical training also specifies fine amounts. Red line violations under other basic条款 carry a fine of 1000 yuan per item, or 2000 yuan for two or more violations. Fines for other basic条款 violations start at 200 yuan, with common amounts being 500 or 1000 yuan.
Red line条款 are considered serious violations, with fines starting at 5000 yuan per store. For actions like interfering with inspections or私自 changing the menu, fines can go as high as 10,000 yuan.
On paper, Miki Milk's regulations may not seem drastically different from other chains. Franchisees point out the real difference lies in the "enforcement standards." "Looking at the fine list alone, the items seem normal. But inspectors peel back refrigerator seals to check, and any minor damage to kitchenware or storage containers is counted as a red line violation," one explained.
Another franchisee expressed resignation: "You're definitely getting fined every month; they find new ways to identify problems. Since everything involves manual operation, it's inevitable they'll find minor issues. Even your own home kitchen couldn't be kept completely spotless."
Miki Milk has not officially responded to inquiries regarding these matters.
Previously, in discussions with media, Xie Yongliang stated, "Our team follows the 'little bit more' principle, striving to do everything a little bit more diligently, thinking about how to go a little bit deeper, how to do a little bit more and a little bit better than yesterday." However, judging by the "full of grievances" from franchisees, this professed "little bit more" effort does not seem to have tangibly benefited its partners.
A China food industry analyst commented, "As a newly emerged网红 company, Miki Milk's overall brand, scale, and supply chain integration are insufficient. In such situations, it's easy for a brand to resort to 'managing through fines' and squeezing the supply chain to generate profits, while not prioritizing franchisee welfare, ultimately harming everyone's interests."
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