Business
China’s boba behemoth lands in Hollywood
China’s boba behemoth has landed in Hollywood.
Mixue, the fast-growing megachain that boasts a bigger global retail footprint than McDonald’s, opened its first U.S. outpost on Hollywood’s Walk of Fame last month, selling drinks for less than $5 and ice cream for about $1.
Mixue spokesperson Xu Ping said in a written statement in Chinese that the company chose Hollywood as its first U.S. location because the “movie capital of the world” attracts both international tourists and local consumers year-round.
The store, Ping added, “aims to serve a diverse global consumer base and demonstrates the brand’s commitment to the American market.”
The Hollywood opening was followed in quick succession with locations in New York City’s Brooklyn, Koreatown and Chinatown neighborhoods. More Mixue stores are coming to California, Ping said.
The megachain’s entry into Los Angeles’ boba market comes at a time when local shops are struggling with rising costs driven by tariffs and economic uncertainty.
Mixue was founded as a shaved ice stand in 1997 in Zhengzhou, China, by college student Zhang Hongchao, who used money lent from his grandmother. The store’s Chinese name, Mi Xue Bing Cheng, translates roughly to “sweet snow palace.”
The store has more than 53,000 stores worldwide. The lion’s share are in China, but the company also has 4,700 locations across Australia, Japan, South Korea, Thailand, Malaysia and Singapore.
By comparison, McDonald’s has more than 44,000 stores worldwide, and Starbucks has more than 40,000.
Founder Zhang and his brother Zhang Hongfu, who control the company, have a combined fortune of $8.1 billion, according to the Bloomberg Billionaires Index.
Mixue is a fast-growing megachain that boasts a bigger global retail footprint than McDonald’s.
(David Butow / For The Times)
Mixue is able to keep costs low because it is vertically integrated, said UCLA business administration professor Christopher Tang, a supply chain management expert.
Mixue owns the factories in China that produce its powders, syrups and fruit purees, giving the company greater control over pricing, Tang said. The store’s grab-and-go concept means lower rent costs. Having most of its locations concentrated in Asia means lower transportation costs.
Tang said the chain’s U.S. stores may be operating as loss leaders to expand its global footprint, test the American market, and demonstrate growth to investors after its listing on the Hong Kong Stock Exchange last year.
“They can use the profit in China to subsidize the loss in the U.S. for the sake of expansion,” Tang said. “Once [they] get the traction in the US, they can grow a little bit further. Once it grows to critical mass they will be able to sustain the operations.”
On Thursday evening, Mixue customers stood outside — the shop does not offer seating — eating soft serve and sipping on boba milk tea and the store’s signature grape drink with taro balls.
Several passersby snapped photos with Mixue’s inflatable snow “king” mascot that stands guard outside the store entrance. Across the street, actors posed on a red carpet, which had been rolled out on Hollywood Boulevard for the premiere of a Marvel TV show at the TCL Chinese Theatre.
Menu items range from $1.19 for the soft serve to $4.99 for its “super-triple” milk tea with tapioca pearls, pudding and coconut jelly toppings. Self-service kiosks let customers order in either Chinese or English and adjust the sweetness levels in drinks, which can range from 0% to 200%.
The chain appears to be aggressively seeking franchisees in California.
Mixue owns the factories in China that produce its powders, syrups and fruit purees. “They can use the profit in China to subsidize the loss in the U.S. for the sake of expansion,” said Christopher Tang, a UCLA professor of business administration.
(David Butow / For The Times)
QR codes posted on the store’s front window, walls and sidewalk signs lead to an application website for prospective franchisees in California and New York. Opening a store requires an upfront investment between roughly $220,000 and $920,000, depending on size and location, according to the website. Mixue does not charge franchisees ongoing royalty or advertising fees.
Some Chinese customers were already familiar with the Mixue brand or longtime fans.
Tourist Kele Shi, a tech worker living in Washington who is from Shenzhen, China, decided to stop by its first U.S. location after seeing videos on YouTube and the Chinese social media app Xiaohongshu.
Shi had been in the Miracle Mile neighborhood earlier in the day to visit a museum but decided to go to the Walk of Fame to see whether the affordable soft serve was better than Ikea’s version.
“This is 80% of the reason we are here,” said Shi. “It’s good, not too sweet. That’s always a compliment for Asian people.”
Torrance resident Olivia Y, who grew up in China, was picking up five drinks for her friends after a climbing session in the neighborhood.
Y said she had fond memories of eating Mixue’s ice cream — her favorite menu item — and drinking fresh lemonade while pulling all-nighters as a student in Xi’An, China, and wanted to pay the U.S. store a visit after hearing about it on social media.
Other customers, like tourist Susannah Bartram, from Nottingham, England, had never previously heard of the chain. She had been strolling down the Walk of Fame, parched after taking a three-hour guided tour of Los Angeles, when the bright red store colors caught her eye.
“It’s colorful and accessible, and it’s a quick fix,” Bartram said, holding a cup of iced tea with large slices of lemon.
With pearl tea gaining popularity in her home country, “it is just nice to see something fresh,” she said.
On the other side of Hollywood Boulevard, local business Bopomofo Cafe’s location in the Ovation Hollywood shopping complex was relatively quiet on Thursday night.
Earlier this month, the Asian American cafe, which sells boba and snacks — including a sandwich described by L.A. Times food columnist Jenn Harris as the “apotheosis” version of McDonald’s Filet-O-Fish — shared on social media that it was struggling with rising costs of goods, including matcha powder and paper goods due to “trade wars and economic uncertainty.”
The cafe initially mulled a price increase, but decided to first try removing some items from its menu and offering a limited food menu an hour before it closes, said Philip Wang, who co-founded Bopomofo with partner Eric Wang in 2019. Philip Wang also co-owns the Asian American production company Wong Fu Productions.
Bopomofo’s classic milk tea costs $6.50, and blended drinks such as its guava matcha latte cost $8. Toppings are an additional 75 cents.
“[We] are not just chasing profits and a bottom line,” the cafe wrote in the Instagram post announcing the changes. “We’re also not a massive company with hundreds of locations (or thousands overseas) bankrolling our stores.”
Bopomofo’s Hollywood location opened in February as an experiment to see how it would perform in a tourist-driven mall, Philip Wang said.
The store is known for its ultra cheap products, such as $1.19 soft serve cones and $4 boba.
(David Butow / For The Times)
As it approaches its first year in operation, the shop, located on the shopping center’s second floor, has seen less traffic than its other four locations in Southern California cities with significant Asian populations, such as San Gabriel and Irvine, he said. (A sixth location is to open in Downtown Disney this year.)
Philip Wang said he hasn’t seen noticeable impact on the store’s performance yet in the month since Mixue opened, noting that it’s still early. The holidays boosted traffic, Mixue opened in December, and business slowed in January — a dip he said is typical across the food and beverage industry.
He hopes Mixue’s presence in the U.S. might raise the profile of boba here and encourage more people to “expand their palette” and try local shops.
Bopomofo is no stranger to competing in dense markets: Its original location is San Gabriel, where there are boba and tea shops on every corner. Philip Wang said he’s confident that the drinks his cafe sells, which don’t use artificial flavors, syrups or powders, will continue to attract customers.
But “I would be lying if I said that [Mixue’s] not on our minds,” Wang said.
Business
Not ‘Just Ken’: Mattel shares Barbie’s longtime boyfriend’s full name
At the 2024 Oscars, Ryan Gosling, reprising his role as Ken in Greta Gerwig’s 2023 movie “Barbie,” donned a bedazzled pink suit and belted the ballad “I’m Just Ken.”
“I’m just Ken, anywhere else I’d be a 10,” the actor sang. “Is it my destiny to live and die a life of blond fragility?”
Barbie’s needy male counterpart, it turns out, is not “just Ken.” His full name is Kenneth Sean Carson, according to Mattel, which says the doll saw a uptick in popularity in the years following the hit movie’s release.
Ahead of Ken’s 65th birthday, the El Segundo-based toy giant shared a laundry list of niche biographical details about the doll, including his official “birthday” — March 11, 1961, making him a Pisces — as well as his relationship history with Barbie.
The company said in a statement Monday that Ken has “experienced a resurgence in recent years.”
A Mattel spokesperson cited the “Barbie” movie as a driving factor, as it showed a “different side” of Ken. In a meta move, the company later in 2023 released Ken dolls modeled after Ryan Gosling’s portrayal of Ken.
The “Kenbassador” line launched last year was a “great success,” the spokesperson said. The first product in that toy series was a $75 doll modeled after basketball player LeBron James released in April.
Mattel says it does not break out sales of Ken dolls, but in 2017, when Mattel unveiled Ken dolls with different body types, including one that invited “dad-bod” comparisons, the company told the Wall Street Journal that, on average, girls have one Ken doll for every seven Barbies they own.
Ruth Handler, the creator of Barbie, named the original doll after her daughter, Barbara. The glamorous doll, unique in that it depicted a grown woman rather than a baby, was an instant hit when it debuted at the New York Toy Fair in 1959. Barbie has significantly evolved in the decades since. Recent additions include Barbies with Type 1 diabetes and another with autism.
The Ken doll, created in 1961, was named after Handler’s son, Kenneth. He featured molded hair, wore red swim trunks and carried a yellow towel.
Kenneth Handler told The Times in a 1989 story that there were few similarities between him and the doll named after him. He died in 1994.
“Ken doll is Malibu,” he said. “He goes to the beach and surfs. He is all these perfect American things.”
But when Kenneth Handler was at Hamilton High School in Beverlywood, he “played the piano and went to movies with subtitles.” He continued, “I was a nerd — a real nerd. All the girls thought I was a jerk.”
Like Barbie, Ken dabbled in many different careers over the decades. There have been doctor, pilot, tennis player, firefighter, lifeguard, barista and even Olympic skier Kens, among many others. In 2006, he received a “mid-life makeover” from celebrity stylist Phillip Bloch.
According to the company, Ken and Barbie “met” on the set of their first television commercial in 1961 and soon began dating. After more than four decades, the doll couple broke up in 2004, but reunited in 2011.
Mattel was founded by Ruth Handler; her husband, Elliot Handler; and Harold “Matt” Matson in 1945 in a Los Angeles garage. The toy maker became a publicly traded company in 1960.
Mattel, which also owns Fisher-Price and Hot Wheels, wrote in its October Securities and Exchange Commission filing that “industry-wide shifts in retailer ordering patterns” pushed its third quarter net sales down 6%.
In 2024, Barbie gross billings — which measure the total value of products Mattel ships to retailers before sales adjustments — were down 12% from 2023, which had seen a boost from the movie, according to the company’s annual SEC filing.
Business
Paramount outlines plans for Warner Bros. cuts
Many in Hollywood fear Warner Bros. Discovery’s sale will trigger steep job losses — at a time when the industry already has been ravaged by dramatic downsizing and the flight of productions from Los Angeles.
David Ellison‘s Paramount Skydance is seeking to allay some of those concerns by detailing its plans to save $6 billion, including job cuts, should Paramount succeed in its bid to buy the larger Warner Bros. Discovery.
Leaders of the combined company would search for savings by focusing on “duplicative operations across all aspects of the business — specifically back office, finance, corporate, legal, technology, infrastructure and real estate,” Paramount said in documents filed with the Securities & Exchange Commission.
Paramount is locked in an uphill battle to buy the storied studio behind Batman, Harry Potter, Scooby-Doo and “The Big Bang Theory.” The firm’s proposed $108.4-billion deal would include swallowing HBO, HBO Max, CNN, TBS, Food Network and other Warner cable channels.
Warner’s board prefers Netflix’s proposed $82.7-billion deal, and has repeatedly rebuffed the Ellison family’s proposals. That prompted Paramount to turn hostile last month and make its case directly to Warner investors on its website and in regulatory filings.
Shareholders may ultimately decide the winner.
Paramount previously disclosed that it would target $6 billion in synergies. And it has stressed the proposed merger would make Hollywood stronger — not weaker. The firm, however, recently acknowledged that it would shave about 10% from program spending should it succeed in combining Paramount and Warner Bros.
Paramount said the cuts would come from areas other than film and television studio operations.
A film enthusiast and longtime producer, David Ellison has long expressed a desire to grow the combined Paramount Pictures and Warner Bros. slate to more than 30 movies a year. His goal is to keep Paramount Pictures and Warner Bros. stand-alone studios.
This year, Warner Bros. plans to release 17 films. Paramount has said it wants to nearly double its output to 15 movies, which would bring the two-studio total to 32.
“We are very focused on maintaining the creative engines of the combined company,” Paramount said in its marketing materials for investors, which were submitted to the SEC on Monday.
“Our priority is to build a vibrant, healthy business and industry — one that supports Hollywood and creative, benefits consumers, encourages competition, and strengthens the overall job market,” Paramount said.
If the deal goes through, Paramount said that it would become Hollywood’s biggest spender — shelling out about $30 billion a year on programming.
In comparison, Walt Disney Co. has said it plans to spend $24 billion in the current fiscal year.
Paramount also added a dig at Warner management, saying: “We expect to make smarter decisions about licensing across linear networks and streaming.”
Some analysts have wondered whether Paramount would sell one of its most valuable assets — the historic Melrose Avenue movie lot — to raise money to pay down debt that a Warner acquisition would bring.
Paramount is the only major studio to be physically located in Hollywood and its studio lot is one of the company’s crown jewels. That’s where “Sunset Boulevard,” several “Star Trek” movies and parts of “Chinatown” were filmed.
A Paramount spokesperson declined to comment.
Sources close to the company said Paramount would scrutinize the numerous real estate leases in an effort to bring together far-flung teams into a more centralized space.
For example, CBS has much of its administrative offices on Gower in Hollywood, blocks away from the Paramount lot. And HBO maintains its operations in Culver City — miles from Warner’s Burbank lot.
Paramount pushed its deadline to Feb. 20 for Warner investors to tender their shares at $30 a piece.
The tender offer was set to expire last week, but Paramount extended the window after failing to solicit sufficient interest among Warner shareholders.
Some analysts believe Paramount may have to raise its bid to closer to $34 a share to turn heads. Paramount last raised its bid Dec. 4 — hours before the auction closed and Netflix was declared the winner.
Paramount also has filed proxy materials to ask Warner shareholders to reject the Netflix deal at an upcoming stockholder meeting.
Earlier this month, Netflix amended its bid, converting its $27.75-a-share offer to all-cash to defuse some of Paramount’s arguments that it had a stronger bid.
Should Paramount win Warner Bros., it would need to line up $94.65 billion in debt and equity.
Billionaire Larry Ellison has pledged to backstop $40.4 billion for the equity required. Paramount’s proposed financing relies on $24 billion from royal families in Saudi Arabia, Qatar and Abu Dhabi.
The deal would saddle Paramount with more than $60 billion of debt — which Warner board members have argued may be untenable.
“The extraordinary amount of debt financing as well as other terms of the PSKY offer heighten the risk of failure to close,” Warner board members said in a filing earlier this month.
Paramount would also have to absorb Warner’s debt load, which currently tops $30 billion.
Netflix is seeking to buy the Warner Bros. television and movie studios, HBO and HBO Max. It is not interested in Warner’s cable channels, including CNN. Warner wants to spin off its basic cable channels to facilitate the Netflix deal.
Analysts say both deals could face regulatory hurdles.
Business
Southwest’s open seating ends with final flight
After nearly 60 years of its unique and popular open-seating policy, Southwest Airlines flew its last flight with unassigned seats Monday night.
Customers on flights going forward will choose where they sit and whether they want to pay more for a preferred location or extra leg room. The change represents a significant shift for Southwest’s brand, which has been known as a no-frills, easygoing option compared to competing airlines.
While many loyal customers lament the loss of open seating, Southwest has been under pressure from investors to boost profitability. Last year, the airline also stopped offering free checked bags and began charging $35 for one bag and $80 for two.
Under the defunct open-seating policy, customers could choose their seats on a first-come, first-served basis. On social media, customers said the policy made boarding faster and fairer. The airline is now offering four new fare bundles that include tiered perks such as priority boarding, preferred seats, and premium drinks.
“We continue to make substantial progress as we execute the most significant transformation in Southwest Airlines’ history,” said chief executive Bob Jordan in a statement with the company’s third-quarter revenue report. “We quickly implemented many new product attributes and enhancements [and] we remain committed to meeting the evolving needs of our current and future customers.”
Eighty percent of Southwest customers and 86% of potential customers prefer an assigned seat, the airline said in 2024.
Experts said the change is a smart move as the airline tries to stabilize its finances.
In the third quarter of 2025, the company reported passenger revenues of $6.3 billion, a 1% increase from the year prior. Southwest’s shares have remained mostly stable this year and were trading at around $41.50 on Tuesday.
“You’re going to hear nostalgia about this, but I think it’s very logical and probably something the company should have done years ago,” said Duane Pfennigwerth, a global airlines analyst at Evercore, when the company announced the seating change in 2024.
Budget airlines are offering more premium options in an attempt to increase revenue, including Spirit, which introduced new fare bundles in 2024 with priority check-in and their take on a first-class experience.
With the end of open seating and its “bags fly free” policy, customers said Southwest has lost much of its appeal and flexibility. The airline used to stand out in an industry often associated with rigidity and high prices, customers said.
“Open seating and the easier boarding process is why I fly Southwest,” wrote one Reddit user. “I may start flying another airline in protest. After all, there will be nothing differentiating Southwest anymore.”
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