Changpeng Wan
Scaling the Ice Cream Summit
A premium scoop of ice cream for 38 yuan ($5.25) might seem extravagant, but for Cui Jianwei (崔渐为), Peking University graduate and founder of Mr. Savage, it represents the pinnacle of China’s gelato revolution. Recent discovery of a now-deleted ‘Financial Audit (HK IPO Direction)’ job posting has ignited speculation that this luxury dessert brand is preparing for a Hong Kong listing. This development comes amid breakneck expansion that saw store counts explode from 400 to 900 locations in just five months, positioning Mr. Savage as China’s third-largest ice cream chain. Yet beneath the glossy marketing campaigns blanketing Shanghai’s subways, this frozen treat empire faces melting consumer confidence following multiple food safety complaints and questions about its ‘freshly made’ claims.
Key Takeaways
- Mr. Savage’s reported HK IPO preparations follow market leaders Mixue Group and Guming Holdings in China’s booming consumer IPO wave
- Founder Cui Jianwei leveraged Italian gelato expertise to build a premium brand with 60-70% gross margins
- Aggressive franchising fueled 500+ new stores in 2025 alone, triggering quality control failures and consumer complaints
- The brand faces seasonal vulnerabilities and intensified competition from tea giants entering the gelato space
- Success hinges on resolving the core tension between rapid Mr. Savage’s expansion and sustainable quality assurance
The Frozen Ascent: Campus Stall to Retail Dominance
Cui Jianwei’s journey began not in boardrooms but at a 15-square-meter stall near Beijing Language and Culture University in 2011. His inspiration came unexpectedly while working at an Italian investment firm, where he assisted in acquiring a traditional gelato maker and learned the craft from master artisan Angelo Bergellano. “What happened with American premiumization like Starbucks will repeat in China within decades,” Bergellano predicted – a prophecy Cui carried back to Beijing.
Strategic Evolution: Slow Cultivation to Franchise Frenzy
For twelve years, the company then called Wildman Ranch expanded cautiously through company-owned stores in premium malls. The 2023 pivot to franchising unleashed explosive growth: 63 new outlets in year one, followed by 240+ in 2024 after rebranding to Mr. Savage. By mid-2025, the chain reached 900 locations according to Narrow Door Meal Eye data, trailing only DQ and Bobbi Ice in market presence. This aggressive Mr. Savage’s expansion required massive capital injection, explaining the apparent IPO push.
The Gelato Gold Rush: Market Dynamics Driving Growth
China’s ice cream market reached ¥183.5 billion ($25.3B) in 2024 with gelato as the star performer, growing 10% annually to surpass ¥12 billion ($1.65B). Cui recognized the substitution effect between premium ice cream and bubble tea, noting: “Many consumers weren’t in the habit of buying tea drinks every few days previously – that frequency is essential soil for ice cream growth.” With gross margins between 60-70% according to industry insiders, Mr. Savage positioned itself perfectly for China’s premiumization trend.
Expansion Cracks: Quality Control in the Franchise Blender
The franchise model’s scalability comes with inherent risks. Mr. Savage’s core promise – “made daily, no overnight storage” – faces mounting skepticism. Consumers on Xiaohongshu documented frozen base mix shipped from factories with six-month shelf lives, contradicting the fresh preparation narrative. One viral post asked: “Is ‘fresh’ just the final extrusion from the machine?”
The Premium Pricing Paradox
At ¥28-38 per cup, Mr. Savage’s signature flavors like pistachio and Wuchang rice place it firmly in luxury territory. Cui defends the pricing: “I know ¥38 is expensive, but seasonal fruits cost more. As incomes rise, not raising prices becomes our discount.” Consumer reactions remain polarized – some hail it as “transcendent,” others dismiss flavors like rice gelato as “cold leftover porridge.”
Safety Scandals: When Premium Meets Problematic
Open-kitchen preparation increases contamination risks, and Mr. Savage faces multiple consumer reports of foreign objects in products. Xiaohongshu and Dianping users posted images of hairs and metallic fragments in their desserts. Unlike sealed industrial ice cream, the artisanal preparation process introduces more variables where quality control failures can occur – especially concerning during periods of aggressive Mr. Savage’s expansion.
Navigating Market Freeze Points
The gelato market remains fragmented but increasingly competitive. Bright Group revived its Italian brand Aixixili, while tea giants Heytea, Naixue’s Tea, and Lele Tea experiment with gelato offerings through limited releases and partnerships. Simultaneously, the industry grapples with inherent seasonality – winter sales typically plunge 40-60% for premium ice cream brands according to China Cold Chain Association data.
Winter Survival Strategies
To combat seasonal dips, competitors have diversified into hot desserts, baked goods, and coffee. Mr. Savage’s current menu lacks such complementary winter offerings, creating what industry analysts call a “survival-level challenge.” The coming winter will test whether the brand can maintain its expansion velocity when temperatures drop.
The IPO Iceberg: Listing Amidst Turbulence
Mr. Savage joins over 30 consumer brands in Hong Kong’s IPO pipeline including food, beverage, and retail concepts. The deleted job listing specifically mentioned responsibilities for “establishing internal control systems” and “preparing HKEX-compliant audit documents” – clear signals of listing preparation despite official silence.
Investor Appetite vs. Reality Check
Public market investors increasingly scrutinize food safety records after incidents like Luckin Coffee’s fraud scandal. Mr. Savage’s expansion metrics impress, but its complaint history could trigger valuation discounts. Successful consumer IPOs like Mixue Group demonstrate that volume and system maturity ultimately outweigh premium positioning alone. The question becomes whether Mr. Savage’s growth story satisfies institutional investors’ hunger for both scale and stability.
Melting Point or Milestone?
Fourteen years after starting as a campus stall, Cui Jianwei stands at the precipice of taking his gelato empire public. The core tension remains unresolved: Can artisanal quality survive industrial-scale replication? Every new franchise location multiplies reputational risk, while winter’s chill threatens revenue streams. For investors considering this potential IPO, monitor three critical indicators: complaint resolution rates, same-store sales consistency across seasons, and supply chain transparency. The path forward requires balancing ambition with operational excellence – only then can this premium brand avoid melting under Hong Kong’s market heat.
