Overview
- Boyu Capital will own up to 60% of the new venture, with Starbucks retaining 40% and licensing the brand and intellectual property to the operator.
- Starbucks estimates the total value of its China retail business at more than $13 billion when factoring in sale proceeds, its retained stake, and future royalties.
- The joint venture will oversee roughly 8,000 stores from a Shanghai base and is targeting expansion to more than 20,000 locations over time.
- Starbucks’ market share in China fell to about 14% last year from roughly 34% in 2019, reflecting rising competition from local rivals such as Luckin Coffee.
- The agreement follows a partner search that began in May 2025 with Goldman Sachs advising, and closing is expected in Q2 fiscal 2026 pending regulatory approvals.