Overview
- Boyu Capital will acquire a 60% stake in Starbucks’ China retail operations for about $4 billion through a newly formed joint venture.
- Starbucks will retain 40% ownership, remain the owner-licensor of the brand and its intellectual property, and keep non-retail assets such as the Kunshan Coffee Innovation Park and the Yunnan Farmer Support Center.
- The venture will manage roughly 8,000 existing stores with an ambition to grow beyond 20,000 locations, anchoring operations in Shanghai and targeting expansion into smaller cities.
- Closing is targeted for the second quarter of Starbucks’ fiscal 2026, pending required regulatory approvals.
- Starbucks values its total China exposure at more than $13 billion, framing the partnership as a response to slowing sales and intensified competition from players like Luckin Coffee.