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Starbucks Cedes Control of China Stores to Boyu Capital in $4 Billion Joint Venture

Closing is targeted for fiscal Q2 2026 following sharp share losses to lower-priced Chinese chains.

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A Starbucks Coffee store operates within a traditional-style Chinese building, with a decorative stone archway inscribed with Chinese characters at its entrance, as a man walks past in Chongqing, China on May 7, 2025.
People sit on terrace at a Starbucks in Shanghai, China, February 28, 2025. REUTERS/Go Nakamura/File Photo

Overview

  • Boyu will own up to 60% of a new joint venture operating Starbucks’ China retail, with Starbucks retaining 40% and licensing its brand and intellectual property.
  • The venture will run roughly 8,000 stores from a Shanghai headquarters with a shared goal of expanding toward 20,000 locations over time.
  • Starbucks values the China retail business at more than $13 billion when factoring sale proceeds, its remaining stake and future licensing economics.
  • The agreement remains subject to regulatory approvals, with completion expected in the second quarter of Starbucks’ fiscal 2026.
  • The restructuring follows significant share loss to local rivals such as Luckin and Cotti, and Starbucks will keep non-retail assets including the Kunshan Coffee Innovation Park and the Yunnan Farmer Support Center.