Overview
- Boyu will hold up to 60% of the new venture that runs Starbucks stores in China, while Starbucks retains 40%.
- Starbucks will continue to license its brand and intellectual property to the joint venture under an ongoing agreement.
- Starbucks values the China business at more than $13 billion, including the sale, its retained interest, and future licensing fees.
- The company now has more than 8,000 locations in China after years of expansion followed by weaker sales.
- Rivalry has intensified as Luckin Coffee surpassed Starbucks in store count with lower-priced drinks, reflecting a broader rethink by global chains such as Burger King's parent and McDonald's in China.