Deal Overview and Ownership Details
Starbucks has agreed to hand over a controlling interest in its Chinese retail business to Boyu Capital, in a transaction valued at roughly $4 billion. Boyu will take a 60% stake, while Starbucks retains 40% and will continue to license its brand and operational framework to the joint venture. The transaction is expected to close in the second quarter of fiscal 2026, pending regulatory clearance in China.
Strategic Purpose and Growth Plans
The partnership reflects Starbucks’ effort to reinforce its presence in China, a market increasingly dominated by domestic coffee chains such as Luckin Coffee. With approximately 8,000 stores already in operation, Starbucks plans to leverage Boyu’s local market expertise and resources to expand into smaller cities, with a long-term goal of operating 20,000 outlets nationwide.
Financial Outlook and Broader Significance
Starbucks projects that the combination of retained equity, licensing revenue, and proceeds from the sale could surpass $13 billion over time. The deal marks a shift from full ownership toward a partnership model designed to blend global brand oversight with local operational expertise. Industry analysts suggest the venture could serve as a model for how multinational companies approach expansion in China while navigating regulatory and competitive challenges.
