Starbucks is set to sell a 60% stake in its China retail business to investment firm Boyu Capital in a $4 billion (£3.04bn) deal, as part of its strategy to strengthen operations in its second-largest market after the United States.
Under the agreement, Starbucks will retain a 40% stake and full ownership of its brand rights in China, signaling a new era of partnership-driven growth. The Seattle-based coffee giant said on Monday that the deal values its Chinese retail operations at $13 billion, describing the collaboration as a “significant milestone” in its long-term China strategy.
Starbucks, which entered China in 1999, currently operates around 8,000 stores across the country and plans to expand to 20,000 locations in the coming years. The company’s Chinese headquarters will remain in Shanghai, reinforcing its deep ties to the local market.
In recent years, Starbucks has faced intensifying competition from local brands such as Luckin Coffee, which has surged in popularity due to its digital innovation and lower prices. The partnership with Boyu Capital a private equity firm with offices in Shanghai, Hong Kong, and Singapore is designed to help Starbucks adapt to changing consumer preferences and the rapidly evolving retail landscape in China.
Starbucks said the collaboration will blend its global coffee expertise and partner-focused culture with Boyu’s understanding of Chinese consumers. The company also plans to introduce new beverages and digital platforms tailored to local tastes as part of its renewed growth push.
The deal is expected to be finalized next year, marking a major restructuring of Starbucks’ presence in China and positioning the brand for sustained success in the world’s second-largest economy.
