Starbucks has agreed to sell a controlling stake in its Chinese business through the formation of a joint venture with Hong Kong-based private equity firm Boyu Capital.
The US$4 billion deal will see Boyu hold up to 60 per cent of the venture and take control of Starbucks’ almost 8000 stores across the country, while Starbucks will retain 40 per cent internet and continue to own and license the brand and intellectual property to the new entity.
Starbucks will also continue to operate non-retail assets including the Kunshan Coffee Innovation Park and Yunnan Farmer Support Centre.
The total value of Starbucks’ business in China is expected to exceed $13 billion, composed of three sources: including proceeds from the sale of the controlling stake to Boyu, the value of the remaining 40 per cent stake, and future royalties.
CEO Brian Niccol says the agreement with Boyu is part of a larger plan to increase its market share in China.
“Since we began exploring new ways to accelerate our growth, we have received strong interest from many respected potential partners,” says Niccol. “After a thorough evaluation, we have reached an agreement to form a joint venture with Boyu, a trusted local partner.
“This approach allows us to combine the strength of the Starbucks brand, our coffee expertise, the third place, and our unique partner culture with Boyu’s deep understanding of the Chinese market and local expertise.
“Importantly, Boyu shares our commitment to ensuring a great partner experience so we can in turn deliver world-class customer service.”
Niccol says Starbucks and Boyu joining forces helps create a path for the brand to more than double its number of existing coffeehouses to a total of 20,000 in China “over time”.
The deal has been made in the face of significantly rising competition from other global and local players in the Chinese market. Namely, the likes of Luckin Coffee and Cotti Coffee.
Despite China being Starbucks’ second-largest market behind its home market of the United States (US), Luckin has quickly grown to become the largest coffee brand in China.
It currently operates more than 24,000 stores around the world – including 22,000 in China. It also expanded into the US with two locations in New York City in June 2025.
Executive Vice President and Chief Executive Officer of Starbucks China, Molly Liu, says the joint venture with Boyu will help Starbucks “unlock” more opportunities in the region.
“Building on our positive business momentum, our partnership with Boyu will enable Starbucks China to fully unlock the vast market opportunity,” says Liu.
“Together, we will deliver exceptional coffee experiences to more Chinese consumers than ever before, create greater career opportunities for our green apron partners, and drive the future of China’s specialty coffee industry.
“This collaboration is a powerful commitment to our next chapter of growth.”
Founded in 2011, Boyu Capital holds over 200 portfolio companies and offices in Hong Kong, Beijing, Shanghai, and Singapore.
Boyu Capital Partner, Alex Wong, says the strength and recognition of the Starbucks brand was a key driver in the firm electing to pursue this deal.
“Starbucks has built an iconic brand and a deep connection with Chinese consumers over the past 26 years,” says Wong.
“This partnership reflects our shared belief in the enduring strength of that brand and the opportunity to bring even greater innovation and local relevance to customers across China.
“Together, we aim to combine Starbucks’ global coffee leadership with Boyu’s deep market insights and expertise to accelerate growth and create exceptional experiences for millions of customers.”
The joint venture is expected to be finalised in Q2 FY2026 after completing required regulatory approvals.
