Starbucks has agreed to sell a majority stake in its China retail operations to private equity firm Boyu Capital for $4bn.
The companies will set up a joint venture in which Boyu will hold up to 60% of Starbucks’ retail business in the country.
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Starbucks will retain a 40% stake and will continue to own and license the brand and intellectual property to the new venture.
Starbucks estimates the overall valuation of its China retail business will surpass $13bn. This figure includes the proceeds from selling a controlling stake to Boyu and the value of Starbucks’ remaining interest in the joint venture.
Boyu Capital partner Alex Wong stated: “Starbucks has built an iconic brand and a deep connection with Chinese consumers over the past 26 years. 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.
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By GlobalDataThe JV will remain headquartered in Shanghai and will own and operate Starbucks’ 8,000 coffeehouses in China.
The partners have a shared objective of expanding the footprint to 20,000 sites.
Starbucks Coffee Company chairman and CEO Brian Niccol stated: “Boyu’s deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions.
“We’ve found a partner who shares our commitment to a great partner experience and world class customer service. Together we will write the next chapter of Starbucks storied history in China.”
The coffee chain will retain ownership and operation of non-retail assets, including the Kunshan Coffee Innovation Park and the Yunnan Farmer Support Center.
The deal follows a competitive process in which Boyu was one of five shortlisted suitors in September 2025.
The joint venture is expected to complete once regulatory approvals are secured, with finalisation targeted for the second quarter of Starbucks’ fiscal 2026.
