Global coffeehouse chain Starbucks is initiating a revamp of its extensive operations in China, potentially including a stake sale, as reported by Bloomberg.
The company is reaching out to private equity firms, technology companies and other potential investors to explore options for growth and gauge interest in its Chinese business.
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In May 2025, it engaged a financial adviser to send letters to several prospective investors, soliciting their views on the business and its expansion.
The details of the process remain confidential, and the transaction could value the assets at several billion US dollars.
The move comes as Starbucks faces macroeconomic challenges and increased competition in China, its second-largest market, from domestic brands such as Luckin Coffee and Cotti Coffee.
At the end of March 2025, Starbucks operated more than 7,750 stores in China and reported net revenue of $740m for the quarter. This compares to Luckin’s $1.2bn in the same period.
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By GlobalDataProspective bidders are expected to provide initial feedback, though Starbucks may ultimately decide against a deal.
A Starbucks representative declined to comment further, referring to an April 2025 earnings call in which CEO Brian Niccol highlighted progress in China following adjustments to product offerings and pricing strategies.
Starbucks has also reported a 2% increase in consolidated net revenues for the second quarter of the fiscal year 2025, amounting to $8.8bn – a 3% rise on a constant currency basis.
The period also saw the opening of 213 net new stores worldwide, with the total number of stores now standing at 40,789, split between 53% company-operated and 47% licensed outlets.
