Archive · 4 Nov 2025
Starbucks Sells Majority Stake in China Operations to Boyu Capital for $4 Billion
Starbucks is selling most of its coffee shops in China to a company called Boyu Capital for $4 billion.
This means Boyu Capital will own 60% of the China business, and Starbucks will keep 40%.
Starbucks has been in China for a long time but has been facing tough competition from local coffee brands that sell cheaper coffee.
Starbucks hopes that Boyu Capital, with its local knowledge, will help them grow their business and open many more stores, aiming for over 20,000 from the current 8,000.
Even though Starbucks is selling a majority stake, they will still keep the right to use the Starbucks brand name.
This deal is a big step for Starbucks as they try to adapt to the Chinese market.
Starbucks is selling a 60% stake in its China retail operations to private equity firm Boyu Capital for $4 billion.
A joint venture will be formed, with Boyu Capital owning the majority 60% stake and Starbucks retaining 40%.
Starbucks will continue to license its brand and intellectual property to the new joint venture.
The deal aims to help Starbucks navigate increasing competition from local brands and improve its performance in China.
Starbucks plans to leverage Boyu's local expertise to expand its presence from approximately 8,000 stores to over 20,000.
- Who
- Starbucks Corp. and Boyu Capital
- What
- Starbucks is selling a 60% stake in its China retail operations to Boyu Capital for $4 billion, forming a joint venture where Boyu Capital will hold the majority interest.
- When
- The announcement was made recently. Starbucks' stock increased less than 1% in after-hours trading.
- Where
- China
- Why
- To improve Starbucks' business in China, overcome challenges from local competitors like Luckin Coffee, and capitalize on growth opportunities, aiming to expand from 8,000 to over 20,000 stores.
Starbucks
Boyu Capital
Motivation for Partnership
Starbucks
Starbucks aims to improve its business in China by leveraging local expertise to overcome challenges from local competitors and a decrease in customer willingness to pay premium prices.
Boyu Capital
Boyu Capital's involvement is seen as a partnership to guide Starbucks through its next phase in China and capitalize on growth opportunities.
Growth Potential
Starbucks
Starbucks sees a path to grow from its current 8,000 stores to over 20,000 in China.
Boyu Capital
The partnership with Boyu Capital is expected to help accelerate this expansion and bring greater innovation and local relevance to customers.
- Deal Value
- $4 billion
- Boyu Capital Stake
- 60%
- Starbucks Remaining Stake
- 40%
- Total China Business Value
- Over $13 billion
- Current Starbucks China Locations
- Approximately 8,000
- Projected China Store Growth
- Over 20,000
- Starbucks China Presence Start Date
- 1999
