Starbucks Coffee Company has confirmed a new joint venture with private equity firm Boyu Capital to manage its retail operations in China, valued at approximately $4 billion on a cash-free, debt-free basis.
The agreement gives Boyu up to a 60 per cent stake in Starbucks’ China retail business, while Starbucks retains 40 per cent and continues to own and license its brand and intellectual property. The company estimates the total value of its China operations at more than $13 billion, including sale proceeds, retained equity, and future licensing revenue.
The Shanghai-based venture will oversee Starbucks’ existing network of 8,000 outlets across China and aims to expand that footprint to around 20,000 stores over time. Starbucks will maintain strategic oversight while leveraging Boyu’s market expertise to drive growth across new regions and smaller cities.
The move reflects Starbucks’ long-term commitment to China, its second-largest market. It signals a structural shift in its operating model as it pursues deeper local integration and digital expansion. The transaction is expected to close in the second quarter of fiscal 2026, subject to regulatory approvals.