Transaction Overview and Ownership Details
Starbucks has announced a major restructuring of its operations in China, transferring a controlling share of its retail business to Boyu Capital in a deal valued at approximately $4 billion. The agreement gives Boyu a 60% stake, while Starbucks retains 40% and continues to license its brand, products, and operational processes to the joint venture. The partnership is expected to close in the second quarter of fiscal 2026, following required regulatory approvals in China.
Growth Strategy and Market Expansion
The move is designed to bolster Starbucks’ competitive position in China, where domestic coffee chains such as Luckin Coffee have been growing aggressively. With roughly 8,000 stores currently in operation, Starbucks aims to capitalize on Boyu’s local expertise to accelerate expansion, particularly in smaller cities, targeting a long-term footprint of 20,000 locations across the country.
Financial Impact and Industry Significance
Starbucks anticipates that the combination of the sale proceeds, retained equity, and ongoing licensing revenue could generate over $13 billion in value over time. The transaction reflects a strategic shift toward partnership-driven growth, allowing the company to maintain brand oversight while leveraging local investment and operational know-how. Analysts note that the venture could serve as a model for multinational companies seeking to scale in China while navigating regulatory and competitive challenges.
