Starbucks Coffee Company announced a joint venture with Boyu Capital to operate its retail business in China, marking a major step in the company’s transformation and long-term growth strategy for one of its most important markets.
Under the agreement, Boyu Capital will hold up to 60% ownership in the joint venture, while Starbucks will retain a 40% stake. Starbucks will continue to own and license its brand and intellectual property to the new entity. Boyu’s investment is based on a cash-free, debt-free enterprise value of approximately $4 billion. Starbucks estimates the total value of its China retail business to exceed $13 billion, which includes the proceeds from the sale, its retained interest, and the projected value of ongoing licensing income over the next decade or longer.
The new joint venture combines Starbucks’ globally recognized coffee expertise and brand with Boyu’s deep understanding of Chinese consumers. Together, the companies aim to strengthen Starbucks’ presence across China by expanding into smaller cities and emerging regions, enhancing beverage and digital innovation, and deepening local cultural relevance.
The partnership will continue to be headquartered in Shanghai, maintaining operations across the 8,000 existing Starbucks stores in China, with an ambition to grow that footprint to as many as 20,000 stores over time.
This collaboration builds on Starbucks’ 26-year journey in China, reflecting its continued belief that purpose and growth go hand in hand. The joint venture is expected to be finalized in the second quarter of fiscal year 2026, pending regulatory approvals.
KEY QUOTES:
“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.”
Brian Niccol, Chairman and Chief Executive Officer, Starbucks Coffee Company
“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.”
Alex Wong, Partner, Boyu Capital
“Building on our positive business momentum, our partnership with Boyu will enable Starbucks China to fully unlock the vast market opportunity. Together, we will deliver exceptional coffee experiences to more Chinese consumers than ever before, create greater career opportunities for our green apron partners, and drive the future of China’s specialty coffee industry. This collaboration is a powerful commitment to our next chapter of growth.”
Molly Liu, Executive Vice President and Chief Executive Officer, Starbucks China
