Ownership Transfer and Deal Terms
Starbucks has announced it will cede majority control of its Chinese retail operations to Boyu Capital in a transaction valued at approximately $4 billion. Boyu is set to acquire a 60% stake, leaving Starbucks with 40%, while the company continues to license its brand, menu, and operational standards to the new joint venture. The partnership is expected to close in the second quarter of fiscal 2026, pending regulatory approvals in China.
Strategic Motives and Expansion Plans
The deal is part of Starbucks’ strategy to strengthen its presence in a highly competitive Chinese market, where local chains like Luckin Coffee have been expanding rapidly. Operating roughly 8,000 stores, Starbucks plans to leverage Boyu’s local market knowledge and resources to accelerate growth, particularly in smaller cities, with a long-term target of 20,000 locations nationwide.
Financial Outlook and Market Significance
Starbucks projects that the combination of the sale proceeds, retained ownership, and licensing revenue could exceed $13 billion in total value over time. The transaction highlights a shift toward partnership-driven growth in key international markets, blending global brand oversight with local operational expertise. Analysts suggest the deal could serve as a model for other multinational consumer brands navigating China’s complex and competitive retail landscape.
