Starbucks announced this Monday, 3, the formation of a joint venture with the Chinese investment company Boyu Capital to operate its stores in China. Under the agreement, Boyu will acquire a 60% stake in Starbucks’ retail operations in the Asian country, valued at US$4 billion (around R$21.4 billion). Starbucks will retain a 40% stake in the joint venture and will license the Starbucks brand.
The coffee giant said its business in China will have a total value of more than US$13 billion, including the proceeds from the sale of the majority stake to Boyu, the value of its 40% stake and the value of its royalties. Starbucks entered China almost 30 years ago and is recognized for having contributed to the growth of coffee culture in the country.
China is Starbucks’ second-largest market outside the US, with 8,000 stores. But in recent years, the Seattle company has struggled domestically as it competes with cheap, fast-growing Chinese startups like Luckin Coffee. Starbucks’ same-store sales in China have fallen over the past two fiscal years. As a result, Starbucks has been looking for a partner to help it expand its business in China, particularly in smaller cities.
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In July, Starbucks Chairman and CEO Brian Niccol said the company was evaluating about 20 offers for a stake in the company. Niccol said Monday that Boyu shares Starbucks’ commitment to providing a great experience for both customers and employees. It will also help Starbucks reach its goal of reaching 20,000 stores in China over time, Niccol said.
“Boyu’s deep local knowledge and experience will help accelerate our growth in China, especially as we expand into smaller cities and new regions,” Niccol said in a statement. Boyu Capital partner Alex Wong said Starbucks has built a deep connection with Chinese consumers over nearly three decades. “This partnership reflects our shared belief in the enduring strength of this brand and the opportunity to bring even more innovation and local relevance to customers across China,” Wong said in a statement.
Starbucks’ China headquarters will remain in Shanghai. Boyu Capital, founded in 2011, has offices in Shanghai, Hong Kong, Singapore and Beijing. The companies said they expect to finalize the deal in the second quarter of Starbucks’ 2026 fiscal year – a period that began on September 29. (With information from the Associated Press)
* This content was translated with the help of Artificial Intelligence tools and reviewed by our editorial team. Learn more in our AI Policy.
