Starbucks Corporation (NASDAQ: SBUX) announced on Monday that it will sell up to 60% of its retail operations in China to Boyu Capital, a leading Asia-based private equity firm, in a deal valued at approximately $4 billion. The transaction marks one of the most significant divestments by a global consumer brand in China in recent years.

Under the agreement, Boyu and Starbucks will form a joint venture to operate the company’s nearly 8,000 stores in China, with Starbucks retaining a 40% stake and licensing its brand and intellectual property to the new entity. Starbucks said it expects the value of its retail business in China… including proceeds from the sale, its retained ownership, and projected licensing fees over the next decade… to exceed $13 billion.

“This approach allows us to combine the strength of the Starbucks brand, our coffee expertise, the third place, and our unique partner culture with Boyu’s deep knowledge of the China market and local expertise,” said Brian Niccol, Starbucks Chief Executive Officer. “We look forward to finalizing this partnership in early 2026 and accelerating our next phase of growth in China.”

Founded in 2010, Boyu Capital operates across Singapore, Shanghai, Hong Kong, and Beijing, with a portfolio spanning consumer and retail, financial services, healthcare, and technology. The firm was co-founded by Alvin Jiang, grandson of former Chinese President Jiang Zemin.

Starbucks’ decision to enter the partnership comes amid a sharply competitive Chinese coffee market, where local players such as Luckin Coffee, Cotti Coffee, and HeyTea have gained ground through aggressive pricing and local flavor innovation. Starbucks’ market share in China has fallen to 14% from 34% in 2019, according to Euromonitor International, even as it maintains a reputation for premium brand positioning and in-store experience.China remains Starbucks’ second-largest market globally, contributing roughly 8% of total revenue. The company opened its first store in Beijing in 1999 and has since expanded to 7,828 locations as of June 2025.

The sale follows a broader strategic shift under Niccol, who took over as CEO earlier this year amid a domestic restructuring. Starbucks recently announced plans to lay off 900 corporate employees and close more than 600 underperforming stores in North America to streamline operations. While global revenue rose 5.5% to $9.6 billion in its most recent quarter, net income dropped 85% year-over-year to $133 million.

Starbucks said the new joint venture structure is designed to strengthen its long-term position in China, combining its global brand with Boyu’s regional market expertise. The partnership is expected to close in the first half of 2026, pending regulatory approvals.

About Starbucks

Starbucks Corporation (NASDAQ: SBUX) is the world’s largest coffeehouse company, operating over 38,000 stores across more than 80 countries. Founded in 1971 and headquartered in Seattle, Washington, Starbucks is recognized globally for its premium coffee, beverage innovation, and commitment to ethical sourcing through its Coffee and Farmer Equity (C.A.F.E.) practices. The company aims to foster human connection through its “third place” experience while expanding globally through company-operated and licensed stores.

At the time of publishing, Stocks.News holds positions in Starbucks as mentioned in the article.