Starbucks has formally closed the sale of a controlling stake in its China business, bringing in private equity firm Boyu Capital as its local partner, as the global coffee giant sharpens its growth strategy in one of its most critical markets.
Under the deal, Boyu Capital has acquired a 60 percent stake in Starbucks’ China retail operations, while Starbucks retains the remaining 40 percent and continues to own and license its brand and intellectual property to the new joint venture.
The transaction, first outlined in late 2025, marks a significant shift in Starbucks’ operating model in China, transitioning its roughly 8,000 company-operated stores into a licensed structure under the new partnership.
Starbucks is now betting heavily on scale. The company and Boyu have set a long-term target to grow the China store network to as many as 20,000 locations, more than doubling its current footprint.
Chairman and CEO Brian Niccol said the deal underlines confidence in the market: “China remains one of the most exciting long-term opportunities for Starbucks. This partnership accelerates our ability to grow with intention and discipline.”
The company is positioning the partnership as a way to combine its global brand strength with deep local expertise. “By combining Starbucks’ trusted global brand with Boyu’s deep local expertise, we are positioning the business to serve more customers, enter more cities, and strengthen our leadership,” Niccol added.
For Starbucks China CEO Molly Liu, localisation will be central to the next phase. She said the partnership would drive “hyper-localization,” with more tailored products, digital engagement and store formats designed for diverse Chinese consumers.
The move comes as Starbucks faces intensifying competition from lower-priced domestic chains such as Luckin Coffee and Cotti Coffee, which have rapidly gained market share in recent years.
Brady Brewer, CEO of Starbucks International, said the new structure is built for speed and efficiency: “With Boyu as our partner, we have an operating model designed to accelerate expansion, enhance profitability, and deliver the Starbucks experience to more communities.”
China remains Starbucks’ second-largest market globally, but also one of its most challenging, with price competition and shifting consumer behaviour weighing on recent performance. The new joint venture is expected to unlock capital, local insights and operational flexibility as the company pushes deeper into lower-tier cities and new consumption segments.
