Catenaa, Sunday, November 09, 2025- Starbucks will sell a 60% stake in its China business to Boyu Capital for $4 billion, marking one of the largest consumer-sector deals involving a Western brand in China in recent years.
The agreement will leave Starbucks with a 40% share in its Chinese retail arm while keeping ownership of its brand and intellectual property.
The new partnership values Starbucks’ China operations at $13 billion.
The Seattle-based coffee giant entered the Chinese market in 1999, now its second-largest after the United States. However, the company has struggled to maintain growth amid rising competition from domestic brands such as Luckin Coffee, which has overtaken Starbucks in store count.
Headquartered in Shanghai, the joint venture will continue to operate 8,000 stores and aims to expand to 20,000 outlets nationwide.
Starbucks said the collaboration combines its global brand and coffee expertise with Boyu Capital’s deep understanding of Chinese consumer trends.
The deal comes after months of speculation about Starbucks’ future in China, following comments from former CEO Laxman Narasimhan on exploring strategic partnerships to strengthen its position.
Other global brands, including Yum! Brands’ KFC and Pizza Hut, have restructured their Chinese operations amid similar market challenges.
The agreement is expected to close in 2026 and signals Starbucks’ intent to secure long-term growth in one of its most vital yet volatile markets.
