Starbucks has formed a joint venture with Chinese investment firm Boyu Capital to run its retail operations in China. Under the agreement, Boyu will hold a controlling interest (up to 60%) in Starbucks’ retail operations in China, with Starbucks retaining a 40% interest in the joint venture. Starbucks also will continue to own and license the Starbucks brand and intellectual property to the new entity.
Boyu will acquire its interest in the joint venture based on a cash-free, debt-free enterprise value of approximately $4 billion. The deal is expected to close in Starbucks’ fiscal 2026 Q2 in late April 2026, subject to regulatory approvals.
Following the close of the deal, Starbucks expects the total value of its China retail business to exceed $13 billion, when the sale of the controlling interest, its retained interest in the joint venture and ongoing brand licensing fees over the next decade are combined.
New Chapter in Starbucks’ 26-Year History in China
Starbucks has operated in China for more than 26 years. The new joint venture marks another significant pivot for the coffee chain since the 2024 appointment of CEO Brian Niccol who has initiated a sweeping transformation strategy aimed at reestablishing Starbucks as the “Community Coffee House.”
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Back in 2017, Starbucks bought out its current joint venture partner in China to take on full ownership in that country, with plans for significant expansion. Starbucks currently operates 8,000 coffeehouses in China and said under the new joint venture with Boyu it plans to grow that to as many as 20,000. The business will continue to be headquartered in Shanghai.
“Boyu’s deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions,” said Niccol in a statement. “We’ve found a partner who shares our commitment to a great partner experience and world-class customer service. Together we will write the next chapter of Starbucks storied history in China.”
Other recent changes instituted by Niccol in his transformation bid include:
- A restructuring plan introduced in September 2025 that includes laying off 900 non-retail employees and plans to shrink Starbucks’ North American footprint by 1%, landing at around 18,300 stores in that market;
- This followed another round of layoffs earlier in the year, which cut 1,100 support positions as well as several hundred open and unfilled roles; and
- In July 2025 Niccol also launched a new program to “uplift” 1,000 stores across North America by the end of calendar 2026.
“Building on our positive business momentum, our partnership with Boyu will enable Starbucks China to fully unlock the vast market opportunity,” Molly Liu, EVP and CEO of Starbucks China in a statement. “Together, we will deliver exceptional coffee experiences to more Chinese consumers than ever before, create greater career opportunities for our green apron partners and drive the future of China’s specialty coffee industry. This collaboration is a powerful commitment to our next chapter of growth.”
“Starbucks has built an iconic brand and a deep connection with Chinese consumers over the past 26 years,” said Alex Wong, Partner at Boyu Capital in a statement. “This partnership reflects our shared belief in the enduring strength of that brand and the opportunity to bring even greater innovation and local relevance to customers across China. Together, we aim to combine Starbucks’ global coffee leadership with Boyu’s deep market insights and expertise to accelerate growth and create exceptional experiences for millions of customers.”
