Starbucks Sells Control of China Business in $4 B Deal with Boyu Capital

Starbucks has struck a major deal to sell a controlling stake in its China operations to Boyu Capital. The agreement values the business at around $4 billion. 

Under the deal, Boyu will hold up to 60% of Starbucks’ Chinese retail operations. Starbucks will keep the other 40% and continue to own and license its brand and intellectual property. 

Despite pioneering China’s coffee culture since 1999, Starbucks has faced falling market share. It dropped to 14% in 2024 from 34% in 2019. The market has grown more competitive thanks to domestic chains offering cheaper drinks. 

Through the joint venture, Starbucks aims to grow its store count from about 8,000 today to more than 20,000 across China, especially in smaller cities. Boyu brings local expertise and digital growth capacity. 

Starbucks said the total value of its China retail business — factoring in the sale proceeds, its retained stake and licensing rights over future years — could exceed $13 billion. 

The deal is expected to close in the second quarter of Starbucks’ fiscal year 2026, pending regulatory approvals.