Starbucks to sell majority stake in China business

Starbucks is selling a majority stake in its China business to Boyu Capital in a deal valuing the market at around $4 billion

November 04, 2025

Starbucks Coffee Company is selling a majority stake in its China retail operations to Boyu Capital in a deal valuing the business at around $4 billion, as it seeks to reinvigorate growth in one of its most important markets. Boyu will hold up to 60% of the joint venture, with Starbucks keeping 40% and continuing to license its brand and intellectual property.

The Seattle-based coffee giant has seen its market share slip in recent years amid competition from local chains like Luckin and Cotti, which offer lower-priced alternatives. Starbucks’ future in China had been unclear for months after former CEO Laxman Narasimhan signalled last year that the company was considering “strategic partnerships” to remain competitive in the world’s second-largest economy.

The company now expects the total value of its China retail business to exceed $13 billion, factoring in the sale proceeds, the value of its retained interest, and projected licensing fees over the next decade or more.

The venture will remain headquartered in Shanghai, overseeing the company’s 8,000 stores with a long-term target of 20,000 outlets.

Brian Niccol, Starbucks CEO, said the partnership “will help accelerate our growth in China, especially as we expand into smaller cities and new regions.”

Alex Wong, partner at Boyu, highlighted the deal combines Starbucks’ global coffee expertise with Boyu’s local market insights to drive innovation and expansion.

Boyu, a private equity firm, founded in 2010 by Alvin Jiang—grandson of former Chinese President Jiang Zemin—and other partners, operates offices in Beijing, Shanghai, Hong Kong and Singapore, investing across consumer and retail, financial services, healthcare, and media and technology sectors.

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