CHINA. Starbucks Coffee Company has entered an agreement to form a joint venture with powerful Chinese investment group Boyu Capital to operate Starbucks retail in China.
Under the agreement, Boyu (well-known in the travel retail world through its long-term investment in Sunrise Duty Free) |and Starbucks will operate a joint venture with Boyu holding up to 60% interest in Starbucks retail operations in China.
Starbucks will retain a 40% interest in the joint venture and will continue to own and license the Starbucks brand and intellectual property to the new entity.
Boyu will acquire its interest based on a cash-free, debt-free enterprise value of approximately US$4 billion.
Starbucks expects the total value of its China retail business to exceed US$13 billion, composed of three sources:
- Proceeds from the sale of a controlling interest in the joint venture to Boyu;
- The value of Starbucks retained interest in the joint venture
- The net present value of ongoing licensing economics payable to Starbucks over the next decade or longer.
“This partnership marks a significant milestone in Starbucks ongoing transformation and underscores its commitment to accelerating long-term growth in China, one of the company’s most important and fastest-growing markets globally,” the American coffee powerhouse commented.
The company added, “The partnership between Starbucks and Boyu marks a new chapter in Starbucks over 26-year journey in China, combining Starbucks globally recognised brand, coffee expertise, and partner (employee)-centered culture with Boyu’s depth of understanding of Chinese consumers.
“Together, under this new joint venture, the two companies will elevate the Starbucks customer experience, accelerating innovation in beverages and digital platforms, expanding into new cities and regions, and deepening connections with customers through meaningful local relevance.”
The business will continue to be headquartered in Shanghai and will own and operate the current 8,000 Starbucks coffeehouses in China with a shared vision to grow to as many as 20,000 locations over time {main story continues beneath the following message}.
“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 Starbucks Coffee Company Chairman and Chief Executive Officer Brian Niccol.
“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.”
Boyu Capital Partner Alex Wong said, “Starbucks has built an iconic brand and a deep connection with Chinese consumers over the past 26 years.
“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.”
“Building on our positive business momentum, our partnership with Boyu will enable Starbucks China to fully unlock the vast market opportunity,” added Starbucks China Executive Vice President and Chief Executive Officer Molly Liu/
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,” said
The joint venture is expected to be finalised in Q2 FY2026 (i.e. January-March 2026), after the completion of required regulatory approvals. 
