Starbucks Transfers 60% of China Business to Boyu in $4bn Deal

In a landmark $4 billion transaction, Starbucks is handing a 60% share of its China operations to Boyu Capital while maintaining a 40% stake and preserving sole ownership of the Starbucks name in the market.

Since opening its first store in China in 1999, the Seattle-based chain nurtured the market into its biggest outside the United States, building roughly 8,000 outlets and becoming woven into many daily routines across the country.

Local rivals such as Luckin Coffee have stepped up the pressure, often outnumbering Starbucks locations and drawing customers with lower prices and aggressive promotions, reshaping competitive dynamics in the coffee scene.

The partnership with Boyu is intended to bring deeper local knowledge into Starbucks’ playbook, while letting the global brand offer new drinks, expand digital services tailored to Chinese tastes, and pursue a long-term target of some 20,000 stores.

Recent years have been testing: slower consumer spending, residual impacts of the Covid-19 era and heightened rivalry have trimmed sales, and price cuts used to stay competitive have weighed on margins.

Worldwide, Starbucks runs more than 40,000 locations. Under CEO Brian Niccol the company has refreshed menus, doubled down on barista hiring and reduced automation in some areas — moves aimed at reviving both its global appeal and its local resonance in key markets like China. The Boyu agreement ranks among the larger deals involving a U.S. consumer brand in China in recent memory.