Starbucks finalizes China joint venture with Boyu Capital to accelerate expansion, growth strategy
Starbucks completes China JV with Boyu Capital, shifting to a licensed model to drive expansion, innovation, and competitiveness in the fast-growing coffee market.
CHINA – Starbucks has officially finalized its previously announced joint venture with Boyu Capital, marking a significant step in its strategy to expand and strengthen its presence in China.
Under the agreement, funds managed by Boyu Capital now hold a 60% stake in Starbucks’ China retail operations, while Starbucks retains a 40% ownership interest. The company will continue to own and license its brand and intellectual property within the joint venture.
The joint venture, which oversees approximately 8,000 company-operated stores, will transition to a licensed operating model. Both partners share a long-term goal of expanding the store network to as many as 20,000 locations over time.
“China remains one of the most exciting long-term opportunities for Starbucks, and finalising this partnership with Boyu accelerates our ability to grow with intention and discipline,” said Niccol.
“By combining Starbucks’ trusted global brand with Boyu’s deep local expertise, we are positioning the business to serve more customers, enter more cities, and strengthen our leadership in a dynamic and evolving market,” Niccol added.
The partnership is designed to support continued growth, enhance local market relevance, and improve customer experience across China. With the transaction now complete, Starbucks and Boyu will move into the operational phase, focusing on store expansion and product innovation.
“Starbucks has built an iconic brand and a deep connection with Chinese consumers,” said Alex Wong, Partner at Boyu Capital. “We are proud to support Starbucks’ next chapter of growth in China and look forward to working together to expand the brand’s presence and relevance over the long term.”
The move comes amid intensifying competition in China’s coffee market, where domestic players are rapidly expanding. Companies such as Luckin Coffee and Cotti Coffee have significantly increased their footprints, capturing growing market share.
Starbucks currently operates about 8,000 stores in China. In comparison, Luckin Coffee operates more than 31,000 locations globally, most of them in China, while Cotti Coffee has surpassed 18,000 locations worldwide, with over 16,000 based in the Chinese market.
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