Starbucks weighs majority stake sale in Japan business
The potential transaction follows Starbucks’ expansion in Japan and comes as the coffee chain reviews ownership structures across major international markets.
JAPAN – Starbucks is considering selling a majority stake in its Japan business in a potential transaction that could value the coffee chain’s largest overseas company-operated market at about $3 billion, according to two people familiar with the matter who spoke to Reuters.
Starbucks Japan operates 1,883 stores, representing nearly 9% of the company’s global footprint as of September 2025. The company has sought pitches from several financial advisers on options for the business and is open to selling a majority stake, the sources said.
The size of any potential stake has not been determined, while the eventual valuation would be subject to negotiations, one source said. A formal sale process could begin in the fourth quarter and is expected to attract interest from global and local buyout firms.
“Starbucks Japan is a strong business, with deep brand affinity and trusted presence built over 30 years in the region,” a Starbucks spokesperson said in an emailed response to Reuters.
“We continually assess the best structure to be most meaningful to customers and create value for shareholders.”
Starbucks took full control of its Japan business in 2014 after buying out long-time partner Sazaby League for about $914 million, valuing the operation at roughly $1.5 billion. Since then, the business has expanded from around 1,050 stores to 1,883 outlets.
The potential transaction comes as Starbucks reshapes its global portfolio under Chief Executive Brian Niccol. The company has closed stores and reduced corporate jobs in North America as part of efforts to restore profitability. Store upgrades and increased marketing have helped stabilise demand but have also raised costs and pressured margins.
Starbucks’ international comparable-store sales rose 5.7% in the third quarter, with the company identifying Japan as a key contributor to the growth.
The company is also restructuring its presence in China. Last year, Starbucks agreed to sell control of its China operations to Boyu Capital in a transaction valuing the business at $4 billion. The deal closed in April.
Starbucks said the total value of its China business, including proceeds from the sale, the value of its retained stake and expected licensing income over at least the next 10 years, would exceed $13 billion.
The potential Japan stake sale would follow the China transaction as Starbucks reviews the ownership structure of major international operations. Any transaction involving Starbucks Japan remains subject to negotiations, including the stake size and final valuation.
The company has not announced final terms for a potential Japan transaction.
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