Starbucks Forms Joint Venture With Boyu Capital
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Key Facts
- Starbucks partners with Boyu Capital to operate its retail business in China, one of the company’s fastest-growing markets.
- The new venture gives Boyu a 60% stake in Starbucks China operations, valued at around $4 billion.
- Starbucks will retain 40% ownership and continue to license its brand and IP to the joint venture.
Starbucks is entering a new chapter in China, forming a joint venture with Boyu Capital aimed at accelerating its long-term expansion across the country. The partnership unites Starbucks’ globally recognized coffee expertise and brand strength with Boyu’s deep understanding of Chinese consumers and local markets.
Under the agreement, Boyu will take a majority interest in Starbucks’ retail operations in China, while Starbucks continues to oversee its brand and maintain a strategic minority stake. The transaction values Starbucks’ total China retail business at approximately $13 billion, which includes sale proceeds, retained equity, and expected licensing revenue over the next decade.
The collaboration reinforces Starbucks’ commitment to China as a growth engine, with plans to grow from 8,000 stores today to as many as 20,000 in the coming years. The new entity will remain headquartered in Shanghai, continuing to focus on premium customer experiences, beverage innovation, and local community engagement.
Executives from both companies described the move as a pivotal step in the brand’s 26-year journey in China — one that aligns global coffee culture with local expertise. The venture will also create more opportunities for Starbucks employees, known as partners, as the company expands into new regions and smaller cities.
