Carlyle, HongShan, EQT Among Final Contenders for Starbucks’ China Business
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Starbucks Corp. has shortlisted four private equity bidders for a stake in its China operations and may select a new strategic partner as soon as October, according to people familiar with the matter.
The contenders are Boyu Capital, Carlyle Group Inc., HongShan Capital Group, and a consortium formed by Primavera Capital Group and EQT Partners. Starbucks is banking on the chosen firm to help it steer through an increasingly saturated and competitive coffee market on the Chinese mainland. Once dominant, the U.S. coffee chain has seen its lead eroded by rapid expansion from local players like Luckin Coffee and Cotti Coffee. The size of the stake on offer hasn’t been disclosed.
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- 2023：
- Carlyle sold its 20% stake in McDonald's China operations back to McDonald's global parent.
- Early 2024：
- Starbucks first floated the idea of bringing in investment for its China arm after two straight quarters of declining revenue and same-store sales in the market.
- 2024：
- Starbucks’ share of the Chinese coffee market dropped to 4.2%, according to Zheshang Securities.
- February 2025：
- Starbucks resumed talks with firms including China Resources Holdings, KKR, and FountainVest Partners.
- Second quarter of 2025：
- Starbucks generated $790 million in China revenue — nearly 40% of all international revenue outside North America.
- By June 2025：
- Starbucks China had launched a roadshow, drawing participation from over 20 institutional investors, including Hillhouse Capital, Carlyle, and Meituan.
- As of the end of June 2025：
- Starbucks operated nearly 8,000 stores in China.
- July 2025：
- On an earnings call, Brian Niccol stated that Starbucks intends to retain a significant stake in its China unit and framed the partnership as a move to enhance operational efficiency.
- July 17, 2025：
- EQT's BPEA Private Equity Fund IX had secured $11.4 billion.
- August 2025：
- Starbucks' investment process stalled following the resignation of then-CEO Laxman Narasimhan.
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