Starbucks to Sell Majority Stake in China Business
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A Starbucks store in Hangzhou. Photo: VCG
Starbucks Corp. is selling a majority stake in its China operations to local alternative asset manager Boyu Capital, with the two forming a joint venture to run the coffee giant’s stores on the Chinese mainland.
The deal marks a major strategic reversal for Starbucks in its second-largest market, moving away from a fully company-owned model to combat flagging sales and fierce local competition.
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- Starbucks sold up to a 60% stake in its China business to Boyu Capital, valuing the joint venture at $4 billion.
- The new Shanghai-based venture will manage 8,000 stores and aims to expand to 20,000, with estimated total business value exceeding $13 billion.
- The move follows declining sales in China and shifts Starbucks’ model from fully company-owned to franchising.
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