Starbucks Brews New Partnership with Boyu Capital in China

Starbucks announced a strategic partnership with Chinese investment firm Boyu Capital, forming a joint venture to oversee Starbucks' retail operations in China. Boyu Capital will invest USD 4 billion for a 60% stake, with Starbucks maintaining a 40% interest and continuing to own the brand.

Starbucks has faced challenges in China lately, notably from rising local competitors such as Luckin Coffee. To strengthen its position in the vital Chinese market, the company has been seeking a partner to facilitate expansion, especially in smaller cities. Boyu's investment aligns with Starbucks' objective to increase its store numbers to 20,000.

The joint venture is expected to be finalized by the second quarter of Starbucks' 2026 fiscal year. Starbucks CEO Brian Niccol emphasized the shared vision with Boyu Capital to enhance customer experiences. Boyu Capital's Alex Wong highlighted the brand's strong foothold in China and aims to drive further innovation.