Starbucks, Boyu Capital form JV to operate China stores

The deal is expected to close in Q2 FY2026, pending regulatory approval.

Starbucks has entered a joint venture with alternative investment firm Boyu Capital to run its retail operations in China.  

Under the deal, Boyu will take up to a 60% stake, whilst Starbucks will retain 40% and continue to own and license its brand and intellectual property.

Boyu’s share will be valued at roughly $4b on a cash-free, debt-free basis.

Starbucks estimates the total value of its China retail business at more than $13b, factoring in proceeds from the sale, the value of its remaining stake, and future licensing payments over the next decade or longer.

The venture will be based in Shanghai and oversee about 8,000 existing Starbucks stores in China, with plans to expand to as many as 20,000.

The companies expect to complete the deal in the second quarter of Starbucks’ 2026 fiscal year, pending regulatory approval.