US-based coffee chain giant, Starbucks has officially entered an agreement to form a joint venture with Boyu Capital, a leading China-based alternative investment firm, to operate Starbucks retail operations in China.
This partnership is viewed as a turning point for Starbucks transformation and commitment to accelerate long-term growth in China, one of its most important market.
Under the agreement, Boyu and Starbucks will operate a joint venture with Boyu holding up to 60% interest in Starbucks retail operations in China. Starbucks will continue to own 40% stake as well as the license for the Starbucks brand in China.
Starbucks hopes that the partnership with Boyu will strengthen its understanding of the local consumer market, and helps elevate Starbucks customer experience, and accelerate innovations in beverages and digital platforms in this rapidly growing market.
Currently, Starbucks has 8,000 stores across China and it aims to grow to 20,000 in the future. With Boyu’s deep local knowledge, it will help Starbucks to expand into the smaller cities and new regions in China.
The JV will be finalised in 2nd quarter 2026 after gaining regulatory approvals.
