Starbucks has officially finalized its joint venture with Boyu Capital, transferring control of its China operations to the investment firm. This strategic move aims to accelerate the coffee giant’s growth in the crucial Chinese market, where it faces increasing competition from local players. The partnership is expected to drive significant expansion and deeper localization of the Starbucks brand across China.
The agreement, initially announced in November 2025, marks a significant step in Starbucks’ long-term strategy for China. Funds managed by Boyu Capital now own a 60% stake in Starbucks’ China retail operations. Starbucks will retain a 40% ownership interest and will continue to license its brand and intellectual property to the new joint venture. This structure is designed to leverage Boyu Capital’s deep local expertise alongside Starbucks’ global brand recognition.
Currently operating around 8,000 stores in China, Starbucks, in partnership with Boyu Capital, has set an ambitious goal to grow this number to as many as 20,000 locations over time. This expansion is expected to cover more cities and deepen the brand’s presence across the country. The transition will see the company-operated coffeehouses move to a licensed operating model as part of this growth strategy.
Molly Liu, CEO of Starbucks China, emphasized that the partnership will drive “hyper-localization.” This involves offering more relevant, premium handcrafted beverages, food, and merchandise tailored to Chinese consumers, alongside enhanced digital engagement and in-store experiences that cater to the evolving needs of diverse communities. Starbucks leadership expressed confidence that this approach, combined with Boyu’s local insights, will strengthen their market leadership.
Starbucks views China as one of its most exciting long-term growth opportunities. The joint venture with Boyu Capital is expected to enable faster, more efficient, and focused expansion. Both companies are now moving into the operational phase, concentrating on expansion, innovation, and delivering the signature Starbucks experience to a broader customer base in China.