Starbucks is forming a strategic joint venture in China with Boyu Capital, giving Boyu 60% ownership and Starbucks 40%, while Starbucks retains brand ownership and licensing rights.

The venture aims to accelerate growth and deepen local relevance, planning to expand from about 8,000 stores to up to 20,000 across China amid growing domestic competition.

China is Starbucks’ second-largest market, contributing roughly 8.7% of global sales in the latest quarter, though performance has been uneven in recent periods.

Several private equity firms participated in the bidding, with ongoing discussions among lenders as the deal progresses.

The arrangement fits into broader U.S.–China trade dynamics and reflects ongoing efforts to sustain truce-level relations amid tariff risks.

A standard forward-looking statements disclaimer accompanies the release, outlining risks like regulatory approvals, cost realization, and market conditions.

The deal aligns with a trend of localization and domestic financing as global brands restructure for China’s complex market.

Industry observers view Boyu as a strategic facilitator—providing digital partnerships and local connections rather than relying on state-backed advantages.

Starbucks executives express confidence in the China market, signaling that the joint venture could drive innovation and better meet local customer needs.

The venture could signal broader changes in how multinationals finance and operate in China, emphasizing local ties and financing structures.

China’s vast consumer market remains attractive, but macro slowing and competition are prompting multinational rethink of local strategies.

Analysts see the deal as a potential blueprint for other global brands pursuing local partnerships to maintain growth while protecting the brand.