This photo taken on July 17, 2025 shows the booth of Starbucks during the third China International Supply Chain Expo (CISCE) in Beijing, capital of China. (Photo:Xinhua)

 
Starbucks Coffee Company said it has entered an agreement to form a joint venture with Boyu Capital, a leading alternative investment firm, to operate Starbucks retail in China. 

The company said this partnership marks a significant milestone in Starbucks ongoing transformation and underscores its commitment to accelerating long-term growth in China, one of the company’s most important markets globally, according to the information the company shared with the Global Times on Tuesday. 

Under the agreement, Boyu and Starbucks will operate a joint venture with Boyu holding up to 60 percent interest in Starbucks retail operations in China. Starbucks will retain a 40 percent interest in the joint venture and will continue to own and license the Starbucks brand and intellectual property to the new entity. Boyu will acquire its interest based on a cash-free, debt-free enterprise value of approximately $4 billion.

Starbucks expects the total value of its China retail business to exceed $13 billion, composed of three sources: proceeds from the sale of a controlling interest in the joint venture to Boyu, the value of Starbucks retained interest in the joint venture, and the net present value of ongoing licensing economics payable to Starbucks over the next decade or longer.

The business will continue to be headquartered in Shanghai and will own and operate the 8,000 Starbucks coffeehouses across the market today with a shared vision to grow to as many as 20,000 locations over time, said Starbucks Coffee Company.

Global Times