Khaberni - Starbucks announced Monday that it will sell a controlling stake in its retail operations in China to the investment company "Boyu Capital," based in Hong Kong, in a deal estimated at about 4 billion dollars.
Under the agreement, "Boyu Capital" will acquire up to 60% of a new joint venture that operates 8,000 Starbucks stores across China, while the American company retains a 40% stake.
This partnership represents a strategic shift for Starbucks after more than 26 years of presence in China, combining the global brand's fame with "Boyu Capital's" local market expertise to expand into smaller cities and new areas.
China represents the second largest market for Starbucks globally, although the company faces increasing competition from local coffee chains such as "Luckin Coffee," which has attracted customers with its lower prices.
Starbucks announced last week that its latest quarterly sales in China increased by 2%, driven by an increase in customers.
The company expects that the total value of its retail operations in China will exceed 13 billion dollars.
Starbucks CEO Brian Nicol said, "The in-depth local knowledge and expertise of 'Boyu' will help accelerate our growth in China, especially as we expand into smaller cities and new regions."
The companies reported that they aim to increase the number of stores to reach 20,000 in the long term, while keeping the headquarters in Shanghai.
Starbucks shares have lost about 6.3% of their value over the past month.
The famous American brand faced a strike and boycott campaign in several countries after it appeared to support Israel since October 2023 following the outbreak of the war on Gaza.
Last September, Starbucks announced it plans to close 434 branches and lay off hundreds of workers in America and Canada, as part of a restructuring plan valued at one billion dollars.
In the results of the third quarter of the fiscal year 2025, Starbucks recorded a decrease in sales of stores operating for more than 13 months by about 2% in North America.
The company operating Starbucks cafes in Malaysia suffered a severe blow after a record increase in its losses affected by the boycott.
