Starbucks Coffee Company has entered an agreement with alternative investment firm Boyu Capital to form a joint venture that will operate the company’s retail business in China.

Under the deal, Boyu will hold up to a 60% stake in the new entity, while Starbucks will retain a 40% interest. The US coffee chain will continue to own and license the Starbucks brand and related intellectual property to the venture.

Boyu’s stake will be acquired based on a cash-free, debt-free enterprise value of approximately $4 billion.

Starbucks estimates the total value of its China retail operations will exceed $13 billion, factoring in proceeds from the sale, the value of its retained interest and future licensing income over the next decade or longer.

The partnership marks a new phase in Starbucks’ 26-year presence in China, combining the company’s global brand and coffee expertise with Boyu’s local market knowledge.

The joint venture will continue to be headquartered in Shanghai and operate the 8,000 Starbucks stores currently open across the country. The companies aim to expand that network to as many as 20,000 locations over time.

Starbucks said the collaboration will focus on enhancing the customer experience, expanding into smaller cities and accelerating digital and beverage innovation tailored to Chinese consumers.

Brian Niccol, chairman and chief executive officer of Starbucks Coffee Company, said: “Boyu’s deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions. We’ve found a partner who shares our commitment to a great partner experience and world-class customer service."

Alex Wong, partner at Boyu Capital, added: "Starbucks has built an iconic brand and a deep connection with Chinese consumers over the past 26 years. This partnership reflects our shared belief in the enduring strength of that brand and the opportunity to bring even greater innovation and local relevance to customers across China."

"Together, we aim to combine Starbucks global coffee leadership with Boyu’s deep market insights and expertise to accelerate growth and create exceptional experiences for millions of customers."

The joint venture is expected to close in the second quarter of Starbucks’ 2026 fiscal year, pending regulatory approvals.