Starbucks Finalizes Joint Venture With Boyu Capital

Starbucks has finalized its anticipated joint venture with Boyu Capital, which it first announced last November.

The deal—under which funds managed by Boyu Capital now hold a 60% stake in Starbucks China retail operations—reflects the company’s continued confidence in China as a “critical growth market.”  Starbucks will retain a 40% ownership interest and continue to own and license the brand and intellectual property to the joint venture.

“China remains one of the most exciting long-term opportunities for Starbucks, and finalizing this partnership with Boyu accelerates our ability to grow with intention and discipline,” says Brian Niccol, chairman and chief executive officer of Starbucks Coffee Co. “By combining Starbucks’ trusted global brand with Boyu’s deep local expertise, we are positioning the business to serve more customers, enter more cities and strengthen our leadership in a dynamic and evolving market.”

The joint venture oversees approximately 8,000 company-operated coffeehouses today, notes the release, and will transition to a licensed operating model, with a shared long-term aspiration to grow to as many as 20,000 locations.