Dinkun Chen
Under the agreement, Boyu will hold a 60% stake in the new venture, which will oversee the operation of Starbucks coffee shops in China. Boyu will be responsible for licensing the Starbucks brand and its intellectual property to the joint venture, with the remaining 40% owned by Starbucks.
The company’s operations in China are estimated to be worth about $4 billion.
The joint venture will be based in Shanghai, where it currently operates over 8,000 coffee shops across mainland China, with more than 1,000 located in the city itself—an amount that exceeds any other city globally. The company has plans to expand this number to 20,000 in the coming years.
Starbucks' business in China was historically a key source of profit growth, but recent years have seen the company face difficulties in maintaining its market position amid fierce competition.
Analysts highlight that Starbucks' market share in China has declined significantly. According to data from Euromonitor International, the company's market share dropped from 34% in 2019 to just 14% in 2024.
For the fiscal year 2025, which concluded on September 28, Starbucks experienced a 1% decline in comparable sales in China, partly due to a 5% reduction in the average order value.
source: english.news.cn
The company’s operations in China are estimated to be worth about $4 billion.
The joint venture will be based in Shanghai, where it currently operates over 8,000 coffee shops across mainland China, with more than 1,000 located in the city itself—an amount that exceeds any other city globally. The company has plans to expand this number to 20,000 in the coming years.
Starbucks' business in China was historically a key source of profit growth, but recent years have seen the company face difficulties in maintaining its market position amid fierce competition.
Analysts highlight that Starbucks' market share in China has declined significantly. According to data from Euromonitor International, the company's market share dropped from 34% in 2019 to just 14% in 2024.
For the fiscal year 2025, which concluded on September 28, Starbucks experienced a 1% decline in comparable sales in China, partly due to a 5% reduction in the average order value.
source: english.news.cn