Starbucks has officially completed its previously announced joint venture with Boyu Capital, transitioning roughly 8,000 company-operated stores in China to a franchise model. Under the agreement, Boyu holds up to 60% equity, while Starbucks retains 40%, remaining the owner and licensor of the brand and intellectual property.

The partnership aims to expand the store count to 20,000, deepen localization, and enhance the customer experience. Starbucks entered mainland China in 1999 and currently operates 8,011 stores in the country, representing 35% of its international locations and 20% of its global total.

In the first quarter of fiscal 2026, China revenue rose 11% year-over-year to $823.4 million, with same-store sales up 7%. However, global GAAP operating margin fell to 9.0%, and earnings per share dropped 62% due to higher labor investment under the “Back to Starbucks” strategy and inflationary pressures from coffee prices and tariffs.

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