Starbucks is going to put its Chinese operations into a joint venture, in which it will take a 40 % stake. The other 60 % will go to the Chinese investment fund Boyu. The goal is to more than double the size of the Chinese branch, from 8,000 locations now to a target of 20,000.
Background and growth plans in China
With this spin-off, CEO Brian Niccol is reversing the 2017 deal, in which Starbucks bought out its then joint venture partner to gain full control. Niccol hopes that Boyu’s local knowledge will help accelerate growth in China, especially in smaller cities and new regions. The deal values the branch at four billion dollars (3.7 billion euros).
