Xin Lang Cai Jing·2025-11-04 11:37Core Insights - Starbucks has announced a strategic partnership with Boyu Capital to establish a joint venture for operating its retail business in China [1][2] Group 1: Joint Venture Details - Boyu Capital will hold up to 60% equity in the joint venture, while Starbucks retains 40% and continues to own and license its brand and intellectual property [2] - The estimated total value of Starbucks' retail business in China exceeds $13 billion, comprising the equity transferred to Boyu, the retained equity value, and ongoing licensing revenue over the next decade [2] - The joint venture will be headquartered in Shanghai and manage approximately 8,000 Starbucks stores in China, with plans to expand to 20,000 stores in the future [2] Group 2: Market Potential and Strategy - Boyu Capital, founded in 2011, has a diversified investment management platform and aims to leverage its local market insights alongside Starbucks' global leadership in the coffee industry to accelerate growth [3] - Starbucks executives emphasize that this partnership will help unlock significant market potential, particularly in smaller cities and emerging regions in China [3] Group 3: Competitive Landscape - Starbucks China reported a revenue increase of 6% year-on-year to $831.6 million for the latest fiscal quarter ending September 28, 2025, and a projected annual revenue growth of 5% to $3.105 billion [4] - Despite positive growth, Starbucks faces intense competition from domestic brands like Luckin Coffee, which reported a 47% year-on-year revenue increase to $1.24 billion in Q2, along with a net profit growth of 44% [4] - Luckin Coffee continues to expand aggressively, with a total of 26,206 stores as of the end of Q2, reflecting a net increase of 2,109 stores [4]