Zheng Quan Shi Bao·2025-11-23 18:49Core Insights - Starbucks has announced a strategic partnership with Boyu Capital to establish a joint venture for retail operations in China, aiming to enhance local market efficiency and expand its store count to 20,000 [1][2] - RBI Group is forming a joint venture with CPE Yuanfeng to boost Burger King's performance in China, with an initial investment of $350 million aimed at expanding its store count from approximately 1,250 to over 4,000 by 2035 [1][2] - The trend of foreign brands partnering with local capital to restructure their operations in China reflects the growing competition and the need for sustainable development in the Chinese market [1][3] Starbucks Specifics - The partnership with Boyu Capital is not primarily about capital but about shared mission and values to improve operational efficiency in China [2] - As of September 28, 2025, Starbucks had 8,011 stores in China, with 415 new stores opened in the fiscal year [2] - The goal is to leverage Boyu's local expertise to accelerate expansion, particularly in smaller cities and emerging regions [2] Burger King Specifics - CPE Yuanfeng's $350 million investment will support restaurant expansion, marketing, menu innovation, and operational improvements for Burger King in China [2] - The target is to increase Burger King's store count in China to over 4,000 by 2035 [2] Market Dynamics - The adjustments by foreign brands like Starbucks and Burger King are responses to the competitive landscape in China, where local companies are rapidly growing [4][6] - The experience of McDonald's in localizing operations has set a precedent, with its store count in China tripling since 2017 [4] - The Chinese market is seen as a critical opportunity for multinational companies, especially in the context of rising local competition and consumer demand [5][6] Financial Performance - Starbucks reported a 2% increase in same-store sales in China, outperforming the global average, with Q4 revenue of $832 million, a 6% year-on-year growth [7] - The growth is attributed to innovations in non-coffee beverages and price adjustments, alongside a surge in demand for its delivery service [7] Investment Climate - The current foreign investment landscape in China is characterized by reinvestment of profits rather than new capital inflows, reflecting a long-term commitment to the market [8] - Recent policies have been introduced to support foreign companies in reinvesting their profits, enhancing confidence in long-term operations in China [8]