Starbucks shifts control in China in $4 billion deal for growth

Starbucks has taken a significant strategic step by selling a controlling stake in its China operations to Boyu Capital, a move aimed at accelerating growth. Under the $4 billion agreement, Boyu Capital will hold a 60% interest in Starbucks retail operations in China, while Starbucks will retain ownership of the brand and intellectual property. This partnership is expected to renew Starbucks’ growth trajectory in China, where it first ventured in 1999 amid considerable excitement. Despite its current 7,800 stores across 250 cities, competition from local brands like Luckin Coffee has intensified, pressuring Starbucks to rethink its market approach. The management…