Carlyle and Boyu emerge as likely buyers for Starbucks’ China operations, sources say
Dubai – Qahwa World
Private equity firms Carlyle Group and Boyu Capital have reportedly taken the lead in efforts to acquire a controlling stake in Starbucks’ China business.
Seattle-based Starbucks initiated a formal sales process in May 2025, seeking to bring in strategic partners amid slowing growth and stiff competition from local chains such as Luckin Coffee and Cotti Coffee.
According to sources, up to five firms made the final shortlist by September 2025, with Carlyle and Boyu now viewed as frontrunners for the deal. The transaction is expected to value the China operations at around USD 4 billion, and Starbucks may retain up to a 49 percent interest.
Carlyle already has experience in the coffee and restaurant sector: it acquired South Korea’s A Twosome Place chain and previously held a 28 percent stake in McDonald’s China, which it sold in 2023.
Meanwhile, Boyu has backed major food and beverage enterprises, including a role in investing in Mixue Group, and has co-ownership in the Honeymoon Dessert brand in China and Singapore.
Starbucks currently operates roughly 7,800 stores in China, making it its second-largest market by store count—and roughly 20 percent of its global total—though it contributes only about 8 percent of revenue.
MarketScreener
Unlike most markets where Starbucks licenses some stores, its entire China operation is wholly company-run.
While Starbucks endured three straight quarters of revenue decline in China in 2024, more recently the business has rebounded: it posted three consecutive quarters of year-over-year growth in 2025, including its first six-month stretch of positive same-store sales during the second quarter.
Comunicaffe International
