Starbucks sells majority stake in China business in $4bn deal

Starbucks, the global coffee giant, is making a significant shift in its Chinese operations. The company is selling a 60% stake in its Chinese business to Boyu Capital, an investment firm, for a whopping $4 billion. This move comes as Starbucks faces stiff competition from local brands like Luckin Coffee. Despite being the second largest market outside the US, Starbucks has been grappling with customers opting for homegrown cafes. However, the company remains committed to its Chinese presence and plans to expand to 20,000 stores. This partnership is seen as a strategic move to leverage Boyu's understanding of Chinese consumers and maintain Starbucks' competitive edge in China's burgeoning coffee market. The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.