Starbucks Invites Top Investors to Bid for China Stake

As of August 1st, 2025, Starbucks is making a strategic move to bolster its presence in China, its second-biggest market. The coffee giant has invited a dozen heavyweight investors, including private equity firms Carlyle, KKR, and EQT, as well as tech majors JD.com and Tencent, to bid for a stake in its China operations.

According to sources familiar with the matter, these shortlisted parties are currently reviewing Starbucks' financials and preparing formal proposals. Starbucks CEO Brian Niccol has emphasized that this is not about raising capital, but rather about ensuring the Starbucks brand is in a much better position in the future in China.

China is a highly competitive market for Starbucks, with local rival Luckin Coffee surging ahead with cheaper drinks, faster innovation, and aggressive expansion. To stay relevant, Starbucks has started adapting its menu with more affordable fruit teas and sugar-free options, and the strategy appears to be paying off, with same-store sales in China turning positive last quarter for the first time since late 2023.

Starbucks is not looking to fully exit China, but rather to explore how to tap deeper into the country's fast-evolving consumer landscape. A local partner with tech and consumer insights could help the company move faster, optimize supply chains, and deepen its mobile platform strategy in a market that increasingly rewards speed and price.