Starbucks Shortlists Dozen PE and Tech Firms for China Investment, Including Boyu Capital, Carlyle Group, and Tencent Holdings

Starbucks has shortlisted about a dozen parties, including private equity firms and tech companies, to invest in its China business. The shortlisted firms will be given access to the coffee chain's China financials to evaluate and prepare bids. The investment is expected to help Starbucks expand its store count, enhance its mobile platforms, and develop its supply chain and brand strategies for Chinese consumers. The search for a partner in China is not about capital but about ensuring the Starbucks brand is in a better place in the future.

Starbucks Corp. has narrowed down its search for a strategic partner in China to a dozen firms, including private equity and technology companies, according to sources familiar with the situation [1]. The shortlisted firms will be given access to Starbucks' China financials to evaluate and prepare bids in the coming months. This investment is expected to help the coffee chain expand its store count, enhance its mobile platforms, and develop its supply chain and brand strategies tailored to Chinese consumers.

The shortlist includes private equity firms such as Boyu Capital, Carlyle Group Inc., EQT AB, FountainVest Partners, KKR & Co., Hillhouse Investment, and Primavera Capital, as well as tech giants JD.com Inc. and Tencent Holdings Ltd. [1]. Starbucks is not seeking capital but rather a partner to help ensure the brand's future success in China.

China is Starbucks' second-biggest market, with the company aiming to grow its store count to 20,000 from the current 7,800 [1]. However, it has fallen behind local rivals such as Luckin Coffee Inc., which have boomed with cheaper alternatives and frequent product launches. Starbucks has responded by incorporating lower-priced and tailored offerings into its China menus, and there are signs of improvement, with same-store sales rising in the latest quarter for the first time since the end of 2023 [1].

The search for a partner in China attracted more than 20 potential investors in total, with Starbucks wanting to retain a "meaningful" stake in the business [1]. Deliberations are ongoing and may not lead to a transaction. Other industry and financial investors could also join at later stages when talks are more advanced [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-01/tencent-hillhouse-among-dozen-on-shortlist-for-starbucks-china-investment
[2] https://www.caixinglobal.com/2025-07-30/cx-briefing-interest-in-starbucks-china-business-percolates-102346943.html
[3] https://www.hospitalityireland.com/general-industry/starbucks-ceo-details-brand-reset-plan-211297
[4] https://www.webpronews.com/starbucks-eyes-thousands-of-new-china-stores-in-expansion-push/