Is Starbucks selling its Japanese business? Where will I get my Frappuccino then?

At first glance, I thought Starbucks must be struggling in Japan. That doesn’t seem right—just last year, a Starbucks opened right by our office, and it’s always bustling with customers; not to mention the ones in shopping malls, where lines stretch endlessly during holidays. Yet, just about everything in Japan has been changing lately: department stores are closing, supermarkets merging, electronics retailers restructuring—and even long-established companies with decades of history frequently announce layoffs or asset sales. Could it really be that Starbucks is no longer viable there? After all, back in April, Starbucks sold over half its stake in its China business to an investment firm. But upon reading the news more carefully, I realized the reason is actually the opposite of what happened in China. In China, Starbucks was losing ground to domestic coffee brands—their market share kept shrinking, and continuing to operate independently meant mounting losses, so they had no choice but to sell early. In Japan, however, Starbucks is *too* profitable—so profitable, in fact, that the company wants to cash in now while valuations are high, then use the proceeds to shore up its struggling U.S. headquarters. The U.S. market has been having a rough few years: soaring coffee prices have driven customers away; staffing shortages, store closures, and corporate layoffs abound… So how to rescue it? By monetizing strong overseas assets and funneling the capital back home. Japan’s business alone could fetch an estimated ¥400–500 billion (roughly RMB 20 billion). This report originated from Bloomberg on June 9: the U.S.-based coffee chain Starbucks is reportedly considering selling its Japanese operations. As of now, no final decision has been made—the matter remains at the stage of preliminary discussions with investment banks. Japan’s coffee market is fiercely competitive, too. From convenience stores to chain cafés, every price point is fiercely contested. Convenience-store coffee is the most affordable option: as of 2026, the cheapest entry-level offering is 7-Eleven’s R Cup at ¥140 (approximately RMB 7).

Starbucks CEO: China stores to rapidly expand to 20,000; international stores to double in number; Starbucks’ Japanese business may follow suit and be sold.

Double Currently, Starbucks operates over 41,000 stores across 89 markets worldwide, approximately 22,000 of which are outside the United States. At the conference, CEO Laxman Narasimhan stated that the number of international stores has the potential to double: “Take our partnership model in China, for example—we believe we can rapidly expand store count there from 8,000 to 20,000 alongside our local partners.” China has long been Starbucks’ largest international market. As previously reported by Xiaoshidai, in November last year Starbucks announced a strategic partnership with Boyu Capital, forming a joint venture to operate Starbucks’ retail business in China. Boyu holds up to 60% equity in the JV, while Starbucks retains 40%. This means Starbucks is transitioning over 8,000 of its China-based coffee shops from company-operated stores to a franchise model. Starbucks expects this shift will accelerate expansion—especially into lower-tier cities. In January this year, Starbucks identified its long-term global growth opportunities, including doubling the size of its international café network—bringing the number of stores outside the U.S. close to 40,000. It explicitly stated this goal would be driven primarily by expanding its China footprint to between 15,000 and 20,000 stores. Meanwhile, Narasimhan reiterated yesterday at the conference that substantial growth potential remains in the U.S. market itself—particularly in underpenetrated central regions. To that end, Starbucks is opening more compact-format stores across the country. Notably, Japan—the other major international market for Starbucks—may replicate China’s shift toward a lighter-asset operating model. Today, market reports indicate that, following the sale of majority equity in its China business, Starbucks is evaluating multiple options for its Japanese operations—including equity divestiture. Reportedly, the U.S. coffee chain has already begun preliminary talks with investment banks. According to these reports, the valuation for such a sale could range between ¥400 billion and ¥500 billion (approximately RMB 16.9–21.1 billion), potentially attracting interest from other industry players and private equity firms; an IPO for the Japanese business is also being considered. These deliberations remain preliminary, and no final decision has been made. Starbucks declined to comment. Available data shows Japan is one of Starbucks’ largest markets, with roughly 2,100 stores—most directly operated by Starbucks. Starbucks first entered Japan in 1995 through a joint venture with Sazaby League, a clothing and daily goods retailer; it later transitioned to full ownership and independent operation. Competition Returning to the conference: Xiaoshidai noted that Narasimhan was asked about competition facing Starbucks: “In New York, people might see Luckin Coffee offering small-packaged, online-only, low-priced coffee; they might also see premium specialty coffee brands charging higher prices nearby; and in suburban areas, they might encounter drive-thru-focused chains like Dutch Bros (whose vast majority of outlets are drive-thru only). How do you view the opportunities and challenges posed by competition?” Narasimhan responded that competition validates the category itself: “The sole reason more players are entering—and growing stronger—is because the category itself is expanding.”

Starbucks Considers Selling Majority Stake in Japan Business, Sources Say

6 days ago

Starbucks Corp is evaluating a sale of its majority stake in Japan operations, potentially valued at $3 billion, as part of CEO Brian Niccol's global portfolio restructuring. Formal bidding may begin in Q4 with interest from major buyout firms.

reuters

2026-09-16

Starbucks Considers Selling Majority Stake in Japan Business, Sources Say

Starbucks Considers Selling Majority Stake in Japan Business, Sources Say

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