Starbucks is considering options for its Japanese business including a stake sale, according to people familiar with the matter, following the disposal of a majority interest in its China operations.
The US coffee chain has held preliminary talks with investment banks to help determine an approach for Japan, the people said, asking not to be identified because the deliberations are private. Japan is one of Starbucks’ biggest markets with about 2,100 stores, most of which it operates directly.
A stake sale might be valued at 400 billion yen (S$3.21 billion) to 500 billion yen and could attract interest from other industry players and private equity firms, some of the people said. An initial public offering of the Japan business is also an option, they said.
Considerations are preliminary and no final decisions have been made, they added.
A representative for Starbucks declined to comment.
Starbucks does not break out the performance of its Japan stores, but Chief Executive Officer Brian Niccol said in April that results were “outstanding” last quarter thanks to strong sales over New Year, robust tourism and new product launches.
Starbucks has a long history in Japan, where it established a joint venture with Sazaby League in 1995 and held an IPO for the local unit in 2001. In 2014, Sazaby sold its shares in the venture back to Starbucks, which delisted the unit from the Japanese stock market in 2015.
Starbucks’ fortunes have improved after a slump, with global comparable store sales in the second quarter rising 6.2 per cent from 2025. The Seattle-based coffee chain’s shares are up about 16 per cent in 2026.
In China, the sale of a 60 per cent stake of its retail operations to Boyu Capital closed in April, “marking a significant milestone in the company’s long-term strategy to unlock sustainable, disciplined growth” in the country, Starbucks said in its quarterly earnings release. BLOOMBERG
