Tokyo: US-based Starbucks Corporation is looking to sell its stake in its highly profitable operations in Japan, including a potential partial exit, a report by Bloomberg said. This comes after the company sold a 60% stake in its China operations to Boyu Capital while retaining ownership of its brand and intellectual property last year.
This comes at a time when the company has been facing increasing on its downline due to higher competition, supply chain disruptions and a loss of brand value. This development is expected to fit CEO Brian Niccol’s aim of restructuring its global portfolio, as the company looks to unlock value from assets while maintaining brand and operational control.
Tapping into a Crown Jewel
Starbucks’ Japan operations have been one of its most successful outside of the US. It has a massive network of about 2,100 stores, most of which are directly owned. Robust tourism, strong domestic holiday sales, and successful local product rollouts have helped the company mitigate challenges in other markets.
Starbucks had bought out its JV partner’s stake in its Japan operations in 2014, given the highly successful nature of its businesses.
The proposal
Starbucks is exploring options for monetizing its Japan operations, which could be worth about 400-500 billion yen ($2.5-3.1 billion), with an IPO being considered, the Bloomberg report further said.
Starbuck’s Japan operations generates about $1.2 billion in revenues, growing at about 4% on average, despite macroeconomic challenges.
Outside Japan, Starbucks is facing a multitude of problems, with its net income declining by over 50% in 2025 due to flat or negative sales as value-conscious customers are cutting down on its premium pricing for cheaper alternatives. The company has also seen its operating margins slip to 9.9% in North America from 11.6% as heightened commodity pricing and labor investments have hurt margins.
