By Yantoultra Ngui, Miho Uranaka and Kane Wu
HONG KONG, Sept 16 (Reuters) - Starbucks Corp is weighing the sale of a majority stake in its Japan business in a potential deal that could value the coffee chain's biggest overseas company-operated market at about $3 billion, two people with knowledge of the matter said.
The Japan operations of the world's largest coffeehouse chain span 1,883 stores and account for nearly 9% of its global footprint as of September 2025.
Starbucks has solicited pitches from
several financial advisers on options for the business and is open to selling a majority stake, the sources said, declining to be named as they were not authorised to speak to the media.
While Starbucks Japan's valuation is not public, the sources said the business could be worth around $3 billion.
The stake size of any eventual sale has yet to be determined, and the valuation Starbucks ultimately seeks will be subject to negotiations, said one of the sources.
"Starbucks Japan is a strong business, with deep brand affinity and trusted presence built over 30 years in the region," said a Starbucks spokesperson in an emailed response to Reuters' request for comment on the potential stake sale.
"We continually assess the best structure to be most meaningful to customers and create value for shareholders."
Bloomberg first reported in June Starbucks was considering options for its Japan business including a stake sale.
The potential sale comes as Starbucks reshapes its global portfolio under Chief Executive Brian Niccol, who has shuttered stores and cut corporate jobs in North America in a push to restore profitability.
ASSET SALES AND RESTRUCTURING
The process to divest a majority stake in Starbucks' Japan business is expected to attract interest from global and local buyout firms, the sources said. A formal process could begin in the fourth quarter, one of them added.
Starbucks took full control of its Japan business in 2014, buying out long-time partner Sazaby League for about $914 million and valuing the operation at roughly $1.5 billion.
Since then, the business has expanded from around 1,050 stores to 1,883 outlets as of September 2025.
Analysts at TD Securities said in June that monetising the Japan unit would make strategic sense because the market is not central to Starbucks' brand and could allow management to sharpen its focus on reviving its core U.S. business.
Niccol's efforts to lure customers back through store upgrades and heavier marketing have helped stabilise demand but have also increased costs and pressured margins.
Its comparable store sales in the international segment grew 5.7% in the third quarter, with the company crediting Japan as a key driver.
Last year, Starbucks ceded control of its China operations to Boyu Capital in a deal valuing the business at $4 billion, underscoring the pressure from slowing growth and intensifying competition. The transaction closed in April.
The company said the total value of its China business - including proceeds from the sale, the value of its retained stake and likely licensing income over at least the next 10 years - would exceed $13 billion.
It is not immediately clear if the sale of the Japan business would follow the same structure.
A number of global buyout firms, including Carlyle Group, EQT, KKR and Bain Capital, were invited to bid for Starbucks China, Reuters reported at the time.
(Reporting by Yantoultra Ngui, Kane Wu and Miho Uranaka; additional reporting by Sam Nussey and Anton Bridge in Tokyo; Editing by Sumeet Chatterjee, Louise Heavens and Shri Navaratnam)
