As it revitalizes its US business, Starbucks reshuffles its global operations. Photo credit: Thananat
The Starbucks turnaround plan is starting to pay off, according to CEO Brian Niccol. Two years after he took over and began implementing the “Back to Starbucks” strategy, customers are returning, and sales are rising. “We have returned to growth, delivered positive global comps, and improved margins,” Niccol wrote in a letter to employees this month. “We have positioned Starbucks to perform for the long term.”
It Costs More to Earn More
The turnaround has not been cheap, however. Starbucks is spending $1 billion to refurbish thousands of US cafés, adding comfortable seating and redecorating to make its stores more welcoming to customers. It has also invested in barista staffing, spending $500 million on additional hours and more coverage during peak periods.
At the same time, the coffee giant is looking to cut costs. Starbucks has laid off corporate staff in multiple waves, while closing underperforming stores. As it focuses on reviving its US operations, Starbucks is also realigning its global brand. In November 2025, the company sold a 60% stake in its Chinese business for $4 billion, and now Reuters reports that it is considering a similar move in Japan.
Divesting From Japan
According to Reuters, Starbucks is considering selling a majority stake in its Japan business, a deal that could value what is now its largest international company-operated market at $3 billion. The details have yet to be determined, but Starbucks has reportedly asked financial advisers to pitch various options.
One approach could be to mirror what the company did in China, when it formed a joint venture with the private equity firm Boyu Capital to operate its Chinese business. The move took about 18 months to come to fruition, with the deal valued at $4 billion. “This approach allows us to combine the strength of the Starbucks brand, our coffee expertise, the third place, and our unique partner culture with Boyu’s deep knowledge of the China market and local expertise,” Niccol said in a statement at the time.
While not as large as its Chinese market, in which it operated more than 8,000 stores, Starbucks’ Japanese business is still significant. The company has 1,883 cafés, accounting for almost 9% of its global footprint as of September 2025. “Starbucks Japan is a strong business, with deep brand affinity and trusted presence built over 30 years in the region," a Starbucks spokesperson told Reuters. “We continually assess the best structure to be most meaningful to customers and create value for shareholders.”
Prioritizing US Operations
Experts see the potential move as part of a wider reorganization of Starbucks’ priorities. In June, analysts at TD Securities said that a move to monetize its Japanese business would make strategic sense, allowing Starbucks to concentrate on its core US operations. “This strategy should free up capital to reinvest in brand, product innovation, and digital capabilities,” agreed Bloomberg Intelligence analysts Catherine Lim and Peter Tang.
Two years after its implementation, the narrower focus seems to be working. Niccol’s revitalization plan is starting to pay off. In the second quarter of the 2026 fiscal year, same-store sales in North America rose 7.1% year-over-year. In the third quarter, they climbed 8.1%. “The shine is back on Starbucks,” Niccol recently told CNBC. The company’s global reshuffling is another part of the plan.