Starbucks is exploring options for its Japan business, including the possible sale of a minority stake or a public listing, according to people familiar with the matter cited in a report published Wednesday. The discussions are described as preliminary, and the company has not publicly confirmed any plans or commented on the reported deliberations.

In simple terms, Starbucks is considering whether to bring in outside investors to own part of its Japan operation. Another option under review is an initial public offering of the business, allowing investors to buy shares in the Japan unit while Starbucks retains a significant ownership position.

According to the report, a transaction could value the business at approximately ¥400 billion to ¥500 billion (about $2.5 billion to $3.1 billion), though no formal process has been announced and no final decision has been made.

For customers, little would change. Starbucks stores across Japan would continue operating under the same brand, serving the same products, and using the same loyalty programs. The question is not about changing the coffee business itself but about changing who owns part of it.

Japan is one of Starbucks’ most important international markets. The company operates approximately 2,100 stores across the country, making it one of the largest Starbucks footprints outside North America. Most of those locations are company-operated rather than franchised.

The reported discussions follow a major transaction Starbucks recently completed in China. In an official filing with the U.S. Securities and Exchange Commission, Starbucks disclosed that funds managed by Boyu Capital acquired a 60% stake in the company’s China retail operations, while Starbucks retained a 40% ownership interest and continued to own and license the Starbucks brand to the venture.

That China deal valued Starbucks’ China business at roughly $4 billion and reflected a broader strategy of partnering with local investors while maintaining control of the brand and long-term growth plans.

Brian Niccol, Chairman and Chief Executive Officer of Starbucks, said at the time that the China partnership would accelerate growth by combining Starbucks’ global brand with strong local expertise and operational capabilities.

A similar arrangement in Japan would extend what many analysts describe as an asset-light strategy. Rather than owning every international operation outright, Starbucks can generate capital from mature markets while continuing to benefit from future growth through retained ownership stakes, licensing fees, and brand royalties.

Unlike some corporate divestitures, the reported Japan discussions are not being driven by a struggling business. Starbucks has a long history in the country and remains one of the most recognized coffee brands in Japan.

The company first entered Japan in 1996, opening its inaugural location in Tokyo. In 2014, Starbucks purchased the remaining ownership stake in Starbucks Coffee Japan for approximately $914 million, giving the company full control of the business after years of operating through a joint venture.

If Starbucks ultimately sells a minority stake today, the valuation being discussed suggests the Japan operation has appreciated significantly since that acquisition.

The timing also aligns with Niccol’s broader effort to reshape the company. Since becoming CEO, he has been implementing the “Back to Starbucks” turnaround strategy, focused on simplifying operations, improving customer experience, and strengthening profitability.

Selling stakes in mature international businesses can free up capital, improve financial flexibility, and allow management to focus resources on key strategic priorities, including efforts to strengthen the company’s core North American operations.

For investors, the reported discussions could provide a clearer picture of how much Starbucks’ international businesses are worth. When outside investors place a specific value on an operation like Japan, it offers a market-based benchmark that can help analysts assess the company’s overall valuation.

Several important caveats remain. The discussions are reportedly in the early stages, the information comes from unnamed sources rather than company executives, and many preliminary deal talks never result in a transaction.

Starbucks could pursue a stake sale, an IPO, a strategic partnership, or decide to keep the business exactly as it is.

What is clear is that Starbucks is continuing to evaluate how it structures ownership of its international operations. After reshaping its China business through a local partnership, Japan may now be the next market under review as the world’s largest coffee chain looks to balance growth, capital allocation, and shareholder value.

JBizNews Desk — Asia

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