Starbucks Coffee Co. announced on Tuesday that it has reached an agreement to form a joint venture with Boyu Capital, a leading Chinese alternative investment firm, to manage Starbucks retail operations in China.

The move aligns with a broader localization trend among global food chains, following similar strategies by McDonald’s and KFC. In China’s fiercely competitive coffee market, where domestic players like Luckin and Cotti offer lower-priced alternatives, the partnership will allow Starbucks to adopt a more localized approach—potentially cutting prices and expanding into lower-tier cities—to appeal to cost-conscious consumers and strengthen its presence in one of its largest overseas markets, analysts said.