DFI Takes Full Control of Starbucks in Seven Asian Markets

DFI Retail will absorb Maxim's 1,100-plus Starbucks stores across seven Asian markets, surrender its 50% Maxim's stake, and collect about US$340 million in cash.

Singapore-listed DFI Retail Group announced a conditional sale and purchase agreement that hands it Maxim's Caterers' interests in the Starbucks-licensed business, covering more than 1,100 coffeehouses in Singapore, Hong Kong, Macau, Thailand, Vietnam, Cambodia and Laos. As part of the same reorganisation, DFI gives up its 50% stake in Maxim's and receives roughly US$340 million (S$434 million) in cash, ending a 50-50 partnership with Hongkong Caterers that has run since Jardines took its interest in 1972. Hongkong Caterers becomes sole owner of the remaining Maxim's business and its 2,000-plus outlets, including Genki Sushi, Ippudo, Shake Shack and The Cheesecake Factory franchises across Asia.

The transaction is less an expansion than a deliberate restructure: Maxim's actually pays DFI US$340 million while DFI unwinds its half of a four-decade joint venture. DFI's group chief executive Scott Price described the deal as the final milestone in the company's shift from a portfolio of passive stakes to a focused operating company, and The Straits Times notes Maxim's had long been treated as an associate because DFI lacked operational control. By owning the Starbucks network outright, DFI can decide expansion, operations and investment directly alongside US-listed Starbucks Corporation. It is a bet that direct control of a single powerful brand beats holding minority interests in a sprawling restaurant group.

According to The Business Times, the Starbucks-licensed business generated revenue of US$750 million in 2025 with a 7% underlying operating margin, growing at a 3.5% revenue CAGR from 2023 to 2025. DFI expects the unit to contribute US$600 million to US$650 million to subsidiaries' revenue from April to December 2027 and about US$900 million in full-year 2028, with a projected 6-7% revenue CAGR from 2026 to 2029 as the footprint grows to at least 1,350 locations. Finimize reports DFI guides to underlying profit of US$310 million to US$350 million in 2028 and has raised its dividend payout ratio to 80% for 2027, implying roughly US$250 million to US$280 million of annual dividends that the US$340 million cash inflow helps cushion.

DFI frames the acquisition as a play on structural tailwinds: Asia's rising middle class and disposable incomes, with per-capita coffee consumption and coffee-house penetration in key emerging markets still below regional and global peers, leaving what it calls substantial runway for growth. Management at Dimsum Daily reports DFI aims to expand the coffeehouse footprint materially while capturing efficiencies in procurement, overheads and real estate, with a midterm operating margin target of 8 to 9 per cent on the Starbucks business per The Business Times. The timing also coincides with Starbucks reworking its global playbook under CEO Brian Niccol, which Finimize notes includes trimming costs in North America and reassessing parts of the Asia setup.

Investors are watching whether the math holds: Finimize reports DFI's US$340 million cash payment will be tested against its 80% dividend plan, since the payout could otherwise force spending cuts or debt. The deal also hands DFI greater direct exposure to a highly competitive cafe industry, rising operating costs and shifts in consumer spending, as The Straits Times cautions. Market reaction was measured — The Business Times reports DFI shares fell 1.5%, or US$0.05, to close at US$3.19 on Wednesday before the deal was announced. For Maxim's, sole ownership under the Wu family's Hongkong Caterers means continuing to invest in restaurants, bakeries and catering across mainland China, Hong Kong, Macau and Southeast Asia.

The transaction is subject to regulatory approvals and completion of the internal separation of the Starbucks-licensed business from Maxim's other operations. According to The Straits Times, it is expected to complete by the end of the first quarter of 2027, and The Business Times notes the long-stop date automatically extends to June 30, 2027 if conditions are not satisfied by March 31, 2027 and neither party terminates. Day-to-day operations of both the Starbucks and Maxim's businesses remain unchanged during the transition. DFI says the US$340 million cash consideration strengthens its balance sheet, providing capital for further mergers and acquisitions or returns to shareholders, while Maxim's chairman Michael Wu says the group will keep investing in employees, businesses and communities.