By bizn_fun 
The agreement marks one of the biggest deals involving the Chinese operations of a global consumer company in recent years.
KFC and Pizza Hut’s operations in China were spun off by their owner Yum! Brands in 2016 after struggling in the country for years.
Other major US brands like fashion chain Gap and ride-hailing platform Uber have also faced challenges in China.
In recent years, Starbucks has seen falling sales in China, due to the Covid-19 pandemic, slower consumer spending and fierce competition.
Beijing-based Luckin Coffee now runs more shops in China than Starbucks and has won a loyal following with its lower prices and frequent discounts.
Starbucks has also cut its prices in the country in a bid to compete with domestic rivals, but this has had an impact on its profits.
Since being appointed as Starbucks’ chief executive last year, Brian Niccol has been on a mission to turn around the global business.
The former Chipotle boss has led a revamp of Starbucks’ menu, and has said he would hire more baristas while scaling back automation efforts.
The chain has more than 40,000 outlets around the world.