DFI Retail Grabs Full Starbucks Control in Asia for US$340M on October 1

DFI Retail Group has taken full ownership of a Starbucks-licensed business spanning seven Asian markets after unwinding its 50-50 joint venture with Maxim’s Caterers. The deal, announced September 30 and expected to close by end of Q1 2027, gives DFI control of 1,100+ coffeehouses and US$340 million in cash. DFI shares surged 6.6% to US$3.40 on October 1 as investors bet on the company’s plan to turn Starbucks into a billion-dollar business within three years.

The restructuring deal and what DFI receives

Maxim’s Caterers will buy back DFI’s 50% stake in the Hong Kong-based food and beverage group and transfer the entire Starbucks-licensed business to DFI. DFI receives the Starbucks operation plus US$340 million in cash. The Starbucks network spans Thailand, Hong Kong, Singapore, Vietnam, Cambodia, Macau and Laos. Maxim’s retains 1,000+ restaurants and bakeries under brands including Genki Sushi, Ippudo, Shake Shack and The Cheesecake Factory.

Revenue forecast and expansion plans

The Starbucks business generated US$746 million in revenue in 2025 with a 7% operating margin. DFI projects US$600 million to US$650 million in revenue from April to December 2027, then approximately US$900 million for the full year 2028. The company plans to open 250 new stores primarily in Vietnam and Thailand, targeting 1,350 locations by 2029. Capital expenditure is estimated at US$90 million to US$100 million over three years.

Why DFI is betting on coffee in Southeast Asia

Southeast Asia’s specialist coffee and tea market totalled US$3.8 billion in 2025 and is projected to expand at 5% compound annual growth through 2030, according to Euromonitor data cited by DFI. The region’s rising middle class, higher disposable incomes and growing appetite for specialty coffee create tailwinds. DFI expects operating margins to improve to 8% to 9% over the medium term as the network scales.

Strategic shift and capital allocation

The deal reflects DFI’s strategy to focus on higher-growth businesses it can directly control, moving away from joint ventures managed by partners. DFI raised its 2027 dividend payout ratio to 80% and said the US$340 million cash will fund acquisitions or flow back to shareholders if not deployed. The company maintained its 2028 underlying profit outlook of US$310 million to US$350 million.

Market context and competition

Starbucks is reshaping its global business under CEO Brian Niccol, closing coffeehouses in North America and cutting corporate jobs. In Asia, Starbucks gave Boyu Capital a 60% stake in its China joint venture in April and is weighing a sale of majority stake in Japan. DFI faces competition from fast-growing Chinese chains like Luckin Coffee, which has opened 103 Singapore stores in nearly four years.

Final Thoughts

DFI’s acquisition of full Starbucks control in Asia positions the company to capitalize on rising coffee consumption in Southeast Asia. With a 6.6% stock rally on October 1 and management targeting a billion-dollar business by 2029, investors see meaningful upside if expansion and margin targets hold.

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