Starbucks CEO Brian Niccol has sparked backlash after describing a $9 coffee as an 'affordable premium experience' while millions struggle with rising costs. In an interview with the Wall Street Journal, Niccol argued that the K-shaped economy—where higher-income households thrive and the bottom half struggles—has not significantly impacted Starbucks sales.
Niccol, who joined the company in 2024, received a $96m compensation package in his first four months, making him one of the best-paid executives in the US. According to a 2025 Executive Paywatch report, he earns 6,666 times more than the average Starbucks employee. He also regularly commutes via private jet.
Critics have accused Niccol of being out of touch, noting that the federal minimum wage remains at $7.25 an hour and many families are struggling to afford basic groceries. The comments echo those of former Kellogg's CEO Gary Pilnick, who suggested families eat cereal for dinner to save money, and marketing CEO Braden Wallake, who posted a crying selfie after laying off staff.
Despite the criticism, Niccol's remarks reflect a reality for some: New York magazine recently declared Starbucks' strawberry-açaí drink a 'status symbol' for the city's teen elite. However, for many, a $9 coffee remains a luxury they cannot afford.
