Starbucks CEO Brian Niccol has sparked criticism after describing a $9 (£7) coffee as an 'affordable premium experience' amid a cost-of-living crisis. Niccol, who joined the company in 2024, earned $96m (£70m) in his first four months, making him one of the best-paid US executives. He reportedly earns 6,666 times the salary of a typical Starbucks employee and commutes by private jet.
In an interview with the Wall Street Journal, Niccol argued that the 'K-shaped economy', where higher-income households thrive while others struggle, has not hurt business. 'People want to have a special experience, and regardless of what your income level is, in some cases, a $9 experience does feel like you're splurging,' he said.
Critics have accused Niccol of being out of touch, noting that many customers are struggling to afford basic groceries. The remarks echo similar controversies, such as former Kellogg's CEO Gary Pilnick's suggestion that families eat cereal for dinner to save money, and marketing CEO Braden Wallake's tearful selfie after laying off staff.
Despite the backlash, some analysts note that Starbucks drinks have become a status symbol among young consumers. New York magazine recently called the chain's strawberry-açaí drink the 'status-symbol of New York's teen elite'. However, the timing of Niccol's comments has drawn particular ire as the federal minimum wage remains at $7.25 per hour.
