Starbucks Defends $9 Coffee as Brian Niccol touts premium experience
starbucks CEO Brian Niccol defended a $9 cup of coffee as a “premium experience,” saying some customers see it as an affordable luxury even when a traditional cup can start at $3. The pitch gives the chain a clear line on pricing: sell the visit, the seat, and the barista interaction, not just the drink.
“What we’re seeing is people, you know, they 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,” Niccol said on The ’s “What’s News AM” podcast. He added that the company wants the visit to be “worth your while,” with “a great seat” and “a great moment of connection with a barista” driving value.
Niccol’s $9 value pitch
“And then, what that means is we have to make it worthwhile, right? And then in other cases, people believe, ‘Well this is a really affordable premium experience.’ Because they’re saying like, ‘Well it’s less than $10 and I get a really premium experience,’” Niccol said. He also said Starbucks wants customers to feel the purchase was worth it, and that a standard coffee can be customized upward from its $3 starting point.
“The way we’re going to play the value game is you’re going to feel like it was worth it,” Niccol said. He said Starbucks visits can feel like escapism, and that the company is seeing strong performance across all income cohorts, including Gen Z and millennials.
Wednesday backlash on Instagram
A snippet of the interview posted on the ’s Instagram page on Wednesday drew backlash fast. One critic said Niccol is out of touch because he remote works from Orange County and takes a private jet to work in Seattle, while another mocked his line about a “great moment of connection with your barista.”
Earlier this year, Niccol was granted access to the company jet for personal travel, adding another layer of scrutiny to the pricing defense. Starbucks is now arguing for a premium customer experience while its chief executive faces criticism over how that premium plays outside the store.
Gen Z, millennials, and income cohorts
Niccol said Starbucks is “doing really well” with younger generations and that the chain is seeing strong performance across all income cohorts. That puts the company on a clear path: keep defending a sub-$10 ticket for customers who want a specific in-store experience, even as some viewers hear a tone-deaf message attached to the price.
