Starbucks CEO Brian Niccol is being called “out of touch” after he defended $9 coffee as a “premium experience.”
When asked by WSJ if high prices deterred customers and had a negative effect on their numbers, Niccol said, “You know, we’re not seeing that in our business.”
“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, you know, a $9 experience does feel like you’re splurging. And then, what that means is we have to make it worthwhile, right?”
“And then in other cases, certain 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. “So, regardless of where you’re stationed in those income cohorts, we want to make that experience worth your while. And what we know is what’s definitely something that drives that value is to be able to have a great seat, have a great moment of connection with a barista.”
