<p><span style="font-weight: 400;">Starbucks CEO Brian Niccol is defending the company&#8217;s high-priced drinks, arguing that customers are willing to pay for what he calls a “luxury experience.” </span></p>
<p>Speaking The Wall Street Journal&#8217;s What&#8217;s News AM podcast, Niccol said Starbucks is performing well across income levels, even as some drinks approach $9.</p>
<p><span style="font-weight: 400;">“We’re doing really well with Gen Z and millennials, and then really had strong performance across all income cohorts,” Niccol said. “It can start with as little as $3 for a traditional cup of coffee. And then obviously you can build your way into all sorts of customized drinks that people love that move that ticket up.”</span></p>
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<p><span style="font-weight: 400;">When asked whether concerns about a so-called K-shaped economy could impact sales, Niccol said Starbucks isn&#8217;t seeing signs of strain. </span></p>
<p><span style="font-weight: 400;">“What we’re seeing is people, they want to have a special experience, and regardless of what your income level is,&#8221; he said. &#8220;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?”</span></p>
<p>In other cases, he added, customers view Starbucks as an affordable premium option.</p>
<p><span style="font-weight: 400;">“They’re saying, ‘Well it’s less than $10 and I get a really premium experience,&#8217;” Niccol went on. “So, regardless of where you’re stationed in those income cohorts, we want to make that experience worth your while.”</span></p>
<p><span style="font-weight: 400;">Niccol also described a visit to Starbucks as “a moment of escapism,” adding that customers value consistency across price points.</span></p>
<p><span style="font-weight: 400;">“I think people actually really do appreciate knowing, “Hey, if this is a $3 cup of coffee or a $5 latte, I know I’m going to get a great experience for that $5 experience, I’m in,” he added.</span></p>
<p><span style="font-weight: 400;">Many commenters called the exec out of touch.</span></p>
<p><span style="font-weight: 400;">“This video just confirms how detached from reality those people are. [Starbucks] IS NOT a premium experience, nor is the coffee worth $9,” one person wrote. </span></p>
<p><span style="font-weight: 400;">“I&#8217;ll pass on this premium experience,” another agreed.</span></p>
<p><span style="font-weight: 400;">A third commenter quipped, “Friends don’t let friends drink Starbucks.”</span></p>

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$9 Pitched As ‘Affordable Luxury’ And Americans Aren’t Buying It