Starbucks CEO Brian Niccol draws flak after defending brand’s S$11 coffee

Starbucks CEO Brian Niccol was recently met with criticism after he defended the coffeehouse chain’s US$9 (S$11) coffee.

In an interview with the Wall Street Journal on 29 April, host Luke Vargas asked the CEO whether the brand is seeing the K-shaped trend in the economy.

In an interview with the Wall Street Journal on 29 April, Niccol was asked about the economic recovery, specifically in relation to the K-shaped trend in the economy.

The K-shaped economy is described as an economic recovery where groups of people or industries experience vastly different outcomes – some thriving while others struggle.

In response, he defended Starbucks’ pricing strategy, claiming their offerings cater to a broad customer base, from teens to seniors.

CEO clarifies that ‘traditional coffee’ costs US$3

Mr Niccol stated that the brand foresees strong performance across all income groups.

He said that the average Starbucks spend was just under US$10 (S$13), but clarified that a traditional cup of coffee at Starbucks costs a much more affordable US$3 (S$4).

He then added that customers can “build their way into all sorts of customised drinks” that drive the higher price points.