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Is a $9 Starbucks drink really an ‘affordable luxury’? It’s time for CEOs to reassess their reality | Arwa Mahdawi

I hesitate to complain, but the compensation package for Starbucks CEO Brian Niccol raises eyebrows. Having taken the reins in 2024, Niccol has quickly become one of the highest-paid executives in the United States, amassing a staggering $96 million (£70 million) in just his initial four months. This figure equates to an astonishing 6,666 times the earnings of the average employee at the company, as highlighted in the 2025 Executive Paywatch report. Additionally, his routine travel to work via private jet suggests a lifestyle far removed from that of the average worker.

Despite his apparent success in promoting beverages, Niccol seems disconnected from the realities faced by many consumers. Amid escalating living costs and a stagnant federal minimum wage of $7.25, he has faced criticism for describing a $9 coffee as “a really affordable premium experience.” In an interview with the Wall Street Journal, he pointed out that the current K-shaped economic situation—where affluent households are flourishing while lower-income families struggle—has not significantly impacted Starbucks’ performance.

According to Niccol, “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. In other cases, people think, ‘Well, it’s less than $10, and I get a really premium experience.’”

While there is some truth to his statement—New York Magazine recently referred to Starbucks’ “caffeine-laced strawberry-açaí drink” as a “status symbol for New York’s teen elite”—it does not mitigate the perception of him being out of touch. Many individuals are struggling to manage everyday expenses, making it an inopportune moment for Niccol to promote a $9 coffee as affordable.

On a related note, I would like to offer my services as a “chief shhh officer” to corporate leaders. For a modest salary (perhaps a few million), I could stand beside CEOs and quietly intervene when they say something that reveals their disconnect from reality. For instance, Gary Pilnick, the former CEO of Kellogg’s, could have benefited from this when he suggested that families facing financial hardships could save money by having cereal for dinner. Similarly, Braden Wallake, a marketing executive who went viral in 2022 after firing employees and then sharing a tearful selfie, would have found my services useful. If Niccol is looking for ways to remain relatable, I would gladly assist him in avoiding further public relations missteps, promising an experience that is genuinely affordable.

Arwa Mahdawi writes for The Guardian.

If you have thoughts on the matters discussed in this article, feel free to submit a response of up to 300 words via email for consideration in our letters section.


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