Brian Niccol joined Starbucks from Chipotle in September 2024
Niccol became Starbucks CEO in September 2024 after revitalizing Chipotle, with one of the largest pay packages in US corporate history. Owen Gregorian/X

Starbucks CEO Brian Niccol is facing a torrent of online backlash after calling a nearly $10 (£7.37) cup of coffee an 'affordable premium experience' just days after the company posted record quarterly revenue of $9.53 billion (£7.02 billion).

The 52-year-old executive made the remarks on The Wall Street Journal's What's News AM podcast in late April. When asked whether the K-shaped economy, where high and low-income Americans face vastly different financial outcomes, was affecting Starbucks sales, Niccol said the company was 'not seeing that' in its business.

'What we're seeing is people, they want to have a special experience,' Niccol told podcast host Luke Vargas. 'And regardless of what your income level is, in some cases, a $9 (£6.63) experience does feel like you're splurging.'

He went further, saying some customers see it as 'a really affordable premium experience' because 'it's less than $10 and I get a really premium experience.' Starbucks drinks, he said, start at $3 (£2.21) for a traditional coffee, but the price rises as customers add customisations.

From Chipotle Turnaround to Coffee Kingdom

Niccol joined Starbucks as chairman and CEO in September 2024 after being recruited from Chipotle Mexican Grill, where he served as chief executive from 2018 and was widely credited with reviving the fast-casual chain following a food safety crisis. His move came with one of the largest pay packages in US corporate history.

A Securities and Exchange Commission (SEC) filing showed his total compensation in his first year reached $96 million (£70.8 million), with stock awards alone exceeding $90 million (£66 million). An AFL-CIO Executive Paywatch report published in July 2025 found that figure was 6,666 times more than the median Starbucks worker's annual pay of $14,674 (£10,800).

Social Media Erupts Over 'Out of Touch' Comments

The CEO's remarks went viral on X within hours, with users calling him 'tone deaf' and 'disconnected' from everyday consumers struggling with rising costs.

'This guy needs to live on the median US income for a year and buy his own lattes every day,' one user wrote. Another comment cited by Daily Mail said, 'these people live in a different reality.'

Others mocked the idea of a 'premium experience' at a drive-through window. One widely shared post on X described the typical Starbucks visit as getting a rushed drink while 'dodging the 25% tip prompt.'

Record Revenue Can't Quiet the Backlash

The controversy arrives at a tricky moment for the CEO. Starbucks reported its second-quarter fiscal 2026 results on 28 April, delivering numbers that beat Wall Street estimates across the board. Consolidated net revenue rose 9% year-on-year. US comparable store sales jumped 7.1%, with customer visits up 4.3%. Adjusted earnings per share reached $0.50, well above analyst projections of $0.42.

Niccol called it 'the turn in our turnaround' during the company's earnings call. The company also raised its full-year guidance, projecting at least 5% same-store sales growth.

A $9 Latte in a Cost-of-Living Crisis

But strong quarterly numbers don't always translate into public goodwill. US coffee prices rose 18.3% year-on-year as of January 2026. Starbucks itself introduced incremental price hikes of 5 to 20 cents on select drinks earlier this year. And McDonald's launched six new specialty beverages in May, pushing directly into the territory Starbucks has long dominated.

For millions of consumers watching their budgets shrink, a CEO who earned $96 million (£70.8 million) in a single year, telling them a $9 coffee is an 'affordable' luxury, doesn't feel like marketing. It feels like the gap between corporate boardrooms and kitchen tables, measured one latte at a time.