"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.'"
"So, regardless of where you're stationed in those income cohorts, we want to make that experience worth your while. The way we're going to play the value game is, you're going to feel like it was worth it, and it's not going to be a game of discounting."
Brian Niccol, CEO of Starbucks, faces criticism for calling a $9 purchase affordable while reporting strong financial performance. He highlights success with Gen Z and millennials, noting that average customer spending is just under ten dollars. Niccol explains that while traditional coffee starts at $3, customization increases the average ticket price. He asserts that Starbucks is not experiencing the effects of economic inequality in sales and emphasizes the importance of perceived value in their pricing strategy rather than discounting.
Read at Fortune
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