00:00The CEO of Starbucks said that a $9 coffee is really affordable, and the internet lost its mind.
00:06Here's what's happening.
00:07That right there is Brian Nickel, the current CEO of Starbucks, former CEO of Chipotle.
00:12The very same guy that said if you want a little more protein...
00:15All you gotta do is kinda like...
00:17Starbucks hired him on last year to turn around its struggling coffee empire.
00:22Last week on the Wall Street Journal's What's News podcast,
00:24he was asked how Starbucks fits into an economy where people are stretched thin.
00:28His answer? It doesn't have to.
00:31He said a plain coffee starts at $3, but once you add syrups, cold foam, and oat milk, you can
00:36build your way up to $9.
00:37And Nickel's case is that for a lot of people, $9 isn't coffee.
00:41It's an experience, a little luxury, a moment of escapism.
00:45People believe, well, this is a really affordable premium experience,
00:48because they're saying like, well, it's less than $10, and I get a really premium experience.
00:53The internet did not receive this well.
00:55Within days, he was trending as out of touch and tone deaf.
00:58But here's where it gets complicated.
01:00The numbers don't really agree with the outrage.
01:02According to CNBC, Starbucks posted Q2 earnings with revenue up 9% in foot traffic growing for the second straight
01:09quarter.
01:09For context, the last video we did on Nickel covered five straight quarters of declining sales.
01:14This is a different story.
01:16Critics say reframing $9 as an affordable luxury is a dangerous game when consumer confidence is at a generational low.
01:23Grocery bills and gas prices are climbing with no sign of coming down.
01:26But supporters say Nickel isn't making a moral.
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