Brian Niccol

It's not going to be a game of discounting or one-off promotions.

I think people actually really do appreciate knowing, hey, if this is a $3 cup of coffee or a $5 latte, I know I'm going to get a great experience for that $5 experience.

I'm in.

Yeah, so I mean, one of the things that's great about Starbucks is it really is one of these brands that resonates with just about everybody, you know, from the 15 year olds all the way up to the 80 year olds.

We do definitely over index with the kind of the teenage crowd.

And also right now we're doing really well with Gen Z and millennials.

And then really had strong performance across all income cohorts.

You know, and then the average spend is a little less than $10.

So you're kind of in the $9 to $10 range.

And that really depends on whether or not you're attaching food to your drink purchase or how much you're modifying your drink purchase.

But it can start with as little as, you know, $3 for a traditional cup of coffee.

And then obviously you can build your way into all sorts of customized drinks that people love that move that ticket up.

You know, we're not seeing that in our business.

What we're seeing is people, you know, they want to have a special experience.

And regardless of what your income level is, 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.

And then in other cases, 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.

Yeah, you know, look, when we've spent the time talking to customers, you know, what is it that you're looking for in your experience?

They do talk about how they use their Starbucks experience as a moment of escapism.

And, you know, my hope is we get more than our fair share of all those occasions.