Last month, "Shark Tank" investor Kevin O'Leary warned about the expensive daily coffee habits draining wealth, even as experts say the ritual carries meaning beyond caffeine.
O'Leary Calls Coffee A ‘Big Money Waste'
O'Leary shared a video on YouTube of a man proudly declaring that he refuses to buy overpriced Starbucks drinks. Instead, the man makes coffee at home for just 20 cents a cup.
"I love this guy. This is exactly what I'm talking about," O'Leary said in response. "He's very, very conscious of not wasting a single cent. Nothing wrong with that. That’s very smart. Coffee is a big money waste."
The Math Behind Daily Coffee Splurges
In a 2015 article, Forbes cited workplace psychologist Bill Dyment estimates that a once-a-day $4 espresso drink can cost more than $133,000 over 30 years if the same money were invested at modest interest rates.
"That’s 25 safaris or nice trips to Europe, a very nice car or addition to one’s retirement," Dyment said at the time.
A 2024 study by Toast found that the average price of a regular cup of coffee in the U.S. was $3.08 in the first quarter of 2024, with cold brew at $5.14 and lattes at $5.46. Hawaii led the nation with $4.89 average coffee price, while Nebraska had the cheapest at $2.12.
By comparison, making coffee at home can cost as little as 8 to 27 cents per cup, depending on brand and quality.
Experts Say It's Not Just About Caffeine
Still, psychologists and therapists point out that the allure of a $5 coffee isn't only about taste. Dyment said premium coffee delivers a mix of "social ritual, self-reward" and a welcome pause in a busy day.
Therapist Joanne Weidman echoed that view, adding, "Everyone has their splurge, their personal indulgence … Jobs may come and go, marriages end, friends get sick, but Starbucks always smells the same," she said, adding, "That’s the brilliance of the luxury brand—it's not about money, but meaning."
America's Coffee Obsession Keeps Growing
According to the National Coffee Association's April 2025 report, 66% of American adults drink coffee every day, averaging three cups.
Specialty coffee consumption has surged nearly 18% since 2020, with espresso-based drinks and cold brew leading the growth.
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Kevin O'Leary | Photo courtesy: Kathy Hutchins / Shutterstock.com
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
