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."
See Also: Kevin O'Leary Says Steve Jobs Was ';Not A Nice Guy' But Taught Him A Success Formula That Elon Musk Now Uses
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.
Read Next:
- Kevin O'Leary Says Steve Jobs Was ';Very Unpopular' And A ';Really Nasty Guy' -- But Elon Musk? ';There's Never Been A Man Like Him'
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.
