- Starbucks is opening a pick-up cafe in midtown Manhattan with Amazon that uses the retail giant’s cashierless technology.
- It’s the latest step in Starbucks’ strategy to update its store footprint to meet consumers’ changing habits.
- The first Starbucks Pickup with Amazon Go location opens Thursday in New York City on 59th Street, between Park and Lexington Avenues, and two more are planned over the next year.
Starbucks is opening a cashier-less pick-up store in New York City using Amazon’s automated technology. With people’s coffee habits changing drastically during the pandemic, Starbucks is shifting its strategy to open more pick-up stores in urban locations. The company is also installing more walk-up windows and double drive-thru lanes in suburban areas as more people are preferring to drink their coffee on the go.
Starbucks and Amazon Partnership Details
As for Amazon, the partnership with Starbucks is a massive boost for its nascent ‘Just Walk Out’ automated checkout technology that has, until recently, been largely restricted to its own first-party stores like Amazon Go and Amazon Fresh. The company has been pushing hard for its automated technology to be adopted by third-party retailers, and its recent partnership with Sainsbury’s in the UK is a big step in that direction. The latest tie-up with Starbucks might also go a long way towards helping the concept pick up steam in the coming years.
In an official press release on Thursday, Starbucks announced a partnership with Amazon to open its first cashier-less store in New York City. Located on 59th Street, between Park and Lexington Avenues in midtown Manhattan, it is a pick-up store where customers will have to place prior orders through the Starbucks app before arriving at the location. Once at the store, they will be able to pick up their order directly from a Starbucks barista. The store will also serve as an Amazon Go market, with seating arrangements that customers can take advantage of. The available platter will include fresh salads, sandwiches, bakery items, and snacks from Amazon Go, as well as the “full Starbucks menu,” including sous vide egg bites, breakfast sandwiches and protein boxes.
Starbucks Plans To Open Two More Cashier-Less Stores In New York City
Per the press release, buyers will have to use either a credit card. The Amazon app or scan their palm to enter the store. They can then shop like any other Amazon Go outlet. Where anything they pick-up from the store shelves will be automatically charge to their card once they leave the shop. The customer will get their receipt within a few hours after the purchase.
The new outlet is part of the company’s strategy to overhaul its retail footprint across the US. with more of an emphasis on pick-up stores. In New York alone, the company is planning to open “at least three” Starbucks. Pickup with Amazon Go stores over the next year. According to the press release, the second cafe is set to come up in the New York Times building at 40th Street & 8th Avenue, but there’s no confirmation about where the third location is going to be.
As you take items off of shelves, they’ll be to your virtual shopping cart; if you put them back, they’ll be remove from your cart. When you’re shopping, you can leave or sit in the lounge and not interact. With any other humans if that is what you prefer. Your card will charge either way once you exit the store.
There will be Starbucks employees at the store to make the drinks and help customers as they shop. The new store will be open daily at 6AM and will stay open later than other Starbucks cafes. Closing at 10PM on weekdays and 9PM on weekends.
Correction November 18th 2:11PM ET: An earlier version of this story said two additional stores would open this year. It should have said the stores will open in 2022. We regret the error.
Beyond the displays of food is seating
Beyond the displays of food is seating. With large booths for meetings and solo dining booths for customers who may be working remotely or studying. They can order refills for their coffee through the Starbucks app or with a barista at the counter.
“We designed this experience to fit people’s needs as they go about their day,” said Kumar. “Sometimes you’re in a hurry, some days you have more time.”
The location will have longer hours than a typical Starbucks cafe. Staying open until 10 p.m. on weekdays and 9 p.m. on weekends.