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Starbucks and Amazon Go Concept Stores Open in New York City


It’s basically a combination of a Starbucks pickup store and a Amazon Go Store, where customers pick up items without having to wait in line to pay. However, there are no giveaways – you will be charged for exiting. And you will still have to pay for Drinks prepared by staff in the store. The New York City location will open on Thursday.

Here’s how it works: Customers who just want a Starbucks takeout can order online and pick it up at the counter, or order from the bartender just like they would at a regular location.

But customers who want to come and spend time in the Amazon Go marketplace, which has booth seating as well as separate desks, countertops and tables for you to grab a quick bite to eat, must follow Amazon’s process.

That means using your credit card, the Amazon app, or the palm of your hand to access the seating area, which has heating and cooling and the usual shelves stocked with food and snacks. and drinks. There are also typical Starbucks meals and snacks, like sous vide custards, croissants, and protein platters. There are also Amazon Go sandwiches and salads, along with local treats, including bagels from Ess-A-Bagel and treats from Dominique Ansel, among other options.

Starbucks and Amazon Go's new concept store in New York City.
Once you’re inside, Amazon (AMZN) Use the camera to keep track of the items you’ve taken and charge you accordingly. However, the system does not apply to Starbucks drinks prepared by the bartender – for those drinks you will have to pay through the app or at the Starbucks counter.
Starbucks (SBUX) plans to open just three such stores next year — another in New York City and a third in an unspecified location. The future of the concept is then unclear. But stores like this are catching up Starbucks plan to increase its “convenience-led formats”.
For Starbucks, the mixed-use store is another image re-imagined third place concept, which asks its stores to be the place to go after coming home and working. It’s also a way to reach convenience and speed-obsessed customers, whose habits may be different when they emerge post-pandemic.
People sit at a table in a Starbucks Amazon Go store.

What third place looks like in 2021

Starbucks has long introduced itself as a so-called Tuesday place where you can sip a cappuccino, read a newspaper, listen to a carefully curated list of smooth jazz music, and more and more on 2021, work remotely.

“There is space to connect, space to live, space to connect, space to hold meetings,” said Kathryn Young, Starbucks senior vice president of global growth and development.

It’s also a way to “meet customers where [they] in different places throughout the day. ”

During the pandemic, when the company’s employees stopped coming to the office, Starbucks customers began to change their behavior – drinking coffee later in the day, perhaps after having their first cup at home. Recently, the morning has picked up again, during an analyst call in October, said John Culver, chief executive officer and group president for North America at Starbucks.

Once inside, you can choose from a number of snacks, sandwiches, and other treats.
Sales also increased as people resumed their normal jobs. But Culver noted that “the recovery was slower” in the central business district. With some companies hug hybrid models, where people spend less time in the office, a location with more lunch and snack options could appeal to customers who no longer stop for their morning coffee.
The chain could roll out more locations based on mobile orders as people flock to their app-based loyalty program. In the quarter ended October 3, Starbucks Rewards 90-day active membership increased 28% year-over-year to 24.8 million. The company started allow customers to use credit card, Apple Pay, Google Pay or cash through the app in the fall, making it even more appealing to those who have avoided the app because it doesn’t allow those payment options.

It remains to be seen whether customers are comfortable with the Amazon Go concept, which can be frustrating for those who don’t feel comfortable when Amazon surveys their purchases. Young isn’t worried that the format will turn people off, she said.

“Our customers tell us they are excited about the convenience Amazon offers,” she said. For those who aren’t too keen on Amazon Go, “we have options,” she notes. “If you just want to join, [and] Turns out, you are welcome to do that. ”

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