Starbucks and Amazon are teaming up on a take-out store format.
Seattle-based companies will open their first Starbucks Pickup store with Amazon Go on Thursday in New York City. At least three more New York stores are slated for next year.
Stores offer the full Starbucks menu as well as prepared salads, sandwiches, and Amazon Go snacks. There’s also a sitting area with tables and work spaces.
Customers can order food and drinks using the Starbucks app or purchase the Amazon Go section, which automatically counts items added to the cart so customers don’t have to queue to pay.
The effort is part of a larger shift in store formats for Starbucks. Last year, the company announced that it was accelerating a plan to close 400 underperforming stores and replace them with smaller pick-up points or stores focused on curbside or drive-thru service. Even before the pandemic, Starbucks said 80% of its U.S. customers’ transactions were on-the-fly.
Amazon, meanwhile, has expanded its physical presence. The company started opening Amazon Go stores in 2018; it now has more than 20 in Seattle, Chicago, San Francisco and New York. The company also opened a larger Amazon Go grocery store in Seattle last year.