Starbucks and Amazon Go joined forces and brought a new digital and physical retail space to Starbucks customers. The new Starbucks café will have Amazon Go available in a store located in New York City.
The new store combines Starbucks Pickup with Amazon Go, utilizing the Starbucks app and the Just Walk Out technology from Amazon Go.
Besides the easy check-out experience at the New York City-based Starbucks, the coffee shop will offer modernized lounge seating, including individual workspaces, expanded tables, power outlets, and USB ports.
“The new Starbucks Pickup with Amazon Go is designed to provide our customers with an experience that delivers convenience and connection in an effortless way,” said Katie Young, senior vice president of global growth and development at Starbucks, in a news release. “Our goal with this new store concept is to give our customers the ability to choose which experience is right for them as they go through their day, whether it is utilizing the Starbucks and Amazon apps to purchase food and beverages on the go or deciding to stay in the lounge for the traditional third-place experience Starbucks is known for.”
Additionally, the store will offer the full Starbucks menu and a curated assortment of food and beverages found in the Amazon Go market.
“Amazon Go and Starbucks share a common vision to provide innovative in-store experiences that are centered on the customer,” said Dilip Kumar, vice president of physical retail and technology at Amazon, in the same release. “Customers have enjoyed the effortless shopping experience enabled by our Just Walk Out technology at Amazon Go where they can simply come in, grab something delicious to eat or drink, and just leave and carry on with their day without having to wait in line to pay.”
How Does the Starbucks Concept Store Work?
When a customer wants to head to the Starbucks located on 59th Street between Park and Lexington Avenues, they can order their item off the menu on the Starbucks app. Once the customer has arrived in the store, screens will show the live progress of the order.
As soon as the item is ready for pickup, the customer can receive their order at the counter. Then, they can take a seat in the lounge or even head over to the Amazon Go market.
The customer can use the “In-Store Code” in the Amazon Shopping app, Amazon One, or a credit card to shop in the Amazon Go market. Anything the customer takes off the shelf will be automatically added to their virtual cart. Also, anything put back on the shelves will automatically be removed. Once the customer is done shopping, they can enjoy the available seating at the location or make their way out and their card will be charged, and receipt sent within a few hours of their visit.
Starbucks and Amazon Go plan on opening additional stores in 2022. Next year, the company plans to introduce the same technology to the café location in the New York Times Building on 40th Street and 8th Avenue.
This new concept is part of Starbucks’s trade area transformation strategy that will build on the strengths of the digital customer relationship at Starbucks. Additionally, this demand meets the evolving customer preferences of convenience, higher levels of mobile ordering and contactless pay, and reduced wait times.
The digital experience may seem out of the ordinary, but it’s complemented with in-person contact with employees and others in the store to create a balanced mix of convenience and connection for the customer.