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11/19/2021

New Retail Store Concept: Starbucks and Amazon Join Forces

Part workspace, part convenience store, part coffee shop – get a look inside the first Starbucks Pickup with Amazon Go store.
Jamie Grill-Goodman
Senior Editor
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Starbucks and Amazon are teaming up to open cashierless coffee shops in Manhattan.

The new store concept from the two retail giants melds Starbucks Pickup and Amazon Go together, utilizing the order ahead feature in the Starbucks app and Amazon Go’s Just Walk Out technology to create a digital checkout experience.

Now open, the first Starbucks Pickup with Amazon Go store, located in New York City at 59th Street between Park & Lexington Avenues, isn’t just a grab and go shop. The retail location also includes a modernized lounge that features individual workspaces and expanded tables with power outlets and USB ports. 

a group of people in a kitchen

Starbucks and Amazon Go plan to open to additional stores in 2022, with the next location planned for The New York Times Building located at 40th Street & 8th Avenue in New York City next year. 

“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. “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.”

To pickup coffee at the new store, customers can place and pay for their order by selecting the Starbucks on “59th between Park & Lex w/ Amazon Go” as their desired location in the app. Once the customer arrives at the location, they can find the status of their order on a digital screen in the store and then retrieve their order directly from a Starbucks barista.

The Amazon Go market at this Starbucks Pickup location offers a “curated selection of customer favorites” from both retailers, as well as items from local kitchens and bakeries. To enter the Amazon Go market and store’s lounge seating, customers can use the “In-Store Code” in the Amazon Shopping app, Amazon One or a credit card, and then shop the Amazon Go market like any other Amazon Go store. Once inside, anything customers take off the shelf is automatically added to their virtual cart. Anything they put back on the shelf comes out of their virtual cart. When a customer is done shopping, they can either sit in the lounge area to enjoy their purchases or leave. After the customer leaves the Amazon Go market, their card will be charged and they can access their receipt within a few hours.

“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. “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.”

In response to this partnership, other retailers and restaurants will be encouraged to experiment with new tech that will solve today’s payment challenges,” Michael Jaszczyk, CEO, GK America, tells RIS. “Consumers want to be able to order ahead, check in, grab their order and just walk out or pay on their phone. Scan-less checkout provides a great experience with fewer customer tasks, all while offering flexibility in how they pay. The technology should also remove any friction and still allow businesses to interact with consumers, whether by sending real-time relevant offers or rewarding loyal customers in the mobile app. 

“All in all, it’s important that retailers and restaurants evaluate which payment technology fits within their retail format and unique shoppers’ needs. Whether it’s mobile scanning, camera sensors or palm scanning, digital options are here to stay and businesses must continue to reimagine the way consumers order and pay.”