Starbucks has introduced a new concept store capitalizing on the success of their mobile ordering. The pickup store, now open in New York City, will have limited staff and cater primarily to mobile orders.
No Menus, No Food, No Problem — Starbucks Embraces Frictionless Solutions
The new Starbucks pickup store is the answer to one of the biggest retail questions of 2019 — how do we make the shopping experience as frictionless as possible? Starbucks answer: A 300-square foot nook, or “micro-café,” in New York’s Penn Plaza that has no menus or bakery case, and, although in-store orders are possible, is really meant for mobile order pickups, placed in advance on customers’ mobile apps. It’s unlikely these new pickup stores will replace traditional Starbucks, but will instead complement them, offering entirely frictionless options for consumers on the go. The pickup stores are similar to BOPIS, click-and-collect and other retail solutions that merge online and offline shopping.
The Starbucks Pickup Stores Are A Logical Extension Of The Starbucks App
The Starbucks Rewards app is very successful for Starbucks. The app has 17 million active users, up 14% year-over-year, and more than 40% of U.S. sales can be attributed to customers using the app. The pickup stores are clearly capitalizing on the success of the mobile app and the comfort Starbucks customers feel ordering on their apps and sharing their information with Starbucks. With 30,184 stores worldwide and more than $24 billion in revenue, Starbucks is in an attractive position to experiment with delivery models. There are plans to open other pickup stores in major cities, although they will likely be larger than the micro-café in New York.