Starbucks doesn't want you to order in its latest store
Young said that the store is intended to be "predictable and effortless" for customers who want seamless drinks or food pickup in their busy lives.
The store is around 1[ads1],000 square feet, nearly half the size of a typical 1,800-square-foot cafe. It does not have the large seating areas or cases of food in a typical Starbucks, although a full menu will be offered.
The design is also lighter and more modern than Starbuck's cozy coffee shop aesthetic. A large digital billboard will tell people the status of their order.
Customers are not required to order from Starbucks & # 39; app, but they are encouraged to do so. Baristas will continue to take orders, helping customers to download and use the app.
The digitally focused store is part of the company's goal to encourage customers to participate in the app-based rewards program. The number of Starbucks Rewards members grew by 15% over the past year to $ 17.6 million, the company said in its earnings report on Wednesday. Reward customers use more than a regular customer.
Starbucks Pick-Up will help the company "test and learn" the format, Young said, as it can expand to other US cities.
The new format can help Starbucks prevent cannibalization when a location draws customers from another Starbucks nearby. There is a problem in dense urban areas like New York City. In cities with high rental costs, the company can open these lower rents, smaller stores instead of higher rents, larger cafes, and offer a different experience, while still maintaining brand loyalty.
CEO Kevin Johnson said on Starbucks & # 39; s revenue call this week that it "sees encouraging early results" from Starbucks Now and plans to open more of them in China's largest cities.
Both Starbucks Now and Starbucks Pick-Up are part of the company's portfolio of stores that are "tuned to different needs at different times," Young said.
