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Starbucks doesn't want you to order in its latest store



The coffee chain opens "Starbucks Pick-Up," a prime location in the United States that calls for orders from its app. The store, located near New York City's Penn Station, opens Tuesday. Plans for the store were announced in September.
The new location is one answer to what Starbucks ( SBUX ) sees as third place between work and home, according to Kathryn Young, the company's vice president for urban markets. She told CNN Business that customers want "convenience, comfort and connectivity" and the pick-up store is designed specifically around the first of them.

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

,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.

  Inside Starbucks & # 39; the first pick-up shop ever in New York.

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.

Starbucks has a variant of its pick-up shop in China, called Starbucks Now. Customers can order ahead and pick up their drinks at an elegant store. It is similar to Luckin Coffee ( LK ) a rapidly growing regional rival that places great emphasis on digital orders and transactions.

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.

At the very opposite end of the spectrum lies the Starbucks & # 39; Roaster, its massive and sparkling destination for coffee professionals. The world's largest Starbucks Abbey is scheduled to open in mid-November. The four-story Chicago location is 43,000 square feet and replaces a former Crate and Barrel location on the city's Magnificent Mile.

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