Starbucks' new store concept: Pick-up only

Starbucks has begun construction on a new location dedic...

Posted: Sep 19, 2019 9:37 AM
Updated: Sep 19, 2019 4:30 PM

Starbucks has begun construction on a new location dedicated exclusively to mobile orders.

The new store format is called 'Starbucks Pick-Up,' only accepting orders from the Starbucks app. The first-of-its-kind location in the United States will be located near Penn Station in New York City. Starbucks hasn't announced an opening date.

The location is based off 'Starbucks Now,' a similar store format that only exists in China. At Starbucks Now stores, customers order ahead and pick up their drinks in a store that's smaller than a typical cafe. The concept is similar to Luckin Coffee, a rapidly growing regional rival that only accepts payments and orders through its app.

The Pick-Up store in New York City is part of Starbucks plans to modernize its business with a greater emphasis on digital.

Starbucks has also said it wants to expand its 'third place' idea: Starbucks has long said it is another place for customers to congregate, in addition to work and home. But as people continue to change their purchasing habits, Starbucks said it is looking for ways to adapt its strategy. The smaller-format store is a further evolution of the idea. The company has previously said it wants to bring 'convenience, comfort and connection' to its customers.

A greater emphasis on its app-based rewards program is paying off: Starbucks said it grew the number of people using its app by 14% last quarter, reaching more than 17 million members.

The unique store could help Starbucks prevent cannibalization, which is when one location takes clients from another nearby. That poses a problem particularly in dense areas such as New York City. In cities with high rent, it can open more of these smaller stores instead of larger cafes.

Starbucks CEO Kevin Johnson previously told CNN Business that he's thinking about the full 'portfolio' of stores, which include remodels and new concepts, such as glitzy Roastery locations.

'Every store, every community, has its own personality,' Johnson said. The idea is to 'serve the multiple needs of that community.'

-- CNN Business' Danielle Weiner-Bronner contributed to this report.

Terre Haute
Clear
63° wxIcon
Hi: 91° Lo: 72°
Feels Like: 63°
Robinson
Clear
61° wxIcon
Hi: 89° Lo: 70°
Feels Like: 61°
Indianapolis
Broken Clouds
69° wxIcon
Hi: 90° Lo: 71°
Feels Like: 69°
Rockville
Clear
63° wxIcon
Hi: 89° Lo: 71°
Feels Like: 63°
Casey
Clear
68° wxIcon
Hi: 89° Lo: 71°
Feels Like: 68°
Brazil
Clear
63° wxIcon
Hi: 90° Lo: 71°
Feels Like: 63°
Marshall
Clear
63° wxIcon
Hi: 89° Lo: 71°
Feels Like: 63°
Hot Weather with Evening Storms
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events

 

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 156638

Reported Deaths: 7419
CountyConfirmedDeaths
Cook961864741
Lake10464429
DuPage9810491
Kane8151285
Will7382326
Winnebago3202106
St. Clair2386145
McHenry2309103
Kankakee144366
Madison128571
Rock Island123230
Unassigned1174201
Kendall106821
Champaign105717
Peoria71030
DeKalb65722
Boone64021
Sangamon55333
Jackson35919
McLean33415
Randolph3277
Ogle3194
Stephenson2876
LaSalle28017
Macon25422
Clinton25216
Whiteside22015
Union21419
Adams2041
Coles20217
Grundy1965
Tazewell1918
Iroquois1765
Knox1750
Monroe17013
Williamson1644
Warren1500
Cass14010
Morgan1344
Henry1221
Jefferson11717
Lee1092
McDonough10815
Vermilion902
Montgomery892
Pulaski850
Marion790
Macoupin723
Douglas610
Perry611
Jo Daviess551
Livingston552
Woodford532
Christian524
Franklin500
Jasper477
Jersey451
Bureau432
Ford421
Clark410
Effingham341
Menard320
Cumberland300
Mercer290
Johnson280
Mason280
Fayette263
Alexander250
Moultrie250
Washington250
Logan240
Edgar230
Wabash230
Bond222
Carroll212
Hancock211
Piatt210
Shelby211
Wayne211
Crawford200
De Witt180
Fulton170
Saline170
Massac160
Schuyler140
Lawrence130
Marshall130
Greene110
Brown100
White100
Richland90
Clay80
Henderson80
Pike80
Gallatin70
Hamilton70
Stark60
Edwards50
Out of IL30
Calhoun20
Hardin10
Pope10
Putnam10
Scott10

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 52685

Reported Deaths: 2775
CountyConfirmedDeaths
Marion12192697
Lake5764251
Elkhart372061
Allen2988135
St. Joseph223570
Hamilton1779101
Cass16519
Hendricks1482100
Johnson1366118
Porter86738
Vanderburgh8586
Tippecanoe79510
Clark72844
Madison68564
LaPorte63928
Howard61758
Bartholomew60945
Kosciusko5874
Marshall57412
Noble52628
Boone49744
LaGrange49110
Delaware48452
Jackson4813
Hancock47236
Shelby46225
Floyd42544
Monroe37528
Dubois3447
Morgan34431
Grant33426
Henry30618
Montgomery29720
Clinton2913
White28110
Warrick27929
Dearborn27723
Vigo2638
Decatur25732
Lawrence25325
Harrison22022
Greene20032
Miami1972
Jennings18012
Putnam1758
DeKalb1714
Scott1669
Wayne1656
Perry16010
Daviess15117
Jasper1422
Orange14023
Steuben1403
Ripley1357
Gibson1332
Franklin1288
Wabash1203
Carroll1142
Starke1103
Fayette1087
Whitley1086
Newton10110
Huntington932
Jefferson932
Wells841
Randolph814
Fulton791
Knox730
Jay720
Posey680
Washington681
Pulaski661
Clay655
Rush633
Spencer621
Owen541
Sullivan541
Benton510
Adams491
Brown461
Blackford412
Fountain382
Tipton361
Crawford350
Switzerland320
Parke280
Martin260
Ohio230
Vermillion200
Warren161
Pike150
Union150
Unassigned0193