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The Street
The Street
Veronika Bondarenko

Starbucks Now Has a Secret Weapon

Quick counters for picking up mobile orders is spreading fast — as part of a partnership with Amazon (AMZN), Starbucks (SBUX) is set to open two new "Starbucks Pickup with Amazon Go" locations.

What's A Pickup And Go Store?

Opened quietly between Park and Lexington Avenues in New York last year, the first location has a Starbucks counter for picking up phone orders and an Amazon Go Market with a selection of food items. 

But unlike many similar pickup concepts launched by other companies, there is a small space to sit down for visitors who want to work, eat and charge one's devices.

"With this new store concept, customers can order a handcrafted Starbucks beverage or food item for pickup through the Starbucks app and grab food items from the Amazon Go market, all in one convenient location without having to wait in line to pay," Amazon said in its latest earnings release.

The second "Starbucks Pickup with Amazon Go" location is slated for the New York Times Building at 40th Street and 8th Avenue. Neither Amazon nor Starbucks have confirmed where — in New York or otherwise — the third store will be.

Are We All Just Dropping In Now?

The pickup-and-go concept has been rapidly gaining steam for fast food chains. Texas-based chicken wing chain Wingstop WING recently launched a location without a seating area and which does not accept cash. 

Last year, Taco Bell launched a series of restaurants offering only drive-thru, mobile and curbside ordering while Burger King (QSR), McDonald's  (MDNDF)  and Chipotle (CMG) already have similar concepts in different states all over the U.S.

The pick-up-and-go restaurant works better for fast food chains which, not usually known for their dining experiences anyway, saw an influx of curbside pickup and mobile orders during the pandemic. 

Sit-down restaurants, meanwhile, rely on an entirely different model and customers who are looking for a dining experience.

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