Starbucks joins delivery war, launches launch first pickup store in NY

Starbucks' decision to launch the Pickup store is in a move to address its patronized customers' convenience in delivery.

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Starbuck Coffee Potter Building New York Pixabay/Christian Hardi

Starbucks is the latest to join the delivery war. The coffee company and coffeehouse chain will open the first Starbucks Pickup Store in New York City's Penn Plaza on November 5. The pickup store has been specially designed to cater to orders of Starbucks' on-the-go customers.

Starbucks' decision to launch the Pickup store is in a move to address its patronised customers' convenience in delivery. This certainly will make customers feel more special given the personal touch Starbucks will offer though its latest feature.

Customers visiting the Pickup Store will have to use the Starbucks mobile app to place and pay for their order. A special feature, Starbucks Mobile Order & Pay has been added to the Starbucks app. Customers need to simply select 'Starbucks Pickup-Penn Plaza' as their location and place their order using the Starbucks menu. After arriving at the location, customers can track the progress of their order on a digital status board and pick up the beverage directly from one of the coffee store baristas.

"Our customers who are on-the-go have told us that connection and convenience are important to them," said Katie Young, VP, Urban Markets, Starbucks.

The company presently has a similar mobile-focus store format called Starbucks Now in Beijing, China. The store has been designed especially to give a streamlined experience to customers who place their order online. The store also has been designed keeping in mind the convenience of delivery drivers and riders, who pick up the order. However, unlike Starbucks Pickup, Starbucks Now has a limited product assortment on its menu for on-the-go orders placed inside the store.

Delivery the most important feature

In the U.S. Starbucks has a partnership with Uber Eats to roll out its delivery in 16 markets including New York. Starbucks definitely has understood that customer convenience is of utmost importance. Moreover, delivery has become the most important feature in the retail war. Faster and on-time delivery seems to have become the biggest weapon in the intensifying retail war. All major retailers in the United States have been increasingly focusing on this aspect with Amazon, Walmart and Target and Kroger leading the race.

Amazon recently announced that it will make free one-day delivery for all groceries shopped by its Amazon Prime members. Delivery and convenience will once again play a key role during the approaching holiday season given that all major retailers have been focusing on this area to lure more customers.

This article was first published on November 2, 2019