Starbucks opens NYC’s first cashless cafe

The Big Apple will have its first cashier-free Starbucks cafe on Thursday.

The guavereus opened a cafe on E. 59th St. and uses Amazon’s checkout-less technology, allowing customers to order through the Starbucks app, grab their coffee, and leave without opening their wallets or swiping a card.

There is also an Amazon Go in the Starbucks location.

Starbucks said it will open at least two more checkout-free locations in New York next year, including one in the New York Times Building at W. 40 St. and Eighth Avenue, Starbucks said Thursday.

The initiative comes as Starbucks closes 400 underperforming stores and replace them with smaller pick-up locations that offer drive-thrus or curbside service, which started during the pandemic.

Starbucks says 80 percent of its orders are on the way.

“Our goal with this new store concept is to give our customers the ability to choose which experience is right for them during their day, whether it’s using the Starbucks and Amazon apps to buy food and drinks on the go. , or decide to stay in the lounge for the traditional third place experience Starbucks is known for,” Starbucks senior vice president of global growth, Katie Young, said in a statement.

Customers pay through an app in Amazon Go stores.

Hit by a labor crisis in the US, Starbucks and other companies are expanding labor-saving technology such as artificial intelligence, robotics and digital touchscreens.

White Castle tests a robotic chef and Domino’s Pizza Inc experiments with self-driving delivery vehicles. IBM develops automated order processing for McDonald’s Corp. drive-thrus.

U.S. restaurant workforces are generally still at least 10% lower than before the pandemic, boosting margins, said Rabobank analyst Tom Bailey.

A Kiosk Picks Up Customer Orders.
Customers use their smartphones in the Amazon Go stores.

“You would see some of the digital automation tools being deployed to bridge that 10% gap as they grow,” he said.

Still, Starbucks says the new locations will have the same workforce as any other Starbucks. Baristas will make drinks and the rest of the chain’s menu at its automated payment locations in New York City, the company said.

The pandemic forced people to place more online orders for fulfillment, delivery and drive-thru.

The New Store Integrates The Digital And Physical Shopping Experience, Combining The Connectivity And Comfort Of A Starbucks Cafe With The Convenience Of Amazon Go'S Just Walk Out Shopping Experience.
The new store integrates the digital and physical shopping experience, combining the connectivity and comfort of a Starbucks cafe with the convenience of Amazon Go’s Just Walk Out Shopping experience.

To keep pace, Starbucks shifted its development strategy to new retail formats, adding only urban pick-up locations as well as traditional suburban cafes and drive-thrus.

At the new Starbucks locations, as soon as they arrive, customers can see the status of their order on a digital screen in the store and then collect their order directly from a Starbucks barista, the Seattle company said.

“Our vision is that eventually every major city in the US will have a mix of traditional Starbucks cafes and Starbucks takeout locations,” said Starbucks CEO Kevin Johnson in June 2020.

A Customer Shopping In An Amazon Go Store.
Amazon Go stores offer grab-and-go items.

Amazon, for its part, has 20 Amazon Go stores in major cities in the US.

With Post wires


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