Starbucks, Amazon open first grab-and-go concept store in New York

The companies will open their first Starbucks Pickup with Amazon Go location on Thursday in New York. At least three more New York stores are planned for next year

The Seattle-based companies will open their first Starbucks Pickup with Amazon Go location on Thursday in New York. At least three more New York stores are planned for next year.

The stores offer the full Starbucks menu as well as prepared salads, sandwiches and snacks from Amazon Go. There is also a lounge area with tables and workspaces.

Customers can order drinks and food using Starbucks' app or shop the Amazon Go section, which automatically tallies items added to the cart so customers don't have to wait in line to check out.

The effort is part of a larger shift in store formats for Starbucks. Last year, the company announced it was accelerating a plan to close 400 underperforming stores and replace them with smaller pickup locations or stores focused on curbside or drive-thru service. Even before the pandemic, Starbucks said 80% of its U.S. customer transactions were on-the-go orders.

Amazon, meanwhile, has been expanding its physical presence. The company began opening Amazon Go stores in 2018; it now has more than 20 in Seattle, Chicago, San Francisco and New York. The company also opened a larger Amazon Go grocery store in Seattle last year.