Starbucks reports that two of its large New York cafes with Amazon's Just Walk Out technology have been upgraded to a more intuitive system, making it easier for its Green Apron partners to offer exclusive merchandise and food, and for customers to enjoy a seamless smartphone experience.
Customers can now tap into the lounge area and walk out with their snacks and coffee,
and order from the Starbucks Pickup section with the retailer’s app, without waiting in line.
In a LinkedIn post, Jessica Mills, Senior Director, Global Growth and Development at Starbucks, said: “For me, this journey began five years ago. On my first day back from maternity leave on 2nd July 2019, I was asked how we could partner with Amazon Go products and Just Walk Out technology.”
“This led to a deeper study on creating effortless experiences, culminating in the opening of two unique stores in New York City in November 2021 and July 2022.
These stores serve as incubators and learning centres, with several programmes and insights being scaled across Starbucks.”
She added: “It has been an epic experience, and I am confident that the learnings will continue in this next chapter.”
“Multi-year,
multi-variety,
cross-functional,
cross-company innovations
have brought both joy and challenges in pursuit of an ambitious vision.
The best of Starbucks and Amazon worked on the collaboration.”
Mills concluded: “Thank you to everyone who has worked so hard and believed in this effort.
Please stop by the two stores to give a big high five to the team, order your favourite coffee, shop the space and stay a while: 40th + 8th at the foot of The New York Times building, and 111 w 59th (between Park and Lexington)”.
The O2 and Amazon
The O2 will be one of more than a dozen third-party locations in the UK to offer Amazon’s Just Walk Out technology by the end of this year.
It will be the first indoor arena in England to use the solution, with a new store allowing people to tap their card or mobile wallet, grab their chosen drinks and snacks, and quickly get back to their seats.
The O2 adds to a growing list of UK venues that have opened stores powered by Just Walk Out technology, including ExCel London and The SSE Arena.
Jon Jenkins, Vice President, Just Walk Out technology, says: “We have stores in corporate headquarters like Bentley Motors and Santander Bank, as well as our own Amazon headquarters in London.”
“We’re also in hospitals and universities, including stores at Telford Hospital and Sussex University, and we recently launched a store at Gridserve’s EV Station at Gatwick Airport, with more Gridserve stores coming later this year.”
“By the end of 2024, we expect to be in more than a dozen third-party stores in the UK, as well as in all 20 UK Amazon Fresh stores.”
The union said it expects the number of stores impacted to hit 300, but it’s unclear if the group will hit that target by the end of Christmas Eve.
Over 5,000 workers in Boston, New York and Philadelphia, among other cities, planned to join the work stoppage on Tuesday, according to an emailed statement from Starbucks Workers United.
Elected officials, including Pittsburgh Mayor Ed Gainey, have also joined striking baristas on the picket line over previous days, with the union asking for further support on its last scheduled day of action.
The walkouts began on Dec. 20 at a handful of locations in Chicago, Los Angeles and Seattle and escalated over the following days.
“Only around 170 Starbucks stores did not open as planned,” the company said Tuesday morning,
leaving 98% of its more-than 10,000 company-operated stores open.
Baristas will return to work Wednesday or Thursday, and are ready to resume negotiations, according to the union.
Starbucks Workers United planned the walkouts to coincide with the days leading up to Christmas
— an important time for Starbucks as shoppers treat themselves to lattes while finishing up their shopping.
In addition to beverages, the company sells a large volume of gift cards during the year’s final months.
The strikes were sparked by a breakdown in final-stage negotiations between the union and company leadership, according to the union, which represents employees at over 500 stores.
Starbucks Workers United said the coffee chain offered a package that included no immediate pay raises for its members.
Unionized employees and the company have been facing off since the first store organized for better pay, hours and schedules in December 2021.
Earlier, Starbucks said the union “prematurely ended” a bargaining session and called for talks to continue.
The coffee chain has said it’s focused on improving workers’ experience
and that baristas who work at least 20 hours a week
receive $30 an hour, on average, when combining pay and benefits.
Starbucks Chief Executive Officer Brian Niccol, who took the top job in September, has pledged to negotiate with the union in good faith.
The Chipotle Mexican Grill Inc. and Taco Bell veteran was hired to turn around sagging sales.
Since he took over on Sept. 9,
the stock has declined about 3%,
compared with a 10% gain for the S&P 500 Index.
(Updates store closures and adds comment from company.)
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