Will you still accept walk up/in traffic?

Yes, we plan to install kiosks in a small lobby area. Walk-in customers can place their order (using the same web interface), then enjoy a cup of coffee while their order is picked, packed and brought out to them.

Is it in a traditional shopping center, or is it more off the beaten path

That depends on the metro area and market we're targeting. Typically, an Ernie's location will be located on the "afternoon rush hour side" of a commuter route, as the "order at work, pick up on the way home" use case is expected to be our most common.

peapod ... shittiest produce

Yep, quality is a huge priority for us. We realize that execution is crucial to our success, and if we're picking shitty items (especially produce and other perishables) that will kill us. Incidentally, this is where bolting onto an existing grocery store (like Peapod does) is a terrible idea. On average, supermarket produce is terrible quality. Working with one's own suppliers (where you have some leverage to demand quality assurance) is key.

impulse buys

You are correct. Impulse buys are key to existing grocery profit models. We are replacing the in-store shopping experience with an online shopping experience. So, instead of forcing the shopper to meander through labyrinthine aisles (for example, by placing milk -- an extremely popular item -- as far away from the store entrance as possible) , Ernie's will suggest upsell items on the website, in response to your shopping behavior. For example, you just threw peanut butter into your cart, so up pops a list of artisan jams and jellies you might be interested in. More useful for the consumer and better conversion rates for us.

Many thanks for sharing your thoughts!