From Configuration Menu, click Shipping → In-Store Pickup for RTShipping
Using this feature, store admins for stores that also have physical locations can give their local customers the option to pick up their purchases at the shop.
NOTE: This only functions when the store uses Real Time Shipping rates. If using fixed shipping methods, this feature will be disabled. You can create your local pickup as another fixed rate method.
To enable this option, check the "Allow In-Store Pickup" box and give the option the desired name and price.

This option can be limited by geographic region if desired, based on the following restrictions:
Unrestricted
All customers can choose the in-store pickup option.
By State
Only customers in the allowed state(s) will be able to choose this option.
By Zip Code
Only customers in the allowed zip code(s) will be able to choose this option. The entire 5-digit zip code should be listed.
By Zone
Only customers in the allowed zone(s) will be able to choose this option. See
here for information on creating zones.