VERY simple. Just go to your Applications Folder and find Image Capture.app. Start Image Capture. Plug in your iPhone. iTunes will probably start, but you just close it. Now, you can set Image Capture to be the application that opens when you plug in your iPhone. See screenshot. Select your iPhone under DEVICES. Go to the bottom of the column and choose what you want to happen when connecting "this camera."

Done! Oh, and yes, you can set the exact location to store your photos, using the Import To: drop-down dialog at the bottom of the column of images. You can also select to download all, or just selected images that appear in that column...

This procedure works for any camera or SD or CF card you connect... but if you re-format the card, you may have to do it again. '

This procedure works regardless of whether you use iCloud to store your photos. It has, since the late 2000s, with every iPhone I can remember (that's 3Gs forward).

You can do this in LR. If it were me, I’d make a virtual copy of the image so as to keep the original intact. Then, on that copy, I’d crop it, setting the aspect ratio to 5x7, making sure I got everything important in the photo during the crop. Then, I’d do the export to a thumb drive to take to Walgreen’s.

During that export, that intuitive dialog comes up, but you may have questions about some of it. The most important thing will be to select your thumb drive as the destination. Most of the defaults will likely work for you.