Regular readers of this blog know that Steven Johnson
Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has
documented and highlighted the ongoing success that Ikea has found selling
grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food. Given that our blog has again reached an all-time
high for daily and monthly views we wanted to share a historical perspective on
IKEA’s
Food and Beverage growth for some of our new followers and readers.
When Ingvar Kamprad founded IKEA
in 1943, the company’s mission was simple: to offer well-designed, affordable
home furnishings. Little did anyone imagine that this Swedish furniture giant
would one day become a global food brand, with its restaurants and food
offerings drawing customers as much as its flat-packed furniture. Today, IKEA
is not just a destination for stylish and affordable home goods but also for
its unique and increasingly popular food and beverage offerings.
The Origins of IKEA’s Food and
Beverage Expansion
IKEA's foray into food began in the 1960s when Kamprad
noticed that customers spent long hours in the store and might appreciate the
option to grab a bite to eat. The first in-store café opened in Älmhult,
Sweden, in 1960, offering simple Swedish fare like meatballs, potatoes, and
lingonberry sauce. This move was not just about convenience; it was a strategic
effort to keep customers in the store longer, boosting sales of both furniture
and food.
The concept of combining furniture shopping with dining
proved to be a massive success. As IKEA expanded globally, its food offerings
became a staple of the brand, with each store featuring a restaurant that
served a consistent menu of Swedish-inspired dishes. Over the decades, IKEA’s
food service has evolved from a supplementary service into a core part of its
brand identity.
IKEA’s Food Sales: A Global Phenomenon
Today, IKEA’s food and beverage operations are a
significant contributor to the company’s revenue. In 2023, IKEA’s global food
sales reached an estimated $2.5 billion, reflecting a 10% increase from the
previous year. This figure includes both dine-in and takeout sales,
highlighting the versatility and appeal of IKEA’s food offerings.
The growth of takeout sales has been particularly
noteworthy, driven by the company’s strategic expansion into ready-to-eat and
frozen meal options that customers can enjoy at home. The introduction of
plant-based alternatives like vegan meatballs and dairy-free soft serve has
also attracted a broader audience, including health-conscious consumers and
those with dietary restrictions.
IKEA’s ‘The Dining Club’ and Free
Coffee for IKEA Family Members
IKEA’s innovative approach to dining doesn’t stop at its
standard restaurant offerings. In 2016, IKEA launched ‘The Dining Club,’ a
pop-up restaurant concept in London that allowed customers to cook and serve
meals to their friends in a fully furnished IKEA kitchen. This unique
experience was designed to blur the lines between shopping, dining, and
entertainment, creating an immersive brand experience that resonated with
consumers.
Another successful initiative is IKEA’s free coffee offer
for IKEA Family members, which has become a popular perk for loyal customers.
This initiative not only drives repeat visits but also reinforces the brand’s
commitment to offering value beyond just furniture. It’s a simple but effective
way to build customer loyalty and enhance the overall shopping experience.
Why Are Consumers So Attracted to
Buying Food at IKEA?
The idea of dining at a furniture store might seem
unconventional, but IKEA has managed to turn it into a global phenomenon. Here
are the top six reasons why consumers are so drawn to buying food at IKEA:
1.
Affordability: IKEA’s food offerings
are known for being budget-friendly, mirroring the company’s ethos of providing
good value for money. Whether it’s the iconic Swedish meatballs or the
affordable breakfast options, customers know they can enjoy a satisfying meal without
breaking the bank.
2.
Convenience: IKEA stores are often
located in suburban areas where dining options may be limited. The convenience
of grabbing a meal while shopping, without having to leave the store, is a
significant draw for many customers.
3.
Unique Experience: The combination of
shopping for home furnishings and enjoying a meal in the same place creates a
unique, all-in-one experience that appeals to busy consumers. The novelty of
dining in a furniture store adds an element of fun to the shopping trip.
4.
Quality and Consistency: IKEA has
built a reputation for serving high-quality, consistent food across its global
locations. Customers know they can expect the same taste and quality whether
they’re dining in an IKEA restaurant in Sweden, the United States, or China.
5.
Cultural Appeal: IKEA’s Swedish
heritage is a significant part of its brand identity, and its food offerings
play a key role in this. Traditional Swedish dishes like meatballs, gravlax,
and cinnamon buns give customers a taste of Sweden, adding an authentic
cultural element to their dining experience.
6.
Health and Sustainability: In recent
years, IKEA has made significant strides in offering healthier and more
sustainable food options. From plant-based meatballs to organic coffee, IKEA’s
commitment to sustainability resonates with environmentally conscious consumers
who value ethical consumption.
Think About This
IKEA’s journey from a furniture retailer to a global food
brand is a testament to the company’s ability to innovate and adapt to changing
consumer needs. What started as a simple café in a Swedish store has grown into
a $2.5 billion global food empire that attracts millions of customers every
year. With initiatives like ‘The Dining Club’ and free coffee for IKEA Family
members, IKEA continues to enhance its brand experience, making it a
destination not just for furniture but for dining as well.
As IKEA continues to expand and refine its food offerings,
it is clear that the company’s commitment to affordability, quality, and
sustainability will keep customers coming back for more—whether they’re
shopping for a new sofa or just stopping by for a plate of Swedish meatballs.
How are you evolving?
For
international corporate presentations, regional chain presentations,
educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA
based Foodservice Solutions. His
extensive experience as a multi-unit restaurant operator, consultant, brand /
product positioning expert, and public speaking will leave success clues for
all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call
1-253-759-7869
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