Is IKEA's First Stand-Alone Restaurant a Recipe for Success? - RetailWire

Dennis Limmer

For customers who dreamed of turning IKEA’s food court into a full-fledged restaurant, their wish is now a meatball-filled reality.

After serving its popular Swedish meatballs since 1985, IKEA has opened its first stand-alone restaurant in Hammersmith, London, on the UK high street adjacent to a renovated store. This new location features 75 seats and self-service terminals, offering a menu of Swedish favorites like meatballs and plant balls at affordable prices. Breakfast options are also available.

Matthew Gould, market manager for IKEA London City, emphasized the restaurant’s role in enhancing the shopping experience. “We know how much our customers love the IKEA restaurant and we’re excited to celebrate the opening of our very first high street restaurant,” he stated in a press release. “Fans of our delicious dishes can recharge during their shopping trip with our famous Swedish meatballs, pop in for a traditional Swedish ‘fika’ break for coffee and a sweet treat, or find an affordable meal for the kids right on the high street.”

Buildd put together some speculative data last year to help demonstrate how IKEA’s entry into the food business is a strategic initiative designed to boost furniture sales. Typically located on city outskirts, many stores lack nearby dining options, prompting IKEA to offer affordable meals that encourage customers to spend more time in-store. Buildd quoted founder Ingvar Kamprad saying that “hungry customers buy less,” underscoring this approach.

Furthermore, IKEA’s food segment, which includes bistros and cafés, generates around $2.5 billion annually, according to Medium.

The Brussels Times also shared a survey last October, which revealed that IKEA’s Ghent, Belgium, location serves more meals than any other restaurant in the area, with approximately 400,000 orders each year. Notably, this figure is even more significant since many orders cater to multiple diners. With an annual footfall of 1 million customers, about 40% of those who visit the store also choose to dine there. A huge bonus is the appealing low prices of food items that are in the same ballpark as fast-food value meals.

Despite the casual dining experience — where patrons set and clear their own tables — IKEA’s focus is not on making a profit from its restaurant. The main goal is to keep customers in-store longer, encouraging them to fill their shopping carts while enjoying a meal; a concept that was introduced originally by department stores.

Prior to the opening of an official restaurant, many consumers have been interested in the idea of an IKEA restaurant. Eight years ago, a thread on Reddit suggested the concept, and another Reddit thread three years ago discussed IKEA food and polled shoppers about whether or not they stopped to eat. One thousand participants said they ate IKEA food before shopping, while almost 700 said they ate in IKEA after shopping at the retailer.

Also, many commenters mentioned how they went to IKEA just to eat the food or drink the coffee. Some even shared that they stop at the food court multiple times, ordering the meatballs when they arrive at IKEA and grabbing a hotdog after they finish shopping.

Though currently only available in London, the stand-alone restaurant may be an attractive choice for those who plan to shop at the adjacent IKEA as well as others who just want a quick, convenient bite to eat.

How does IKEA’s food service integration challenge traditional retail strategies and impact customer engagement?

How might IKEA’s stand-alone dining experiences change perceptions of retail as destinations for shopping and social interaction in urban areas?

In light of experiential retail trends, how can IKEA use its food offerings to boost brand loyalty and create immersive shopping experiences?

Do you eat at IKEA?

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