Ikea globally sold food worth $1.8 billion
Ikea, the world’s largest furniture retailer, expects its restaurant business to drive higher footfalls at its stores in India, a sharp contrast to other markets where customers flock in to buy its popular ready-to-assemble products.
Globally, food accounts for 5% to 10% of Ikea’s sales and this could be significantly higher in India, said a top official.
“We believe that we might have more customers eating than buying furniture, but the average ticket size of food is very small compared to furniture. So most likely, food will be the first contact point for people coming to the Ikea store,” said Patrick Antoni, deputy country manager at Ikea India, which will have a 1,000-seater restaurant in the middle of its upcoming 400,000 square foot store in the southern city of Hyderabad. That would be Ikea’s biggest restaurant globally.
In India, most retailers depend on restaurants, bars, cafes and food courts to attract footfalls, especially in malls. The country’s food service market is estimated to be worth over Rs 3 lakh crore.
Ikea globally sold food worth $1.8 billion out of its total revenue of $36.5 billion in 2016.