IKEA Food Strategy: How a Furniture Store Became a Food Giant

Unveiling the astonishing success story of IKEA Food, the world’s largest restaurant disguised as a furniture store.

• The origins of IKEA Food and founder Ingvar Kamprad’s philosophy
• The spatial psychology of IKEA stores that open customers’ wallets (Gruen Effect)
• From classic meatballs to plant-based balls: IKEA’s sustainability vision

Do you know what IKEA’s best-selling product is? Like many, I first thought of the BILLY bookshelf, but surprisingly, it’s meatballs. IKEA Food sells 1 billion meatballs annually, accounting for about 6% of total sales (approximately $2.9 billion). This is not just a side menu but a core driver that made IKEA one of the world’s top 50 food companies.

How did a flat-pack furniture company become such a powerful food chain? It’s no accident but the result of one of the most brilliant marketing strategies in history, deeply understanding human psychology.

The Beginning of IKEA Food: “Hungry Customers Don’t Shop”

The story starts with IKEA founder Ingvar Kamprad’s ’no-nonsense’ pragmatism. In the 1950s, at IKEA’s first showroom in Älmhult, Sweden, he discovered an important fact: customers left the store at lunchtime to eat elsewhere.

Hungry customers can’t focus on shopping and hesitate to buy. This simple insight became IKEA’s firm management philosophy: “It’s tough to do business on an empty stomach.”

Kamprad’s solution was to satisfy customers’ basic needs to keep them longer in the store. Starting with coffee and biscuits in 1953, IKEA opened a full restaurant called ‘IKEA Baren’ in the Älmhult store by 1960. This was a highly practical and strategic tool to let customers continue their shopping experience uninterrupted. He transformed the store from a mere transaction space into a ‘destination’ where customers spend time, and IKEA Food became the glue that held the entire IKEA experience together.

The Secret of Captivating Customers: The Gruen Effect

IKEA stores are massive psychological stages perfectly controlling customer flow. This design maximizes the psychological principle called the ‘Gruen Effect’. The Gruen Effect describes how shoppers lose track of time in overwhelming mall environments and make unplanned impulse purchases.

At the core of this effect is the maze-like ‘forced path’. This layout encourages customers to see nearly every product and makes returning to previous spots difficult, creating a scarcity effect of ‘must buy now.’

Strategically placed in the middle of this long, tiring journey is the restaurant. Affordable and tasty meals reward tired shoppers with happiness. This triggers the priming effect, making customers in a good mood more willing to open their wallets in the latter part of their shopping. Former IKEA Food head Gert Dibbelt said, “We called meatballs the ‘best sofa salesperson.’”

Additionally, the unbelievably low price of meatballs creates a halo effect that positively influences the entire brand. The strong perception that ‘IKEA offers great value’ extends to all furniture products.

IKEA’s Icon: The Evolution of Meatballs

IKEA Food’s symbol, the meatball, was created in 1985 by chef Severin Schestak. The Köttbullar, made with the perfect beef and pork ratio, introduced the traditional Swedish flavor worldwide. Interestingly, the original recipe traces back to the 18th-century Swedish king who brought ‘köfte’ from Turkey (Ottoman Empire).

IKEA meatballs have continuously evolved to meet the times.

In 2015, chicken balls and vegetable-based vegiballs were introduced; in 2018, salmon balls were launched with sustainability in mind.

In 2020, IKEA reached a peak by launching the HUVUDROLL plant-based ball made from pea protein. The plant ball replicates the original meatball’s taste and texture almost perfectly while reducing its climate footprint to just 4%. This shows how meatballs have evolved beyond delicious food to embody IKEA’s commitment to the planet’s future.

The Evolution of IKEA Meatballs: A Dish Reflecting the Spirit of the Times

IKEA Food’s Status in Numbers

IKEA Food is no longer a side business. It is a core growth driver of the group and an industry giant in its own right.

• Sales: Approximately $2.9 billion annually (about 3 trillion KRW), surpassing Taco Bell ($2.6 billion) and Wendy’s ($2.18 billion).
• Foot Traffic Effect: About 30% of IKEA visitors come solely to eat. Considering annual visitor numbers, around 270 million people use IKEA as a restaurant.

These figures clearly prove that IKEA is not just a ‘furniture store that sells food’ but a ‘massive food chain hidden inside a furniture store’ standing shoulder to shoulder with global fast-food giants.

Conclusion

The success story of IKEA Food goes beyond simple business strategy, showing how a company can evolve to meet the demands of the times.

• Key Summary:

  1. Customer-Centric Philosophy: The founder’s insight that “hungry customers don’t shop” was the starting point.
  2. Meticulous Psychological Strategy: Forced paths and strategic restaurant placement turned customer fatigue into revenue.
  3. Sustainable Vision: The evolution of meatballs now aims beyond sales to embody values and the planet’s future.

A small idea to fill customers’ empty stomachs while selling sofas has now sparked a massive change on billions of plates for a sustainable future. Next time you visit IKEA, why not try the plant ball that reduces its climate footprint by 96%?