Ikea to modify in-store restaurant to attract more customers in India
Category: #retail  By Pankaj Singh  Date: 2018-06-16
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Ikea to modify in-store restaurant to attract more customers in India

Ikea, the Swedish home furnishing retailer, will be opening its outlets in India soon, on the grounds of which it is aiming to increase footfall in its store by focusing on its restaurant business. This is reportedly in sharp contrast with Ikea’s business in other markets around the world where customers prefer Ikea for its ready-to-assemble products and not for the food.

The Swedish retailer has now recognized how much Indians love their food and how food is related to shopping in the Indian context. Seemingly amidst this backdrop, Ikea has started to fix an Indian menu that will be served at the stores along with some Swedish classics.

Deputy country manager, Ikea India, Patrick Antoni, has been reported to say that Ikea has come to realize that more customers will be coming to the store to eat rather than to buy furniture, owing to which the store is aiming to make food the first contact point for customers. Ikea has 600-seater restaurants in other stores across the globe, and food reportedly accounts for 5% to 10% of Ikea’s sales. However, in India Ikea will be accommodating a 1000-seater restaurant in a 40,000 square feet store in southern Hyderabad making it the biggest Ikea restaurant in the world where food will account for a higher percentage of sales.

Most retailers and malls in India depend on café, restaurants, bars and food courts to attract footfall. The food service industry in India is worth approximately Rs 3 lakh crore. In 2016, food accounted for $1.8 billion of Ikea’s total global revenue of $36.5 billion.

Adhering itself with Indian sentiments, Ikea will be offering various vegetarian dishes in its menu which will be sourced from around 25 vendors. Ikea’s trademark pork and beef balls will be replaced by chicken balls in India.

Ikea plans to open 25 stores in India by 2025 with efforts in localizing the Ikea model to suit the Indian market.



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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