Most of us think of IKEA as “just some oak and some pine and a handful of Norsemen selling furniture for college kids and divorced men” but they also move a boat load of food. The Wall Street Journal reports that with food sales of around $2 billion per year, they are around the same size as Panera and Arby’s (IKEA’s Path to Selling 150 Million Meatballs, Oct 17). Just why and how did IKEA get into the meatball business? Check it out.
And here’s the reporter with a little more information explaining how IKEA has grown its food business.
It is worth noting that IKEA’s general strategy here is pretty much the reverse of what has happened in the US quick service sector. As we discussed earlier this month, service times at fast food drive thrus have been creeping up over the last several years as chains have added greater variety and more complex items. The Norsemen, in contrast, have stuck with a simple menu that offers some variety through modularity but most facilitates moving lots of people through very quickly.