The untold truth of the IKEA food court

It's hard to beat the food prices at IKEA — where else can you get two hot dogs, chips, and a soda for $2.50? And although founder Ingvar Kamprad wanted the inexpensive offerings to give customers a "good feeling," there's another reason behind the notoriously cheap food prices. Gerd Diewald, who runs IKEA's food operations in the U.S. says, "When you feed [customers], they stay longer, they can talk about their [potential] purchases, and they make a decision without leaving the store. That was the thinking right at the beginning." That thinking has proven to be wildly successful, because while they're mulling over which couch to buy, 650 million hungry furniture shoppers are spending almost $2 billion a year in IKEA's food court.

Chris Spear, a chef who worked at an IKEA food-service operation, explains, "Their policy is to be the absolute lowest price on [an] item within a 30-mile radius, even if it means selling at a loss. They're reinforcing the low-price profile of the store. So, they take a hit on the food, but just sold you $1,000 in furniture. It's the same thing other stores do with loss leaders to get you in the door…" And what about those who dine without shopping? That's okay… IKEA figures that the next time they need a reasonably priced sofa, they'll come back.