Home furnishing giant IKEA wants to try new catering.
Image from IKEA official WeChat
This is the first baking workshop for IKEA in China.
It was learned that IKEA recently opened a baking workshop in Shanghai Xuhui Store, the first IKEA store in China. According to IKEA Home News, this baking workshop has been transformed from a restaurant and cafe on the first floor. The category includes a variety of desserts and coffee, and supports scanning code orders and mobile payment.
This is not the first time IKEA has tried the restaurant business.
As early as the 1950s, IKEA opened its first restaurant in Sweden’s first mall, and this restaurant has gradually become the standard for IKEA stores, along with IKEA’s global expansion. Going to the world, providing a temporary rest place for customers who are tired in the hypermarket. The “three treasures” of IKEA restaurant: ice cream,salmon, Swedish meatballs are the most important task in satisfying the taste buds of customers while increasing the time for customers to stay. After a long time, the frequency of consumption has naturally increased.
If you visit IKEA often, you must be overwhelmed by the people in the dining area.In fact, catering business income is an important part of IKEA’s total revenue. In 2016, IKEA restaurant sales were $1.8 billion, accounting for 5% of global sales; in 2015, China’s catering business accounted for 10% of revenue. In the United States, the second largest pizza chain, Domino’s revenue, was $2.472 billion. In 2013 and 2014, the revenue of IKEA restaurants even exceeded the total revenue growth.
On the one hand, the catering industry is booming, on the one hand, the total revenue growth is weak, and the profit margin is shrinking. According to public data, total retail sales of IKEA increased by 11.2% year-on-year to 25.5 billion euros in the year of August 18, 2018, but the net profit was 1.45 billion euros, down 14.7% from the 2017 fiscal year.
According to Caijing.com, Gerd Diewald, head of the IKEA US Food Department, said that they are now seriously considering the next stage of developing the IKEA restaurant into a small independent restaurant, which is dedicated to the downtown area. “I hope that our customers will say this in a few years, ‘Ikea is a good meal.The place of the rice, right, they still sell furniture.
The catering industry has provided some new ideas for IKEA’s current dilemma of growth, and baking workshops have emerged. Open the baking workshop on the first floor so that customers do not have to enter the IKEA store depth, and after entering the baking workshop, it is reasonable to eat and drink in the store.
IKEA Chief Financial Officer Juvencio Maeztu said at the end of 2018: “IKEA is in a four-year transition period. We have been using the same business model for the past 75 years. In 2018-2022, we will completely change Company, preparing for the next 75 years.”
Before IKEA plans to open a small store and lay out e-commerce business.
Bakery workshop is just one of the attempts, IKEA said, In the future, we plan to make restaurants and cafes a multi-purpose venue for relaxation, dinner, and fun.