IKEA is finally coming to India and how! This furniture giant from the Netherlands is all set to set up in Hyderabad in a space that is spread across 400,000 square feet. Talk about making an entrance, amirite?
First Things First
You read that right. Their very first store is being set up in Hyderabad and is going to be spread across 13 acres. The store is going to have over 7,500 furniture and home finishing products and a 1,000 seater restaurant that will serve healthy and delicious food from the Indian and Swedish cuisines. They’ll also have a play area for kids and a daycare centre for the children of their employees. They’ve really thought of everything, haven’t they?
On The Business Model
IKEA received approval from the Indian government in 2013 to invest 10,500 crores in the country under the 100 per cent foreign direct investment route. They’ve planned to open their second store in Navi Mumbai, where they’ve acquired a 24-acre land; and plan to open 25 more stores across 9 cities in India by 2020. They’ve also recently signed a memorandum of understanding with the Haryana government, and plan to invest about 2,000 crores to open stores within the state.
The size of the stores will, however, be different from the next one, just like its 328 stores around the world. But, the business model of the furniture wing and the restaurant will be the same.
The Country Food Manager of IKEA India said that they plan to serve healthy food at affordable prices to attract more people to the store. As the restaurant will open within half an hour of the store opening, they may even offer coffee for free so as to get people there a little earlier than the normal time.
The restaurants at IKEA are known for their meatballs. The meatball meal alone comprises about 20-25% of the total IKEA restaurant business! However, due to the many bans on the service of red meat in QSRs in India, they will be replacing their traditional Swedish Meatballs with Chicken and Vegetable Balls in a traditional way with mashed potatoes, cream sauce, and lingonberries.
The 1,000 seater restaurant will also serve food like cinnamon buns, salmon, croissant, blueberry jam, and cloudberry—all from the Swedish cuisine. However, they’ve also Indianised their menu and they will be serving dishes like the Hyderabadi Biryani, Dal Makhani, and Indian bread; so that one always has an alternative to Swedish food.
The restaurant also plans to serve breakfast, lunch, dinner, tiffin, snacks, and even beer—all at affordable prices.
Österström says that the prices of the dishes will be extremely affordable and that they plan to have the lowest prices of the comparable products. He also says that the local range will be open to price comparison, while the global range will be an exclusive range, which the consumer will not be able to find anywhere else.
Globally, IKEA’s restaurant business accounts for about 5.4% of their total revenue. But, they’re expecting for it to contribute 10% of the total revenue in India.
Explore IKEA here.
Photos Courtesy Of: Wikimedia Commons