How furniture giant Ikea is driving unexpected growth by ramping up its food division.
![Meatball Hero](https://magarticles.magzter.com/articles/2854/217552/58f6a83474f0c/Meatball-Hero.jpg)
A year after the first Ikea store opened in Sweden in 1958, founder Ingvar Kamprad installed an amenity that would be recognizable to current-day shoppers worldwide, from Tempe, Arizona, to Wuxi, China: a sit-down restaurant with a small menu featuring wholesome Scandinavian staples. And for the next 50-plus years, Ikea management continued to think about its food operation pretty much the same way Kamprad did. “We’ve always called the meatballs ‘the best sofa-seller,’ ” says Gerd Diewald, who runs Ikea’s food operations in the U.S. “Because it’s hard to do business with hungry customers. When you feed them, 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.”
But sometimes a company can find its next growth engine in surprising places, if it just looks at its business creatively enough. Over the past several years, Ikea’s food division—which also includes the Swedish Food Market (where you can buy everything from jars of herring to make-at-home versions of the restaurant menu)—has proved to be much more than just a tool to move more Vittsjö TV stands. By focusing on this formerly unloved division, and locking into prevailing trends around ethically sourced ingredients and healthier options, Ikea has turned food into one of its fastest-growing segments. The company is now considering the next phase of this unexpected revenue generator, and it might even expand into stand-alone cafés in city centers.
This story is from the May 2017 edition of Fast Company.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 2017 edition of Fast Company.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
![Campus Radicals](https://reseuro.magzter.com/100x125/articles/2854/1774137/_54ECUZq61721738417203/CAMPUS-RADICALS.jpg)
Campus Radicals
Welcome to UATX, Austin's new well-funded and controversial anti-woke university.
![What Went Wrong at 23 and Me](https://reseuro.magzter.com/100x125/articles/2854/1774137/GNfzziUVy1721738062695/WHAT-WENT-WRONG-AT-23-AND-ME.jpg)
What Went Wrong at 23 and Me
The company's DNA spit tests were going to remake healthcare. The science proved more complicated.
![Toxic-Workplace Avenger](https://reseuro.magzter.com/100x125/articles/2854/1774137/ZsrnzoaGx1721737726411/TOXICWORKPLACE-AVENGER.jpg)
Toxic-Workplace Avenger
Her landmark lawsuit helped ignite the Me Too movement. Gretchen Carlson is now on a crusade to protect all workers.
![A Lousy Bet](https://reseuro.magzter.com/100x125/articles/2854/1774137/uVPBlIvkc1721737208152/A-LOUSY-BET.jpg)
A Lousy Bet
Sportsbooks, leagues, and networks: the new unholy alliance to promote legal gambling.
![CAN'T STOP ROLLING](https://reseuro.magzter.com/100x125/articles/2854/1774137/T0wR19Hy41721735831905/CANT-STOP-ROLLING.jpg)
CAN'T STOP ROLLING
MOBILE GAME MAKER SCOPELY TOOK IN $2 BILLION IN JUST 10 MONTHS FROM ITS HIT GAME MONOPOLY GO. PLAYERS, IT SEEMS, ARE ADDICTED TO THE FUN.
![A minimum hourly wage law for NYC delivery workers has boosted their pay-but not everyone is reaping the benefits.](https://reseuro.magzter.com/100x125/articles/2854/1774137/jcHNIcIEL1721735343902/A-MINIMUM-HOURLY-WAGE-LAW-FOR-NYC-DELIVERY-WORKERS-HAS-BOOSTED-THEIR-PAYBUT-NOT-EVERYONE-IS-REAPING-THE-BENEFITS.jpg)
A minimum hourly wage law for NYC delivery workers has boosted their pay-but not everyone is reaping the benefits.
$19.56, the hard way
![IT'S A TOUGH JOB BUT GENZ NEEDS TO DO IT](https://reseuro.magzter.com/100x125/articles/2854/1774137/UdMM_N9V01721733695794/ITS-A-TOUGH-JOB-BUT-GENZ-NEEDS-TO-DO-IT.jpg)
IT'S A TOUGH JOB BUT GENZ NEEDS TO DO IT
HOW DAVID HOGG IS RALLYING YOUNG PEOPLE TO PURSUE ONE OF THE TOUGHEST AND MOST IMPORTANT CAREERS IN AMERICA: POLITICS.
![INNOVATION BY DESIGN](https://reseuro.magzter.com/100x125/articles/2854/1774137/ulhCbbQWq1721731569010/INNOVATION-BY-DESIGN.jpg)
INNOVATION BY DESIGN
For 13 years, our Innovation by Design Awards have been shining a light on stunning creations. The following pages highlight 20 of this year's winning projects, from an app that helps resettle political refugees to a massive restoration project in Detroit. Plus, a list of winners and finalists in all 50 categories.
![How's This for a Cliffhanger?](https://reseuro.magzter.com/100x125/articles/2854/1697867/H-xdcjh5P1716809434565/crp_David-Leitch-Kelly-McCormick-The-Fall-Guy-87North.jpg)
How's This for a Cliffhanger?
That poor henchman over there has a hammer stuck in his forehead.
![CREATOR ECONOMY](https://reseuro.magzter.com/100x125/articles/2854/1697867/0u8iWKpLe1716812641676/CREATOR-ECONOMY.jpg)
CREATOR ECONOMY
Carpe DM New platforms monetize intimate\" bonds between creators and their fans.