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^It's smart marketing for them. I'm sure IKEA operates on a loss within their cafeteria as well.
It's a method to attract you into the store and purchase. They know for every $1.50 hot dog they sell, your trip to the store may elicit hundreds of dollars in purchases.
Same reason they used to offer (prior to COVID) ridiculous amounts of food samples throughout the store, attracts people to visit Costco for that very reason, and with the long lines/busy parking lots, encourages further purchases in store.
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