A food and condiment container having a first storage space for a food item and a second storage space for a condiment. The container includes a paperboard carton and an appliqué fold-out pocket affixed thereto and moveable between open and closed positions for receiving a condiment. The pocket includes a front panel, a back panel, and first and second side panels extending therebetween. The back panel is joined to the carton, and the front panel is joined to the back panel along a portion thereof to hinge forward from the back panel. The side panels are connected between the front and back panels and are collapsible along a crease extending the vertical length of the side panels. Prior to use, the appliqué pocket remains flush with the carton and is opened along a perforation line to form a storage space for a condiment.