Over 700 of about 900 sales outlets of Iindigenous Fast food restaurants (QSRs) closed Low Operations across the nation, between 2015 and 2018. This was revealed in one Investigation through Nairametry.
market results conducted by the US Department of Commerce’s Commercial Service and Oxford Business Group only confirms that a bit over 200 QSR Sockets operated all over Nigeria.
The popular brands are Mr. Bigg’s, Tantalizers, Food Concepts (the parent company of Chicken Republic), taste Fried Chicken and Sweet Sensation.
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Of the N250 billion in sales in 2016, and anonymous Source in the Nigerian Fast Food Confectioners Association (AFFCON) announced that the sector is not Boasting from Income of N 100 billion at the end of 2018.
The source added that the situation had increased the unemployment rate in the country since theyThe number of employees fell from over 400,000 in 2016 to around 150.000, represented one 62.5% slide.
While sosome of the brands struggle to keep their heads above water, others have either closed all the way down or focus on major cities across the country. Points of sale such as Mr. Bigg’s, Tantalizers, taste, Mama Cass, Sweet Sensation, Chicken Republic, King George, Bummy Burgers, Just Chicken, Mr. Food, and Golden Gate Restaurant have one angry Story or telling the other.
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Reasons for the massive shutdown
Brand and HR experts blamed it development in the QSR sector about a lack of consistent service provision by the operator, succession Plans, and Well Leadership skills.
Lack of consistent service delivery
Mrs. Bola Adeniyi-Taiwo that Executive Partner from the Workplace Center acknowledged that while the tenacity of Nigerian entrepreneurs may be valued higher than that of their counterparts in other developed and developing countries, it is unfortunate that most domestic brands and entrepreneurs have not been able to build consistent Brands.
She said, “The low patronage of some locals QSRs, which led to their gradual extinction, are related to the “carefree” attitude of either the managers or the CEOs of the brands. Compared to some companies that invest immensely in great customer service strategies, several Nigerian restaurants still have a long way to go.
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“The most immediate and most important factor is the establishment of a respectful orientation. This is an element that the consumer immediately feels. This alone can entice a hesitant customer either to make an immediate purchase or to walk right out the door.
“Once the respectful attitude has been established, it is important to anticipate the needs of the customers and concentrate fully on them. This is when active listening is imperative. ”
Lack of leadership skills
According to Mrs. Lola Omole, managing Director from Singularis Limited, a public relations brand, has for the most part either been poor managers or has owned most of its domestic firms “They hire managers who are incapable.”
Contrary to the argument For some operators, the lack of money was the bane from the growth of sector, MS Omol said their problem was more about implementing the necessary management skills.
She argued that “Tantalizers’ management raised several million naira on the Nigerian Stock Exchange when its shares were listed in June 2008 to be removed from the stock exchange in 2010 after spending a fortune listing and meeting the requirements.
“International Finance Corporation also invested $ 28.5 million in the company between 2010 and 2011, and as we speak, the fund is not growing. It shouldn’t have come out while larger companies in and out of the sector were still watching the tides.
“Another factor hindering the growth of local brands is the inconsistency of their offerings. Most of them, especially Mr Bigg’s, have lost market share due to differences in quality from store to store, which can be attributed to their franchising system. ”
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Bad quality of the food
A former patron of Mr. Biggs and Sweet Sensation, Mr. Charles Aina, shared his experience with the QSR outlets. In his opinion, the problem with most local brands is that they don’t pay attention to the quality of the food served. HI had bought Meat pies of some several times only at find out it was tainted.
He claimed, “You put the leftovers from the previous day in the microwave and sell them to customers. They sell stale food between 8 a.m. and 11 a.m. and prepare fresh meals when the stale is exhausted Ones. Most victims would assume they have bad cooks and don’t forget that word of mouth is the fastest, cheapest and best advertisement or spoiler. ”
Missing unique selling point
A banker, Ms. Kemi Onabanjo, claimed that the companies lost touch with their unique selling point, which she said was their strength and crowd puller when they first started.
She said, “The problem started when they started giving franchises to different types of individuals, especially those who had no knowledge of the business. Firms were giving out franchises to anyone who had money, and wanting a quick return on their investment, franchisees began to compromise Quality.
“In some cases, they used the same workers who served food to customers as toilet cleaners. Some of the affected brands’ outlets are either dirty or not as tidy as they used to be. Some of the kitchens are very dirty and the ambience is no longer there. ”The customer review has been automatically translated from German.
The accuse is not only on the QSRs
However, the operators have argued that they have some of the best managers on the continent who do the Boats the QSRs, but they are overwhelmed by some factors that have seared deeply their finances.
Our source from AFFCONwho pleaded anonymity when he was was not allowed to officially comment on the issues, insisted that the harsh economic environment in Nigeria, the irregular power supply and the numerous taxes imposed by both the federal and state governments were responsible for the ailing condition of the industry .
“We use over 50% of our gross profit to cover running costs, mandatory taxes and duties. Added to this are the overlapping functions of several regulatory authorities.
“These overlapping roles and the lack of coordination between these regulators create a huge financial burden for fast food companies. Uncertainty, inflation and high interest rates are in turn some of the myriad of challenges that have a direct impact on our sector. ”
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