The fast food value chain recorded an impressive performance despite the economic recession of 2016 and early 2017. The growth recorded is not unconnected with the birth of food delivery startups in major cities across the country.
These startups dominate the fast food chain as more people now prefer to order their foods from the comfort of their offices or homes and in the twinkling of an eye, the delivery man knocks at the door. Most fast food retail outlets now have home delivery services coupled with strong online presence where people can order the meals of their choice.
Waiting time for food delivery is dependent on the distance from the restaurant to the customer’s location. Hence, restaurants that have a network of branches have advantages in this regard. (e.g.Domino’s Pizza)
This article seeks to review the fast food industry in 2017 and project a general outlook for 2018.
Major food outlets that dominated 2017
Jumia Foods: (formerly Hello Foods) boasts of a good selection of over 120 restaurants around popular cities in the country.
The platform has a mobile app through which customers can make their menu selections from the nearest restaurants for home delivery. The platform allows customers to pay for food on delivery with extra charges like service fee, container charge, as well as VAT.
Domino’s Pizza: Nigerians no doubt love good food and their love for pizza is amazing. Domino’s Pizza seems to be the market leader in this segment.
The restaurant has witnessed rapid expansion since 2012 and now has over 120 locations in major cities across the country. Domino’s Pizza has 27 stores spread across major locations in Lagos and this has helped in faster delivery of food to customers. Orders are usually via phone calls.
Chicken Republic: It started operations in 2004 and has witnessed rapid expansion – it currently has 65 locations across the country.
The food menu ranges from African spiced chicken, to burger and sandwiches. The fast food house, as part of its corporate social responsibility, recently partnered with Airtel to feed over 5000 less privileged people in Lagos during the yuletide season.
Smoothie Express: It is located in high-brow Ademola Odeku, Victoria Island, Lagos.
This is a lifestyle brand which focuses on delivering healthy meals to customers’ doorsteps. Their menu list entails smoothies of different fruit blends from Zobo Fusion, to Mango Surprise, Berries Fete, etc. The menu list also includes sandwiches and fitness blends.
Kilimanjaro: This is no doubt one of the leading restaurants that dominated the ecosystem in 2017.
With 25 locations spread across the country, their menu covers major Nigerian offerings in addition to sandwiches and pastries such as, sharwama, moi moi (leaf) and pasta (spaghetti). The minimum order is N1000 with an estimated delivery time of 45minutes.
Glover Court Suya: It is located in a serene and cozy environment on Glover Court, off Glover road in Ikoyi, Lagos.
For lovers of suya meat this is surely a place to be. The menu list ranges from chicken suya to beef suya, liver suya and gizzard suya just to mention a few. They offer home delivery services to residents in Ikoyi, Victoria Island and Lekki within 45minutes. This is definitely the home of quality and nutritious suya in Lagos.
Will this signal an end to road-side mama-put?
Nigerians love good food and with the proliferation of fast food outlets in the country, there are fears in certain quarters that this may signal an end to the popular road side mama-put. Contrary to that school of thought, if recent trends and feedback are anything to go by, the Mama-put segment of the market will continue to thrive.
Most people still rely on the road side food joint as this obviously comes at a reduced price when compared to the fast food joint. The Mama Lati food joint located beside Tafa Balewa Square (TBS) on the Lagos Island is always filled to capacity with people of different social status coming together to enjoy their favorite, most times, local delicacies. Apart from being cheaper, most people believe that the road side food tastes better and fresher than the fast food which most believe has undergone different processing for preservation.
What is the outlook for 2018?
No doubt, the fast food industry has continued to emerge with new trends and packages for its customers. The 2018 outlook is very bright and promising as the food outlets are already out with various promotions and discount offers to further increase their sales and customer base. Many startups are also expected to join the existing players; hence, making the competition stiffer. This means that existing players must be on their toes.
Many of the fast food houses visited however complained of erratic power supply as most times they run their businesses on generators and this has further led to an increase in the cost of business. Findings also reveal that food outlets with bigger presence on different locations have the better advantage of serving their customers faster and better.
More cheering is the fact that the increase in the number of fast food outlets is not a threat to the road side mama-put as the ecosystem can conveniently accommodate both the fast food segment and the mama-put outlets. Different strokes for different folks, you may call it.
NSITF board to investigate suspended MD and others over financial misconduct
The board of directors of the Nigerian Social Insurance Trust Fund (NSITF) has revealed that it will investigate the activities of the suspended Managing Director, 3 Executive Directors, and 8 other senior management staff over financial breaches and gross misconduct.
This was disclosed by the Chairman of the board of NSITF, Mr. Austin Enajemo-Isire, in a statement in Enugu on Sunday July 5, 2020.
Enajemo-Isire said that the Managing Director and other top management staff of the organization would have the opportunity to clear themselves of any wrongdoing with the probe panel which was being set up.
While reacting to claims that the suspension did not follow due process as President Muhammadu Buhari did not approve it, Enajemo-Isire said that the approval for the suspension of the affected staff had been conveyed to the Labour Minister in a correspondence referenced SGF. 47/511/T/99 of June 30, 2020.
According to the Chairman, “The minister has conveyed this approval and directives to me for necessary action in terms of setting up a board-driven investigative panel.
“This is to give the affected officers the opportunity to clear themselves of the financial and procurement breaches and acts of gross misconduct and other infractions that gave rise to their prima facie indictment.
“It is in this light that I have decided to call a virtual meeting of the management board on Tuesday, July 7, 2020, to consider the modalities for our action.”
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He, therefore, appealed to staffers of NSITF and their social partners to keep calm and exercise restraint.
A few days ago, Nairametrics reported the suspension of the Managing Director and some senior management staff over corruption allegations. However, the management in its reaction debunked that claim and said that the President did not approve their suspension but that rather, it was the sole decision of the Labour Minister, Chris Ngige, who they said was overreaching himself.
Nigerian Content Intervention Fund increased to US$350 million
The fund expansion was one of the decisions taken at the board’s recent meeting.
The governing council of the Nigerian Content Development and Monitoring Board (NCMB) announced on Sunday that it has approved a $150 million expansion of the Nigerian Content Intervention Fund, raising it from $200 million to $350 million.
Nigerian Content Intervention Fund Increased to US$350M
The Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB) has approved the expansion of the Nigerian Content Intervention Fund from US$200 million to US$350 million.@NigeriaGov pic.twitter.com/Y0TtDzwALq
— NCDMB (@OfficialNCDMB) July 5, 2020
The fund expansion was one of the decisions taken at the board’s recent meeting on June 16, 2020, chaired by Minister of State for Petroleum Resources, H.E. Chief Timipre Sylva, who is also the Chairman of the Council.
The board said that $100 million from the additional fund would be used to boost five existing loan products, which include manufacturing in the oil and gas industry, asset acquisition of rigs, marine vessels, contract financing for Nigerian oil service providers, contract financing for oil and gas community contractors, and loan refinancing with Nigerian banks.
The council also announced that $20 million and $30 million would be used for 2 newly developed loan product types (the Intervention Fund for Women in Oil & Gas and PETAN Products) which include Working Capital loans and Capacity Building loans for PETAN member companies.
Started in 2017, the Nigerian content Intervention fund was developed as a $200 Million fund managed by the Bank of Industry, to facilitate on-lending to qualified stakeholders in the Nigerian oil and gas industry on five loan product types.
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The NCI Fund is a portion of the Nigerian Content Development Fund (NCDF), aggregated from the one percent deduction from the value of contracts executed in the upstream sector of the oil and gas industry.
According to the NCMB, “About 94 percent of the NCI Funds has been disbursed to 27 beneficiaries as at May 2020.”
Seplat gives notice of board meeting, to consider Q2 financial result
The notification is in conformity with the rules of the Nigerian bourse on the obligations of the issuer.
The indigenous oil and gas firm, Seplat Petroleum Development Company Plc has given notice of its board of director meeting which has been scheduled for Tuesday, July 28, 2020 through a teleconference in Lagos between 10 am and 3 pm.
This was disclosed in a notification that was sent to the Nigerian Stock Exchange (NSE) on July 3, 2020 and signed by the oil firm’s Company Secretary, Edith Onwuchekwa.
The notification is in conformity with the rules of the Nigerian bourse on the obligations of the issuer, in this case, Seplat, to notify the Exchange at least 14 days ahead of the due date and time when the board of directors hopes to meet to discuss its financial results.
The notification from Seplat states, ‘’In line with the rules of the NSE on the obligation of the Issuer to notify the Exchange at least 14 days in advance, in respect of the date and time when the board of directors will meet to discuss its Q2 2020 Financial Results, we wish to state the meeting details as follows,’’
‘’Date: Tuesday 28th July 2020, Venue: Via Teleconference, Lagos, Time: 10.00am – 3.00pm’’
Seplat, in its statement, also said they were going to notify the Exchange of the details of the Board’s decision on the 2020 second-quarter financial results immediately after the meeting as required by the rules.
Nairametrics had earlier reported that following the global oil crisis triggered by the coronavirus pandemic, the oil and gas firm, in its released financial statement, announced that revenue declined from $159.5 million in Q1 2019 to $130.5 million in Q1 2020. That represented an 18.2% drop.
The gross profit dropped from $81.4 million in Q1 2019 to $33.1 million in Q1 2020. This shows a drop of 59.3%. The profit before deferred tax showed a loss of $105.8 million in Q1 2020 as against the profit before deferred tax of $35.8 million that was achieved in Q1 2019. This represented a huge drop of 395.5%.
The company’s CEO, Austin Avuru, said that as part of its strategy, Seplat was shifting focus to its gas business which is less exposed to the oil price drop which is currently ravaging the upstream sector.
The current share price of Seplat on the Nigerian Stock Exchange is N386 per share as at July 3, 2020.