The NSE’s only listed fast food company has been struggling

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Tantalizers Plc

For many Nigerian professionals in Lagos and elsewhere, fast food restaurants have long been the go-to places for quick meals, especially during lunch hours. Reasons for this aren’t far-fetched – it is fast food, just as it is trendy. Across the country, countless numbers of such fast food restaurants are located on major street corners. But out of the many, only a handful have become somewhat like franchises. A typical example of such is Tantalizers Plc, which also happens to be the only fast food company that is listed on the Nigerian Stock Exchange (NSE).

Come to think of it, when was the last time you dined at a Tantalizers’ outlet? Was it last weekend, or maybe the weekend before? Chances are that you might be right inside a Tantalizers’ outlet right now, eating your favourite meal as you read this article. But did you ever know, prior to this time, that the company’s shares are traded on the NSE? Maybe or maybe not.

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By now, you probably already guessed that Tantalizers Plc is Nairametrics’ company focus for this week. And as always, we have aggregated the most important corporate details about the company, just so you can be better informed when making your investment decisions. Therefore, get to know more about Tantalizers Plc, its history, business model, information about its stock, growing competition, financial performance, etc.

Corporate overview of Tantalizers Plc

Incorporated in 1997, Tantalizers Plc is a Nigerian fast food company which has more than sixty outlets located across major cities in the country. Information available on the company’s website claims that since its incorporation, the company “has set and maintained high quality and excellent service standards in the Quick Service Restaurant business”. The company further claims to have pioneered the inclusion of local Nigerian cuisines in the fast food market, a business model that has since been adopted and modified by some of its competitors such as The Place.

Tantalizers serves breakfast, lunch, and dinner from Mondays through to Sundays. Examples of the meals it serves include: jollof/fried rice, swallows with assorted soups, ice cream, bread, pastries, and even Chinese food.

In the past 22 years since the company’s incorporation, a lot has happened. There have been meaningful expansion, in terms of the number of new outlets opened. It even became a quoted company, with its shares listed on the NSE. It is, however, important to note that Tantalizers is a small-cap stock, with market capitalisation valued at just N642,325,581.40. The share price has for long remained at N0.20.

The company’s target market

Virtually all the fast food companies in Nigeria, including Tantalizers, initially started out by targeting the so called middle class. People within this group were seen as having the disposable income that enabled them to eat out. But over the years, Tantalizers has been able to redefine its target market which is now mostly comprised of young, single, professionals as well as students. A visit to any Tantalizers outlet can confirm this, especially in the evening when a lot of them are either hanging out with friends or on dates with potential lovers.

A look at the company’s competition

As earlier mentioned, the Nigerian fast food market is saturated with competition. As a matter of fact, a research by the Oxford Business Group found that there are over 800 quick service restaurants across Nigeria, all of which combine to generate an average annual revenue of N200 billion. However, out of this total, only a handful are actually in the same league as Tantalizers. Examples of these fast food restaurants include: Mr Biggs, Tasty Fried Chicken, Chicken Republic, Mama Cass, Sweet Sensation, Tastee, The Place, etc.

Note that Tantalizers Plc is the only quick service restaurant that is listed on the NSE. As such, it is a bit difficult to compare their financial strengths/performances, seeing as private companies do not readily disclose such information to the public. With this in mind, the comparison between these companies has been primarily based on how satisfactory the services they offer are. And in all fairness, each and everyone of them has one thing or the other that is unique about them; hence, the reason why they are still in business. However, it is important to mention that newer companies such as The Place, are revolutionalising the market.

Coronation Research

These are members of the company’s board of directors

Mrs Abosede Ayeni is the Founder and current Chief Executive Officer of Tantalizers Plc. She is an alumnus of the University of Ife, graduating in 1979 with a B.A in Language Arts. In 2006, she bagged a Master’s in Business Administration (MBA) degree from the Pan African University. Prior to starting Tantalizers in 1997, she worked in Lever Brothers Nigeria Limited, and Senkay Nigeria Limited.

Other members of the company’s board include the Deputy Managing Director, the Executive Director in charge of Finance, Mr Gholahan Labinjo, Mr Bamidele Oke, and the General Manager, Mr Segun Ekundayo. Others are: Mr Henry Arebun, Mr Emmanuel Onyoh, Mrs Bamidele Dambo, and Mrs Folawe Adewaku.

A brief review of the company’s financial performance

Tantalizers Plc has recently been struggling to remain profitable, judging by disclosures made in its financial statements dating back to 2013. As a matter of fact, the company consecutively ran at a loss between 2013 and 2016, until 2017 when it recorded a profit after tax of N443.3 million. Sadly enough, the company’s unaudited third quarter 2018 result shows that it ran at a loss of N213.5 million compared to a profit after tax of N760 million recorded for the same period in 2017. This points to the possibility of the company declaring yet another loss for 2018.

The probable way forward for Tantalizers Plc

Considering the growing competition in the market, the management/board of Tantalizers Plc really needs to devise new ways to shore up market share. For one, it may consider opening up more outlets, especially in the south eastern part of the country where its presence is almost non-existent. The company should also intensify its marketing strategy in order to reach new customers whilst retaining old ones.

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