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Companies

African fast food chains are growing but more work needs to be done

The African continent, particularly in South Africa, is slowly but surely producing and expanding homegrown fast food chains across the globe.

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African fast food chains are growing but more work needs to be done

When it comes to fast-food restaurants, we know about McDonald’s, Burger King, Subway, Chick-Fil-A, and Popeye’s Chicken, all of which are American owned. However, the African continent, particularly in South Africa, is slowly but surely producing and expanding homegrown fast-food chains across the globe. A prime example of a thriving African fast-food chain is Nandos. This South African restaurant was established in the year 1987 and it specializes in Portuguese food, such as its Peri-Peri flavoured chicken.

African fast food chains are growing but more work needs to be done

The growth of Nandos has been phenomenal. Currently, the restaurant chain is in 5 continents and it has major branches in countries like the United States, Canada, United Kingdom, Australia, United Arab Emirates and New Zealand. The expansion of Nandos globally has also positively affected the revenue for the company. According to Statista.com, the revenue for Nandos as at 2018 was 969.3 million British pounds ($1,238,668,470.00). This value was a record high for the company in a financial year.

[READ MORE: The Afrocentric Sounds are revitalizing the British Music industry and the Economy]

South Africa’s wonderful export of fast food chains has also seen the growth of another restaurant, Barcelos Flamed Grill Chicken. Founded in 1993, the restaurant like Nandos has a strong Portuguese influence. It uses several Portuguese recipes on its specialty flamed grilled chicken. Currently, Barcelos has outlets in 16 countries of which the United Kingdom, Canada, and the United Arab Emirates are included.

The restaurant has also expanded into neighboring countries, such as Zimbabwe. As at 2018, World Franchise Associates reported that Barcelos had made a total investment of $4.5 million and an additional $350,000 investment on a franchise in Bulawayo, a city in the southwest of Zimbabwe. The South African restaurant has also predicted to open 20 more restaurants by the end of year in India, according to Rohit Malhotra, Barcelos business head India.

African fast food chains are growing but more work needs to be done

Although these South African restaurants have been largely critiqued for having a food menu catered to a Portuguese demographic, other African countries like Nigeria have local delicacies such as suya. I have had the opportunity to eat from countless food trucks such as ComeChopDC.

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This food truck is located in the Washington D.C area and it serves quality jollof rice and chicken, alongside meatpie and puff puff. When it comes to food, there is no doubt that Nigerians can produce world-class dishes; however, the problem here is that there are no household Nigerian restaurants that are on a global commercial rise.

Mr. Biggs, one of Nigeria’s renowned fast food restaurant under the management of UAC foods, has succeeded in the Nigerian market since its establishment in 1973 by establishing over 100 outlets in several cities across the country; however, on the international scene, some could say they are non-existent.

[READ ALSO: The Nigerian Afrobeats Music Industry Gains Global Momentum]

Apart from Nigeria, Mr. Biggs is only available in neighboring West African country, Ghana. Nigeria and the rest of Africa need to take notes from South Africa and observe how two fast food restaurants (Nandos and Barcelos) were able to turn their companies into global franchises in major markets. The African continent has a lot of food delicacies to offer to the global frontier.

African fast food chains are growing but more work needs to be done

On a positive note, African fast food is definitely on the rise and it is something that should excite many Africans. So to my brothers and sisters in America, Britain, and Canada, the next time you step out of the house and you are feeling hungry, I encourage you to stop by an African fast food restaurant like Nandos or Barcelos to have a taste of Africa.

 

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Paul Olele Jnr writes from Washington DC. He is a 2019 graduate of George Washington University and currently works as graduate Media and Research Intern at the Initiative for Global Development.

Nairametrics frequently publishes articles from experts such as financial analysts, economists, researchers and investors. We also feature articles from guest writers and bloggers who wish to push their views and opinions through our platform.To get your articles on Nairametrics, kindly send an email to [email protected] and we will publish it within 24 hours of approval by our editorial team.

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Appointments

Airtel Nigeria announces appointment of Surendran as new Chief Executive Officer

Airtel Nigeria, has announced the appointment of Mr C. Surendran as the new MD/CEO with effect from August 1, 2021.

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Like MTN, is Airtel Nigeria considering listing?

Telecommunications giant, Airtel Nigeria, has announced the appointment of Mr C. Surendran as the new Managing Director and Chief Executive Officer with effect from August 1, 2021.

Surendran would be replacing the outgoing Managing Director and Chief Executive of Airtel Nigeria, Olusegun Ogunsanya, who has been elevated to the position of Chief Executive Officer of Airtel Africa Plc with effect from October 1, 2021.

According to a report from the News Agency of Nigeria, this disclosure is contained in a statement issued by Airtel on Wednesday, May 5, 2021, in Lagos.

READ: Airtel Africa signs new $500 million loan with Bank of America, HSBC, others

The statement says that Surendran would also be appointed to the Executive Committee (ExCo) as Regional Operating Director, reporting to the CEO of Airtel Africa plc, and onto the Board of Airtel Networks (Nigeria) Limited.

Airtel in its statement said, “Surendran has been with Bharti Airtel since 2003 and has contributed immensely in various roles across customer experience, sales and business operations.

He was the Chief Executive Officer of Karnataka, which is the largest circle in Airtel India, with over one billion dollars in revenue.

Surendran delivered an exceptional performance with significant movement in Revenue Market Share (RMS) over the last few years, currently at 54 percent. He has over 30 years of business experience, including 15 years at Xerox.’’

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Airtel said that Surendran would transition into his new role from June 1, 2021, and spend the time onboarding into the business until July 31, 2021.

READ: Meet the latest billionaires on the Nigerian Stock Exchange

In case you missed it

It can be recalled that a few days ago, Airtel Africa Plc, a leading provider of telecommunications and mobile money services in Nigeria and 13 other countries, announced the appointment of Mr Olusegun Ogunsanya as the new Chief Executive Officer, following the notice of retirement given by the current Managing Director/Chief Executive Officer, Raghunath Mandava, to the Board.

In the notification sent by Airtel Africa to the Nigerian Exchange, Ogunsanya is expected to join the board of Airtel Africa with effect from October 1, 2021.

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Companies

Our First Bank loan is being serviced, reduced by 30% in 2 years – Honeywell Group

The credit facilities accessed from First Bank were granted after due negotiations, with the necessary documentation and in line with regulatory policies and industry standards.

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Billionaire watch: Oba Otudeko’s stakes in Firstbank and Honeywell are worth N10.3 billion

The Honeywell Group has said that its loan with First Bank is being serviced as the conglomerate had reduced the facility by 30% in the last two and half years.

This was disclosed by the Group via a statement issued on Sunday and seen by Nairametrics.

According to the statement, the company and the bank have had a professional business relationship since 1975, which preceded the group’s investment in the bank over a decade later.

According to the Honeywell Group, the credit facilities accessed from First Bank were granted after due negotiations, with the necessary documentation and in line with regulatory policies and industry standards.

The Group further explained that following agreed terms, its facilities are adequately secured with First Bank with collaterals in place at over 170% of forced sales value and 230% at open market value.

It stated, “In 2015, First Bank under the directive of the Central Bank of Nigeria, drew our attention to a 2004 circular (BSD/9/2004) which requires that insider related facilities must not exceed 10% of paid-up share capital.

Based on this directive we subsequently entered negotiations with the bank to agree on an appropriate repayment structure and the final negotiated position was duly approved by the CBN.

In addition to the above, First Bank, on the directive of CBN, requested additional security in the form of FBN Holdings Plc shares held by the Chairman of Honeywell Group, Dr Oba Otudeko citing a 2001 circular. This was duly provided through an authorisation to place a lien on the shares.”

Honeywell Group has continued to meet all its obligations on its facilities with the bank according to agreed terms and has reduced its exposure by nearly 30% in 2.5 years. The facilities were charged at market rate and the bank continues to earn significant interest therefrom.”

What you should know

  • Nairametrics had reported when the Central Bank of Nigeria directed Honeywell to fully repay its obligations to First Bank within 48 hours, warning that failure to do so would cause the CBN to take regulatory measures against the insider borrower and the bank.
  • The Chairman of Honeywell Group, Oba Otudeko, also served as Chairman of FBN Holdings Plc until he was asked by the apex bank to go along with other directors on Thursday.
  • The apex bank had noted in a letter last Wednesday that First Bank had yet to comply with regulatory directives on divesting its interest in Honeywell despite several reminders.
  • Also, the CBN asked First Bank to forward evidence involving the divestment of interest in Honeywell Flour Mills and Bharti Airtel Nigeria Ltd within 90 days.

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