Restaurant outlets have created thousands of jobs, benefitting a number of smaller businesses in its value chain. This line of business has long-term potential standouts with returns on investment and daily turnarounds for profits, which food vendors have maintained consistently from their franchise locations.
Restaurants are divided into three categories such as quick service restaurants (QSRs), Casual Dining and Fast Casual. Among the players in this business are foreign and indigenous brands such as KFC, Mr Bigg’s, Sweet Sensation, The Place, Jevinik, Cilantro, Kobis, Jade Palace, Terra Kulture Food Lounge, and the more affordable Bukatarias. They have found a large market of consumers seeking patronage in food outlets stores on daily, hourly and weekly basis.
The Nigeria food industry is one of the best performing sectors in the country. Despite the economic downturns and huge decline in spending priorities, the sector has grown rapidly with vendors in different strategic locations. It is one of the fast-moving businesses.
A food business vendor and retailer in Lagos, Mrs Ibukun Ayeni, says the business is not too capitally intensive, adding that financial plan for the business could be a personal capital stored up as your savings which could be from self-funding or from your private investment. Investments could range from N50,000 to N5 million depending on the size of the restaurant.
Operators can also secure capital from bank loan or from family and friends which would be returned when the business starts generating profits. She added that investment in food business is a thing of choice. How big you want your business to be will determine the capital you need to factor it out.
Food outlets enjoy huge patronage from workers, individuals, commuters and those living within their operating environment and business location as the food are usually affordable.
Ayeni said restaurant business is very lucrative as it involves constant patronage from customers who visit to buy their meals. This has helped to reduce the rate of unemployment in the country. Profits range from N25,000 to N250,000 daily depending on the category and location of the restaurant.
Ayeni remarked that the success and growth of the business is based on where your business is cited, while confirming that food vendors prefer to be on the roadside where their potential customers can easily reach them to buy food, stating that market visibility is very important. For the upscale restaurant, its customers will always drive to the location.