Nigeria Fast Food Market Analysis 2010

Nov. 10, 2010 - PRLog -- The quick service restaurant industry has grown rapidly in Nigeria over the past decade posting annual growth of 30% between 1999 - 2009.  Two key drivers have been rapid urbanization with close to half of all Nigerians now living in cities and the expansion of the middle class. Urbanization has reduced the time available for home-cooked meals and created a demand for fast food among the urban population. Increased private sector growth in telecommunications, banking, and retail has raised disposable income among the Nigerian middle class. The middle class estimated to number between 5-10 million have discerning tastes and clear preferences for western-style fast food fare.

The market is dominated by around 60 small to medium-sized indigenous fast food brands with over 800 modern fast food outlets in the country and a revenue of around $400 million. Their success has promtped major foreign western franchises such as Nando's and Kentucky Fried Chicken to enter the Nigerian market in recent years.

The global financial crisis of 2007 – 2009 has temporarily slowed down the growth of the modern fast food industry in Nigeria by cutting into short-term consumer spending at modern fast food restaurants. However, with the Nigerian economy growing at around 5% despite these shocks, with a population of around 150 million and with informal fast food vending valued at around $700 million the quick service restaurant industry holds tremendous potential in the years ahead.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY
   
MARKET OVERVIEW   
- Market Size   
- Key Players   
- Company Analysis   
-- UAC Plc.   
-- Big Treat Plc.   
-- Food Concepts and Entertainment Ltd.   
-- Tantalizers Plc.   
-- Sweet Sensation Ltd.   
-- Tetrazzini Foods Ltd.   
-- Mama Cass Restaurants Ltd.   
-- Sizzler’s Corporate Ltd.   
-- Crunchies Fried Chicken Ltd.   
-- De Tastee Group Ltd.   
-- Food Emporium International Nigeria Ltd.   
- Competitive analysis   
- Franchising programs   
- Location & distribution   
- Marketing & advertizing   
- Employment   

GROWTH DRIVERS   
- Rapid urbanization   
- Re-emergence of the middle class   
- Youth consumer culture   

INDUSTRY CHALLENGES   
- Inadequate Power   
- Poor Transport Infrastructure   
- High Input Costs   
- High Land & Building Costs   
- High Borrowing Costs   
- Multiple Taxation   
- Poor Brand Differentiation   

KEY TRENDS   
- Temporary slowdown
- Declining margins amidst increased competition   
- Entry of global fast food brands   

FORECASTS FOR 2010 -2015   
- Oil Windfall Earnings
- Expansion down-market and into secondary cities   
- Outlets expected to double

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