What to do before starting a fast food business in Nigeria: You will agree with me that the fast-food restaurant industry is one of the most profitable in any country. This is because food is a necessity that no one can live without.
Because of the speedy nature of their services and the variety of food menus, fast food restaurants have grown quite popular in Nigeria.
Every day, more and more neighborhood businesses are converting to fast food outlets.
Fast food restaurants, also known as quick-service restaurants (QSR) or eateries, are food establishments that specialize in the quick and efficient preparation of items that are always ready for takeout at an inexpensive price.
They also provide seating for those who like to enjoy their meals in the restaurant. One of the advantages of fast-food restaurants, as the name implies, is that they are quick and efficient.
This means that people may receive food on the move without wasting time, and the food can be packed and ready to travel at any time. It is both convenient and inexpensive.
You don’t have to go through the stress of preparing your dinner if you don’t want to; all you have to do is find the local fast food restaurant and you can obtain a variety of meals that you might not be able to prepare yourself at home.
People who work at a distance must leave their houses extremely early in the morning, and because they are unable to cook at this time, they must rely on fast-food restaurants, which is a benefit to you as a businessman or lady.
Running a fast food business in Nigeria especially in a favorable location will increase customers and significantly develop your business.
According to the president of the Nigerian Association of Fast Food and Confectioners, fast foods contribute up to N200 billion to the economy’s growth each year, and all of its members pay up to N1 billion in taxes and levies.
This demonstrates that the company is competing. Let us take a closer look at some of Nigeria’s most renowned fast-food restaurant businesses and how they came to be.
United African Company (UAC) established a fast food restaurant chain in Nigeria known as “Mr. Bigg’s” (one of Nigeria’s first and largest fast-food restaurant franchises) in 1985.
Before that, the fast-food sector was dominated by multinational corporations such as Leventis, Kingsway, and UTC, whose establishments catered mostly to the privileged and were predominantly concentrated in major cities such as Lagos, Ibadan, and Port Harcourt.
The majority of Nigerians who found the UTC snacks and Leventis outlets too expensive had the option of eating at a local restaurant known as a mama put’ or a ‘buka.’
Mr. Bigg’s revolutionized the Nigerian fast-food market. It made traditional and local foods, as well as pastries, affordable to the typical Nigerian.
So that low-income people can enjoy fast-food restaurants in the same way that the wealthy do.
Mr. Biggs now has two shops in Ghana and has up to 130 outlets across Nigeria, dominating around 45 percent of the fast-food business in Nigeria.
Kehinde Kamson, the creator of Sweet sensation confectionery limited, worked as a full-time accountant before starting a confectionery company called “citicate-city caterers.”
Before going to work, she would get up early and cook and distribute her sweets. Her pastries became quite popular, especially at Unilag, as the business flourished, and her customer base grew dramatically.
She had no choice but to leave her profession as an accountant and focus solely on her candy business.
After four years of supplying pastries to large corporations such as UTC and Mr. Bigg’s, she founded Sweet Sensation in a backyard shed at her family’s home, and her firm has now grown to include several outlets in Victoria Island, Ogba, Opebi, and other districts of Lagos.
She was inspired by one of her major clients, stating, “Mr. Biggs moved me beyond Imagination.” Despite the surge of new fast-food businesses, customers still see Sweet Sensation as the market leader in African cuisine.
These are just a few of the many success stories of Nigerian fast-food restaurants. The good news is that you can open your fast food restaurant under your company name (on a small or large scale), as well as purchase popular fast-food franchises.
The fast-food restaurant industry, like any other business, necessitates research before you begin.
The following are some of the steps to take while opening a fast food business in Nigeria
Make a Business Plan
Everyone knows that the first step in launching any business is to plan, and the fast-food restaurant industry is no exception.
A business plan is similar to a to-do list in that it outlines all of the steps you want to follow in launching your firm.
Your business plan will include a location for your company, which should be open, easily accessible, and spacious. You should also make your place welcoming and pleasant for your customers.
Nobody wants to eat in an unpleasant setting. Good seating arrangements, entertainment amenities such as flat-screen TVs connected to cable networks, and air conditioners (AC) at all angles of the restaurant to keep the atmosphere congenial are just a few of the measures you may take to make your restaurant more appealing to your customers.
When you’ve calculated the cost of putting all of the above-mentioned procedures in place, together with estimations of how much money you’ll need to start the firm.
This leads to the second question, which is how much capital you will require for the firm and how you intend to obtain it.
You are fortunate if you already have enough money to pay the start-up fees, but it is always prudent to play it safe by acquiring additional funds, either through bank loans or borrowing from friends and relatives.
This is to ensure that any miscellaneous expenses that may emerge along the way are adequately covered.
Register your firm
Not to mention that you must register your firm under the provisions of Nigerian law.
You can register with the corporate affairs commission as a business enterprise or as a limited liability corporation (CAC).
It is also critical that you register your QSR with the Nigerian Association of Fast Food and Confectioners (AFFCON).
Purchase a Well-Known Fast Food Franchise
Purchasing a franchise is one of the best methods to start your own business. The majority of successful fast-food brands in Nigeria are franchisees.
If you’re wondering what a franchise is, it’s a legally binding agreement between two independent parties (franchisor and franchisee) in which the franchisor enables the franchisee to market a product/service under the franchisor’s trade name and trademark.
Purchasing a fast-food franchise will result in a rapid expansion of the business, as opposed to running the firm under your brand.
This is because the brand from whom you are purchasing a franchise is already well-known. Customers do not require more canvassing because they are familiar with the brand and can simply relate to it.
Mr. Bigg’s, KFC, and other successful franchise fast-food businesses in Nigeria include the United African Company of Nigeria PLC’s “Mr. Bigg’s.”