Tantalizer posts five straight losses amid weak demand

Tantalizer, a notable Nigeria’s quick-service restaurant brand famous for its sales of fast-food has been recording losses subsequently since 2020 as demand weakened and competition heightened.

The quick-service restaurant’s recent financial statement for the full year of 2024 reveals that Tantalizer recorded an after-tax loss of N265.6 million from an after-tax loss of N290.7 million in 2023.

“Quick Service Restaurants are going retail as much as possible to offer more products and services. There is also the need to go beyond the mega outlets because it is expensive and difficult to run. It is cheaper to run small kiosks,” Ayorinde Akinloye, a Lagos-based investor relations analyst, told BusinessDay.

Tantalizers struggled to modernise in the mid-2010s with its competition which included international chains like KFC, Domino’s, and Pizza Hut, and local competitors like Chicken Republic which offered lower-cost options and digital ordering.

BusinessDay reported earlier that retailers in the fast-food industry were devising several ways to entice consumers amid weak demand.

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Between July and August in 2023, some retail outlets did trade promotions such as discounts, ‘Buy One, Get One Free’ and free deliveries to woo consumers.

“It is a reaction to the current realities in the economy. The high inflationary pressures, which are already reducing consumption volumes, are making retailers do direct promotions to drive or increase volumes,” Tola Chukwu, a Lagos-based consumer goods analyst, said.

Trade promotions are marketing activities or campaigns conducted by brands to boost sales and profits, expand their customer bases, and encourage customers’ loyalty.

They are usually attractive incentives that come in the form of discounts, free products, price protection, and other forms of compensation.

As known, Tantalizers was once one of Nigeria’s leading quick-service restaurant brands. Founded in 1997, the company grew rapidly in the early 2000s, becoming a household name with over 50 outlets nationwide.

It offered an alternative to the likes of Mr. Bigg’s, drawing crowds with its affordable, familiar meals.

But by the mid-2010s, the company began to lose ground in the market as competition intensified. International chains like KFC, Domino’s, and Pizza Hut entered the market.

Meanwhile, local competitors like Chicken Republic adapted better to changing consumer preferences by offering lower-cost options and digital ordering channels.

Tantalizers struggled to modernise. Its outdated stores, slow service, and rigid menu alienated customers. From 2020 onward, the company reported consistent losses, including a N231.5 million pre-tax loss.

Tantalizers’ first financial statement on Nigerian Exchange Group was in 2012 where the firm first recorded its after-tax loss of N303.5 billion. However, it recorded a profit of N101.9 billion in the year ago period.

The company’s share price currently stands at N1.95 on March 3, 2025 representing a decline from N2.25 at the beginning of the year while the share outstanding stands at N5 billion with volume of 931,700 and value of 1.82 million.

In a recent filing with the NGX, Tantalizers disclosed that Messrs Food Specialties and Organics Limited, along with Banklink Africa Private Equities Limited, have acquired a majority stake in the company.

Tantalizers Plc announced a major financial injection through private equity, securing over N1 billion to address long standing financial challenges and reposition the company.

This development comes amid years of financial strain, as reflected in Tantalizers’ balance sheet, which has shown significant debt and diminishing revenues.

The firm appointed Robert Speijer, a Dutch native as its group managing director in a major leadership shakeup. It also appointed Charles Ifidon, former CEO of a Port-Harcourt hotel as its new deputy managing director.

A N1.07 billion private placement in Tantalizer in May 2024 saw Emirati-based company, Food Specialities and Organics Limited, and private equity firm, Banklink Africa gain majority stake in Tantalizers. In line with the shift in shareholding structure, the company’s board was reconstituted, with Adam Nuru stepping in as the new chairman.