Full-Service Restaurants in Nigeria

PROSPECTS

Urban mid-income group and economic growth to boost sales

Ongoing improvement in the economy and expansion in the mid-income group will spur the growth of full-service restaurants over the forecast period. After struggling in the middle of the review period, Nigeria’s economy is expected to improve over the forecast period, boosting disposable income levels and enabling more consumers to enjoy visiting full-service restaurants.

Rise in number of working women and busier lifestyles to benefit growth

An increasing number of women are in paid employment, with this not only boosting many households’ incomes but also resulting in busier lifestyles for many. Growing urbanisation is also contributing to busy lifestyles, while urban consumers also have considerably more access to full-service restaurants.

Premium Westernised outlets appeal to affluent consumers and expatriates

Other full-service restaurants, mainly consisting of restaurants serving local Nigerian dishes, is the largest channel in terms of value sales. However, slow growth is expected in this channel as most Nigerians increasingly opt for lower-priced limited-service restaurants when seeking popular local food options.

COMPETITIVE LANDSCAPE

Chains yet to emerge but Jevinik Place likely to become a frontrunner

Full-service restaurants had no significant chains at the end of the review period, suffering from a limited consumer base. Only mid- and high-income consumers can generally afford the prices charged by full-service restaurants, while many within this group employ domestic staff to cook and see little need to eat out.

Global chains likely to appeal to affluent young urbanites, while local players also increase focus on entertainment

As the Nigerian economy expands and interest in full-service restaurants increases over the forecast period, it is also likely that more international brands will enter. For example, North American full-service restaurant brands Johnny Rockets and Spur are present in Nigeria and expanded towards the end of the review period, while only accounting for two and five outlets respectively in 2019.

Competition posed by limited-service restaurants offering Nigerian dishes at affordable prices

Full-service restaurants, particularly other independent full-service restaurants, are facing growing competition from limited-service restaurants offering Nigerian dishes at more affordable prices. Limited-service restaurants thus have a stronger appeal for the low and middle income group that cannot afford the more expensive menus offered by full-service restaurants.

Files are delivered directly into your account within a few minutes of purchase.