Limited-Service Restaurants in Nigeria

PROSPECTS

Increase in urban population and economic recovery drive growth

Economic recovery over the forecast period is expected to boost value growth following on from a weak economy since 2016 as consumers become better able to afford eating out. Key to growth is also continued urbanisation as urban consumers are more likely to seek limited-service restaurants that offer quick service delivery.

Diversity as competition increases key to boosting sales

The greater availability of a diverse range of cuisines, particularly in modern chains, is expected to drive growth. Whereas traditionally, consumers ate out at informal fast food restaurants known as “bukas” which generally serve only a small range of indigenous meals, the younger population is more interested in wider and diverse cuisines from around the world, such as pizzas, shawarmas, chicken and chips, hot dogs, and ice cream.

Fragmentation expected to reduce as chains increase

As chains are expected to grow faster than independents, given the interest among young consumers for comfortable eating environments, fragmentation in outlets is expected to reduce over the forecast period. Traditionally in Nigeria, there are numerous tiny independent outlets offer limited-service eating out.

COMPETITIVE LANDSCAPE

UAC Restaurants Ltd’s Mr Bigg’s continues to lead but seeing stronger competition

Mr Bigg’s remained the leading brand in limited-service restaurants in Nigeria in 2018, thanks largely to having the highest number of outlets across the country. The brand pioneered limited-service restaurants in Nigeria by focusing on indigenous food offerings that are traditionally popular.

Domino’s Pizza is best performing

Domino’s Pizza recorded the best performance in share gain among limited-service restaurant brands in 2018. Being the brand to pioneer the chained limited-service pizza concept in Nigeria it enjoys strong brand recognition and is growing its number of outlets well to cater to demand among the urban young population that seeks diverse and novel, Western foods.

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