The Nigerian fast food industry is about to get more competitive as indications show that McDonalds and other major fast food chains are interested in making an entry into the fast growing Nigerian fast food market.

Speaking in an exclusive interview with Business Day, the Managing Director of Mr. Biggs, Mr. Chris Adedipe, said McDonalds registered in Nigeria one month before UAC registered Kingsway Rendezvous. In his words “I can see them and any of the other major operators coming in because the market is ripe. Some of the major operators either from North America but more likely from South Africa will come in not with franchise operations but directly. They may come in partnership with major operators or they will come in directly on their own.”

He went further to explain that many of them will come in and carve additional segments in the Nigerian fast food market which he says is now primarily concentrated on local foods and pastries. He also identified a major area with no specialized player yet as burgers. He says burgers are not very strong in Nigeria at the moment, he said, not because Nigerians do not want to eat burgers but no operator has really positioned as a major player in that market. The burger segment presents a good opportunity and possibly also the chicken segment, I think it will happen within the next two to three years. Everything depends on the Nigerian economy because a lot of people are watching and waiting but the GSM operators have shown the rest of the world that you can make money in Nigeria and I do not see the fast food segment being any different.

Mr. Adedipe hinted that what may be keeping the major fast foods back from Nigeria is the absence of a food processing industry in the country. Beyond UAC Foods, UTC and Zartech, nobody is into food processing and I think that is a major challenge. Once Nigerian can invest in food processing then the fast food industry in the country will just take off he added.

For him the Nigerian fast food industry has shown remarkable growth, particularly in the last 20 years. He reminisced on the industry, saying it has developed from just mobile vans to premises-based restaurants. He added that with globalization it would mature along the lines of what obtains in the developed world with operators specializing in specific areas such as ethnic meals, chicken and pastries segments.

Increased competition and greater variety will definitely open up the Nigerian fast food market.

Already some major South African fast food outlets are operating in Nigeria under franchise while others have indicated interest in coming into the country directly.

 

American retail giant Wal Mart is also interest in taking up shop in the country.

 

2014-02-11