Tantalizers, Nigeria’s only publicly listed restaurant franchise, paid just ₦65,000 ($42) in commissions to food delivery platforms in 2024, a sharp decline from over ₦6 million ($5,459) in 2023. This marks the company’s lowest expenditure on delivery service fees since joining platforms like Glovo in 2020.
Despite making ₦2.1 billion in revenue by September 2024, the company is still facing financial woes. The numbers tell a concerning story: a pre-tax loss of ₦231 million for the first nine months of 2024, following losses of ₦284 million in 2023 and ₦241 million in 2022.
The real problem is that fewer people are ordering Tantalizers through food delivery apps, which means they’re earning less money from those sales. To make matters worse, Tantalizers is failing to connect with younger customers. It has a poor 2.7-star rating on Chowdeck in comparison to competitors like The Place, with a 4.3-star rating.
In response to the rise of online food delivery during COVID-19, Tantalizers launched its own ordering platform in 2020 and began using an in-house fleet to fulfill orders. While this strategy temporarily boosted online sales, service fees soared, peaking at ₦6 million in 2023.
Amid its struggles, the company found a lifeline in October 2024 when Food Specialties and Organics and private equity firm Banklink Africa acquired a majority stake in Tantalizers for ₦1 billion. With fresh capital, the company hopes to revitalize its brand and regain competitiveness in Nigeria’s evolving restaurant market.
