Tantalizers’ Online Sales Tumble Drastically as Challenges Mount

Tantalizers, one of Nigeria’s oldest and most recognisable restaurant chains, recorded its lowest-ever spending on food delivery platform fees in 2024—just ₦65,000 ($42). This marks a steep decline from the ₦6 million ($5,459) it paid in 2023 and highlights dwindling online sales. Once a frontrunner in the Nigerian restaurant industry, the company is now grappling with financial struggles and growing competition.

A Brief Throwback

In 2019, Tantalizers embraced delivery platforms like Glovo and Jumia Food to adapt to changing consumer preferences. The move seemed promising, particularly during the COVID-19 pandemic, which triggered a surge in online food delivery. By 2020, the company even launched its own online food ordering platform, complete with an in-house delivery fleet.

Despite these efforts, service fees climbed steadily, reaching ₦1.7 million in 2021 and peaking at ₦6 million in 2023. By 2024, the figure plummeted to ₦65,000—a clear indication of declining online orders.

Struggling to Stay Afloat

Tantalizers has found it increasingly difficult to capture younger audiences, who are drawn to trendier brands like The Place, which boasts a 4.3-star rating compared to Tantalizers’ 2.7 stars on Chowdeck. The shift in consumer preferences has left the chain struggling to compete, resulting in mounting losses over recent years.

For the nine months ending in September 2024, Tantalizers reported ₦2.1 billion in revenue but still faced a pre-tax loss of ₦231 million. These losses follow similar figures in 2023 (₦284 million) and 2022 (₦241 million).

A Turning Point Just In Time

There is a glimmer of hope on the horizon for the embattled franchise as the company announced private equity firm Banklink Africa and Food Specialties and Organics acquired a majority stake in Tantalizers for ₦1 billion in October. A new board has been constituted with Robert Speijer named group managing director. The new ownership hopes to inject much-needed capital and steer the company toward a revival in the competitive restaurant space.

What Lies Ahead?

While the buyout provides a fresh opportunity, Tantalizers faces an uphill battle to regain market relevance. It must shake up its offerings, cater to younger consumers, and utilise its resources effectively to make the comeback many nostalgic Nigerians are hoping it can make.