Tantalizers Plc, one of Nigeria’s leading quick-service restaurant chains, has announced the acquisition of 10 trawlers, signaling a strategic move to diversify into the fishing business. This was disclosed in a corporate filing published by the Nigerian Exchange Group (NGX).
The acquisition marks a significant diversification for Tantalizers, traditionally known for its chain of fast food outlets. According to the company, the trawlers will be deployed for commercial fishing operations, with the aim of securing direct access to fresh fish supplies for its restaurants while also generating revenue from fish sales to third parties.
Tantalizers explained that the decision to enter the fishing industry aligns with its broader vertical integration strategy, allowing the company to have more control over quality, pricing, and supply of a key food ingredient. The move also positions Tantalizers to tap into the growing demand for locally sourced fish, both for domestic consumption and exports.
Beyond supplying its own restaurants, Tantalizers plans to sell fish to other food businesses, including hotels, supermarkets, and food processors, creating an additional revenue stream. With Nigeria’s seafood imports contributing to the country’s rising food import bill, this move also supports the government’s push for import substitution in the food sector.
This is the latest example of Nigerian companies expanding into agriculture and primary food production to manage rising input costs and hedge against economic uncertainty. By adding fishing to its portfolio, Tantalizers could strengthen its balance sheet while ensuring stable supply for its core food business.
Tantalizers Plc: From Fast Food Pioneer to Diversified Food Company
Tantalizers Plc was founded in 1997 by Mrs. Abosede Ayeni, an experienced food industry entrepreneur, who opened the first Tantalizers outlet in Festac Town, Lagos. The business was established to fill a gap in the market for modern, hygienic, and Nigerian-owned fast food restaurants, at a time when the sector was dominated by foreign brands.
Over the years, Tantalizers grew into one of Nigeria’s most recognized fast food chains, offering a mix of Nigerian and continental cuisine across multiple locations in Lagos, Abuja, Ibadan, Port Harcourt, and several other cities. The company became a public limited company and was listed on the Nigerian Exchange (NGX) in 2008, becoming one of the first indigenous fast food businesses to go public in Nigeria.
Mrs. Abosede Ayeni, who also serves as CEO, has guided the company’s expansion strategy, positioning it to compete in an increasingly crowded and evolving food service market. Tantalizers is known for its affordable pricing and strong Nigerian brand identity, which has helped it maintain loyal customer segments despite the entry of newer international competitors.
Financial Performance and Challenges
Tantalizers’ financial performance over the past decade reflects the difficult operating environment for consumer-facing businesses in Nigeria. Rising food prices, foreign exchange volatility, and declining consumer spending have eroded profit margins in the fast food sector.
The company’s financial reports show that revenue has fluctuated over the years, with periods of modest growth followed by profitability challenges driven by high operating costs and supply chain disruptions. In its 2022 Annual Report, Tantalizers recorded a revenue of N1.58 billion, representing a small recovery from the pandemic-induced slump of 2020. However, profitability remained under pressure, with rising input costs and inflation significantly impacting margins.
Tantalizers has also faced competition from smaller, agile, and technology-driven food businesses, as well as increased consumer preference for home-cooked meals due to economic hardship. These factors have made diversification into primary food production, such as fishing, both a strategic necessity and a potential lifeline for the business.
The fishing investment offers Tantalizers a path to cost savings by securing cheaper supplies for its restaurants, while also creating a new revenue stream from wholesale fish sales. If successful, this could improve cash flow stability and long-term profitability.
