High food inflation hurting fast-food industry 

The Chief Executive Officer and Co-Founder of FoodCourt, Henry Nneji, speaks on the effect of food inflation on the fast-food sector and the company’s virtual restaurant mode in this interview with FELIX OLOYEDE
Food delivery is challenging in Nigeria due to high inflation, low consumer purchasing power, and frequent market exits by players. How has FoodCourt managed to achieve profitability in such a challenging environment?
Inflation undeniably affects consumer purchasing power and, by extension, business success. However, our unique business model, centred on operating dark kitchens, has positioned us to navigate these challenges effectively. This model allows us to cross-utilise resources across all our brands and even launch new restaurant concepts without requiring significant capital investments while maintaining the quality our customers expect.
By managing 15 restaurants under this model, we maximise efficiency through resource sharing. Kitchen equipment, rental spaces, and human labour are all cross-utilised, significantly reducing operational costs and giving us a competitive edge in a challenging market. Additionally, we have to give credit to our customers for their loyalty. We are fortunate to have customers who truly value quality and are willing to pay for a service that delivers. We take it to heart to ensure that every order is worth every kobo spent.How are the high food prices in Nigeria affecting the food delivery business?
The rise in food inflation certainly has an impact on the margins of most businesses, especially those in our sector. The increasing cost of ingredients directly affects the cost of producing meals, which may in turn impact profit margins. Our business model has played a key role in helping us stay profitable despite these challenges. We also prioritise strong relationships with suppliers who offer us competitive prices, even as market costs continue to rise.
On a few occasions, we have had to adjust our prices to reflect the current economic reality, ensuring that we can maintain the quality our customers expect. Our focus remains on maintaining a balance between affordability and quality, ensuring that we continue to meet the expectations of our customers despite the pressures of inflation.Managing quality across multiple restaurant brands in a cloud kitchen environment can be complex. What specific measures do you take to ensure a consistently high quality of food across diverse offerings?
Managing quality across multiple restaurant brands in a cloud kitchen environment can indeed be complex. However, as the pioneer of the cloud kitchen model in West Africa, we have gained valuable insights that have shaped our approach, and we continue to refine it as we grow.
First, we treat each restaurant on our platform as a standalone brand, providing the much-needed attention required for all. Although we cross-utilise resources, the core operations of each brand are carefully tailored to ensure consistent qual