restaurant business plan in nigeria

How To Start A Restaurant Business In Nigeria 2023 (Full Guide)

How To Start a Restaurant Business in Nigeria: A restaurant is a place where you pay for your food and eat it. A waiter or waitress will often bring your food to your table. Restaurants have become one of Nigeria’s fastest-growing businesses, with over 60% of the population eating outside their homes on a regular basis.

The restaurant industry is mostly for individuals who are skilled in the kitchen and wish to pursue a career in it. So, if you’re among these people and live in Nigeria, consider yourself extremely fortunate. The information about how to start a restaurant company is mentioned below.

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Table of Contents

How To Start Local Restaurant Business In Nigeria

1. Examine the restaurant market: The first step in launching a restaurant company is to research the local restaurant industry. When it comes to starting a restaurant, this is crucial. It is usual for market research for the restaurant sector to take many months.

This will assist you in avoiding costly mistakes. While the business may appear simple and straightforward to begin, there are regulations to follow if you want to be successful. And you learn these guidelines by researching the market for this type of business.

2. Register your business: Registering your restaurant is the next step. You should register your restaurant name to help you build your brand and differentiate yourself from the competition.

Business name registration is handled by Nigeria’s corporate affairs commission, and it may be done online. Make the mistake of not registering your restaurant before opening it. Someone else may register it and claim the brand name you’ve worked so hard to build.

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3. Make an all-encompassing approach: The business plan you write will guide the growth of your restaurant. Regardless of how much effort you’ve put into your idea or how many reliable individuals have assured you of your company’s success, you must produce a business plan. Your strategy will act as a road map for your firm as it grows.

4. Determine who your target clients are: You need customers who will eat at your restaurant. What are their occupations, ages, and average earnings? When launching a restaurant business, you must address these questions.

If you know your target clients and niche market well, your restaurant business will thrive. You can scan for them or make and distribute handbills to attract them.

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5. Look for an appropriate place: Another stage is to choose a suitable site for your restaurant. One of the finest locations for a restaurant company is in a heavily populated and easily accessible portion of town.

Of course, you should keep in mind that it is better to locate your restaurant near colleges, motorparks, and business complexes. These are regions where you may expect a large number of different types of individuals to visit your business.

6. Find out what the tax rate is in your area for your restaurant: Again, you must determine the restaurant tax rate in your area and determine whether you can afford it. In Nigeria, all firms must pay a variety of taxes, including corporate income tax, education tax, and value added tax. However, in several Nigerian states, restaurants have been subjected to extra levies.

The Lagos State government, for example, levies a 5% sales/consumption tax on services performed in restaurants inside the state. Before you start a fire, you should consult with a lawyer who is aware with the tax consequences of your business and can assure that you are not breaking any laws.

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7. Obtain the required restaurant sales permit and license: In order to start a restaurant in Nigeria, you will need to secure a number of licenses and permissions. In certain circumstances, you will need to seek licenses from a local government office, while in others, you will need to obtain them from a state government agency.

It is vital to ensure that you have the necessary licenses and permissions before starting your restaurant company in Nigeria. Because the sorts of licenses and permissions differ by area, it’s critical that you get legal assistance early on in your restaurant’s development.

Also, if he stands and you still want to offer alcoholic beverages, you’ll need a specific license. If your business will be operating late at night or maybe past midnight, you will need to get a special permission. Getting the correct legal help is therefore crucial for getting your restaurant off to a good start in terms of licenses and permits.

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8. Raise funds for your startup: After doing your research and making your decision, you should have a good estimate of how much it will cost to open a restaurant. Capital is one of the most important criteria for beginning a restaurant. As a result, you’ll need to generate funds for your company.

Your capital letter denotes the size of your company: small, medium, or big. Because growth is a constant and steady process, it’s fine to start modest and expand later as you gain expertise and financial rewards.

9. Create a menu plan: Any restaurant’s menu is the most crucial contact point. Daily promotions and a prix-fixe menu should be available in your establishment. Prices for each meal should be included in your menu list. You may come up with your menu pricing list by looking at what other restaurants in your area charge for a plate of food they provide.

As a newcomer to the industry, the price for a plate of new offer may be slightly cheaper than what others charge for the identical plate of dinner in order to attract new customers. To build credibility and give your restaurant an advantage over others, as a chef and lover of culinary art, you must have your own distinctive recipes and a flexible menu at a fair price.

Ask yourself why consumers should keep eating at your restaurant. If you can honestly answer this question, you’re on your way to creating a successful restaurant. Make plans to receive food and specialty condiments at regular and cheap costs by identifying and connecting with wholesale suppliers. This alleviates the burden of locating and purchasing food items that are seasonal, limited, or in short availability on the market.

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10. Invest in the necessary restaurant equipment: Cooking utensils, tables, hand and plate washing supplies, desks and chairs, internet cables, inverter, cooling system, fans, generating plants, TV set, dstv/local antenna, audio music player, and other entertainment equipment are all required in any restaurant.

11. Decorate your restaurant: You must also furnish the restaurant. There are various possibilities available, but it all comes down to personal preference. To add to the amazing atmosphere of your restaurant, Full-stop used first flowers in a sturdy and contemporary hand-sculpted brass work overhead.

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12. Hire competent cooks and wait staff: Employee knowledge Waiters and employees who are passionate about and appreciate the importance of high customer satisfaction in the restaurant sector will decide to a significant part your ability to maintain and attract new customers. Your chefs’ watchwords should be meticulous attention to detail and the utilization of the freshest seasonal foods and high-quality goods.

13. Make a management team and structure it: Make a management team and organize it. You require managers to handle the firm for you so that you may devote your time to other activities. Organize waiters and waitresses to service your guests, as well as a financial accountant to provide correct financial information.

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14. Standardize health and safety procedures: Because restaurants are all about people consuming food, the restaurant industry is extremely sensitive. We should anticipate that the restaurant will be monitored and inspected on a regular basis by the local or state government to verify that you are following all applicable health and safety regulations.

Inspections may include not just raw and peppered food, but also refrigeration systems, cooking equipment, and garbage cans.

15. Promote your company : In this business, this is one of your main priorities. This is because it makes very little difference how terrific a chef you are or how fantastic your offerings are if no one knows about your eatery. You must market your restaurant regardless of the type.  For outstanding fast service restaurants, use social media channels.

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Top 3 Facts About Restaurant Business In Nigeria

1. Competition: Just like every other business, running restaurant business in Nigeria is highly competitive. As stated earlier, restaurant business is a life saving business in Nigeria. This is in the sense that food is a necessity. This fact is known to everyone. On the same hand, the lucrative nature of restaurant business is equally known to all. People will always consider restaurant business when evaluating their choice of venture.

In Nigeria, it is usual for every street to have more than one restaurant. This is where the competition begins. So, the demand is high on the side of customers, and they will always stick with the vendor that satisfies their need. First impression in this instance is of utmost necessity. Embellishing your services with something unique and employing other strategies to appeal to the customer’s appetite are most recommended.

2. Need for permit: In some areas in Nigeria, running a restaurant business requires getting an authorization from a designated authority, usually from the community delegates or any other authority designated for that purpose. A deductible reason for this is that selling of food has something to do with public health.

Authorities that are in charge of public health and public nuisance in the target community or state may want to set a standard for the operation of the restaurant business in order to ensure public safety. Other evaluations and standard permit may be required, such as fire safety and other hazards.

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3. Restaurant business is lucrative: Undoubtedly, running a restaurant is lucrative. Its lucrative nature is at its peak when the business is well invested in and adequately managed. So, there is need to maintain good customer relationship and explore viable business strategies in other to be unique in this line of business.

Profits are not automatically made by the mere fact of opening a restaurant, and it may not come soon at the very inception of the business. Profits are rather derived from the strategies employed in managing the business. And the most important part of managing the business is employing those strategies that will guarantee sustenance of the business and a long-term profit.

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In conclusion, the processes to start a restaurant company in Nigeria are as follows. Consider how lucrative it is and how much it will cost to get started. You can study business at the entry level and work your way up to become a large-scale company enterprise. You will undoubtedly succeed if you follow the steps to starting a business.

Edeh Samuel Chukwuemeka, ACMC, is a lawyer and a certified mediator/conciliator in Nigeria. He is also a developer with knowledge in various programming languages. Samuel is determined to leverage his skills in technology, SEO, and legal practice to revolutionize the legal profession worldwide by creating web and mobile applications that simplify legal research. Sam is also passionate about educating and providing valuable information to people.

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• Wed. Apr 10th, 2024

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NGBusiness Gives You Access To Over 100 Business Plan Samples As Well As Other Important Business Related Information...

Restaurant Business Plan In Nigeria (2024 DOC)

Restaurant Business Plan In Nigeria (2024 Sample) | How To Start Fast Food Business

One of the most essential commodity in a home around the world today is food, starting from the raw food, meat food, can food, vegetable food and every other kind of food you can possibly think of.

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Business plans and feasibility studies to get a discount.

This is because; we are sustained by our daily intake of food (meals) of all kinds. Food is relative to different kind of people, there are those who prefer meat meals to vegetable meals, others would prefer the one they drink, in all they are after their satisfaction as a result of the food intake.

In Nigeria today, food has gone beyond the daily meals people eat at home and set off to work. In fact most people consider venturing into food vending as one of the most lucrative business today, considering the number of people who patronize food hawkers also known as mobile food sellers. There is this adage in Nigeria that says “ In Nigeria everybody is in a hurry, both traders and customers ”, for this reason most Nigerians today tend to leave their home without having to eat anything, and that is where the business opportunity for selling comes in.

As a student in Ebonyi state University, Abakaliki, there was this woman we often buy rice and beans from every morning, it was actually a routine for us, I never really thought of the business side of what this woman was doing, all we needed was to feed and go to school, because we were always in hurry, the day she told us how much she earns on a daily from her food hawking, we were all in shock. And this was a woman who didn’t even know the fundamentals of running a successful restaurant using a business plan.

To get the full business plan on the Restaurant Business Plan In Nigeria + feasibility study, pay N10,000 to

GTBank (Guaranty Trust Bank)

Account Name – Okite Joseph ikenna

Account No – 0044083736

Once payment is made for the Restaurant Business Plan In Nigeria Feasibility Studies PDF File, send the following (i) a valid email address and (ii) your payment details to any of these numbers – 07039768549.

Imagine if you decide to start up your own food joint, using one of our Restaurant Business Plan In Nigeria, the success reports you will be recording. You may be discouraged by others that fast food business crumbles easily due to the fact that most people eat at home before coming out, and as a result you may have low sales which will eventually crumble your business. I believe you must have observed that most restaurants that are strategically located in your town attracts the most customers, despite the insinuation that most people eat at home before coming out, customers still troop to these restaurants just to feed.

The Restaurant Business Plan In Nigeria will help you in outlining how you can set up your own fast food restaurant. The question is having the interest in starting your own restaurant business, or having the habit of always cooking , not just for your consumption but for the people around, it even gets better if you enjoy every bit of your cooking activity. Some actually go for training to become qualified chefs, this tells of how huge restaurant business can be if properly managed.

What You Can Use Your Restaurant Business Plan In Nigeria For;

With the Restaurant Business Plan In Nigeria which can also serve as a Fast Food Feasibility Studies, as an entrepreneur, you can use this document for various purpose, especially, the purpose of sourcing fund to start up your fast food business using the fast food restaurant business plan sample.

BANK LOANS – You stand a chance of getting a bank loan using this well written business plan , banks want to be convinced that they are giving their money to a customer who has potential of repaying, hence with a well written fast food restaurants business plan , you may be considered as a reliable loan applicant.

GRANTS – Applying for grants from government has been made easier and accessible, especially if done with a doc that will convince those issuing the grants, of cause you must be qualified before you are issued with the grant.

PROPOSAL – You can use the restaurant feasibility study sample PDF to apply for a proposal, especially in situations where you can obtain fund for your restaurant business, this is because the information contained in this restaurant business plan document are well articulated, you stand a better chance going with this feasibility study.

Seminar presentation – You can use information from this business plan to form the basis of your seminar research, since the information contained in it came from a rigorous research work.

COMPETITIONS – You can go for competition where you win a prize or scholarship, especially one for entrepreneurs to commence their journey in business. You stand a chance of winning given the information at your disposal.

Nigeria today has a whole lots of opportunities, especially for the business minded ones, and for those who decides to venture in to the fast food industry also known as restaurant business are guaranteed with diligence and discipline, the stand a chance of earning what they have invested.

Generally, the fast food industry is growing, owing to the high demand in already made food by those from all categories of people in the society. You will agree with me that fast food accommodate both the old and the young, the rich and the poor, as long as you are able to foot your bills, you are welcome to buy.

As stated earlier, a great amount of care and caution has to be applied in the running of the restaurant business, you surely do not want to waste your investment, hence the importance in getting a restaurant business plan + feasibility study that best explains to you what you need to be doing at every time.

Importance Of Restaurant Business Plan In Nigeria

In all fairness, you need a well detailed business plan + feasibility study in order to run restaurant business in Nigeria, irrespective of the type of restaurant you have in mind, as long as money will be invested into the venture, it will be advisable you professionally plan how to go about the business using a laid out business plan with detailed information on the business. Here are the reason you need a business plan for your fast food venture;

• It helps you to plan for the things you need before kick starting your business
• Your plan tells of what services you have to offer
• It should also contain the number of staff to hire
• A business plan should also have detailed description of staff uniforms and dress code

Note!! To get the full business plan on the Restaurant Business Plan In Nigeria + feasibility study, pay N10,000 to

This is what Restaurant Business Plan In Nigeria looks like;

Table of content

Executive Summary

• Business Description
• Products and services
• Market Analysis
• Competitor Analysis
• Sales and Marketing Plan
• Operational Plan
• Management plan
• Financial Plan and Projections

This is an overview of the proposed standardized fast-food restaurant which will be named after whatsoever you wish, also outline the categories of people, residents as well as customers that your local delicacies or other delicacies may serve, they have meet the requirement as well as be in a classy environment . Get a catchy name for your Kitchens, distribute fliers with your address boldly written on it.

The Business

The business should be established as a limited liability company owned by you as well as other investors who may have contributed to the capital. Outline the persons who are to manage as well as oversee the business, it is important a first class chef with wealth of experience and expertise is allowed to manage the restaurant, except you fit into the description of a first class chef. This gives you an edge to be able to compete with the like of other top hotels as well as restaurant.

Products and Services

Great restaurants are known for their irresistible menu, especially when it has long list of mouth-watering selection of local as well as other delicacies, such as

• Egusi Soup,
• Pepper-soup,
• Vegetable soup,
• Pounded yam,
• fried rice, etc.

The aforementioned will be served with a variety of meat offerings ranging from roundabout to pomo to raw beef. Tasty fried chicken, turkey, assorted fish types and recipes will not be left out.

Also make provision for point and kill services to customers who may prefer to just come in, relax, watch television and eat our greatly-demanded super-tasty smoked fish offerings.

Nigeria, no doubt, is both Africa’s most populated country and its largest economy but also its most important consumer of food products. The size of the food and beverage industry in Nigeria according to IMF is valued at 800 billion Naira with an estimated 40% growth expected in 2016 alone.

Being the business capital of Nigeria and its second most populous state, Lagos state boasts of over 30 million residents and a food and beverage industry valued at 100 billion. Experts also believe that this market will witness a 45% growth in 2016 alone.

The Ogudu area of Lagos has in recent times begun to capture the interest of greater Lagos residents. This is because this once sleepy and relatively quiet business and residential community has attracted in recent times the interest and investments (in real estate) of Lagos’ many high and mighty. With its over 100,000 population made up of residents, workers and visitors, Ogudu area provides any good classy restaurant worth its onions the right kind of demography on which successful businesses thrive. It is therefore no surprise that Big Bite, Mr Bigg’s, Tantalizers, Margretos and a host of others found a conducive business nest in which to lay their proverbial eggs.

Financial Considerations

Go for a long-term financing to cover start-up costs, equipment, building expenses, and working capital.

Funding for the launch of the business will be provided primarily by equity from the partners and investors.

Our market survey and research shows that restaurant business holds the promise of reaching positive cash flow in its 7th month of operation. The advantage of this, is the provision it makes for accelerated repayment of its loan obligations, as well as for dividends to be paid to the owners.

Revenue is expected to amount to N12,984,326 and profit N3,592,736 in our first year of operation.

Factors To Consider Before Setting Up Your Restaurant

Here are some of the factors most food entrepreneurs over look that makes them fail in the business venturing, carefully go through them and ensure you cross all your T’s and dots all your I’s; see below

Write A Business Plan – We’ve discussed why you need a food business plan sample PDF on this post, some of the things we said you needed to start up your restaurant business should be embedded in the business plan. A business plan helps the entrepreneur to plan for logistics , things that are required for the business to start, on the business plan your master plan on the services to be offered will as well be contained in it, It should as well have information on the number of works you should have and also have detailed description of staff uniforms and dress code, things menu, time of opening and closing business will as well be included etc.

Source For Fund – This relates to those who have built an idea on how they want to start up their own business but have little or no fund, with the business plan you can source for fund to start up your own restaurant business. You can apply for bank loan, especially those soft loan that are issued to start up business, apply for government grants, or you can source your fund from friends and family members.

Register Your Business Name – You must register your business name to be legally recognized, in fact when you register your business name, it becomes an infringement into your right if some other business uses the same name, in essence business registration protects your business from duplicates. In a city like Enugu where they have a whole lot of fast food joints and restaurant, I’ve never seen two fast food joint or two restaurant with the same name, for example you have the following just to mention a few (i) Open Sheraton (ii) Nta’Chi Osa (iii) Odi Oku… etc, all these fast food joints/ restaurant have their unique customers although they relatively have almost the same menu.

Competition – Restaurant business is one of the most competitive business you can ever find today, in order to survive, you need to know who you are competing with. By knowing your competition, it entails you know things like;

• Services offered
• Number of staff
• Administrative/ management sector
• Their method of operation… etc

In fact, you are required to know every possible information about your competition in order to compete favorably. You can actually scout these restaurants yourself; this will enable you to have first hand information about them.

Location – Location in business can never be over emphasized, it is important that you carefully select the best spot for your business. Locating your business in the city center can be very strategic, people will get to know you restaurant easily, could be used in description. Other places where you can site your restaurant is at the Mall, serving continental as well as local dishes will make people consider your restaurant a top notch, setting up at the market place or around the market will definitely fetch you a large number of customers. You can take advantage of proper research before setting up.

Staff Employment – The implementation of your business plan is dependent on the capacity of staff you have employed, these days food venture has become a serious venture and some organisation tends to send their staff members to training, while other employ only those certified by an institution, there are institution where individuals are trained for hospitality business. Employing and subsequently training those individuals will greatly benefit your restaurant. In essence, you need qualified hands to handle the following;

• Management/ administrative
• Cleaning etc.

Buy Equipment – There are items you need to successfully run a restaurant business, these items includes the following,

• Cooking equipment (firewood or gas cooker)
• Oven and grill equipment
• Walk in cooler, freezer or any other cooling equipment
• Frying pans, pots, spoons, plates
• Take a way plates
• Salad and dessert plate (optional)
• Chef knifes
• Cleaning equipment (buckets, cleaning rags etc)
• Hand soap and sanitizer dispenser
• Fire extinguishers (for emergency)
• Tray pan (for serving)

Note – you can scout for other items not mentioned in the list above, in all you need these items to successfully run a restaurant business.

Other Additional Factors To Consider

• Draft Your restaurant menu
• Have a reliable list of those that supply items to your Restaurant
• Have a financial estimates as well as projections for your business
• Invest in good press publicity
• Go further by either develop a website or setting up a page on social media that will help in promoting your restaurant
• Constantly Re – design your restaurant menu to keep your customers interested
• Never relent in the implement of frequent and strategic marketing
• From time to time host events
• Invent new service and market to your customers
• Tell them of your take-out as well as your new service delivery
• Engage other restaurant owners in a networking scheme and as well engage your customers.
• Involve in customers related competition.

To get the full Restaurant Business Plan In Nigeria | How To Start Fast Food Business + feasibility study, pay N10,000 to

Once payment is made for the Restaurant Business Plan In Nigeria | How To Start Fast Food Business, send the following (i) a valid email address and (ii) your payment details to any of these numbers – 07039768549 .

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How to write a business plan for a nigerian restaurant?

Putting together a business plan for a nigerian restaurant can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing nigerian restaurant, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a nigerian restaurant?

• What information is needed to create a business plan for a nigerian restaurant?
• How do I build a financial forecast for a nigerian restaurant?

The written part of a nigerian restaurant business plan

• What tool should I use to write my nigerian restaurant business plan?

Having a clear understanding of why you want to write a business plan for your nigerian restaurant will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a nigerian restaurant business plan.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your nigerian restaurant. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your nigerian restaurant to be in the next three to five years.

Once you have a clear destination for your nigerian restaurant, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your nigerian restaurant's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Crafting a comprehensive business plan for your nigerian restaurant, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your nigerian restaurant has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your nigerian restaurant, let's delve into the necessary information needed to craft an effective plan.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Information needed to create a business plan for a nigerian restaurant

Drafting a nigerian restaurant business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a nigerian restaurant

As you consider writing your business plan for a nigerian restaurant, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your nigerian restaurant.

You might find that customers may be looking for more spicy, flavorful dishes. Additionally, research may suggest that customers could be interested in Nigerian-inspired fusion dishes that combine traditional flavors with more modern elements.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your nigerian restaurant.

Developing the sales and marketing plan for a nigerian restaurant

Budgeting sales and marketing expenses is essential before creating a nigerian restaurant business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and equipment needs of a nigerian restaurant

As you embark on starting or expanding your nigerian restaurant, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A Nigerian restaurant may incur staffing costs such as wages for cooks, servers, dishwashers, and other staff, as well as payroll taxes and insurance. They may also need to purchase equipment such as ovens, grills, refrigerators, fryers, and other restaurant-specific items. Additionally they may need to purchase food supplies such as meats, vegetables, spices, and other ingredients.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your nigerian restaurant's financial forecast?

The financial forecast of your nigerian restaurant's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a nigerian restaurant are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a nigerian restaurant shows how much revenue and profit your business is expected to make in the future.

A healthy nigerian restaurant's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established nigerian restaurant.

The projected balance sheet of your nigerian restaurant

Your nigerian restaurant's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

• Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

Your nigerian restaurant's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

• Your nigerian restaurant's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
• And its solvency: does your business have the capacity to repay its debt over the medium-term?

The projected cash flow statement

A cash flow forecast for a nigerian restaurant shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your nigerian restaurant business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your nigerian restaurant as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your nigerian restaurant, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your nigerian restaurant business plan, let's shift our focus to the written part of the plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of a nigerian restaurant business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

In your nigerian restaurant's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your nigerian restaurant, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

In your nigerian restaurant business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your Nigerian restaurant, you may want to emphasize its potential to draw in customers from a large and diverse local population. You could mention that the area has good transportation links, and that it is situated in a central, accessible location. You might point out that the area is home to many other restaurants, which could help to create an interesting and vibrant atmosphere. You could also emphasize the fact that the area could be an ideal spot for a Nigerian restaurant, due to its large population of people with an interest in African cuisine. Finally, you may want to emphasize the potential for growth and success in the area.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your nigerian restaurant business plan should include a detailed description of what your company sells to its customers. 

For example, your Nigerian restaurant could offer traditional Nigerian dishes such as jollof rice, suya, and egusi soup as well as classic favorites like grilled chicken and plantain. You could offer catering services for special events, host live music nights, and provide takeout and delivery services. All of these offerings will help to make your restaurant an attractive destination for customers who are looking for delicious, authentic Nigerian cuisine.

The reader will want to understand what makes your nigerian restaurant unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When presenting your market analysis in your nigerian restaurant business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your nigerian restaurant, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your nigerian restaurant is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include busy professionals. These people often have limited time for preparing meals and may be looking for a convenient, tasty alternative. They might appreciate a restaurant that offers quick, affordable, and delicious options that cater to their needs.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your nigerian restaurant.

5. The strategy section

When writing the strategy section of a business plan for your nigerian restaurant, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your Nigerian restaurant could face a variety of risks. First, the restaurant may be vulnerable to food safety issues, such as contamination or spoilage. It is important to ensure that all food is prepared properly and stored correctly. Additionally, it is important to be aware of any food allergies customers may have so that they can be properly accommodated. Second, your Nigerian restaurant could be at risk of theft or damage. It is important to have a secure system in place for protecting the restaurant's assets. This could include installing security cameras, alarms, or other safety protocols. Additionally, it is important to make sure that any staff members working in the restaurant have been properly vetted and background checked.

6. The operations section

The operations of your nigerian restaurant must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your nigerian restaurant - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

A Nigerian restaurant may have two key assets and IP. Firstly, it could have a recipe for a signature dish, such as jollof rice, that may be unique to the restaurant. This IP could be protected through trademarks and patents. Secondly, the restaurant might have a well-known brand name that customers may recognize. This brand name may be registered as a trademark to help protect it.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your nigerian restaurant business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my nigerian restaurant's business plan?

In this section, we will be reviewing the two main solutions for creating a nigerian restaurant business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your nigerian restaurant's business plan

The modern and most efficient way to write a nigerian restaurant business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your nigerian restaurant's business plan

Outsourcing your nigerian restaurant business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the nigerian restaurant business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your nigerian restaurant's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your nigerian restaurant business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your nigerian restaurant business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
• A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a nigerian restaurant. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

• How to write a 5 years business plan
• Business plan myths

Know someone who owns or wants to start a nigerian restaurant? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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8 Steps To Start A Successful Restaurant Business in Nigeria

The restaurant industry in Nigeria is thriving, with an increasing number of people eating out and ordering in. According to the National Bureau of Statistics, the food and beverage sector contributed more than 24% of Nigeria’s GDP in 2020, making it a lucrative industry for aspiring entrepreneurs. To ensure long-term success, however, starting a restaurant business in Nigeria necessitates careful planning, research, and execution. This article will walk you through the 8 steps To Start a profitable restaurant business in Nigeria.

Table of Contents

Conduct Market Research

Before opening a restaurant in Nigeria, conduct market research to determine the demand for your services, identify your target customers, and evaluate your competition. Visit similar restaurants in your area, analyze their menus, prices, and customer service, and conduct surveys to gather feedback from potential customers to gather information.

Get a Restaurant Business Plan

A solid business plan is essential for the success of your Nigerian restaurant. Your company’s objectives, strategies, target market, financial projections, and marketing plans should all be included in your business plan. A business plan can also assist you in obtaining funding from investors or financial institutions.

Order a Restaurant Business Plan with 3 Years Financial Projections

Secure a Good Location

Getting a good location is crucial to the success of your restaurant business. You should locate your restaurant in an area that will be access easily by your customers, consider the following when deciding on a location:

• Your restaurant business must be in a location with high population and purchasing power

2. It should be in a commercial area which must also be safe and secure.

3. You should also consider the rent, utility costs, and other expenses associated with the location.

Obtain Necessary Approval and Permit:

After securing a good location, the next important thing is to obtain the necessary approvals and permits and you must achieve this before starting your restaurant business in that location, you should reach out to relevant authorities to get started, this will also be a good opportunity to ask questions based on the right approvals and permits you need for your business. Each state in Nigeria including the local governments have specific laws that guide businesses within their domain. You will find the follwing information necessary as you begin your business:

• Register your business with Corporate Affairs Commission and obtain Tax Identification Number, failure to do this might result into you having needless legal battle with the government.
• Get the state government approval including the local government permit for your kind of business.
• Obtain a food and beverage permit from the National Agency for Food and Drug Administration and Control (NAFDAC).

Build Relationship with Reputable Suppliers

This is one important aspect of your business you can’t ignore, you must establish relationships with reputable suppliers to ensure the quality of your food and beverages. You should select suppliers who provide high-quality ingredients at reasonable prices and a consistent supply of goods. To ensure that you are getting the best deal, you should also negotiate prices and payment terms with your suppliers.

You should consider buying your ingredients and other items in bulk to enjoy discount and save on cost

How to start a profitable medium scale yam flour mill in Nigeria

Hire Competent Workers

Hiring qualified employees is critical to the success of your restaurant. Hire skilled chefs, servers, bartenders, and other employees who are dedicated to providing excellent customer service. You should also provide proper training, compensation, and benefits to your employees to motivate them to do their best.

Paying good salaries will likely motivate your employees to work hard in your business, consider hiring those with experience related to the restaurant industry especially chefs and supervisors.

Invest in Marketing

Marketing is indispensable to the success of your restaurant business. You should invest in marketing strategies that will help you reach your target customers and build brand awareness. You can use social media, email marketing, advertising, and other promotional methods to attract and retain customers. You should also focus on building a positive online reputation by responding to customer feedback and reviews

Consider the following strategies in order to promote your business both offline and online:

• Print fliers and distribute within your city to raise awareness about your restaurant
• Consider running a promo by offering discounts to the first set of customers that will eat in your restaurant
• Inform your family and friends, they might likely become your first customers
• Design, print and place attractive banners in strategic areas within your city
• Establish an online presence by being active on social media, you might consider building a website so that people can order your food online, then partner with delivery companies or establish one in-house to ensure customer orders are delivered promptly.

How to make your products unique and desirable

Expand your Business

After achieving success and establishing your restaurant business as a major brand in your city, you should consider expanding into nearby cities, this will allow you to reach more customers and increase your revenue

Starting a restaurant in Nigeria demands careful planning, execution, and dedication. You can start a successful restaurant business in Nigeria by following the steps outlined in this article. The food and beverage sector in Nigeria is a lucrative industry, and with the right strategies, you can tap into this market and achieve long-term success.

Related Articles:

How to start Groundnut Oil Production In Nigeria

How To Start Garri Processing And Packaging Business In Nigeria

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Business Plan

Restaurant Business Plan in Nigeria / Start a Fast Food Business in Nigeria

by BusinessPlan 1 Comment

Restaurant Business Plan in Nigeria / Feasibility Study on Restaurant Business

CLICK HERE TO DOWNLOAD FREE RESTAURANT BUSINESS PLAN IN NIGERIA

One of the basic necessities in life is and still remains FOOD, lately it has evolved from just food to having a well prepared and well served food and many people just want to walk into a restaurant and be served a well cooked meal. I mean a meal that gives them a run for their money. Food is good, well cooked food is better and a well cooked food, severed in a serene environment with courtesy is best.

Also Read: Small Chops Business Plan in Nigeria

A great percentage of people love to eat out with a friend, wife, husband, girlfriend, co worker, etc the list goes on but for whatever reason and with whoever they choose to go out with, the base line is that all they want is to eat and that is why we are showing you steps to opening your own restaurant and ways to make your own mark in the food industry.

Before you start your restaurant business in Nigeria, you need to a detailed feasibility study and write a business plan. It is always professional for you to have a well laid out business plan and ensure that it is foolproof. Draw out a plan for all the things you want to get done before opening the business, what kind of service do you intend to run, have a detailed description of everything even to the way you expect your staff to dress and carry themselves while going about serving customers. If you want to build, rent or lease a building. Note that this business plan will serve as a guide from the inception stage of this business and will also continue to control how you run your business, you can improve on this plan but it will be your ultimate guide to success.

You can Write Or Buy a Detailed Business Plan From Us!

For N10,000, we will send you a sample restaurant business plan in Nigeria. Our business plan can be used for bank loans, grants, and entrepreneurship competitions. This sample restaurant business plan in Nigeria covers the following aspects:

• Executive Summary
• Business Description
• Products and Services
• Market Analysis
• Competitor Analysis
• Sales and Marketing Plan
• Operational Plan
• Management Team
• Financial Plan and Projections

To place order for this business plan, pay N10,000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

After payment, send the following details via text to 07033378184.

• Depositors Name
• Your email address
• The title of the business plan you paid for (e.g. small restaurant business plan in nigeria pdf)

Your business plan will be sent to your email within 10 minutes after payment.

Learn More: How to Write a Business Plan

  Steps Needed To Start a Restaurant Business in Nigeria

• Be Determined

Be determined to start this business and also be resilient in seeing this through. Starting a business like this is not a child’s play and you need to be strong hearted to kick off. Keeping your mind on the final outcome of what you want will help to see you through the most difficult times in starting this business. Get all the necessary motivation you need and surround yourself with people that believe your can do it.

Learn all you need to know and all you can about the food industry in the country. Research things like what to buy, where to buy them and where to get them at cheaper rates and all these could include any of the following equipments, utensils and food items. It’s important to note that saving all you can right now and at this early stage is so important and will eventually work in your favour.

• Visit a Couple of Restaurants Around

Go around and pay a visit to reputable restaurants around your location that you think may be a major competition for you. See how they run their business; open your eyes you will be shocked how much there is to learn and you will pick up one or two things that will give you an edge to be above them when you start yours.

You will have to decide the standard you want to attain and keep in your business. Who are the people in the society you are targeting to service that will be the determinant of a lot of things from here on. Make sure this standard you start with is kept constant if there will be a change then it should get better not worse than when you started out. Maintaining the standard is one of the major things that keeps customers away and ultimately leads to the closure of a business that was well started.

Feasibility Study on Restaurant Business in Nigeria

• Business Location And Registration

Most road side restaurant don’t necessarily need business registration but if you intend to stand out and make your mark you will need a registered name, a trademarked logo and the best location for your business to thrive.

The location is very important because the kind of people that live around or work around your business location will determine the kind of people you will attract and how much of them comes to patronize you. Don’t be in a hurry to pick a business location, take your time, drive around and ask questions.

Ensure that your business place is very easy to locate, choose the best location with access road, parking space and easily accessible by most of your clients.

• Cost Break Down

Now that you have a location, draw up a cost implication of your entire idea that includes your location cost. Are you renting, leasing or building your own business location? All these will tell how much cost implication you will incur as regards cost of start up, equipments, utensils etc should also be included.

• Get Capital

Raising the capital for the business is an all important phase. Most businesses don’t see the light of day and don’t leave the pages of a book or the minds of inceptors solely because they lacked the capital to carry on from this planning phase. So make sure you kick off and get that capital while your idea is still hot and fresh.

Get a loan from family and friends; get a loan from a bank or microfinance bank or raise it yourself but ensure you raise that capital.  

• Get your business location and furnish it with all that is needed before you start, don’t manage. Make sure you are ready before you begin.
• Employ A Great Chef/ Experienced Staff

The purpose of having all these plans for the  restaurant is to make great dishes so invest wisely on getting the best hand(s) around to help win the heart of the customers. You may have a great smile but the customers will only come back and pay for a meal if the meal they had the first time is great. And trust me you never can tell how far referrals can work in your favour. Word of mouth goes much faster than even social media adverts.

• Have an enticing menu that will keep the customers coming and wanting more.
• Never forget the power of the media

Do allot of publicity especially at the initial stage. Go on television and radio if you have to.

Print fliers and do social media publicity. You can surely reach a lot of people through media advert. Set a target for yourself and ensure you meet it.

• Maintain and Improve Your Standards

It is of utmost importance that your standard is maintain and improved or reviewed constantly. Be known for your quality service and continue to render that service to your customers. Look for new ways to intrigue your customers and appeal to their better judgment to remain in business and gain more money and publicity.

A saying CLEANINESS IS NEXT TO GODLINESS should be your watch code or motto. Keep your environment clean to avoid been shut down by the regulatory bodies and to still keep your customers coming and comfortable while they enjoy a well cooked meal.

Online presence is very important in this information age. Build an android app which is puts your business out there. This can also help your customers place orders to their homes and offices. Bringing your services to their door step is the best way to ensure a lasting business.  

Class of Restaurants

The class of restaurants generally relates to the social status of the individuals that you intend to attract to your place of business. You have to carefully study your environment and location of business to make sure you have the desired result and meet the desired customers. These classes are as follows:

• Low Class Restaurant
• Middle Class Restaurant
• Upper Middle Class
• High Class Or Big Boys Restaurant

Where your restaurant is located and the general customers you intend to attract to your place of business will ultimately affect the class of restaurant you will start up, the things you will have and the general cost for lunching the business.

Types of Restaurants in Nigeria

• Traditional/Ethnic Restaurants: This restaurant is the kind that serves local or foreign meals which is predominantly cultural base and location based. Some of these restaurants are Chinese restaurants, calabar kitchen, etc.
• Quick Service Restaurants: These are restaurants that are concerned with just meeting a customer’s need quickly because these set of people are in a hurry and just want to be fed at the moment. This is a quick service restaurant to people that are most likely on break from work or on the move and need to catch a quick meal, but are not interest how they are served they just want to eat.
• Casual Dinning Restaurants: these are more organized fast food restaurants; they serve their customers in a more relaxed environment. In this kind of restaurant meals are served in no particular order.
• Fast Food Restaurants: Snacks and drinks are served; these are what we  may refer to as junk foods like burgers, drinks, chips and fries, chicken etc. you could have the option to eat in and take away, there could also be delivery service.
• Fine Dinning Restaurants: These are high class restaurants that serve customers with dignity and respect just as they would get at their homes or even better. These restaurants have standard services and do what with is called courses e.g. three course meal or five course meal. They serve the best of the best in the society, the elites and as we will call them in Nigeria “big boys”.

Cost of Starting a Restaurant in Nigeria

The cost of starting a restaurant cannot be given here in details basically because there are several kinds of restaurants and classes. The location and the quality of service you offer will be the determinant of the starting and running cost. With as low as N1,000,000.00 (one million naira) you can start up something nice but if you intend to go higher, then your cost will increase greatly.

Things Needed For Startup of a Standard Restaurant.

• Refrigerators
• Gas cookers
• Air conditioning system
• Automate cashier system(with computers)
• Deep freezer
• Cooking utensils
• A lot of these are optional depending on the type /class of restaurant you want to open.

Risks and Challenges That Are Likely To Be Encountered

• Stiff Business Competition: there are several individuals in this business which pose as a major competition to this business. The competition will be stiff, you have to decide to weather the storm and also look for ways to be ahead of every other competitor in the business. Go out to other restaurants and have a meal or two just to learn a few new things that can help you work better.
• Risk Management/ Loss:  running a restaurant could be a difficult and tedious task; early mornings and late night are major characteristics. You have to be careful and cautious because these factors are one of the things that could lead to disasters and hazards in this business .
• Management Crisis: A lot of individual employ base on sentiments or familiarity but it’s important to note at this time that you have to employ capable hands that can manage this business. Hire creative and innovative people that will take your business from the ground up.
• Customer Service Complexity: Understanding you customers and their needs is one of the most complex tasks posed to any restaurant owner and this is because a human being has needs and these needs changes from time to time so you have to be up to date with the current need of your customers. Inability to meet with this moving train can hinder growth and ultimately cause the sudden close of this business. KNOW YOUR CUSTOMERS.

Creative Ideas to Improve Your Restaurant Business

• Get a great and user friendly website and if possible get an android application.
• Constantly redesign your menu.
• Get good publicity.
• Marketing your restaurant.
• Host events, shows and sponsor programs.
• Do takeout and delivery service
• Constantly make your employees dress smart and corporately.
• Do publications with testimonials of from satisfied customers.
• Do social media publicity
• Network with other food vendors.
• Appreciate your staff.

 Hurry now and get your own restaurant business plan in Nigeria + feasibility study.

To plan order, pay N10,000 to:

 BANK NAME: GUARANTY TRUST BANK (GTB) ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM ACCOUNT NUMBER: 0044056891 OR BANK NAME: FIRST BANK PLC ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM ACCOUNT NUMBER: 3066880122

After payment, send your name, email address and title of business plan (i.e. restaurant business plan in Nigeria pdf) via text to 07033378184. Your business plan will be sent to your email within 10 minutes after payment. Thank you.

Restaurant Business Plan in Nigeria / Start a Fast Food Business in Nigeria © www.businessplan.com.ng

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How to Start a Restaurant Business in Nigeria: Complete Guide 2024

• October 1, 2023

One of the most lucrative food business ideas in Nigeria is the restaurant business. This business is massively profitable and easy to start especially for those whose hobby is cooking.

The food restaurant business can be started by anyone regardless of location in Nigeria, and it can be started both on a small scale or a large scale depending on how you want to operate.

Starting a food restaurant business is not only great for those who are passionate about cooking, but also for entrepreneurs looking for a source of daily income . While it is easy to get started, you need to know all the steps required to make the business a success.

That is why we’ve come up with the post to show you exactly how to start a restaurant business in Nigeria. That’s not all, but you’ll also discover several different restaurant business ideas you can start, the cost of starting, profits to expect, and so on.

Are you ready for all that? Let’s go then!

Table of Contents

Starting a Restaurant Business in Nigeria

Restaurant business simply means setting up a hygienic place where you’ll be selling all kinds of food. This business is very popular in all parts of the country, as it is fast-moving.

That is because everybody needs food to survive. And an average Nigerian does eat outside in at least a restaurant on a daily basis, as that’s the fastest way to get their belly filled, especially for lunch. This makes the food restaurant business in Nigeria a good source of daily income.

Whether you’re a male or female, you can set up a restaurant anywhere in Nigeria and drive lots of sales. Although setting up a good-looking place for your restaurant is the most popular way people start this business, there are lots of restaurant business ideas in Nigeria. Check them out below.

Related: Most Profitable Food Business Ideas to Start and Make Money in Nigeria

Restaurant Business Ideas in Nigeria

You can start a restaurant business in Nigeria using different approaches including.

Regular Restaurant

Opening a regular restaurant is the most popular of all, and the one that will first come to your mind while looking to start a restaurant business in Nigeria.

This restaurant business idea involves serving already prepared food and drinks to customers. It requires you to set up a good-looking and clean shop, hire staff, and get some expensive materials to get started. As your restaurant becomes popular over time, you’ll start getting lots of sales which means lots of profits.

Cook-On-Demand Restaurant

Cook-on-demand is relatively a new restaurant business idea in Nigeria. This involves taking orders for a specific type of food, preparing it, and getting it delivered to your customers.

This restaurant business idea is starting to gain ground, especially in Lagos, as there are lots of young entrepreneurs starting it up. The profit of a cook-on-demand restaurant is insane, as you can sell a plate of food for 3,000 Naira whereas all it takes you to prepare is just 700 Naira.

This restaurant business model is very easy as it can be started even from the comfort of your kitchen, and it can be started all alone.

Read Also: How to Start a Frozen Food Business in Nigeria with Small Capital

Mama Put Restaurant

Also known as a food canteen, mama put is just like a regular restaurant, although you don’t need to spend much in terms of setting up your shop. In fact, you can run your food canteen all alone by yourself.

This restaurant business idea also involves serving already prepared food. Food kiosks are popular in motor parks and school areas (usually primary and secondary).

Food Truck Restaurant

The food truck business idea is some of the most popular restaurant business ideas in Nigeria, as it is practiced in almost every state and city across the country.

It can also be referred to as a mobile food vending business, as it involves selling already prepared food to customers usually on the street.

This business can be started using a van or trailer, but realistically in Nigeria, it is commonly done using a wheelbarrow. You can often find this type of restaurant at bus stops, in busy areas (e.g Oshodi, Lagos), and marketplaces (e.g Aba market, Abia).

See Also: How to Start a Foodstuff Business and Make Money in Nigeria

Is Restaurant Business Profitable?

Yes, the restaurant business is very profitable in Nigeria, as it is a good source of daily income that could make you tens if not hundreds of thousands of naira every day.

This business is profitable due to the continuous increase in demand for food by many Nigerians. Although the profitability depends on your mode of operation, and also your location.

Of course, you can start a restaurant anywhere in the country, but it is more profitable in areas where foodstuffs are cheap. Also, some restaurant business ideas are more profitable than others.

For example, it could take you tens of sales to make N5000 profits from a mama put restaurant, whereas just two sales could get you such profit starting a cook-on-demand restaurant, or about five sales from a regular restaurant. Although, a regular restaurant and mama put moves faster than cook-on-demand.

Check Out: 33 of The Most Profitable Business in Nigeria Right Now

How Much Does it Cost to Start a Food Restaurant Business in Nigeria?

Restaurant business is very easy to start as it only requires cooking skills. Once you’re a good cook, you can start. However, how much will you need to start?

From buying the materials and equipment needed to get different kinds of foodstuffs and ingredients needed to prepare meals, as well as drinks to be served with meals, there’s a lot of investment to be made upfront to start a restaurant business in Nigeria.

Depending on the restaurant business idea you wish to go with, on a small scale, realistically it would cost you at least 100,000 Naira to start. While on a large scale such as a restaurant, you would need millions of Naira to set up a standard restaurant in Nigeria.

Related: 31 Smart Businesses to Start with 200K and Make Millions in Nigeria

How to Start a Restaurant Business in Nigeria

1. decide on the restaurant business idea to start.

Deciding your mode of operation is the first step in starting a restaurant business in Nigeria. Here, you want to choose whether you’ll be starting as a regular restaurant, a buka, catering, or a cook-on-demand restaurant. Doing this you need to keep in mind the demographics you want to target.

For example, if you’re living in a commerce area where daily business activities go on or an area where schools are, it will be best to settle for a mama-put restaurant or start with a food truck.

With good networking skills, you should be able to run a successful cook-on-demand business. Also make sure that your decision is based on your capital, as the cost of starting a restaurant business may vary based on location and type.

2. Acquire the Needed Skills

After deciding your m9de of operation, the next thing is to acquire the needed skill. Cooking skill is the major skill needed to operate a restaurant business in Nigeria.

However, depending on the type of restaurant you want to start, you may need more skills like networking, marketing, and so on. You can enroll in a catering school to learn how to make food for sale, and also how to set up a restaurant business.

Check Out: How to Start an Egg Supply Business in Nigeria and Make Money

3. Come Up With a Simple Business Plan

Based on your niche or mode of operation, you need to create a realistic business plan to work with. It is not necessary to draft the best business plan in the world, you can just make a simple one, but make sure it’s detailed and on point.

In your business plan, you need to account for both the short-term and long-term goals of your business including growth strategy, and financial projection.

While drafting your business plan, you need to carry out a little competitor research, know where they are lagging, and include the strategies that will help you do better than them.

More so, you need to point out who your customers are, and how to serve them better. Finally, in your business plan, outline a creative team management strategy to get the best out of your employees for the success of the business.

4. Arrange for Startup Capital

To start a restaurant business in Nigeria, you need to invest in a lot of things including the materials and equipment needed, as well as the foodstuff and ingredients required for cooking. Depending on the type of restaurant, you’ll need to account for employees’ salaries. Although this is usually after starting.

While most of the money is needed before starting, you need to find a way of raising the capital for your business. This can be achieved through personal savings, bank loans, loans from friends and family, business partnerships, or seeking venture capitalists.

5. Find a Suitable Location for a Restaurant

Regardless of the type, For a food restaurant business to succeed in Nigeria, you need to be strategic in planning a location for your shop.

You need to keep in mind the type of people in the area, how busy and hygienic the area is, and also watch out for competition. You cannot sit a restaurant in GRA and expect the most sales, as people living in such places are families with housewives who will always prepare food for them.

The best locations for your food restaurant business in Nigeria depend on your mode of operation. For food trucks and mama put, marketplaces and bus stops are ideal, while you can start anywhere offering a cook-on-demand service.

More so, you can sit a regular restaurant on a street. Just make sure it is on the roadside and can be easily located by potential customers.

Related: How to Start Okrika Business in Nigeria

6. Get All The Needed Equipment

The main things you need to start a restaurant business in Nigeria are the required types of equipment (cooking wares), as well as the foodstuffs and ingredients for cooking.

Usually, the equipment is general and they include gas cookers, pots, plates, tables, chairs, and so on. However, when it comes to the foodstuff and ingredients, they are niche specific.

That means the foodstuff and ingredients to arrange for should be based on the type of food you want to be selling. Make sure you buy those ingredients in small quantities as you’re just starting. This is because most foodstuffs and ingredients can’t stay long before they spoil.

7. Register Your Business (If Required)

Although not necessary, if you want to operate a standard restaurant, you’ll need to register your business name with the Corporate Affairs Commission (CAC).

Also, you need to do some research if there’s any association of restaurants or food sellers in your area to join, so as not to get disturbed after getting started.

8. Employ Staff

Even if it is someone that will help you watch plates, you would have to employ workers to help you with some aspects of the business.

In this step, you need to make sure the person you hire understands the business. Also, make sure your employees are able to meet not only your expectations but most importantly treat customers well.

9. Get Started and Get Working

With everything from step one to eight now in place, the next thing is to get started by cooking, packaging, and serving customers. Remember that customers really matter, so make sure you’re offering a satisfactory service.

As part of starting, you’ll need a strategic customer acquisition plan. This can be done by promoting your business and letting people know that there’s a new restaurant in town.

Here are some tips on how to promote your food restaurant in Nigeria.

• Brand your business by creating banners to let people know what your business is all about.
• Design your shop to describe your business.
• Encourage friends, family, and neighbours to help in advertising your business through word of mouth.
• Build brand awareness by visiting schools, firms, and even homes in your area and telling them about your business.
• For a start, offer discounts, and also make your food look good, tasty, and most importantly, cheaper than your competitors.
• Create an online presence for your business.

Equipment needed to start a restaurant in Nigeria

The equipment needed to start a restaurant in Nigeria includes:

• Electric Cooker

Food Restaurant Business – FAQs

Which type of restaurant is most profitable.

In terms of profit margin per sale, the cook-on-demand restaurant is the most profitable type of restaurant in Nigeria. While in terms of sales a regular restaurant is more profitable, as it moves faster.

How do I start a mini restaurant?

You can start a mini restaurant in Nigeria by simply getting the needed skill, finding a shop, getting the needed equipment and ingredients for cooking, and getting started.

What do restaurants sell in Nigeria?

Nigerian restaurants sell white and jollof rice, amala, eba, pounded yam, semo, fufu (akpu), beans, yam, etc. All these are usually served with different types of soup, fish, and neat including goat meat, ponmo, brokoto, chicken, bush meat, and so on.

The food restaurant business is very profitable, and an ideal business for those who love cooking, as it allows you to make money from what you like doing. With this post on how to start a restaurant business in Nigeria, I believe you’ve gotten all you need to get started.

Tags: business ideas Restaurant

His name is Olatunde, he is the founder of Nairarush.com.ng. He is Nigerian who likes sharing information about anything about finance. And because he has been making money online for years now, he also share some information about investing, online business ideas, loans for students and businesses, and lots more.

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Thank you for this detailed article on how to start a restaurant in Nigeria. This will help in the restaurant i’m trying to set up. Thank you

This is awesome!!!

This is very awesome, just the right detailed explanation I need .. please can u help me draft a business plan?

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Restaurant Business In Nigeria: [ Guide to Start as Beginner ]

Starting a restaurant business in Nigeria can be a profitable venture, as there is a growing demand for quality food and dining experiences.

However, it requires careful planning and execution to succeed in this highly competitive industry.

In this article, we’ll discuss the steps involved in starting a restaurant business in Nigeria.

• Conduct Market Research

Before starting a restaurant business in Nigeria, it’s essential to conduct thorough market research to understand your target audience, competitors, and the demand for your products.

You need to determine the type of cuisine and dining experience that appeals to your target customers and create a unique selling proposition that sets your restaurant apart from the competition.

• Develop a Business Plan

A business plan is crucial in starting a restaurant business in Nigeria, as it helps you to clarify your objectives, identify potential challenges, and develop a roadmap to achieve your goals.

Your business plan should include a description of your restaurant concept, menu, target market, financial projections, marketing strategy, and operational plan.

• Secure Financing

Starting a restaurant business in Nigeria requires significant capital investment, which may include the cost of leasing or purchasing a property, kitchen equipment, furniture, staffing, and inventory.

You can secure financing through personal savings, bank loans, investors, or government grants.

• Register Your Business

To start a restaurant business in Nigeria, you need to register your business with the Corporate Affairs Commission (CAC) and obtain necessary licenses and permits from regulatory bodies such as the National Agency for Food and Drug Administration and Control (NAFDAC), State Environmental Health Department, and Fire Service Department.

• Hire and Train Staff

Hiring and training the right staff is crucial to the success of your restaurant business.

You need to hire skilled and experienced chefs, waiters, and support staff who can deliver quality service and maintain a positive reputation for your restaurant.

• Set up Operations and Management Systems

You need to set up efficient operational and management systems to ensure smooth running of your restaurant business.

This may include creating standard operating procedures for food preparation, inventory management, customer service, and accounting.

• Develop a Marketing Strategy

Marketing is essential to the success of your restaurant business in Nigeria.

You need to develop a marketing strategy that targets your ideal customers through online and offline channels such as social media, email marketing, search engine optimization, outdoor advertising, and promotions.

How much does it cost to start a restaurant business in Nigeria?

The cost of starting a restaurant business in Nigeria depends on several factors such as the location, size of the restaurant, type of cuisine, equipment, and staffing. Typically, it can cost between ₦5 million to ₦50 million to start a restaurant business in Nigeria.

What type of licenses and permits do I need to start a restaurant business in Nigeria?

To start a restaurant business in Nigeria, you need to obtain necessary licenses and permits from regulatory bodies such as the Corporate Affairs Commission (CAC), National Agency for Food and Drug Administration and Control (NAFDAC), State Environmental Health Department, and Fire Service Department.

How can I attract customers to my restaurant?

To attract customers to your restaurant, you need to offer quality food, exceptional customer service, and create a unique dining experience that sets you apart from the competition. You can also develop a marketing strategy that targets your ideal customers through online and offline channels such as social media, email marketing, search engine optimization, outdoor advertising, and promotions.

What are the common challenges of running a restaurant business in Nigeria?

Some common challenges of running a restaurant business in Nigeria include high cost of operations, shortage of skilled labor, inconsistent power supply, food spoilage, and increasing competition.

How can I ensure food safety in my restaurant?

To ensure food safety in your restaurant, you need to follow strict hygiene and sanitation practices, maintain proper food storage and handling procedures, and regularly train your staff on food safety protocols. You also need to obtain necessary certifications from regulatory bodies such as NAFDAC and the State Environmental Health Department.

How can I manage my inventory effectively?

To manage your inventory effectively, you need to develop an inventory management system that tracks your stock levels, monitors food expiration dates, and ensures that you have the right amount of inventory on hand. You can also use technology such as inventory management software to streamline your inventory management process.

How can I ensure profitability in my restaurant business?

To ensure profitability in your restaurant business, you need to closely monitor your expenses, optimize your menu pricing, manage your inventory effectively, and maintain high-quality customer service.

You can also develop a loyalty program that rewards repeat customers and implement a cost-effective marketing strategy to attract new customers.

In conclusion, starting a restaurant business in Nigeria requires careful planning, hard work, and dedication to succeed in this highly competitive industry.

By following these steps and implementing a robust business strategy, you can establish a successful restaurant business that delivers quality food and exceptional dining experiences to your customers.

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Understanding risk and return in investments, leave a reply cancel reply.

This article on  How To Start A Restaurant Business In Nigeria is regularly updated and can also be used as a guide in setting up your restaurant business in Nigeria etc.

How To Start A Restaurant Business In Nigeria

INTRODUCTION: As Nigeria is on record to be the most populated  black country in the world , no soothsayer or  ‘DIBIA ‘  is needed for anyone who has a business mindset to understand that one of the businesses expected to thrive profitably is a restaurant business in Nigeria, This is simply due to the fact that large and growing population needs nothing but the availability of nutritious food for her teeming population to become healthy, thereby making fitness and survival essential factor that will promote the economy of Nigeria as a nation.

This made the establishment of the restaurant business in Nigeria to become a source of value addition to the ever-bustling and growing population of a Nation like Nigeria.

DEFINITION What Does A Restaurant Business In Nigeria Mean?  

As it is commonly known that everything available around us has a history at its base or foundation, it should be noted for reference purpose that the first restaurant to be established was a soup restaurant in France. This was made possible by a soup vendor named Antonie Beauvillers in Paris between 1782 or 1786 and the restaurant was named ‘La Grande Taverns de Londres A restaurant can be described as a facility in which food is directly provided to humans such as cafeterias, lunchrooms, cafes, bistros, fast food establishments, food stands, saloons, taverns, bars, lounges, catering facilities, hospital kitchens, daycare kitchens and nursing homes kitchens. It is a business that prepares and serves food and drinks to customers. Meal are generally served and eaten on the premises, but many restaurants also offer take-out and food delivery services.

There are some basic factors that differentiate and makes a restaurant stand out from other restaurant businesses which is a function of the Concept and purpose of establishing such a business making restaurants businesses to be of different types.

Different Types Of Restaurant Business In Nigeria 

1. Fine Dining;

2. Casual Dining;

3. Contemporary Casual;

4. Family Style;

5. Fast Food;

6. Fast Casual;

9. Food Trucks and concession stands;

10. Pop up restaurants;

11. Ghost Restaurants.

The most common type of restaurants business available in Nigeria is the fast-food businesses, whereby healthy foods are provided and served to customers on-demand in a conducive facility that provides ambience and comfort to the customer, although it is becoming more popular now that some restaurants provide door to door delivery of prepared foods to customers on demand.

No matter the type of restaurants business, one factor that is essential in this line of business is the provision and preparation of healthy and affordable foods to customers on-demand in accordance with requests made by the customer and in adherence to the quality standards expected from a business providing healthy meals.

ECONOMIC PROFITABILITY OF RESTAURANTS BUSINESS IN NIGERIA.

HOW BIG IS THE RESTAURANT SERVICE INDUSTRY IN NIGERIA?

With the sizeable population of about 200 million people in Nigeria, the food restaurant industry which belongs to the Quick Service Restaurant QSR of the economy is in no doubt a gold mine as it is expected to increase as geometrically as long as the population of Nigerians keeps increasing.

This assertion was confirmed by the Association of Fast Food and confectioners of Nigeria (AFFCON) an umbrella body of Quick Service Restaurant QSR revealing that the Nigeria Food industry is estimated to be worth over a trillion Naira with the Fast Food segment gulping over 250 billion naira and this number is expected to rise in the future.

With the statistics and estimation that confirmed how thriving the Food restaurant industry is in Nigeria, without any iota of doubt, the food restaurant industry in Nigeria is an investment destination that no one should shy away from as it has the potential if add to the Gross Domestic Product GDP of Nigeria economy with the prospect of taking many Nigerians out of the grip of poverty through the provision of employment opportunity for the teeming Nigeria youth estimated to constitute more than sixty per cent of the population.

Hence, at this point, it is imperative and essential to look deeply into how a restaurant can be established in Nigeria alongside the prospect of establishing a food industry in any part of Nigeria.

HOW TO START A RESTAURANT BUSINESS IN NIGERIA COMPLETE GUIDE.

As it has been affirmed in the introduction of this article about how profitable restaurants businesses are in Nigeria with it having the potential of making the Nigeria economy viable and strong, the need to delve into what is needed to build a sustainable and profitable chain of restaurants businesses having fleets of outlets across the length and breadth of Nigeria is quite essential and discussion about each step needed for a profitable restaurants business will be highlighted and discussed one after the order.

The steps needed in establishing a profitable restaurant business in Nigeria in 2021 are:

1. Get the right and appropriate Restaurant location in Nigeria.

2. Acquire a spacious outlet.

3. Ensure that the outlet is branded by professionals with a business name.

4. Employ the right staff.

5. Get a vision and mission for your business.

6. Employ a professional caterer.

7. Raise capital for your business.

8. Business Registration with Corporate Affairs Commission.

9. Ensure the neatness of your outlet.

10. UNDERSTANDING BUSINESS DYNAMICS.

11. Get Prepared.

12. Ensure that your mode of operation is in adherence with government agencies. 13. Get the required and appropriate equipment. 14. Have a Business Plan.

1. Getting An Appropriate Restaurant Location In Nigeria

The sustainability of any business concern depends on the business being established in the right location. Establishing a business as sensitive as a restaurant business can only become successful when the location of the business meets the expectation and demands of the would-be customers.

Hence it is important that anyone desiring to open a  restaurant business in Nigeria  is expected to have an idea of what the resident of the environment where the business will be located needs at a particular moment which can be extended to having an understanding of what should be the area of human needs and consumption that the established business will hold on to as a benchmark that would make it to stand out in the midst of other competitors.

Getting a good location to establish a restaurant business always give the business a competitive edge and leverage that would enhance profitability and ensure the sustainability of such business in the process of time.

2. Acquire A Spacious Location

Without any doubt, the establishment of a restaurant requires the usage of a spacious and roomy location that can accommodate people of every walks of life and has a capacity that is wide enough to give the momentary rest, relaxation and enjoyment customers expected from such facility.

Having a spacious facility guarantee a competitive edge for any Restaurant opened anywhere in Nigeria by providing leverage and advantage that could enhance the patronage of customers to your location.

Hence, in order to establish a profitable and sustainable Restaurants business in any part of Nigeria in 2021, one of the factors to be considered in making it a successful and sustainable business empire is for the interested business owner to acquire a spacious location.

The acquisition can be carried out by lease or by renting a space which should be carried out at a particular budget that should be within the range of what the profit Garner in the course of the business can cater for which would enhance proper management of the business and it will ensure the sustainability of the restaurant business in Nigeria.

3. Business Branding.

In other for a business like Restaurants business to have leverage and a competitive edge, the need for such a business to be branded is necessary and essential.

Restaurants business in Nigeria remain booming and growing which makes it to be extremely competitive, for any newbie to survive,  Any Restaurant business owner in Nigeria must consider branding as one of the necessary tools that will make his/her business viable.

Branding is one of the tools that promote the aim and objective of a business, it makes such a business to be known and it enhances the preservation of the vision and mission of such business.

Hence the need to ensure that opening a restaurant business in Nigeria in 2021 requires appropriate branding that will end up enhancing promotion and acceptability of the business because branding a business also promote the culture, idealogy and philosophy behind the establishment of the business.

Branding a restaurant business involves having a name to the business with a logo having good colours that express what the business stands for thereby promoting a speciality and a uniqueness that gives a human race to such business by standing as an ambassador that will enhance the spread of such business making it a household name. We at  NaijaCEO  can help you with your branding

4. Restaurant Business In Nigeria Staff Employment.

This is another factor that needs to be considered when establishing a  restaurant business in Nigeria in 2021.

It is essential to employ staff and workers who are ready to understand what is needed and necessary in promoting the aim and objectives of the business in alignment with the goals of the business in the course of time.

Getting capable hands and minds that believe in short term goals, middle-term goals and long term goals are essential for the all-around growth and sustainability of the business.

As Restaurants businesses are known as businesses that take care of the nutritional needs of people, it is essential for your workers to be people who have the mind of being hospitable and also fast in meeting up with the needs of people trooping in to patronise the business.

Staff and workers that should be employed must have the needed skills–both soft and hard skills with the required exposure and education needed in ensuring that the needs of customers are met at any point in time

Employing capable staff is one of the tools that help in enhancing the profitability and productivity of any Restaurants business in Nigeria.

Capable staffs make the goal and objective of the business to become achievable on a platter of gold without any difficulties.

Hence, the application of cutting edge human resource strategy is needed in establishing a restaurant business in Nigeria as it provides a solid foundation for the sustainability, profitability and productivity of such business to translate the mission and vision of such business across the length and breadth of the Nigeria business space.

6. Engaging A Professional Caterer Or Chef.

Depending on the reality on the ground when setting up your restaurant business in Nigeria, you may need to consider the employment of a professional caterer or chef to take care of some cuisines that required professional touch in the course of running your restaurant business. As the business becomes enlarging with patronage becoming booming cutting across every division of the society, some customers needs might tend towards requesting for cuisines that are international and it is only a chef that can provide such in any Restaurants. So, it is important you consider the hiring of a chef who could provide professional services with this will, in turn, make customers love your restaurant dishes in the course of running it. This will also give you a competitive edge and leverage to the business and it will enhance the promotion of such business beyond local recognition thereby transporting it to be acceptable by non-citizens of the country like diplomats and expatriates who are longing to have a taste of their cuisine in Nigeria having the same ingredients and taste.

7. RAISING CAPITAL.

The availability of sufficient funds or capital is needed to ensure that the business has the financial capacity to meet up the needs of its customers accompanied by the ability to expand across the length and breadth of Nigeria.

Having a good amount of capital enhances the prospect of a restaurants business to cover more areas of operation that is essential to expand and give the required necessitated response to the demand of customers at any point in time.

Currently, You need to have around N500,000 – N10,000,000 to set up a conducive Restaurant business in Nigeria. This cost is bound to change and totally depends on how big you intend to start your  restaurant business.

8. Business Registration.

Business registration is essential and needed in order to make such a business top-notch among other businesses.

The prospect of investors getting interested in your business becomes feasible once the business is registered with the  corporate affairs commission .

Registering your Restaurants business in Nigeria with appropriate agencies gives your business the opportunity to have the chance to apply for loans and grants at any point in time.

The need for proper registration makes your business have an edge above every other restaurant’s business as it gives you the opportunity to present business plans and proposals that will be honoured by would-be investors who might be ready to inject funds into the capital base of your business.

It also enhances transparency as it gives a level of traceability about the requisite information needed for confirmation at the corporate affairs commission at any point in time. We at  NaijaCEO  can help you with your company registration

9 . Neatness, Cleanliness And Hygiene.

As it is known across the board that cleanliness is next to godliness. It is essential to reiterate that one of the major factors to be considered in establishing a restaurant business in Nigeria is neatness, cleanliness and hygiene.

This should be enhanced and worked upon as a continuous process that should be looked to from the beginning of the business and it should be enforced in the day to day activities and operation of the business.

No Restaurants business can thrive and survive outside its ability to ensure that good hygienic condition is maintained as this provides a perfect way of making the restaurant the best point of satisfaction as the provision of food is concerned.

10. Understanding Business Dynamics.

Every business has its Dynamics that makes it unique at any point in time.

The uniqueness needed to make your Restaurants business competitive needs a deep understanding of the Dynamics of the business.

Restaurants businesses always have peak moments and down moments which if understood very well can prevent wastages from occurring on a daily basis.

The understanding needed to run a restaurant of massive magnitude needs the touch of professionals who are deeply experienced to know what is needed in managing the business.

Once the Dynamics is known, your Restaurants business in Nigeria ends up becoming a high-flyer among other restaurants businesses.

Optimizing and maximizing these Dynamics creates an avenue for productivity, sustainability and profitability at a maximum level thereby enhancing the proficiency of the restaurant business in meeting up the yearnings of the customers that need services that will meet up their needs at any point patronage.

11. Preparation.

In your desire and drive to have a restaurant business in Nigeria, your preparation to weather the storm of uncertainty is essential.

As the economic reality of a country like Nigeria is at a low ebb and it is quite wavy, someone who is interested in having a good restaurants business in Nigeria needs to prepare for uncertainties.

As the price of foodstuffs keeps soaring high with the cost of living skyrocketing, one needs to understand that this will pull down the purchasing power of the average man and woman on the street who is expected to be part of human statistics expected to turn up patronising any established Restaurants.

This will eventually make the food restaurant business difficult to manage.

Hence, the need to get prepared for economic turbulence is essential and you are expected to understand the dictates of the Dynamics that will crop up from the harsh economic realities obtainable in Nigeria in the course of running your food restaurant business.

12. Adherence To Government Policies.

Due to the sensitive nature of the food restaurant business, as it influences the health and living of the consumers, this made it to be an important sector of the Nigerian economy whereby it is guided by many strict government policies at every level of the economy.

Hence, the need for you to adhere strictly to policies from government agencies is quite important in order to forestall the smooth running of the business.

Policies from the ministry of health, Standard Organization of Nigeria, Consumers Protection Agencies are to be adhered to strictly as this enhances consumers trust thereby increasing patronage in the course of the business. Even staffs in charge of food preparation are to be subjected to periodical health check-ups in order to prevent infections that might be transferred through the preparation of food in the restaurant.

13. Purchase The Right Equipment.

In order to have a clog-free operation in the restaurant, the need to have the right and appropriate equipment that will facilitate smooth operation is essential and having this will enhance fast delivery of services to the customer.

The quality of services delivered is a function of the equipment used in the course of operation.

Quality equipment guarantees good service delivery in the course of running any Restaurant.

As poor as electricity supply is in Nigeria, any successful Restaurants business needs the availability of generators or other means of power generation in the course of operation.

14. Business Plan.

As business becomes stable and prosperous, the need to up-scale becomes necessary and needed, this will entail the need to expand by building more locations or renting outlets or there might be a need to purchase more equipment that is needed in taking care of the operation.

Hence, the need to source for loans or funds arises.

Sourcing for loans, funds and grants are always successful as it is always granted based on the preparation of a feasible business plan. This made the preparation of a business plan essential in the course of starting or even running a Restaurants business in Nigeria.

A business plan is very essential because it will open your eye to the restaurant industry in Nigeria and not just for loan applications.

We at  NaijaCEO  are the leading Business plan writing company in Nigeria and can be of help to you.

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Micah Erumaka

About Micah Erumaka

Micah Erumaka is the Founder of LiaonCEM solutions which owns NaijaCEO. He is an Internet Entrepreneur and a content creator. After the failure of his first company at age 18 he started NaijaCEO to help entrepreneurs with the information they need in operating a successful business in Africa

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How to start restaurant business in nigeria: beginner guide.

How to start a restaurant business, buka business, fast food business or mama put business in Nigeria and make huge profits. Restaurant business or fast food business is one of the food business ideas in Nigeria you can start if you are passionate about cooking and you want to make money.

It is a business where you buy foodstuff raw, cook then sell it either to customers that are willing to eat in your shop or are willing to take it home. Restaurant business in Nigeria is a business that has been in Nigeria for a long time. It is one of the businesses that is as old as time itself.

I remember the time when I was a boy it was Mr. Biggs that was one of the biggest restaurants then. It was the most popular kind of restaurant in Nigeria. Now, it is KFC, Tantalizers, Mega Chicken, and the likes that are now gaining ground. Fast food restaurants like Tantalizers and Mega Chicken started from a humble beginning but everybody seems to have forgotten because of where they are today.

This business can be a food business where you sell local foods only or can be a food business where you sell everything related to foods combining local foods, intercontinental foods, and snacks. You can start with one aspect maybe local foods only and as time goes by diversifying by going into other kinds of foods like snacks or go into all at once if you are capable and you have the huge capital.

The restaurant business is one of the food businesses in Nigeria that you can go into with a small capital almost with anything you have and it is also a business that can demand huge capital from you if want to start big. For example , I know an entrepreneur here who started her restaurant business with just N20k.

I would not have believed this if she did not tell me herself because her restaurant is now worth N400k. She told me when she started she used all the plates and coolers in her house and just used the capital she had to buy the foodstuff she cooked for customers. “This is how low you can start this kind of business”.

The most important is how your food tastes, hygiene, and customer service ”, she said. And I cannot agree less because truly that’s the way it is. If you do not have these 3 characteristics as a fast food business or restaurant in Nigeria you will not go far.

Is Restaurant Business Profitable?

Yes, the restaurant business is a profitable business and lucrative business for many reasons. One of these reasons is the fact that people do not have time to cook in the morning before heading out to work. For this, they will come to your restaurant, bukka, or joint to eat their breakfast.

Another reason why the restaurant business, in this case, is profitable is that Nigerians like to eat and they cannot do without food. When they are celebrating their birthdays or wedding anniversary they often celebrate this with food – eating in a restaurant. There are many other reasons why the food business is profitable in Nigeria but let us let it here and move to the next step.

Capital Needed to Start Restaurant Business

The capital you need to start a restaurant business, bukka business, or mama put in Nigeria varies on where you reside and how big you want the buka joint to be. But on average you will need a capital of N600,000 to start a restaurant business anywhere in Nigeria. This capital is regarded as the lowest because it can help you get the basics things you need to start the business.

Equipment Needed for Restaurant Business

Below are the equipment you will need to start a restaurant business, bukka business, or mama put business in Nigeria.

2. Gas cooker

3. Electric cooker

4. Microwave

6. Chest Freezer

7. Blenders

10. Big spoons

And much more.

Electronics Needed for Restaurant Business

Below are the electronics you will need in your restaurant business, bukka business, or mama put business in Nigeria. You electronics you can buy depend on the capital you have at hand.

1. Air Conditioner

3. Generator

4. Television

5. Sound System

Furniture Needed for Restaurant Business

In every restaurant business or bukka business or mama put business in Nigeria there is furniture that are needed to make your customers comfortable and to make the restaurant look beautiful and conducive. Below are the furniture needed for your restaurant business in Nigeria.

3. Wine shelves

How to Start Restaurant Business in Nigeria

Here are steps on how to start a restaurant business in Nigeria.

1. Learn How to Cook Foods

Yes, obviously this is the first step to starting a restaurant, buka joint or mama put business in Nigeria. It is impossible to start a business like this if you cannot cook except of cause you are going to hire a cook to cook all the dishes you want to sell. Since cooking is the backbone of any restaurant business in Nigeria and all over the world, it is important to get your cooking perfect to a sellable point.

You need to get it right in terms of taste, packaging, and good customer service. Also, there must be consistency in these 3 things. You cannot give a good taste or customer service today and tomorrow drop your standard. You need to find out what customers like and stick with it. You can make it better by always looking for better ways but don’t drop the standard.

For example: If there’s a way you make your fried rice and your customers love it but you discover that after 3 hours the fried rice starts tasting soar you can look for ways to work on the fried rice to last longer without changing it taste or look. This is an improvement. Taste is a brand when it comes to the selling of cooked foods in Nigeria.

The taste of your food is your brand whether you like it or not. It is for this reason that Mega Chicken customers can recognize the taste of Mega Chicken food anywhere. As regards learning how to cook these foods before starting your buka business in Nigeria, it is not a must to learn all the foods well known in Nigeria.

You can start with some major foods you like and are naturally good at cooking and as time goes by when you have a good customer base start cooking other kinds of foods.

For Example: If you are good at cooking rice you can start with cooking white rice, jollof rice, and fried rice for your restaurant business, and as time goes by go into cooking yam and stew, porridge, and more.

2. Write a Restaurant Business Plan

A restaurant business plan is very important in Nigeria especially if you are planning to go into restaurant business in Nigeria on a large scale level. Writing a restaurant business plan in Nigeria lets you know all the intricacies involved in opening a restaurant business.

For example ; a good restaurant business plan lets you know how much capital you will need to start your restaurant business in Nigeria, it lets you know the equipment you will need and how you are going to sell your food to increase sales in your food business. Read our article on how to write business plans in Nigeria .

3. Get the Capital Needed

Capital is very important when it comes to starting a restaurant business in Nigeria because there are things you need to buy to keep the business going and things you need to satisfy your customers. You will need capital to rent a shop, buy cooking equipment, buy furniture , and then buy electronics . All these are important even if you will buy them in small quantities.

To start a restaurant business in Lagos, Nigeria in particular you need will a capital of N700,000 to N1M. Although it depends on the area in Lagos, the capital is still enough as long as you only spend on the major things you need to make the business thrive. All you need is to sit down and prioritize your needs. Go for an optional solution to replace mandatory needs.

For Example: Going for fans instead of Air conditioners, tokunbo electronics instead of new, and much more.

4. Register your Business Name

Getting all the proper documents needed to start a restaurant business in Nigeria is very important. You do not want you or your staff to be harassed all in the name of you not having some permits. This could drag your restaurant business into the mud. Remember you are trying to build a brand here.

So you have to get all the proper documents for your restaurant business. Some of these documents may include business registration from the Corporate Affairs Commission (CAC) , permits from your state government, and permits from your local governments. These documents may take from 1 month – 2 months so the earlier you start processing them the better.

You can outsource this registration to a CAC agent if you know you do not want to stress yourself visiting the CAC and the local government in your area regularly or hire us to do this for you.

5. Rent a Shop for your Bukka Business

Renting a shop where you can display your food for customers to come in and buy is very important in a restaurant business. However, if you cannot rent a shop due to some reason, you can rent space instead. You need this, especially for customers that will be coming in to buy food and stay to eat. These customers need enough space to relax and eat their food.

How much you rent a shop in Nigeria for your restaurant business depends on many factors. Some of these factors are the area, the state you want the restaurant to be in Nigeria, the capital you have, and how big you want the restaurant to be.

To rent a shop for your restaurant business, you need to put one major thing in mind and that is making sure the restaurant is in a populated area – a place where thousands of Nigerians pass every day and can easily come in to buy food from you. With this, you can easily make profits from your restaurant business without doing much to attract customers.

6. Buy your Cooking Equipment

In starting a restaurant business in Nigeria there are 3 major things you need to buy. These three things especially cooking equipment are important because they will make your cooking easy and fast. So I have all these equipment above. It is not a must to buy all these cooking equipment, electronics, or furniture.

You can simply buy the ones that are the most important for now and as time goes by buy the rest. You can also buy second-hand of these equipment for now if you cannot really afford the new ones. After getting the equipment you will need the services of a carpenter, and electrician to install the equipment at the right places in your shop.

7. Start Selling your Food

When it is time to start sales, especially on the first day do not cook too much just in case many customers don’t come around, cook as little as possible. If the food finishes and there’s a need to cook more based on demand, you can now cook more. It is better to have a food shortage than to have food waste when it comes to running a restaurant business in Nigeria.

The shortage will make you plan ahead while the waste will make you run at a loss. Another way to increase sales in your restaurant business in Nigeria is to advertise and deliver your food to customers in your area. This is very important in 21st-century business.

8. Profits in Restaurant Business

There are different ways to increase sales and increase profits in your restaurant business. Some of which I listed below.

A. Do Online Adverts

Doing online adverts, especially on social media websites like Instagram and Facebook can be very profitable when it comes to a restaurant business. It does not only inform people about your restaurant business, but it also encourages them to come in and buy from you.

B. Do Food Deliveries

Doing deliveries can also increase your sales because it assists lazy customers that cannot come in to buy your foods to order online and get their foods delivered to their doorsteps.

9. Risk in Restaurant Business

Operating a restaurant in Nigeria can be very demanding – from making sure your food tastes great, you also need to be able to give good customer service. We also have you been worried about your worker either stealing your food or stealing your money. However, you do not need to worry much about all these as you will be able to find solutions to them in no time. The most important thing here is for you to start.

Food Truck Business in Nigeria

As for the food truck business in Nigeria, you do not need to rent a shop or space all you need is a food truck to cook your food and sell it at any location. To get this truck if you are really considering starting a food truck business in Nigeria you can either buy the truck already made or get a welder to build it for you.

Yes, there are welders in Nigeria that can build a good food truck to your taste.

The restaurant business can be a generational business – lasting for generations to come if you get it right from the beginning. Thanks for reading this article. I hope you were able to learn one or two from it. Please drop your comments if there’s any part of the article I missed.

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Restaurant Business In Nigeria (Ultimate Guide!)

Ever thought about how to start a restaurant business in Nigeria, or anywhere in the world? Here’s a detailed guide filled with practicable tips for success.

Food is one of the most basic human needs. Everyone, including the rich and poor, must eat to survive.

As more people (especially those living in cities) cannot find the time, convenience or skill to cook for themselves, eating at fast food and casual dining restaurants is on a rapid rise.

The demand for prepared foods in many Nigerian towns and cities is massive and no one restaurant or fast food chain may be able to satisfy the market.

I find so much interest in the restaurant business because it’s a sure moneymaker, anyone who wants to make quick money shouldn’t look elsewhere.

Small Scale Restaurant is very easy to start and low capital intensive. That’s why it is listed as one of the 50 small business ideas in Nigeria .

The sky is your limit in this business provided you take your restaurant business seriously and treat your customers well with good food.

Being one of the few businesses that are not affected by any economic meltdown – People must eat no matter how poor they are, no matter the situation they are, even if unemployed.

Anyone can eat even if it is with the last penny he or she can afford, that’s what makes the restaurant business very lucrative. I think serious investors should give it a serious look.

Restaurant, Canteen, Eatery, and Cafeteria

Restaurant business is an establishment that prepares and serves food along with placing an emphasis on service. It is one of the best business ideas for ladies .

Restaurants usually serve food and drinks for a monetary value and the food is consumed on the premises.

The restaurant can also offer take-out or delivery services. The meals are usually prepared as per order.

The term ‘restaurant’ has been derived from the French verb, ‘restaurer’, meaning “to restore”.

Professional cooks are known as chefs, with them being further classified under finer distinctions such as sous-chef, chef de partie, etc.

Fast food restaurants do not have chefs and they have a self-service layout, where the person has to stand in a line and get food from the counter, pay for the food and then find a place to sit.

High-end restaurants have waiters/waitresses, busboys and hosts that welcome the people into the restaurant and seat them.

The food is consumed first and paid for later. Seating in a restaurant can be inside as well as outside.

A cafeteria is also an eating establishment that may or may not offer a seating arrangement.  

A cafeteria also serves food and soft drinks for a monetary value and the food may or may not be consumed on the premises.

In a cafeteria, the food would be served on a counter where it would be set up in a buffet form, counters, or stalls.

The food is prepared in the back and placed in dishes on a heater in the stall.

The customer must grab a tray and go through the line of the foods placed, selecting whatever they want, and then pay the money towards the end.

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General seating arrangements are made where the customer can consume their food. There is no specific seating; it is a first-come basis.

A cafeteria can also be called a canteen and it requires a few employees and hence it is found in large organizations that have to cater to huge crowds such as museums, hospitals, schools, colleges, office buildings, military bases, prisons, department stores, malls, etc.

The term ‘cafeteria’ is adapted from American Spanish word ‘cafetería’ meaning “coffee house” and French ‘cafetière’ from ‘café’.

However, in English usage, the term cafeteria is reserved for these institutions, while ‘café’ is reserved for coffee houses

Differences Between a Restaurant And Cafeteria.

A restaurant is mostly considered as an establishment for fine dining or a place where people would serve the customers.

However, in a cafeteria people have to serve themselves from the selection of food that is already available.

A restaurant has a wider menu of food that is prepared specifically for the customer. A cafeteria has a pre-set menu of four or five different foods that the user has to pick from.

Restaurants also have a proper seating arrangement, where one person will be allotted his/her own table.

In a cafeteria, a bunch of tables is placed together and anyone can occupy any seat.

This means two strangers can also be found sitting close together and eating.

In restaurants, the person will consume the food first and then pay for it later, while it is the opposite in a cafeteria.

Restaurants can also serve alcoholic beverages, which are not served in cafeterias.

Generally, the term restaurant, eatery, and canteen are used interwoven here in Nigeria.

The aim is where food can be served and will be paid for.

However, there are some exotic restaurants that you can set up depending on your pocket. Meanwhile, in this article, the word restaurant will be used throughout.

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Running A Restaurant business

Running a fast food restaurant business means always having food and drinks ready to be served in exchange for money, as soon as your customers demand it.

The food would usually be served and eaten on the restaurant’s premises, but could also be packaged for a takeaway or home delivery service.

The business involves you cooking various and different types of meals or basically cooking one type of meal and serving to your customers to eat.

Choosing to serve your customers at the premises while they eat there means getting a space where you make comfortable for people to sit so that they can be relaxed when eating.

This is a business that can be started on a small scale as you can invest with a small amount of money in the beginning and gradually grow it into a bigger business over a period of time.

You can run a restaurant without necessarily being a cook. With little or no experience in cooking, you can still run the most successful fast-food restaurant business in your neighborhood.

Successfully running a restaurant business is more about having exceptional hospitality skills and requires a very large portion of your time.

It also requires you to hire experienced cooks that not just thrive on their ability to prepare tasty meals, but also pay extraordinary attention to detail in the health conditions in which the food is prepared.

Reasons Why Restaurant Business Should Be Considered

Here are just a few reasons why you should consider starting a restaurant business in Nigeria.

• Regular patronage

Because there are varieties of food to choose from (although as will be discussed in this article as it progresses, you may choose to stick to a variety of food) there will always be customers at the doorstep of your restaurant.

You may wish to focus on cooking local dishes which are a lot to choose from. When starting the business you can decide to concentrate on “solids” meals.

In Nigeria we have such “solids” meals like Eba, Fufu, Amala, Pounded yam, Semo that you can start with.

Also, there are other meals like Rice, Beans, Yam, and others that you can also cook depending on the line of your business, your worker’s strength, and capital.

• A great source of income

Because there is a high demand for food everywhere people will always need to eat for survival reasons as well as hunger.

So, to fulfill these needs they go all out to look for a place to get a meal.

• A chance to network with high profile individuals

Depending on your personality and the kind of right channel created to network, this may be the opportunity to meet with high profile individuals.

Once you satisfy one of them, probably at an event, you will begin to get referrals from his colleagues and other guests present that day.

• Low startup cost depending on the type of restaurant

It doesn’t take up much to start a low scale restaurant, with the right idea and commitment; you can grow your business from there.

There are a lot of people who may be good at cooking but are so busy due to work and other activities they are involved.

They hardly have enough time to cook food for themselves and are therefore willing to patronize a restaurant.

Because of the demands on their time, people living in cities and towns are increasingly unlikely to cook their own meals.

They would prefer to have a decent meal without the hassle of going to the market to buy food stuff, cook or wash dishes.

Some people find it quite convenient to eat out as they probably cannot cook or find cooking a stressful activity to cope with despite having the time to do it.

Types of Restaurants And Food Service Business

You need to know more about types of restaurant and find the one that best suit you. There are various types of restaurant you can choose from.

Roadside Restaurants 

These are by far the most patronized and popular types of restaurants in Nigeria and many parts of Africa.

They are usually small sheds located in almost every street in Nigeria and are usually about one or two per street, owned by different individuals.

The middle class and lower level citizens patronize these restaurants a lot, largely because of the size of the meal and low pricing.

Fast Food Restaurants

These are the second most popular types of restaurants in Nigeria, but the most popular types of restaurants in the world.

Their speed, convenience, and fair prices make them a popular choice for so many people.

A fast food restaurant, sometimes known as a quick service restaurant, usually features a very limited menu.

The food is normally cooked in bulk and in advance and is kept warm (or hot) throughout the day.

In quick service restaurants, customers are very likely to give their orders at a counter where the food can be eaten within the restaurant or is packaged and taken away.

A modified version of the fast food restaurants are casual restaurants and mobile food centers.

Casual dining restaurants

Just a step above fast food restaurants are casual dining outlets where customers get to choose meals from a flexible menu and table service is provided.

The atmosphere here is much more relaxed as clients who patronize this type of restaurant expect to spend some time enjoying their food and are likely to eat their meals within the location rather than take it away.

Mobile Restaurant

This type of restaurant does not necessarily need a rented location, you can actually prepare the meals at home as per order.

Customers will send an order over for a particular dish he wants, it could be food or varieties of soups and will be given a particular time frame it will be ready and delivered.

To save yourself the stress of purchasing the ingredients at the market, cooking, and delivery, you can hire a few staff to help with some logistics like purchases and delivery.

An energetic young entrepreneur who chose to opt-in for this type of restaurant was interviewed and she has the following to say.

The journey: – “It hasn’t been an easy one, it all started around January 2019 when I was still contemplating on what business to venture into that will require little or no capital, so many ideas came up but then I need to stick to one I believe and know I really want to do.

Then the food idea comes up, I realize cooking is one among other things I love doing. So I decided to give it a trial and started running the ‘AdunObe Kitchen’ as a mobile chef/food vendor. “

The challenges: – “ One and most important challenge I have is logistics, at first I didn’t get the right logistics to work with so I just keep on taking orders and using a delivery person to help with the deliveries.

Most times I do the cooking and delivery myself then I realize its more strenuous and time-consuming especially when I have to face high traffic of vehicles.

You can imagine giving your customer delivery time, then cooking and trying to meet up at the same time it really wasn’t an easy one.

Also the risk of moving from one location to another. But then gone are the days, things have changed for the better. I already have a logistics company that works with us to help make delivery as swift as possible.”

How she overcame the challenges? “ Oh well, I had to speak up and confide in family members and friends about the logistic issues so I got introduce to the one I use now, and so far so good there hasn’t been any regret working with them so far.”

She is a graduate of mechanical engineering and has since been running her own business with the prospect of expanding the business in various ways. Your success stories can be the same too.

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Food Truck Restaurants

Food truck restaurants serve quick snacks, drinks and meals from a truck.

The truck could be stationary or in motion but are largely used because of their low cost and low overhead, which makes it easy to quickly open a food truck restaurant business.

The ability for the food truck to go where ever the customers are, also gives it an edge over other types of restaurants.

Its staffing needs are also low, making it a perfect low-cost method to start up a restaurant in busy areas like markets, universities, and more.

Fine Dining Restaurants

These are the luxury type of restaurants where the tables are dressed in white clothing; a menu is presented upon settling in a table, a waiter is always available to tend to your needs, and your payment is only collected after your meal.

The atmosphere in this type of restaurant is always unique, the music is always perfect, and the service cost is always high.

The fine-dining restaurant business is always targeted to the upper-class citizens or elite of the country. They are full-service restaurants that offer the finest in food, service, and atmosphere.

They usually have specific and dedicated meal courses and the waiters and staff are absolutely professional and very well trained. With fine dining restaurants, a lot of attention must be given to detail.

The atmosphere of these restaurants usually features very elaborate and exquisite furniture, lighting, layouts and tableware.

Ethnic Restaurants

This type of restaurant serves food from specific cultures, countries, or regions. As more Nigerians develop foreign tastes and more foreigners visit Nigeria for business and leisure, the number and popularity of these restaurants are on the rise.

The most popular ones on the continent are: Chinese, Italian, Mexican, Thai, Caribbean, French, German, Indian, Japanese, Korean, and Vietnamese.

Related: How to start plantain chips business in Nigeria

How to Start A Restaurant Business In Nigeria

To start your own restaurant business, there are certain things you need to consider and put in place.

Depending on your budget and location, there are a variety of opportunities to exploit in the growing restaurant market.

Before you start, there are a number of things you should consider as you take the huge step of converting this great idea into a brilliant business.

Choose A Unique Concept

This is the very first step in giving life to your restaurant idea. As noted earlier, there are different types of restaurants and food services.

Would you like a fast-food type of restaurant? You could start this type of food service with small capital. It could be a small corner booth down the road or you could operate it around your home.

If you would like to start a fine dining restaurant, you should know that it would cost you a lot to start up and you may have to invest some capital in hiring very professional and experienced staff.

A good way to decide on the type of restaurant to start is to examine your location and the kind of people you will be targeting.

Are they high-income or low-income earners? Are they working people, students, laborers, or older people?

Understanding your market will help you determine the type of restaurant you should start. Although capital and proper planning are important, it would be disastrous to start a food business nobody’s interested in.

Picking the right restaurant niche also depends on your personality. Are you a person who loves hanging around people? Do you prefer to be in the kitchen? What drives you naturally?

If you’re a people-person, starting up a restaurant business that gives you the opportunity to meet and connect with a lot of people is a great bet for you.

If on the other hand, you’re not comfortable interacting with a lot of people, starting up mobile restaurant or fast food could work out right for you, since you’d largely be concerned with the management of the business, instead of its direct service.

At this stage, you should also decide if varieties will be served or just a type of food.

Create Your Menu

Before you open your restaurant, you will want to establish some basic food items that your menu will feature.

Your menu is one of the key items that will set you apart from your competitors.

For instance, KFC is known for its crispy chickens, McDonald’s is known for its burgers, Dominos is known for their pizza, and the list goes on.

Deciding what will be on your menu is important when figuring out the equipment you need , the staff you will hire, and the crowd you hope to draw.

At this point, your menu does not need to be completely designed nor do your recipes need to be completely fleshed out, unless your whole concept singles out the certain item(s), like a pizza place.

However, you should have a solid idea of the fare you will serve at your eatery.

Later in the process of opening your restaurant, you should  engineer your menu to increase profits  and continually update your menu as you gain information about which food items sell well and which does not.

The look, taste, and feel of the meals on your menu must be exceptional and entirely different from whatever similar products are out there.

The sense of taste and smell is a very powerful factor in positioning the brand of any restaurant business.

It brings back memories and drives uncontrollable cravings. When your meals standout, people will remember you.

Get a Good Location

After picking a great niche for your restaurant business, the next thing to do is to choose a great location to set up your first branch.

Yes, I said your first branch because the restaurant business can grow rapidly that you will need to target other locations with good traffic.

Your location is an important aspect of the business as it can be the difference between the business being successful or being a failure.

When choosing and looking for a shop or space where to site the business, ensure it is a place where a lot of activities are taking place having a lot of people in the area.

Although it is also possible to locate your business in a residential or quiet area depending on the type of restaurant you want to run, but you should ensure there is no or little competition available in the area.

The following should be considered while choosing the location:

• Will your restaurant be in a place that is easily accessible and be easily visible?
• Does it have sufficient parking space?
• Is it large enough to accommodate the volume of customers you are planning for?
• Is the location visible or tucked away in a hard to reach part of town?

Design A Restaurant Layout

When starting a restaurant, you’ll want to put careful thought into how you can organize your entire layout to meet the goals set forth in your menu and theme.

Your primary goal should be to create a systematic flow from front-of-house to back, from the receiving hostess all the way back to the kitchen. Once your basic layout is established, you can design and decorate your dining room.

Furnish Your Restaurant

When it comes to restaurant, look is everything to me and I think it apply to most people out there too.

I can hardly eat in a place that doesn’t look nice; make sure your restaurant is well furnished to taste.

The quality of your food and the type of cook you are can be perceived through your restaurant furniture.

Set up good furniture you can afford even if it means starting with plastic chairs and tables. You can always upgrade as time goes on.

Utensils, Equipment and Accessories

A constant, reliable source of equipment and ingredients at reasonable prices must be established and maintained to ensure restaurant success.

Do not buy something childish like plastic plates. Many people will reject the food no matter how good it looks if you serve it on plastic plates and spoon.

Apart from the fact that they look cheap and childish, the tendency of dirt hiding somewhere and the plate being discolored is high.

Ceramic and Breakables are the preferred type you should go for and they are not very expensive.

Feeding is a very sensitive thing and a lot of people don’t take what goes into their stomach lightly, it’s not just about filling the stomach, it’s about satisfaction, health, and enjoyment.

While you make effort to prepare good foods for your customers, make sure you don’t ridicule your effort with cheap plates because the food looks and tastes better when served on a better plate.

Hire the Right Staff

One major step of opening a restaurant is hiring staffs to carry out the operation of your restaurant every day.

Consider all roles that need to be filled at your particular restaurant before hiring staff.

This may include human resources management and supervisors, food, and beverage purchasing, receiving and storing products, food preparation, food service, food cleaning, and dishwashing, marketing and sales, public relations, accounting, and auditing.

Finding skilled individuals to join your restaurant team sometimes can be a real pain.

It is usually difficult to get great hands, especially people who are naturally welcoming, skilled in their crafts, and are ready to do anything to see your business succeed.

People will fall in love with your food if they are well cooked and taste great. You can either be the cook or hire someone.

Make sure either you or the Cook you intend to employ knows how to cook different types of the meal very well.  I wouldn’t waste my money twice in a bad restaurant.

The restaurant I mentioned earlier that served only rice have up to four branches and the food served in the four branches are cooked from a source, the owner himself.

That makes his restaurant unique because irrespective of the branch you visit, the food will have the same taste.  

If you want to do the cooking yourself, don’t just do it because you want to work hard and minimize expenses, do it because you can cook very well.

Promote Your Restaurant

After starting your food canteen business in Nigeria, the most important thing is promotion.

Although you will definitely have more customers if your food is good, it is also very important to invest in promoting your business. Business promotion helps brands to grow faster.

Just as you would advertise your dog breeding business , rabbit farming business , or tutorial business center , Advertising is critical for various reasons.

First and foremost, prospective customers should be able to find basic information about your restaurant.

Secondly, they should feel enthused to try out your new eatery. Below are some tips to create excitement around your restaurant:

• Use social media.  Create Facebook, Twitter, and Instagram accounts to share news, photos, and tidbits about your restaurant. The photos and descriptions should communicate your brand. Consider including images of food or behind-the-scene processes to draw in potential guests. Make sure to use high-quality photos.
• Put an ad in the local paper.   This will help create awareness about your new restaurant. You could even try and get a featured story or mention in an article.
• Use a mobile loyalty program.   You can sign your restaurant up for a mobile app loyalty program that will appeal to the growing number of consumers who use smartphones. Through this app, you can engage guests by rewarding them for continued business.
• Create an email list.   When sending out creative emails that communicate your brand, it’s essential to use relevant content for each group of customers. For example, sending dine-in specials to reservation customers or sending delivery coupons to online ordering customers are both great ideas.
• Offer promotions to new guests.   Give first-time guests a free drink or a small dessert. Customers will remember your exceptional hospitality, and they will be more likely to recommend your restaurant and to return themselves.
• Consider  hosting a grand opening  and other events. You can host other events to create continued buzz around your restaurant, such as wine tastings, live music, cooking classes, or themed fixed menus. This “test run” strategy allows you to hone in on specific meal times to see where your staff could be more efficient. From private parties for friends and family to sneak peeks open to the public, there are several soft launch strategies

Have a Business Plan

Writing a thorough restaurant business plan (if you need to source for a fund) is essential for reaching to investors and applying for restaurant loans to start your restaurant.

It will also help you develop your strategy and flesh out the feasibility of your restaurant’s details.

No doubt, there’ll be challenges when starting and running your restaurant business. Major ones include:

• Unstable menu pricing
• Poor inventory management
• Deciding on a less crowded restaurant niche
• Hiring and training qualified staff
• Startup Capital: depending on the type of restaurant
• Consistency
• Close competition
• Keeping up with the market trends
• Poor attention to detail
• Lack of dedication and time commitment

Conclusion on how to Start a Restaurant Business In Nigeria

Figuring out how to start a restaurant business in Nigeria or anywhere else around the world may not be as hard you think, but running it successfully is where the hard work comes in.

If you plan to start and run a restaurant business

you need to understand its pros and cons thoroughly, so you can put in the right amount of effort and dedication to make it a success.

Opportunities exists if you are good at cooking. If you have good cooking skills and you can make some nice tasty meals, then you could start a business that will be rewarding and profitable.

You can start a restaurant business where you will be preparing and serving food to people to eat and you will get paid for the services you render.

The restaurant business is one business that has been creating millionaires in Nigeria for decades. There will always be the need for places to eat out.

You can take advantage of this opportunity and start your own restaurant business in Nigeria today.

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Start a Succesful Restaurant Business in Nigeria in (9) Easy Steps

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Starting a restaurant, buka, or mama put business is an exhilarating journey that demands careful planning and wise decision-making. 

In Nigeria, our love for delicious meals makes the food industry thrive. Like me, I explore various cuisines in Lagos each weekend, craving new and delightful experiences. 

Before you embark on your own restaurant venture, it’s essential to understand the unique challenges and opportunities awaiting you.

Building something from scratch is never easy, but take solace in the success stories of companies like Crunchies, Kilimanjaro, and Genesis. 

For one, you can start a restaurant business in Nigeria with only N50k and grow that money to more than N200k.

I understand the importance of running a restaurant business because I grew up in eastern Nigeria, where my mother owned a restaurant. 

When it comes to this area, there are four key factors that ensure your success:

• Location : The position of your shop determines what you can sell and how you can sell it. If you set up your restaurant where people have money, you can easily prepare a meal and sell it for N1000.
• Food Taste : Nigerians truly appreciate delicious meals. If your food tastes amazing, you have a great advantage because Nigerians love good food.
• Cleanliness : Keeping your restaurant clean is crucial. It attracts more people to eat at your place. When your environment is hygienic, customers feel comfortable and are more likely to visit again.
• Customer Treatment: How you treat your customers matters a lot. It determines if they will come back and bring their friends after their first experience. Providing excellent customer service is key to building loyalty.

In this article, I will share 15 secrets that will help you establish a successful restaurant business in Nigeria. 

These tips have been tested and proven to deliver exceptional results. Let’s dive in.

How Profitable is Restaurant Business in Nigeria?

The restaurant business in Nigeria is a great way to make money. It is a lucrative business as Nigerians love tasty food and eating out, so there’s always a demand for restaurants. 

In the morning, many people go to restaurants for breakfast because it saves time. During lunchtime, more people eat at restaurants. 

And on weekends, lots of people go out, so having a restaurant that meets their needs can make you lots of money. 

But running a successful restaurant takes careful planning, hard work, and knowing what people like. You need to offer unique experiences, serve delicious food, and make customers feel special. 

While it can be tough, if you work hard and make people happy, you can make a lot of profit for sure.

Related Post: 14 Profitable Businesses You Can Start With 70K in Nigeria

How Much Do I Need to Start a Restaurant Business in Nigeria

To start a buka or restaurant business in Nigeria, you will typically need a minimum of approximately ₦500,000 to ₦3,000,000 or more.

This amount includes expenses for location rental, kitchen equipment, utensils, licenses, and permits, initial ingredients and supplies, staffing, and marketing.

Keep in mind that these figures are estimates and can vary based on factors such as location, size, and specific requirements of your restaurant business.

Related Content: How To Make 3000 Naira Daily In Nigeria

Equipment Needed to Start a Restaurant in Nigeria

Here are 15 essential equipment items commonly needed for a buka or restaurant business in Nigeria:

• Gas Cookers or Stoves
• Griddle or Flat Top Grill
• Commercial Blender
• Refrigerator or Freezer
• Food Warmer or Bain-Marie
• Food Processor
• Commercial Oven:
• Commercial Microwave
• Industrial Mixer
• Stainless Steel Prep Tables
• Utensils and Cutlery Including pots, pans, knives, spoons, and tongs.
• Commercial Sinks: Used for dishwashing, handwashing, and food preparation.
• Food Storage Containers
• Cash Register or Point-of-Sale System

These equipment items form the core of a buka or restaurant business.

Electronics Needed for Restaurant Business in Nigeria

• Air conditioners
• Sound system
• Television 

How to Start a Buka or Restaurant Business in Nigeria

1. Learn How to Cook

The first step in this business is to learn how to cook the dishes you plan to sell. Learning how to cook will save you from unnecessary difficulties.

If you lack confidence in your cooking skills, consider hiring someone who is experienced in cooking.

Hiring someone is expensive, but you can reduce costs by hiring someone you know well, such as a friend or a family member..

When hiring, choose someone you can communicate with. They should understand your vision and what you aim to achieve.

It’s crucial to ensure that the person you hire knows how to cook the dishes you plan to sell.

As mentioned earlier, finding a good location for your business and serving delicious meals are key factors for success in the restaurant industry in Nigeria.

Maintain high cooking standards in your establishment once you open. Consistency is vital.

After a few months of running your business, develop a backup plan in case your main cook is unable to work. Having a plan B will help you stay in business when faced with unexpected setbacks.

2. Conduct Market Research

Before you start your restaurant business, it’s important to do thorough market research. This will help you understand what people like to eat, the times they prefer to eat, and the days they tend to dine out.

Begin by studying the preferences, dining habits, and spending capacity of your potential customers. Learn about their tastes, dietary preferences, and popular cuisines in your target market.

It’s also beneficial to visit similar restaurants in your area and observe their operations. Take note of their menus and observe how their customers behave. 

This first-hand experience will give you valuable insights and help you identify unique selling points for your own restaurant.

You can learn more on 10 Best Tips for Conducting Market Research in Nigeria

3. Define Your Restaurant Concept

To stand out in a competitive market, it is crucial to develop a unique restaurant concept. 

Think about the type of meal you want to offer, the ambiance, and the overall dining experience you want to create for your customers. 

Consider factors such as target audience, location, and market demand when defining your concept.

• Are you aiming for a casual dining experience or an upscale restaurant? 
• Will you specialize in a specific cuisine or offer a diverse menu? 
• Will your restaurant be a place where workers come to eat in the morning, or where lovers come to dine in the evening?

Clearly defining your concept will help you create a cohesive brand identity and attract your target customers.

4. Choose an Ideal Location

When choosing a location for your restaurant, think about your customers and look for areas where many people pass by, like busy streets or marketplaces. 

It’s also good to be close to residential and commercial areas, so people can easily reach you.

Check if there’s enough parking space for customers who come with cars. Also, see how many other restaurants are around. 

If there are already many, you will face tough competition. But if there’s a gap in the market, you have a chance to stand out.

Consider the vibe of the neighborhood too. Is it a place where people live, or is it more of a business area where people work and visit regularly?

Don’t forget to think about the cost. Make sure the rent or purchase price fits your budget and matches what you expect to earn from the restaurant.

Finally, check the rules and regulations for that area. Ensure that the location is allowed for a restaurant business according to local laws.

Read How to Find a good location for your business in Nigeria

5. Secure Funding

Securing enough money is one of the main challenges when starting a restaurant business. First, look at your own finances and figure out how much capital you need to begin. 

When you are starting for the first time, it is always proper to use the money you have at hand. This will help you get the experience needed for bigger things.

When you have understood the mode of business, you can consider getting a loan from a bank or partnering with investors.

Next, create a detailed business plan that includes your financial projections. 

This plan should cover expenses like equipment, rental, marketing, and the money you need for day-to-day operations. 

6. Register Your Business

To operate your restaurant business legally in Nigeria, you must follow some important steps:

• Register your business name at the Corporate Affairs Commission (CAC). This means choosing a unique name for your restaurant and getting a Certificate of Incorporation.
• Register with the Federal Inland Revenue Service (FIRS) for taxes. You need a Tax Identification Number (TIN) to fulfill your tax obligations.
• It’s crucial to meet all the legal requirements and keep proper documentation for your business. 

This includes keeping records of your financial transactions, licenses, permits, and other necessary documents.

• It’s a good idea to consult with a legal expert who can guide you through the registration process and help you comply with all the laws and regulations.

By registering your restaurant business and following the legal requirements, you can operate smoothly and without worries in Nigeria.

You can also learn more at How to Register Your Business With CAC Online ( Ultimate Guide)

7. Set Competitive Pricing

Setting the right prices for your menu items is very important for the success of your restaurant business. 

Here’s what you need to keep in mind:

Consider all the costs involved : Think about the cost of ingredients, how much you pay your staff, other expenses like rent and utilities, and the profit you want to make.

Research the prices of similar restaurants : Look at what other restaurants in your area are charging for similar dishes. This will help you stay competitive.

Value for money : Remember that customers expect good value for the price they pay. Make sure your ingredients are of high quality, portion sizes are generous, and the overall dining experience is enjoyable.

Regularly review and adjust prices : Keep an eye on market trends, changes in costs, and feedback from customers. If necessary, make adjustments to your prices to ensure they remain fair and profitable.

8. Create a Marketing Strategy For Success and Profit

To get more customers and let people know about your restaurant, you need a good marketing plan. Here are some simple steps to follow:

• Build an online presence : Create a nice website that shows off your restaurant, menu, and contact details. 

Make sure your website shows up on search engines by using keywords like “restaurant in Nigeria” and “Nigerian cuisine.” Use great pictures, interesting content, and easy ways for people to book or order online.

• Use social media: Connect with potential customers on platforms like Facebook, Instagram, and Twitter. 

Share yummy food pictures, talk about special offers or events, and chat with your followers. Ask customers to write reviews and share their experiences to attract more people.

• Advertise locally: Think about ways to reach people in your area. You can advertise in newspapers, on the radio, or even on local TV channels. 

Get your restaurant listed in local directories, food magazines, or community newsletters to let people know you’re there.

• Work with influencers: Team up with popular food bloggers, social media influencers, or local celebrities. Give them a free meal or a special experience at your restaurant in exchange for them talking about it on social media or writing reviews.

By following these steps, you can get more customers and make your restaurant known to people all around Nigeria.

9. Provide Outstanding Customer Service

Delivering exceptional customer service should be at the top of your list when running a restaurant. 

It’s important to create an inviting and friendly environment where customers feel valued and appreciated. Here are some helpful tips:

• Personalized interactions: Encourage your staff to engage with customers on a personal level. If possible, greet them by name and ask about their preferences or any special occasions they may be celebrating.
• Prompt and attentive service: Make sure your waitstaff is attentive to customers’ needs. Keep an eye on drink refills, promptly clear plates, and provide timely assistance. Minimize wait times and prioritize efficient service.
• Resolve issues quickly: If a customer has a complaint or concern, address it promptly and courteously. Actively listen to their feedback, apologize if necessary, and offer appropriate solutions or compensation to ensure their satisfaction.
• Collect feedback: Regularly seek feedback from customers through comment cards, online surveys, or direct conversations. Use this feedback to identify areas for improvement and make necessary adjustments to enhance the overall customer experience.

Remember, positive word-of-mouth recommendations can greatly impact the success of your restaurant. 

What Are Some Common Challenges When Starting a Restaurant Business in Nigeria?

Firstly, securing funding can be difficult due to the limited availability of investors and stringent loan requirements. 

Secondly, navigating the regulatory landscape can be complex and time-consuming, involving obtaining permits, and meeting health standards. 

Lastly, competing in the saturated food industry requires careful planning to differentiate oneself from existing restaurants and attract customers. 

Despite these challenges, with determination, proper planning, and a focus on customer satisfaction, aspiring you can overcome these obstacles and establish a thriving business.

How Long Does It Take To Start a Restaurant Business in Nigeria?

Starting a restaurant business in Nigeria can take several months to a year or more, depending on various factors. 

The process includes planning and concept development, business registration, finding a suitable location, obtaining licenses and permits, hiring and training staff, procuring equipment and supplies, and conducting pre-opening preparations. 

Each stage has its own timeline, ranging from a few weeks to several months, and the overall duration is influenced by factors such as decision-making, documentation, legal requirements, availability of resources, and unforeseen delays.

Do I Need a Professional Chef to Start a Restaurant?

No, you do not necessarily need a professional chef to start a restaurant. While having a skilled chef can greatly enhance your restaurant’s offerings and reputation, it is not a mandatory requirement. 

As the owner, you can either hire a professional chef or manage the kitchen yourself if you have the necessary culinary skills. 

However, ensuring the quality of your food and having a solid menu is crucial for the success of your restaurant, regardless of who prepares the dishes.

Is It Necessary to Offer Online Ordering or Delivery Services?

While not mandatory, offering online ordering and delivery services can greatly benefit your restaurant in Nigeria. 

These services make it convenient for customers to place orders from their homes or offices, expanding your customer base and potentially increasing revenue. 

By embracing online ordering and delivery, you can attract new customers and improve customer satisfaction. 

However, the decision to offer these services should consider factors such as your target market, location, available resources, and overall business strategy.

Starting a restaurant business in Nigeria requires careful planning, attention to detail, and a deep understanding of the local food industry. 

By following the steps outlined in this guide, you can set yourself up for success.

Remember to conduct thorough market research, develop a solid business plan, secure funding, and comply with legal requirements. 

Focus on providing exceptional food, outstanding customer service, and a welcoming atmosphere to attract and retain loyal customers.

Starting a restaurant business is undoubtedly challenging, but with passion, perseverance, and the right strategies, you can turn your culinary dreams into a thriving reality.

Some helpful blog posts that you may enjoy about starting a business in Nigeria:

• How to Start an Ice Fish Business in Nigeria: A Comprehensive Guide
• 12 Super Tips for Starting a Popcorn Business in Nigeria
• 7 Powerful Steps to Starting an Event Planning Business in Nigeria
• 13 Vital Tips on How to Start a Beauty Product Business in Nigeria
• How to Start Keke Spare Parts Business in Nigeria (Tips for Success.)
• How to start a wallpaper business in Nigeria (The Complete Guide)
• How to Start Ice Block Business in Nigeria
• Step-by-Step Guide to Starting a Successful Palm Oil Business in Nigeria
• How to Start a Frozen Food Business in Nigeria (The Ultimate Guide)
• 11 Essential Steps on How to Start a Provision Store Business in Nigeria
• How To Start Foodstuff Business In Nigeria

Mina is a personal finance writer and entrepreneur with a deep love for technology in the business world.

She is not only a successful, tech-savvy businesswoman but also a dedicated mentor, guiding aspiring entrepreneurs in Nigeria.

Explore her work and be inspired by her journey of leveraging tech innovation for business success in Nigeria.

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How To Start A Lucrative Restaurant Business In Nigeria and Africa: The Complete Guide

The restaurant industry in Nigeria and Africa is a lucrative business with immense growth potential due to the population growth and rising disposable incomes. According to the National Bureau of Statistics, the food and beverage sector contributed 4.4% to Nigeria’s GDP in Q2 2021, and it is projected to grow further in the coming years. This is also evident in Africa, where the food and beverage sector is estimated to reach $1 trillion by 2030, according to McKinsey & Company.

The restaurant business in Nigeria and Africa presents a massive export opportunity. Nigeria has a rich and diverse culinary culture, and its cuisine is gaining popularity globally. The export of Nigerian dishes and spices presents a vast opportunity for restaurant owners to tap into the international market. Furthermore, with the African Continental Free Trade Area (AfCFTA) agreement, there is an opportunity for African restaurants to expand and reach a wider market.

Globally, the restaurant industry is a significant contributor to the economy, providing employment opportunities and generating revenue. According to Statista, the restaurant industry is expected to reach a market value of $4.2 trillion by 2025, with Africa contributing to a significant portion of that market size. In Nigeria, the restaurant industry is estimated to be worth over $2.5 billion, with an annual growth rate of 6.5%.

Moreover, the restaurant industry in Nigeria and Africa is a significant employer, providing jobs for millions of people, including chefs, waiters, and support staff. The industry has also experienced significant growth in recent years, driven by a growing middle class, urbanization, and the increasing popularity of eating out.

In summary, the restaurant business in Nigeria and Africa presents a significant opportunity for entrepreneurs to invest in the industry. With the growing population, rising incomes, and increasing interest in African cuisine, the restaurant industry is set to grow further in the coming years. Furthermore, the export opportunities present an avenue for restaurant owners to expand their businesses and reach a broader market .

See Also:   How To Start A Lucrative Laundry Business In Nigeria and Africa: The Complete Guide

What Is A Restaurant?

A restaurant is a business establishment that prepares and serves food and drinks to customers in exchange for payment.

See Also:   How To Start A Lucrative Import/Export Business In Nigeria and Africa: The Complete Guide

What Is The Restaurant Business In Nigeria and Africa  About?

Restaurant business is a type of food service business where customers can sit and enjoy a meal prepared by professional chefs. It involves the preparation and serving of food and drinks in a commercial establishment. The scientific name for restaurant business is “food service industry.”

The restaurant business is a crucial component of the hospitality industry, which is an important contributor to the economy in Nigeria and Africa. It is a growing industry, driven by the increasing population, rising incomes, and changing lifestyle habits. According to a report by the National Restaurant Association, the restaurant industry in Nigeria generated over N1.2 trillion in revenue in 2020, with an annual growth rate of 3.3%.

Starting a restaurant business requires a significant investment of time and capital. It involves researching the market, developing a concept, creating a menu, hiring staff, and securing financing. Successful restaurant businesses are known for their delicious food, excellent customer service, and attractive ambiance.

The restaurant business in Nigeria and Africa is rapidly growing and presents a significant export opportunity. Nigerian cuisine has been gaining recognition globally, with several Nigerian restaurants opening in major cities around the world. Exporting Nigerian food and restaurant concepts to other countries could increase the country’s revenue from the industry.

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Benefits of The Restaurant Business In Nigeria  and Africa

• Job creation: The restaurant industry provides employment opportunities for a significant number of people, leading to the reduction of unemployment rates in Nigeria and Africa.
• Boosts tourism: The restaurant industry can attract tourists to Nigeria and Africa and serve as an additional source of revenue for the countries.
• Enhances economic growth: The restaurant industry contributes significantly to the Gross Domestic Product (GDP) of Nigeria and Africa.
• Foreign exchange earnings: Through restaurant exports, Nigeria and Africa can earn foreign exchange and increase their foreign reserve.
• Improves the standard of living: As the restaurant industry thrives, it can lead to an improvement in the standard of living for those involved in the industry.
• Encourages entrepreneurship: The restaurant industry provides a platform for entrepreneurs to establish businesses and become self-sufficient.
• Promotes cultural exchange: Restaurant businesses offer an opportunity for Nigerians and Africans to experience different cultures and cuisines.
• Supports agriculture: Restaurant businesses promote local agriculture by using locally sourced ingredients, leading to an increase in demand for such products.
• Increases tax revenue: The restaurant industry contributes significantly to the tax revenue of Nigeria and Africa.
• Stimulates small businesses: The restaurant industry creates a chain of businesses that support it, such as food vendors, farmers, and distributors.
• Encourages innovation: The restaurant industry promotes innovation through the development of new recipes and cooking techniques.
• Increases social interaction: Restaurants provide a platform for social interaction, leading to community building.
• Boosts the hospitality industry: The restaurant industry is a crucial component of the hospitality industry and contributes to its growth and development.
• Enhances the image of Nigeria and Africa: A thriving restaurant industry can improve the image of Nigeria and Africa as a whole and promote it as a tourist destination.
• Supports the economy during a recession: The restaurant industry is a resilient industry that can support the economy during a recession or economic downturn.

See Also:   How This Female African Entrepreneur Built A Million Dollar Business From A Small Shed

Health Benefits of The Restaurant Business

• Provides balanced and nutritious meals that support good health and wellness.
• Offers healthy food choices that help manage weight, reduce the risk of chronic diseases, and promote longevity.
• Promotes healthy eating habits and educates the public on the importance of a balanced diet.
• Supports local farmers and suppliers who provide fresh and organic produce.
• Offers a variety of vegetarian and vegan options, which are rich in nutrients and can lower the risk of chronic diseases.
• Provides high-quality proteins, such as fish and poultry, which are essential for building and repairing body tissues.
• Offers gluten-free and allergy-friendly meals for individuals with food sensitivities.
• Promotes the consumption of whole grains, which are rich in fiber, vitamins, and minerals, and can reduce the risk of heart disease.
• Reduces the consumption of unhealthy fats and sugars, which can lead to obesity and other health problems.
• Encourages the consumption of fruits and vegetables, which are rich in antioxidants and other essential nutrients.
• Promotes healthy cooking methods, such as grilling, baking, and steaming, which preserve the nutritional value of food.
• Offers low-sodium options, which can lower the risk of hypertension and other heart-related diseases.
• Provides portion-controlled meals, which can prevent overeating and promote weight management.
• Offers healthy beverage options, such as fresh juices, smoothies, and herbal teas, which can provide essential nutrients and hydration.
• Creates a healthy and welcoming environment that promotes wellness and positive lifestyle choices.

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Business opportunities in the restaurant business in nigeria and africa.

• Franchise opportunities: Restaurant businesses in Nigeria and Africa can explore the franchise model to expand their reach and build a national or global brand.
• Event catering: Restaurants can offer event catering services for corporate events, weddings, and other social occasions.
• Food delivery: With the growing popularity of food delivery services, restaurants can partner with delivery companies or create their own delivery service to reach customers who prefer to dine at home.
• Online ordering: Developing an online ordering system for customers can streamline the ordering process and increase sales.
• Specialty food products: Restaurant businesses can expand their product lines to include specialty food products such as sauces, spices, and dressings.
• Private dining: Offering private dining spaces for events and special occasions can attract high-end customers and generate additional revenue.
• Cooking classes: Hosting cooking classes and workshops can attract food enthusiasts and provide an additional revenue stream.
• Merchandise: Selling branded merchandise such as t-shirts, hats, and mugs can create a secondary source of revenue and help promote the restaurant’s brand.
• Food blogging: Restaurant businesses can create their own food blogs to showcase their menu, share recipes, and engage with customers.
• Food truck business: Starting a food truck business can be a cost-effective way to reach new customers and test new menu items.
• Farm-to-table: Partnering with local farmers to source fresh, locally grown ingredients can attract customers who are interested in sustainable, locally sourced food.
• Catering services for airlines and hotels: Restaurant businesses can partner with airlines and hotels to provide catering services for their customers.
• Meal prep services: Providing healthy meal prep services for customers can attract health-conscious consumers and generate additional revenue.
• Consulting services: Restaurants can offer consulting services to other businesses in the industry, sharing their expertise in menu development, marketing, and operations.
• Food tourism: Promoting the restaurant’s unique cuisine and local culture can attract tourists and generate additional revenue for the business.

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Facts About The Restaurant Business In Nigeria and Africa

• The restaurant industry is one of the fastest-growing sectors in Nigeria and Africa.
• The restaurant industry in Africa is expected to reach $3.5 billion by 2023.
• In Nigeria, the restaurant industry is valued at over $5 billion.
• There are over 100,000 registered restaurants in Nigeria.
• Nigeria has a diverse culinary culture, with over 500 ethnic groups and a range of local dishes.
• Africa’s restaurant industry is experiencing rapid growth due to increased urbanization, rising incomes, and changing lifestyles.
• Many African restaurants are incorporating traditional foods and ingredients into modern dishes.
• Nigeria’s restaurant industry has benefited from increased foreign investment in recent years.
• Restaurants are major employers in Nigeria, with over 1 million people employed in the sector.
• The COVID-19 pandemic had a significant impact on the restaurant industry in Nigeria and Africa.
• Online food ordering and delivery services have become increasingly popular in Nigeria and Africa.
• African restaurants are gaining international recognition, with many appearing on prestigious lists of the world’s best restaurants.
• Nigeria has a growing middle class, which has increased demand for dining out and restaurant services.
• African restaurants are increasingly adopting sustainable practices, such as using locally sourced ingredients and reducing food waste.
• Restaurant business in Nigeria and Africa is highly competitive and requires creativity, innovation and good marketing strategies.
• African restaurants are known for their hospitality and customer service.
• The restaurant industry in Nigeria and Africa provides opportunities for entrepreneurship and small business development.
• Many restaurants in Nigeria and Africa offer live music and entertainment as part of the dining experience.
• The restaurant industry is a major contributor to the economies of many African countries.
• African cuisine is becoming increasingly popular globally, providing export opportunities for restaurant owners.
• Nigeria’s restaurant industry is projected to grow at a compound annual growth rate of 10.8% between 2021 and 2026.
• Many African restaurants are adapting to changing consumer preferences by offering healthier and vegetarian/vegan options.
• The restaurant industry in Nigeria and Africa is becoming increasingly technology-driven, with many restaurants adopting digital payment systems and online ordering platforms.
• The restaurant industry in Nigeria and Africa provides opportunities for cultural exchange and promotes tourism.
• The restaurant industry in Nigeria and Africa has a significant impact on the food and agriculture sectors, as many restaurants source their ingredients locally, supporting small-scale farmers and producers

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Types Of Restaurants In Nigeria and Africa

Restaurant businesses in Nigeria and Africa can be classified into different types based on their operations and services provided. Here are some of the types of restaurant businesses:

• Fine dining restaurants: These are high-end restaurants that offer premium services, often with formal dress codes and sophisticated menus.
• Casual dining restaurants: These restaurants offer a more relaxed atmosphere and less formal menu than fine dining restaurants.
• Fast-food restaurants: These are restaurants that provide quick-service meals, often packaged for takeout or drive-thru.
• Cafes: These are small restaurants that offer light meals, snacks, and drinks, often with a relaxed atmosphere and casual seating.
• Buffet restaurants: These restaurants provide a self-service style of dining where customers pay a fixed price to access a wide variety of food.
• Ethnic restaurants: These restaurants specialize in a particular cuisine, such as Chinese, Italian, or African dishes.
• Food trucks: These are mobile restaurants that provide quick-service meals to customers on the go.
• Family-style restaurants: These restaurants provide a casual atmosphere and meals that are meant to be shared among family and friends.
• Bakeries and pastry shops: These businesses specialize in baking and selling bread, cakes, pastries, and other baked goods.

Each type of restaurant business requires a unique set of skills and strategies to succeed. Understanding the market demand, target audience, and local food culture is essential for setting up and running a successful restaurant business in Nigeria and Africa.

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The Peak Season For The Restaurant Business In Nigeria and Africa

The peak supply and demand season for the Restaurant Business in Nigeria and Africa varies depending on the region and type of restaurant. In general, the restaurant industry in Africa experiences increased demand during festive seasons such as Christmas, New Year, and Easter. Additionally, during the summer season, tourist hotspots experience a surge in demand for restaurant services.

In Nigeria, the Ramadan period also presents an opportunity for restaurants as Muslims break their fast at sunset, and restaurants become a popular destination for communal dining. On the other hand, the rainy season may slow down the demand for outdoor restaurants and dining spaces.

It is essential for restaurant owners to understand the seasonal trends of their location and adjust their business accordingly to maximize profitability. They can achieve this by developing special menus, promotions, and advertising campaigns that align with the season. By doing so, they can leverage the increased demand to generate higher revenues and grow their businesses.

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How To Start The Restaurant Business In Nigeria and Africa: Step-By-Step Guide

Starting a restaurant business in Nigeria and Africa can be a daunting task, but it is achievable with the right approach. Below is a step-by-step guide on how to start a successful restaurant business:

• Conduct market research: Conduct research on your target audience, the competition, and location.
• Develop a business plan: A business plan is a roadmap for your restaurant business. It should include an executive summary, company description, market analysis, and financial projections.
• Secure funding: Determine the amount of money you need to start your restaurant and secure funding.
• Choose a location: Choose a location that is easily accessible and visible to potential customers.
• Register your business: Register your restaurant business with the appropriate government agencies.
• Obtain necessary permits: Obtain the necessary permits and licenses to operate your restaurant business.
• Purchase equipment: Purchase the necessary equipment, such as kitchen equipment, furniture, and utensils.
• Hire staff: Hire competent staff members, including cooks, waiters, and managers.
• Develop a menu: Develop a menu that appeals to your target audience.
• Market your restaurant: Create a marketing plan to promote your restaurant business.

Starting a restaurant business in Nigeria and Africa requires hard work, dedication, and the right approach. With the steps outlined above, you can start a successful restaurant business.

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How To Design A Restaurant In Nigeria or Africa

Designing a restaurant in Nigeria and Africa can be a challenging task, but with the right steps, it can be accomplished successfully. Here are the step-by-step guidelines on how to design a restaurant in Nigeria and Africa:

• Define the concept and theme of the restaurant: This involves deciding on the type of food and service you will offer and the atmosphere and mood you want to create.
• Choose a location: Consider factors such as accessibility, visibility, and competition.
• Develop a floor plan: This should include the layout of the dining area, bar, kitchen, and storage spaces.
• Select a color scheme and décor: Choose a color scheme and décor that aligns with the concept and theme of the restaurant.
• Choose the furniture: Select furniture that is comfortable, durable, and fits the theme of the restaurant.
• Decide on lighting: Consider the type and amount of lighting needed to create the desired ambiance.
• Install necessary equipment: This includes kitchen equipment, point-of-sale systems, and security systems.
• Ensure compliance with local regulations: Obtain necessary permits and comply with health and safety regulations.
• Test the design: Test the design to ensure that it meets your requirements and the needs of your customers.

By following these guidelines, you can create a successful restaurant design in Nigeria and Africa.

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Types Of Equipment & Tools Used In The Restaurant Business In Nigeria or Africa

The success of a restaurant business depends on having the right equipment in place to deliver quality meals and excellent customer service. Here are some of the essential equipment needed in a restaurant business in Nigeria and Africa:

• Cooking range: This equipment is used for cooking various dishes like soups, stews, and sauces.
• Refrigerators and freezers: These are used for storing perishable items like meat, vegetables, and dairy products.
• Oven: This is used for baking and roasting.
• Grills: Used for grilling meats, fish, and vegetables.
• Fryers: Used for frying foods like chicken, fries, and plantains.
• Food processor: This is used for slicing, chopping, grinding, and pureeing ingredients.
• Ice Maker: This is used for making ice cubes, which are used for drinks and other purposes.
• Oven: This equipment is used for baking, grilling, and roasting. It comes in different sizes and can be either electric or gas-powered.
• Griddle: This equipment is used for cooking pancakes, burgers, and sandwiches. It is available in different sizes and can be either electric or gas-powered.
• Microwave: This is used for heating food quickly. It is essential to have a good microwave for fast food restaurants.
• Coffee Machine: This is used for making coffee, cappuccino, and other hot beverages. It is essential for coffee shops and cafes.
• Dishwasher: Used for washing dishes, pots, and utensils.
• Bar equipment: This includes refrigerators, ice machines, blenders, and other equipment used for making cocktails and drinks.
• Point of sale system: Used for taking orders, managing inventory, and tracking sales.
• Kitchen utensils: This includes knives, cutting boards, mixing bowls, spoons, spatulas, and other cooking tools.
• Blender: This equipment is used for making smoothies, shakes, and other beverages.
• Food Processor: This is used for chopping, grinding, and pureeing food items. It is essential for preparing sauces, dips, and marinades.
• Meat Slicer: This equipment is used for slicing meat, cheese, and vegetables. It saves time and ensures uniformity in the slicing process.
• Cutlery and Crockery: These are used for serving food and drinks. They come in different styles and designs and are essential for a good restaurant experience.

Having the right equipment in a restaurant business can help improve productivity, reduce waste, and increase efficiency.

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Target Market For The Restaurant Business In Nigeria or Africa

• Tourists and visitors: Nigeria and Africa are popular tourist destinations, attracting a significant number of visitors each year. Restaurant businesses can cater to the needs of these tourists, providing them with a taste of local cuisine.
• Business executives: The growth of various industries in Nigeria and Africa has led to an increase in the number of business executives traveling to the region. Restaurants can offer a convenient and comfortable place for these executives to conduct meetings and entertain clients.
• Families: Families are an essential target market for restaurants in Nigeria and Africa. They are often looking for a place to gather and enjoy a meal together, making family-friendly restaurants a popular choice.
• Students: With the number of universities and colleges in Nigeria and Africa, students represent a significant target market for restaurants. Restaurants can cater to students by offering affordable meals, discounts, and promotions.
• Working professionals: Restaurants can also target working professionals who are looking for a quick and convenient place to eat during their lunch breaks or after work.
• Health enthusiasts: As people become more health-conscious, restaurants that offer healthy and nutritious options can target this growing market segment.
• Foodies: Food lovers and enthusiasts are always on the lookout for unique and flavorful dishes, making restaurants that offer new and exciting cuisine popular among this target market.

How To Market The Restaurant Business In Nigeria or Africa

• Social Media Marketing: Use social media platforms such as Facebook, Instagram, Twitter, and LinkedIn to reach your target audience and promote your restaurant business.
• Influencer Marketing: Collaborate with popular food bloggers and social media influencers to increase your restaurant’s visibility.
• Email Marketing: Create an email list of subscribers and send regular newsletters, offers, and updates about your restaurant.
• Content Marketing: Create high-quality and engaging content such as blogs, videos, and photos to showcase your restaurant’s menu, ambiance, and customer experiences.
• Search Engine Optimization (SEO): Optimize your website and online content with relevant keywords to rank higher in search engine results.
• Online Food Delivery Services: Partner with popular online food delivery platforms such as Uber Eats, Jumia Food, and Bolt Food to expand your restaurant’s reach.
• Loyalty Programs: Offer discounts and rewards to loyal customers to encourage repeat business and referrals.
• Outdoor Advertising: Use billboards, banners, and posters to promote your restaurant to a wider audience.
• Local Events: Participate in local events and food festivals to showcase your restaurant and its offerings.
• Referral Programs: Encourage customers to refer their friends and family to your restaurant by offering incentives such as discounts and free meals.
• Community Outreach: Get involved in local charity events and fundraisers to show your restaurant’s commitment to the community.
• Online Reviews: Encourage satisfied customers to leave positive reviews on popular review sites such as TripAdvisor, Google, and Yelp.
• Menu Innovations: Introduce new and innovative menu items to attract new customers and retain existing ones.
• Cross-Promotions: Collaborate with other local businesses to offer joint promotions and increase your restaurant’s exposure.
• Gift Cards: Offer gift cards that customers can purchase for themselves or as gifts for others to increase brand awareness and attract new customers.
• Mobile Marketing: Use mobile marketing strategies such as SMS marketing and mobile apps to reach customers directly on their smartphones.
• Free Samples: Offer free samples of your restaurant’s menu items to attract new customers and showcase your food’s quality.
• Online Reservations: Make it easy for customers to make reservations online through your website or social media platforms.
• Takeaway and Catering Services: Offer takeaway and catering services to attract customers who prefer to eat at home or at events.
• Seasonal Promotions: Create special promotions and menus for holidays and seasonal events such as Valentine’s Day and Christmas.
• Live Music and Entertainment: Host live music and entertainment events to attract customers and create a lively atmosphere.
• Personalized Experiences: Offer personalized experiences such as chef’s tables, wine tastings, and cooking classes to attract customers who are looking for unique dining experiences.
• Restaurant Reviews and Features: Get your restaurant featured in local and national publications and websites to increase your restaurant’s exposure.
• Discounts and Coupons: Offer discounts and coupons to attract new customers and increase customer loyalty.
• Social Responsibility: Showcase your restaurant’s social responsibility by supporting local causes and initiatives to attract socially conscious customers.

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Challenges Of The Restaurant Business In Nigeria and Africa

• High competition: The restaurant industry in Nigeria and Africa is highly competitive, making it challenging for new businesses to establish themselves.
• Cost of food supplies: The cost of food supplies is often high, which can be a significant challenge for restaurants.
• Rising costs of rent and utilities: As with many businesses, the cost of rent and utilities is often a significant challenge for restaurants.
• Difficulty in finding skilled workers: Finding skilled workers, such as chefs and kitchen staff, can be a challenge in Nigeria and Africa.
• High employee turnover rates: Employee turnover rates can be high in the restaurant industry, which can be a significant challenge for business owners.
• Food safety and health regulations: Restaurants must comply with strict food safety and health regulations, which can be a challenge for business owners.
• Seasonal fluctuations in demand: Demand for restaurant services can fluctuate significantly throughout the year, which can be a challenge for business owners.
• Difficulty in managing inventory: Managing inventory, such as food supplies and kitchen equipment, can be a challenge for restaurant owners.
• Marketing challenges: Marketing a restaurant can be challenging, especially for new businesses.
• Changing consumer preferences: Consumer preferences can change quickly, making it challenging for restaurant owners to keep up with trends.
• Managing cash flow: Managing cash flow can be a significant challenge for restaurant owners, especially during slow periods.
• Dealing with customer complaints: Dealing with customer complaints can be a challenge, as negative reviews can harm a restaurant’s reputation.
• The high cost of advertising: Advertising can be expensive, making it challenging for new businesses with limited budgets.
• Maintaining consistent quality: Maintaining consistent quality across menu items can be a challenge, especially in larger restaurants.
• Poor location: A poor location can be a significant challenge for restaurant owners, as it can affect foot traffic and revenue.
• Limited access to financing: Access to financing can be limited for restaurant owners, especially those without established credit histories.
• Language barriers: Language barriers can be a significant challenge for businesses catering to tourists or non-native speakers.
• High taxes: High taxes can be a significant challenge for restaurant owners, especially in countries with high tax rates.
• Political instability: Political instability can be a significant challenge for businesses operating in Nigeria and Africa.
• Lack of infrastructure: A lack of infrastructure, such as reliable electricity and water supply, can be a challenge for restaurant owners.
• Changing economic conditions: Economic conditions can change quickly, making it challenging for restaurant owners to adapt.
• Cultural differences: Cultural differences can affect a restaurant’s success, as different cultures have different dining preferences.
• Insufficient training: Insufficient training for staff can be a significant challenge for restaurant owners, as it can affect service quality.
• Theft and fraud: Theft and fraud can be a challenge for restaurant owners, especially those dealing with cash transactions.
• Balancing supply and demand: Balancing supply and demand can be a challenge for restaurant owners, as overstocking or understocking can affect profitability

See Also:   Overcoming These Challenges Will Make Your Business More Successful

To Sum It Up

the Restaurant Business in Nigeria and Africa is a thriving industry with numerous opportunities and benefits. From the economic benefits to the health benefits and the potential for exportation, the Restaurant Business is one of the most lucrative industries in the region. However, as with any business, there are challenges such as competition, rising costs of raw materials, and high employee turnover. It is important for entrepreneurs to carefully plan and strategize their business operations to overcome these challenges.

Despite the challenges, the Restaurant Business continues to grow and thrive in Nigeria and Africa. With a diverse range of cuisines, growing tourism industry, and increasing demand for dining experiences, there are countless opportunities for entrepreneurs to establish successful restaurants. By understanding the target market, utilizing effective marketing strategies, and providing high-quality food and service, entrepreneurs can establish a loyal customer base and achieve success in the Restaurant Business.

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Professional Business Plan Writing Service Writing a bank and investor ready professional restaurant business plan can be challenging. If you need a professional and affordable business plan service,  StartupTipsDaily’s MBA standard professional business plan writing service  is perfect for your business. All you have to do is request an understanding of your proposed business model, and you’d have a professional MBA standard business plan ready for you in anywhere from 5 to 14 days.  You can click here to get started with using StartupTipsDaily’s professional business plan writing service to create the perfect business plan that’d get accepted anywhere.

What are your thoughts on how to start a restaurant business in Nigeria and Africa? Let me know by leaving a comment below.

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30 Comments

thanks for this info, found it very helpful. would be running a restaurant soon

Thank you for the comment.

Dear Sir, im always highly transported with joy by your great good work could send me write up details on how to run successful grass-cutter farming. Thank you for your cooperation.

We’ve previously written an article on that here >>> https://startuptipsdaily.com/grasscutter-farming-in-nigeria/

Thank you for asking.

Morning Mr. Stan, I am sure you are doing great? Please, I have one million naira (#1,00,000) and I want to use it or invest into a lucrative business that will yield more money. I really need your assistant to this effect. 1. The type of business 2. How to start it etc Waiting for your immediate reply. Thanks

Choosing what to start is highly relative.

You’d need to solve a problem in your locality to make any kind of cash.

One thing you could do is to go into the supplies of some office products, stationeries, and other mild equipments within your capital base to organisations who request for them, pending when you have figured the problem you intend to solve.

While there are thousands of business ideas and opportunities, defining yourself in a profitable but less crowded niche, is what will help drive the value of your investment up quickly.

Do let me know when you come up with something exciting that you believe may have some prospect.

I hope this answers your question.

Hi Stan, Thank you for this incite-full write-up. I would like to start a small restaurant to include a juice bar and healthy foods production. however, i am struggling with writing a professional business plan that will be attractive and convincing to my investors. can you help?

Many thanks.

Yes we can.

Please send an email to [email protected]

Have a great time!

Nice write up,pls I want to start a middle class restaurant pls help me the Shop I want to rent is located upstairs I don’t know if it will work

Where do you intend to locate the restaurant and what are you offering that will make the middle-class population patronize you?

Also, restaurants do a lot better on the ground floor.

Hi pls I need ur no

You can reach us directly on the phone number listed on the contact page or via email at [email protected] .

nice write up …

Thank you for the commendation Nonso.

Do have a great time!

Nice write up,itwas very educating

Thank you for the commendation, Kabirah.

Wow! this is very educating. Thanks so much. Please do you have any similar article on transport business?

Thank you for the kind words, Victor.

We currently don’t have any transport business article yet.

But do be on the lookout for when we post it.

Nice and very educating write up. Please,am really confused about starting up a business that will be more lucrative between opening a middle class resturant, a cosmetic business and an event management business. Dnt know which would be more lucrative. Awaiting ur reply, thanks.

I’d suggest you go for event management because here you’re applying intellectual knowledge with physical partners.

You can then use the proceeds to expand to other businesses you want to venture into.

Great write up. i hope and pray to come share my success story here too

I hope so too.

Thank you for the comment, Francis.

Thanks for this write-up. It was very inciteful.I am an accountant and I have been called upon to come and manage the finance and investments of a new middle/upper class restaurant. What practical tips can you give from your own experience?

That’s a lot to type.

I’d advice you contract the service of a consultant.

You can also send an email to [email protected]

Thank you for this write up, it’s very eye-opening. I’m a single lady who owns a catering business here in Abuja and I work from home because I can’t afford a shop yet due to high cost of rent. I recently just got a staff (a cook) to assist with things but I am stumped on how to expand my client base. I have more responsibilities now because I have to pay my staff’s salary as well (which isn’t cheap) and I honestly do not want to be the type that owes staff salary. I cannot afford paid adverts, what do you think I can do to really expand my client base?

Thanks in anticipation of your reply.

This was really helpful. I intend to start a food truck business in Lagos but the problem now is finding investors or banks. I already have my business plan and I am pretty confident. How do I go about finding an investor?

Thanks sir for the right up I want to start up a restaurant business but location is my problem how It is going to be good for food please guide me more on how to run my restaurant

Nice write up. I am already on my own. I have a space and some construction going on there. Do i still need business proposal since I am not talking loan from any organization for the business. My company is registered with CAC. What are the necessary things to be done before kick off. Thanks

What we’d suggest is you get a feasibility study done, so you can have great clarity and be sure of what to do.

Comments are closed.

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How To Start A Restaurant Business In Nigeria – Step by Step Guide

Welcome to this post about How To Start A food Restaurant Business In Nigeria via Afrokonnect .

Over the years new technological advancements are being made day by day, w ith these new updates some industries have suffered great losses too big to measure due to the steady decline in the demand for their products and services.

This is because we now have apps and machines that can do almost anything. But, there is something no new discovery or advancements in technology can change – the demand for food.

With a steady increase in the world’s population comes a steady increase in the demand for food and restaurants for those who have no time to cook or just simply want to eat out, f or this reason, the restaurant industry is said to generate about 100 billion USD every year.

So, if you’re considering starting up your own food restaurant business, you’re in luck because this article details tips on everything you need to know when starting a restaurant. Read about: How to start Ice block Production and Sale business 

This article answers questions like;

• How to start a restaurant business in Nigeria?

How much does it cost to start a restaurant in Nigeria?

• Which food business is more profitable?How do I start a restaurant in Nigeria?

So let’s go straight into the main agenda.

HOW DO I START A FOOD RESTAURANT BUSINESS IN NIGERIA

View this post on Instagram A post shared by Hard Rock Cafe Lagos (@hrclagos)

1. First of all, Determine the type of restaurant you want to start.

This is your concept and your target audience,

There are various types of restaurants out there,

Depending on your preference;

• Fast food restaurants serve mainly snacks and quick foods,

They mainly serve office workers and students. Most people take their food to-go and most owners don’t have to worry too much about interior decorations.

• Fine dining restaurants mainly target the rich and fabulous,

They usually have professional chefs with very experienced staff. The ambience always looks expensive with elaborate decorations and state of the art furniture. They are very expensive to manage but that is quickly made up for with the high prices charged on food and drinks.

• Casual dining restaurants usually targets family, friends and generally people who want to let their head down and relax.

They usually offer children menu as well as that of adults. Because it’s a place to relax and eat food, the mood always seems warm and welcoming. So, furniture, decorations and lighting that will improve the overall aesthetic of the restaurant must be must not be lacking.

• Local/Ethnic/Culture based restaurants are mainly for locals, food journalists, tourists and people who want to explore.

There is a vast variety of cultures to pick from in Nigeria, ranging from the yorubas to the igbos and the Hausas to the efik and so on.

View this post on Instagram A post shared by Shifu Restaurant (@shifu_kd)

Most continental dishes are usually not available here as the focus is usually local dishes. The type of restaurant you have decided to start will determine how much capital you’ll need to invest in the business.

2.   Choose a location

When choosing a location for your restaurant, you have to consider the following things;

• Surroundings
• Accessibility
• Competition

The cost involves everything you’ll spend in situating your restaurant. You can decide to buy land and build a building from scratch, y ou can also decide to buy a building and renovate it or even rent a building.

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It’s your choice but most importantly, whatever your decision, stay within your budget. The surrounding of whatever land or building you want to use must be clean and safe, n obody would want to risk their lives and properties coming to eat at a restaurant located in a seedy or creepy area.

Consider the accessibility of the chosen location, y our restaurant being classy with quality service wouldn’t be of any good if it isn’t within the accessible range of your target audience.

Your competition involves every restaurant around your location that offers similar services to what you’ll be offering. The location you choose shouldn’t be too close to very successful would-be competition but still accessible enough.

3.   Draw up a detailed business plan

To do this, you’ll have to;

• Ask for help from business strategists and successful business owners.
• Estimate the capital you’ll need in running the restaurant for at least 6-8 months because the capital invested might be higher than the revenue generated during this period.

When this has been determined, source for your capital.

• Obtain necessary legal documents, permits and licenses.

Do this before the full opening of your business to avoid embarrassing encounters with law agencies.

• Save extra money for unexpected problems and setbacks.

The importance of staying within your budget cannot be overemphasized, n ot going within your budget will help you stay disciplined with your spending and will stop you from incurring unnecessary debt in the course of setting up your restaurant.

How do I start my own restaurant business  

4.   employ necessary help.

• The urge to employ a lot of staff at the beginning to ensure enough helping hands might be overwhelming but you need to fight it and start employing staff on a small scale.

This is to avoid trouble when it’s time to pay their wages or salaries.

• Hire experienced staff and professional chefs if possible,

Inexperienced staff are fine too but it’s important to have someone professional working at the kitchen because you’ll want to offer your customers well cooked food.

• Be ready to fill in for your staff once in a while, Being a good boss involves not wasting time in taking up the role of a waiter, cook or dishwasher when the staff isn’t available or there aren’t enough helping hands.
• Inexperienced staff should be properly oriented,

Staff rules and regulations, job description and codes of conduct should be kept handy to avoid issues with staff discipline.

5. Equip your building and get supplies.

• Ovens, stoves, coffee makers and every other equipment you’ll need in running your business should be made available and they should be in good working condition.
• Fruits and other perishables must be fresh, so you need to make arrangements with an efficient supplier that will deliver fresh produce to you when necessary.

Bargain for the best possible prices and Get quality supplies.

6. Grand Opening

When everything is set, you can have your grand opening.

Invite friends, family members, acquaintances and tell a friend to tell a friend.

At the grand opening, you can serve samples of the dishes you plan to have on the menu when your restaurant is fully operational.

Then, you can ask for thoughts on your proposed menu.

If you feel family members and friends are too polite to tell you what they really think,

you can ask for comments anonymously so as to ensure complete honesty.

After the grand opening, your restaurant can start all operations fully.

To ensure that the progress of your restaurant is not hindered,

Keep the following things in mind;

• Have the right intentions.

Of course, having a means of livelihood is a reason to consider starting up a restaurant business in Nigeria but money shouldn’t be the only thing that drives you. Your motivation should be your passion for feeding people quality food.

Chasing money alone might lead to cheating of customers which in turn might lead to loss of customers while pursuing quality food service would bring more customers and in turn, generate more revenue.

• Have a solid marketing plan

You cannot rely on your customers to bring more people to your restaurant.

You have to play your part, You can do this through the following:

a) Adverts on billboards

c) Free samples

d) Online and Digital/Social media publicity

• Build an online presence

Open social media accounts for your restaurant. You can advertise there and give customers the opportunity to leave reviews. Hire social media managers if possible because you need to paint the best possible image of your restaurant.

• Don’t shy away from asking for help

No man is an island of knowledge, so don’t be surprised if you find yourself with more problems than you ever imagined. If you encounter any issue in which you don’t know how to proceed, get help. Ask experienced restaurant owners and other business owners for tips on getting out of whatever problem that might come your way.

• Be patient.

Rome wasn’t built in a day so it’s impossible to start raking in loads of money the very second you open your restaurant. Make up your mind to stay encouraged against all odds. Remember that Good things come to those who are patient.

As there are different types of restaurants, the cost of starting them also varies. On a small scale, starting up a restaurant business in Nigeria might cost you something between N300,000 and N500,000.

On a larger scale, starting up a food restaurant business in Nigeria will costs around N1,000,000 and N2,000,000. If you’re planning to start up your restaurant business in cities like Lagos or Abuja, be prepared to spend more because the cost of having any establishment in cities like that is relatively expensive.

Which food business is most profitable?

Research has shown that the most profitable food business to start is a bakery business. Read Also:- How to start A Bakery Business from scratch to a profitable venture . Though snacks are technically not food, it’s no news that people would rather buy them than buy other cooked foods outside.

So baking of snacks like meat pies, fish rolls, cupcakes etc is a very profitable venture because it requires very little capital but generates a greater amount of revenue in turn.

How To Start A Restaurant Business In Nigeria

• Determine the type of restaurant you want to start.
• Choose a location
• Draw up a detailed business plan

Employ necessary help

• Equip your building and get supplies
• Grand Opening

So, this is the end of this publication, if you enjoyed this article about How To Start A food Restaurant Business In Nigeria via Afrokonnect , t hen please kindly Share it on social media and let us know what you think Via the comment section. READ ALSO:- How to raise Capital for a Start up Business .

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How To Start Restaurant Business In Nigeria (Buka/Joint)

How profitable is Restaurant business? Food business is highly profitable, I used the word ‘highly’ because saying profitable alone might be an understatement. Food is regarded as the number one basic need of man amongst shelter and clothing. Whether you are fasting or busy you will still eat after all so nobody can escape not eating food.

Because of the rush in life many people cannot spare time to cook, some can’t even create time to go to the market to buy foodstuff not to talk of cooking. For some people it is because of the nature of their job while others it’s because they are damn too lazy.

Buying of already prepared food from buka cuts across all status; married and the unmarried. How about students, ah! let’s not go there we have plenty of them that form aje butter. There are many names given to food business, here are some of the names; restaurant, food vendors, mama put , buka and joint, eatery, canteen. The way it is operated determines the name.

Restaurant business in Nigeria, has been in existence right from time immemorial because of the increase in knowledge and sophistication it has been taken to another level.

Mr. Biggs started with snacks, ice cream and drinks but now they have included village kitchen where they serve local delicacies. Almost all the fast food joints are converting to restaurant. What is trending now is amala joint so you can carve a niche for your restaurant business.

Restaurant business is one business that you can start and grow within a short time. So many people that started as mama put have upgraded. It is very easy to start and grow but not easy to manage, it requires your time, energy, intelligence and the will power.

Things needed to Start Restaurant Business

• Utensils ( pots,kettles, frying pan etc)
• Cutlery (spoons, forks, knife etc)
• Toothpick/container
• Containers for spices; ground pepper, garlic, salt etc.
• Stove or gas cooker
• Fridge/Freezer
• Fan/Air conditioner
• Television or radio

7 steps to start Restaurant Business in Nigeria

• restaurant business plan

It is ideal to situate your restaurant in a visible and populated area. You can establish it in a market place, school environment, motor park, office area especially where many offices are located example banks. Others are commercial centres, institutions etc.

You have to rent or get a shop according to the type of restaurant business you are setting and the capital at your disposal. If it is executive restaurant you can get a big and spacious shop so that you can arrange the chairs in a manner that they won’t be too close to each other.

Have you visited a buka before and you have to squeeze yourself to pass a table to your own, it is what many people frown at. You need a store in your shop where you will be keeping washed equipment and foodstuffs.

There should be a space for washing of utensils and where prepared food are kept for dishing. A canter should be built if your customers will have to place order and pick the foods by themselves.

You have to get reasonable amount of money at hand before commencing your buka and joint business. Sew your cloth according to the size of your cloth, that’s actually an adage that make sense big time.

Start with what you have and grow it or get a loan. Before getting loans write out your restaurant business plan after taking feasibility study in restaurants around your area.. Another way of getting starting capital is to ask friends and family for help.

Even if you are establishing your eatery business for people to manage for you, still you have to get some knowledge on how buka business is done. It will help you know what to expect and what it entails. Go to a restaurant that is viable and get some training or you employ qualified caterer and smartly learn from them.

Employ Good Hands

One of the things that will keep people coming to your restaurant is when you serve delicious meals. Employ at least a caterer to take care of the cooking then employ other hands to help in both the cooking and serving. As I said before restaurant business is very stressful, you can’t do it alone except when you are starting or you have but few targeted audience.

Depending on the size and how busy your restaurant is employ not less than 2 persons for food service. You won’t like to keep people waiting for to long, before serving them food. If you are doing that then you are loosing customers because so many people can’t bear it.

Naturally, people are attracted to good things and nice environment. Set up your buka and joint business in an organise way. The environment should be neat and smell good. You will not want people to be fighting with flies while eating. If possible, sew uniforms for your staff; appron and hair cover.

Cleanliness is said to be next to godliness so take this very serious in your canteen business.

Restaurant business plan

What people succeed in business fast is having a blue print. It will be ideal to write a restaurant business plan so as to be guided in the business idea.

The Cost of Setting Up Restaurant Business

The cost of setting up a restaurant business depends.on what you have at hand and the size you are looking at. For a small restaurant #500,000 can start the business outside shop and non variable items. But whereby you have to buy everything including freezer then you need about #2,000,000 for a start.

How Profitable is Restaurant Business

It is very lucrative. You can make not less than #50,000 to #100,000 daily on food business. For rice alone you can make more or the same amount you bought it. If you sell variety of foods then you are made. By the time you add other things like the sell of drinks etc. You will count your blessings.

To increase profit, buy food on wholesale.

Foods To Cook

• Rice and stew
• Jollof rice
• Coconut rice
• Plantain pottage or fried
• Eba and soap
• Pounded yam and soup
• Semo and soup or stew

Make different delicacies such as amala, ekpang nkukwo, edikang ikong soup, white soup, ohia soup, gbegiri, miea nkuker, twoo etc. Sell othervthings like assorted drinks, snacks , water, boiled eggs, fried meat, chicken and so on.

Food doesn’t really need much advert, a good food will advertise itself. People that have tasted and enjoyed your food will direct others to your shop.

You can advertise on social media such as Facebook, Instagram etc if you want to capture a wider audience.

Add f ood delivery business to your buka and joint because people that can’t go out especially bankers now order for home delivery.

Start your restaurant business today don’t wait until you have plenty money. You can start from your home then upgrade as you expand.

The things that will make your business outstanding and draw more customers to you are:

• Good customer care
• Availability
• Serve hot food

People should not come and be waiting for food to be ready. Wake up on time and cook the foods. You and your staff should be friendly to customers, people love such places. The price should be moderate so that you can capture plenty customers. The more the customers the more money you make.

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15 COMMENTS

Thank u so much for your lecture I really want to know what time can one get up to cook and meet up before customers will start coming to the shop

SOME PEOPLE WAKE UP AS EARLY AS 3AM, YOU SHOULD WAKE AT LEAST NOT LATER THAN 5AM

Thanks very much for this information. I am framing of owning an hotel in the future, but I will be starting with a restaurant first. I find this information handy.

Nice idea, I work in a kitchen in a hotel,and am telling you the profit is huge, my boss pays the hotel 4 million monthly and still makes her own good profit, I have the knowledge of how it’s been run and am planning on starting up my own restaurant soon

Thanks @Stephane for this assertion. Please do, kind regards

Thank you for your lectures I really learn alot , but how much do I really need to start up a small mama put restaurant

outside shop 200k and above

THANKS SO MUCH FOR D LECTURES I REALLY LRARNT ALOT, AM ABOUT TO START A CANTEEN HAVE GOTTING A SHOP JUST TO SET IT UP NOW I WISH MY SELF BEST OF LUCK

I am happy for you dear and wish you the best. Congratulations Don’t forget to tell us your success story so others can be encouraged

Wow this is great like seriously I have always been dreaming to own a very good restaurant but am just scared and don’t know how to go about it as it is my first step to take but with this mother LLY or moderated pice of advice am their already so thank you so much ma God Bless you 🙏

Thanks so much is very helpful

You are welcome Loveth

yes ma , i am framing of having a commercial restaurance and even get license and permit from the government. so my question is that like how much will be enough to start the large scale business?

It deepens on the scale, 1million is a good start

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[Pro Tips On] How to Start A Restaurant Business In Nigeria

They say some traditions never die, so are some businesses including Restaurant business in Nigeria.

Delicious meals is what every one desire early in the morning or during the day after long hours of work. But the time to prepare these meals?

The exchange of cooked food for some sort of payment or valuables in the ancient times birthed the business that has spanned out to earn consideration as something profitable to venture into.

The middle ages saw the first block laid into the foundation of the roadside inn to its roofing and furnishings. Gradually, people came in and ate whatever was cooked by the chef and paid.

Farmers travelling to far distances to sell their produce do get hungry on the road and are grateful to see an inn they can get cooked food from.

Although the chef dictates the menu but shey hunger dey get choice?

The roadside inns became rooted firmly on the streets alongside food stalls that sold ‘junk foods’.

In the 17 th century, civilization had gone up more than a notch and interestingly, you had to be in a specific guild to sell what is exclusive to that guild.

These monopolies in the market were backed by laws but laws, they say, are made to be broken.

Fortunately, a major event that would forever remain on the pages of history happened in 1765 when Chef A. Boulanger, in all defiance, sold soup containing cooked lamb.

Did you know that the oldest restaurant is Sobrino De Botin Restaurant and is located in Madrid, Spain?

Unfortunately for the guilds, he won the lawsuit and so the scissors clamped firmly on the monopoly thread leaving room for diversities with creativities imbibed in every twist.

Then the French revolution happened and it would seem monarchical ways were being swept under the rug as the guilds were completely dissolved rendering a substantial number unemployed.

Quite familiar with food and money, these unemployed opened their own restaurants with their innovative ideas but with no intention of starting a restaurant business in Nigeria.

Did you know that culinary arts is a course in some universities?

Two decades later, Antoine Beavillers founded the first ‘elegant’ restaurant, La Grande Taverne De Londres , in 1786.

It was a different game with waiters serving customers at the tables with better food and wine.

Did you know that the world largest restaurant is Bawabet Dimashq Restaurant – Damascus Gayte Restaurant and is located in Damascus, Syria

With all the historical information, the first question on the lips of someone about to start a restaurant business in Nigeria is…  

What Is Restaurant Business In Nigeria?

The standard definition of a restaurant business does not exclude food and money, although its description can vary depending on the variants either ‘take-out’, ‘eat-in’ or ‘food delivery’ services.

Talk about starting a business in Nigeria and you’ll see people suggesting a mama put, canteen, or restaurant business.

The restaurant business in Nigeria has been from the beginning of Nigeria and is getting to live longer than a dragon.

Basically, restaurant business in Nigeria entails the sale of well-prepared cooked food in an attractive plate at a well-ventilated appropriate furnished area void of dirt.

The restaurant business in Nigeria plays out with customers coming in to eat and paying for the food eaten.

Sounds simple, right? But truth be told, the restaurant business in Nigeria goes beyond that.

Here, the question go buzzing in the brain. What else is involved in starting a restaurant business in Nigeria? E pass selling food to the customer make e pay? Yes o, e pass am.

Let me tell you about…

Feasibility Study On Restaurant Business

We say something is feasible when it is practical or possible. The chambers dictionary defines the noun ‘feasibility study’ as an ‘investigation to determine whether a part project, system, etc. is desirable, practicable.’

This simply implies gaining adequate knowledge or carrying out enough findings to know if a business will succeed before starting or venturing in to it.

Feasibility study on restaurant business in Nigeria involves getting enough accurate information on all areas of the business to know if the restaurant business will make profit in Nigeria.

While a feasibility study might sound like a business plan, the former is not the same as the latter. Read more about the feasibility study on restaurant business for more details.

The Difference Between Starting A Restaurant And Starting A Buka Joint In Nigeria

Growing up when mama did not cook due to reasons I really cannot remember, buying #20 rice, #10 beans, and #20 meat from Sisi mi was so convenient, and her food was so delicious that we requested for it on some days.

Now, there was aunty Latifat’s shop that was a bit upgraded in its setting to Sisi mi joint but omo, food dey higher for there.

She no dey do customer dada for us o, so you know say no be #50 meal you go buy belle full.

Then we rated aunty Lati’s place for rich people (restaurant) and Sisi mi’s joint for our level (buka joint).

One would think there was a difference between the two places that attended to different people with different behavioural patterns.

You begin to wonder why didn’t Sisi mi upgrade to aunty Lati’s level, and now I’m wondering why aunty Lati herself did not upgrade to mama cass or even Sheraton level.

The truth is there is a difference between starting a buka joint and starting a restaurant business in Nigeria. How? Where?

A buka joint serves popular local meals especially swallows, and has its signature of the vicinity area around it.

It is mostly characterized by wooden structure. You find some where the customers get their food at the table.

I’m sure you remember the story of Oliver Twist and others where the customers get served with seldom shout of order for their food but trust me, not all are actually like this.

Some advanced buka joint have a woman by the pot of soup or at the entrance of the joint with a plastic bucket or cloth purse to handle money transactions with customers.

Some buka joints have electric fans because of the large inflow of customers and some disorderliness. Those electric fans are almost unnoticeable.

Buka joint serve meals that are appealing to the taste buds and this is evident in the number of customers received daily.

There is this originality about buka joint that paints the vivid picture of the area. If you’re the buka type, I’m sure you won’t have a food time table (*wink)

Now, let’s talk about restaurants..

A Restaurant is posh and has a more serene atmosphere than the buka joint.

You sit in a restaurant and say you are receiving fresh air because the breeze is blowing in a more orderly manner with no head or broad shoulder or sweat smell or fart doses blocking it.

The food here is also appealing and has more finesse but the authenticity of restaurant is not as high as buka, maybe because person too dey see the setting for white films…lol.

The difference? The cost of starting a restaurant business in Nigeria is higher than starting a buka joint; we talking more expensive seats as compared to the wooden benches, etc.

The menu of a restaurant is different than that of buka joint, where mouth is used to list the menu.

For someone with little capital, it is better to start a buka joint but with moderate to high capital, nothing is stopping one from starting a restaurant business in Nigeria if one knows the next vital detail, which is…

What Is The Cost of Restaurant Business In Nigeria

The first law of any investment is investigation.

Knowing the cost of a business including restaurant business in Nigeria is a vital step in setting up that business.

Some say the cost of restaurant business in Nigeria range from #100, 000 to #700, 000, others say it could be more as restaurant business in Nigeria is no joke.

The actual cost of restaurant business in Nigeria varies depending on what concept your restaurant is about.

Irrespective of how big or little you want to go, the actual cost of that restaurant business in Nigeria is still not known until a feasibility study is carried out.

When calculating the cost of a restaurant business in Nigeria, here are some points to note:

• Furnishings.
• Necessary equipment needed.
• Food materials supply
• Employees and more.

IMPORTANT: Read more about cost and setup in this restaurant feasibility study

Steps On How to Start Mama Put Business In Nigeria

The restaurant business in Nigeria is one of the hot business ideas that guarantees cool cash.

Still, you shouldn’t be surprised that when a restaurant is not properly set up, it could fold up within a year, incurring more losses and debts than initial stage.

Before starting a profitable restaurant business in Nigeria, there are some steps that have been followed by successful predecessors and sticking to them will yield exact success.

You do not just wake up one morning and cook then go to the roadside, place a placard saying buka and think that is how to set up a buka.

The following are steps on setting up a buka in Nigeria:

1. Knowledge

Getting adequate knowledge of a business before venturing in to it cannot be overemphasized.

It is pure foolishness to walk into something blind. Going on an adventure still requires gaining knowledge on some things like survival lessons, etc.

First thing to do when you want to start a buka in Nigeria is to obtain enough information on food business.

“Knowledge does not necessarily mean power, the application of knowledge is”

While most can cook to a different extent, not all can make a business where they work – the kitchen. However, finding information on how to cook from successful food lovers is part of the knowledge one should seek.

It would not be such a bad idea to intern or learn for some time to see how things are run, let us call it ‘field training’.

2. Brand Name

Creating a brand identity is important for any business. You need to get a suitable name for your buka/restaurant.

3. Feasibility study/Business plan

‘In the journey of a successful business, speed is not as important as direction.’

A good business plan is the solid foundation upon which a successful buka or restaurant can be built on, else it comes crashing down.

Especially, if you plan on getting a loan from a micro finance institution or the bank, you must conduct a feasibility study or a business plan to know the exact amount needed to set up the business.

4. Location

This is an important subject to be discussed when starting a restaurant business in Nigeria, even a buka. Whatever location to be chosen, ensure it is close to your target market.

Industrial areas have more target customers than residential areas that can patronize you.

It must be tidy, if not so spacious, properly ventilated, and appearance matters no matter how local it is looking.

It is advisable to always have a plan B, an alternate location should be considered in case plan A does not pull through.

Now you know the cost to set up a food business if you’ve gone through the feasibility study above, but how do we gather capital (the money used to start a business)?

All fingers are not equal and while some can raise the capital from their savings account, others go for loans or seek financial help from a good Samaritan.

If you’re just starting out, when it comes to loans, you should check out these 5 lessons to succeed in your first year of business.

6. Equipment

For someone starting a buka business, the following are non-negotiable:

• Charcoal, wood, kerosene or gas stove.
• Kitchen utensils such as pots, spoons, plates, etc.
• Furniture, either wooden or plastic.
• Employees (optional).
• Food ingredients.

Now that buka is good to go with good customer service, advertisement and promotion are the next vital things to do.

Restaurant Business In Nigeria (Summary)

Food business, in general, is a sector that has many profitable branches. It is no longer news that one of the basic needs of man include food and this is unarguably true.

 Starting a restaurant business in Nigeria is wise, although one needs to do it right else, the business that has been said to have stood the test of time will play the opposite tune in your ears.

The food business has seen many generations and will see more. It is one of the businesses that are not affected by climatic or economic situations.

Oh! One more thing, if you share something similar with the koala as in you sleep like someone practicing death…come closer, I have something special for you:

Do not venture into the restaurant business in Nigeria o except you are willing to have a restaurant manager.

Did you find this post informative and engaging? I’d really appreciate it if you give it a like and share. Also, I await your wonderful comments!

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Healthy Restaurant Business Plan in Nigeria

Our Healthy Restaurant Business Plan in Nigeria is well documented and can also be used for, but not limited to:

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Purpose of the Healthy Restaurant Business Plan in Nigeria

The Healthy Restaurant Business Plan in Nigeria will be of great use:

• To formulate a strategy for starting and growing the business or existing business by identifying where the business is going and how to get there.
• To test the viability of the business idea and maximize its opportunities.
• To Obtain funding and achieve business goals and success. e.t.c

Benefits of the Healthy Restaurant Business Plan in Nigeria

The Healthy Restaurant Business Plan in Nigeria in beneficial because

• It helps in outlining the steps needed to achieve the business goals and ideas.
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The Healthy Restaurant Business Plan in Nigeria is important because

• It will assist you in making sound decision in the administration of the commercial enterprise which will make a contribution to the success of the business.
• It will additionally gives distinctive statistics on all components of the business, outlining the business desires and the steps required to achieve them.

Content of the Healthy Restaurant Business Plan in Nigeria

• Executive Summary
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