How to write a business plan for a nigerian restaurant?

nigerian restaurant business plan

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.

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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.

example of projected profit and loss statement in a nigerian restaurant business plan

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.

example of forecasted balance sheet in a nigerian restaurant business plan

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.

example of cash flow forecast in a nigerian restaurant business plan

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).

nigerian restaurant business plan: sources & uses example

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.

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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 .

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Screenshot from The Business Plan Shop's Financial Forecasting Software

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!

Guillaume Le Brouster

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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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 .

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What Is A Restaurant?

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

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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.

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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.

Stan Edom

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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 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.

If this post was useful to you, Please follow us on  Facebook and Twitter. Use the comment box for your questions and get a prompt response and don’t forget to subscribe to our newsletter below, just enter your name and email address.

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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Business Plan Hub

Restaurant Business Plan In Nigeria

April 21, 2020 by admin 12 Comments

Restaurant Business Plan In Nigeria- Note; This Business Plan is regularly updated and can also be used for Bank Loans ETC. Our Restaurant Business Plan In Nigeria will enable you build your business well.

Have you always loved cooking or you want to be in the food business? then  i guess you are in right place because here is a detailed sample restaurant  business plan in Nigeria / teach you how to start and successfully run a restaurant business.

Base on research we have made we found out that the restaurant business is  one of the surest businesses in Nigeria, which is as a result of the fast  growth occurring in the food industry generally. Note that no matter how  attractive it may seen, a great amount of care and caution needs to be applied in starting a restaurant business, because as the saying goes “good  thing don’t come easy”. For you to be able to setup a very good and  attracting restaurant you need a restaurant business plan.

Executive Summary

Business Description

Products and services Market Analysis Competitor Analysis Sales and Marketing Plan

Operational Plan Management plan

Financial Plan and Projections

Place an order to get YOUR FAST FOOD RESTAURANT BUSINESS PLAN. To place an order pay N10,000 to

Account Name- Oliver Uwadia

Account No- 3094192129

After payment text your name, your e-mail address and bank teller number or your transfer reference number to 08107015636 and A Copy of our Restaurant Business In Nigeria Feasibility/Business Plan and Manual will be send to  your email immediately after your payment has been confirmed.

After reading this article you can be sure of starting a restaurant business that of will give you a good run for you money.

Step by step guide to starting your restaurant business

Starting a restaurant- Sample business plan

1. Have the right mindset

The main thing about the restaurant business is that it is more of a service  business than product based business satisfying customers is your utmost  priority and ultimate task.

When you have a restaurant you will have a very challenging and demanding role because you are dealing with humans and dealing with humans is the  most challenging and demanding and this is a crucial part of the business, so you have to be very prepared to take up this duty, In order to be able to succeed in this business you will have to put up with all sure of things  that would come your way because that comes with the job.

In order to be successful you have to get much information/ knowledge as possible about the food industry. Having the knowledge of the business you are going into is very important because knowledge is power. Note having just knowledge is not just enough but the right usage can be of great help. Hence, to be successful in the business, you need to know everything about  what you are going into, so as not to be dealt with by surprises.

2 Make out a business plan for your restaurant business

For you to be able to succeed in restaurant business, you need a practical plan that you can consult from time to time. Because without a good plan your Restaurant business will not be successful.

For you to have investors who would be willing to invest handsomely in your restaurant you will have to present a plan, a logical, practical and realistic plan. However, you cannot create an excellent professional proposal without knowing the components of a restaurant business plan first.

Get our other business pla in Nigeria

  • Supermarket in Nigeria PDF
  • Cooking Gas  In Nigeria PDF
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  • Standard Cassava Processing  with 3 Years Financial Analysis

After payment text your name, your e-mail address and bank teller number or your transfer reference number to 08107015636 and A Copy of our Restaurant Business In Nigeria Feasibility/Business Plan and Manual will be send to your email immediately after your payment has been confirmed.

3.YOUR BACKGROUND

In order for your Business Plan to be convincing enough to it’x readers or investors, your professional experience has to be included, which is necessary because it goes a long way in determine whether you can be trusted in the business or not

Before you go into this kind of business you have to possess some kind of skills that is related to restaurant. Many would asked what kind of experience do you have in the food industry if you get an excellent background then you are a gold mine.

Your restaurant business plan also has to do with overall goal of the restaurant, a description of your target and pincing. the last part is your advertising and marketing plan.

4. Start with the big three.

The big 3 includes, a great location, a great chef and a great concept.

For a restaurant to be able to be successful they must have the big three that was mentioned above . Accessibility is very important, because the more accessible your restaurant is, the more success you stand to achieve. Note you in term of concept, you have to select your food concept and your service style as they are what will make you different, make you unique and place your business in demand.

5. Select Primary Location

The main thing to include while making a restaurant business plan is the prospective location where you will build your business establishment. The location should be competition free and filled with people who usually visit other areas just to eat. The best way you can get the right information you can use to find the an excellent spot for your business are restaurant review websites and local newspapers.

6. Alternative Prospect Location

It is always advice to individual who want to start restaurant business to always have more than one location. This will help in case you have problem with one of the location you can still have option to chose from.

However, you must not forget to include a photo and a brief description on every location you take account of in your proposal in addition, you must also take note of the things you believe that will contribute to the success of the restaurant you will build.

7. Draft The Restaurant Menu

This is also an important aspect while writing your business plan, of course you have to remember to write down the menu of your restaurant. It is recommended that you should create a menu that you can surely serve once you launch your business.

The menu should include the special dishes your chefs and kitchen personnel can provide to your potential consumer. Together with the specialty dishes, you must include some national or local dishes in your menu to attract customers immediately.

Note: having the right menu for your restaurant can either make or man your restaurant. The menu of a restaurant should be in line with the overall concept of the restaurant. Once you are done create your restaurant menu, revisit your restaurant business plan to make sure the menu is attractive to your business plan

When starting your Restaurant you should have a list of restaurants suppliers, when developing your restaurant business plan, a list of ingredients or food suppliers must be add. An individual who wants to start a restaurant business should compile the name and location of suppliers together with the prices of their suppliers, and discounts that they can offer. While also including the potential supplier of your restaurant’s furniture sets and equipment on the list.

8. Do your financial estimates and projections

Always include project of possible profit of your venture in your restaurant business plan. While complying your estimate, you must state the operation cost, anticipated income and overhead costs that your restaurant will have quarterly in the next four to five years. It is always advisable that you use line charts to display your data, this way is done by many and it’s said to be the easiest way for your audience to have a clear view of your projection.

9.Raise the needed capital for the Restaurant Business.

While complying your business plan or when writing your business plan, you will know how much you will be needing to start up your restaurant business. If you are planning how to setup your restaurant business and you  don’t know how much would be needed, it is advice able to you visit other restaurant owners and seek advice from there.

While seeking help from other restaurant owners talking to them can help you. Because it would give an idea on how you can project your expected startup cost. Restaurant owners raise capitals in so many ways to start up  their restaurant business. It can either by taking loans from banks or taking advantage of government programs that concerns small business owners and many more.

10. Employ people.

One of the major problems or challenges restaurant face is lack of qualified or experienced workers. When looking for work personal or employee, make sure to state clearly the exact character, qualities or skills you are looking for in an employee. Be sure of what you want don’t just make do of anyone that just shows up.

This will help you get experienced workers. When advertising specify the state and job description and responsibilities of the kind of employees that you want. Also, try to find out what other restaurant are paying their employees.

10 CREATIVE IDEAS FOR MARKETING A RESTAURANT BUSINESS.

You may ask, what are the best creative marketing ideas for a restaurant business? How do I promote my restaurant or fast food business? How do I find customers and increase my brand awareness? For your answers, read on.

Note; Don’t just rely on traditional technique intends of marketing tactics even though many traditional technique still stick true today, technology and trend varies can help you intends of marketing tactics. Things are changing you should adapt to it also. New strategies, like environmental and internet marketing are coming up as key components of any successful restaurant marketing campaign.

We listed top ten ideas or tips for marketing your restaurant business all you have to do is follow it all and I guess your business who be one of the best.

However, I want you to know that while preparing a marketing plan for your restaurant is important to the successful execution and of implementation of your marketing strategies.

1. Develop a website to promote your restaurant.

2. Get good press publicity

3. Host events

4. Re – design your restaurant menu Implement frequency marketing

5. Commit to going green

6. Try up – selling your customers Market your take-out and delivery services

7. Promote your restaurant through email.

8. Get testimonials from your loyal customers.

9. Start a Google Adword Campaign Promote your business on social media Network with other restaurateurs and customers.

10. Dress your employees in smart uniforms.

Also Involve your customers in a competition. You should have this in back of your mind that because you are reading this post do not have effect in your business. You have to implement what you read here and make big difference and improve your service and your style.

10 CHALLENGES OF RUNNING A RESTAURANT BUSINESS.

Are you interested in starting and running a restaurant business? Or you  want to buy a restaurant franchise? Do you want to know the challenges of running a restaurant business? So as not to be hit with surprises. Then read on.

Been a owner of a restaurant business has it’s own ups and downs there are quite a number of challenges and obstacle that you have to overcome before your restaurant business can be among the best in the country. Those are already own a restaurant business knows how hard it is to keep their business up and running smoothly. Owning a restaurant business requires a lot of commitment and self dedication.

As you are new into the foodie market, you have to be able to handle the challenges and obstacle and know what to do to avoid them or counter them. Without going about below are ten challenges of running a successful restaurant business.

Restaurant Business Plan – Starting A Restaurant Business Sample Template

Hiring good employees for your restaurant business.

The kind of employee you hire for your restaurant business is very important. For you to be able to manage your restaurant business successful is for you to hire capable and dedicated staff. You should employ skilled and experienced personal, especially in the area of cooks and services, because the kind of services people get from your restaurant determine if  they would come back or not or how the food teats.

When employing especially a server, you have to go for individuals that are not highly temperamental, you have to employ an individual who always smile, because first impression really matters. The appearance of a server is very important because they send a massage to the customer. Now how do you know a person with good character? The answer is quite simple: put them to test.

Hurry now, GET YOUR FAST FOOD RESTAURANT BUSINESS PLAN. To place an order, pay N10,000 to

First Bank- Oliver uwadia

Account number- 3094182129

Retaining skilled staff.

The next challenge most business face is restraining skilled and experienced work personal. When you have skilled and experienced employee you have great asset, because skilled and experienced work personal are especially important to any business venture. When an employee works over time it grows in skill and job experience..

So when that particular employee leaves, the experience gained over the years is gone. Thereby, leaving a huge vacuum in your business. Some times is not their fault, because big industries are always in the habit of poaching experience staff from smaller companies.

For you to be able to keep you employee as a restaurant owner, you are expected to offer certain benefits to your staffs to keep them loyal to Time, such as health insurance and many more

Cost control

Cost control is one of the challenges that restaurant business owners face. When running a restaurant business, you need to maintain an eagle eye on your cost and finances because your expenses can be very high without you not even knowing how it got that high, because prices of food stuffs change constantly. For you to be a good business person you must learn to control costs. This implies you have to be wise in spending with money and time.

To be able to achieve effective cost control, you as the business owner should examine every business related expenses and look for how you can save. First thing you do is avoid waste in the kitchen, the second thing is avoid serving spoiled food or poor preparation of food and many more. All these things bring about unnecessary cost and reduced earnings. .

Lack of experienced employees in your restaurant.

Most employee in restaurant business are often young and inexperienced. When you hire a new worker, you as the employer has to put them though a two weeks training or one week, because the employee need to learn all  about the restaurant skills and they also need to adapt to a restaurant work environment in general. As the employer it is your duty to give sufficient time, energy and orientation to the employee to able them know what to do and how to do it for the growth of your restaurant business. our Restaurant Business Plan In Nigeria  will enable you build your build well.

Maintaining good customer service.

Good food alone can’t keep customers coming back to restaurant. It takes good food and excellent customer service to keep them coming back at all times. There is a saying ” The customer is always right” as a business  owner you will always believe that because you want them to keep coming back to your restaurant, how do you deal with your customers complaints and how you appreciate your customers matters a lot. If you want to have a regular in restaurant then you have to build a customer service that can handle bad or rude customers effectively.

Competition

The food industry has a lot of competitions, it is more of the survival for the fittest as there must be other restaurant that exist in the same location where your own restaurant is located. That why you should maintain strong, distinguishing morals and values that will separate your restaurant from every other restaurant within your area.

Maintaining a strong management team in your restaurant business.

For your restaurant business to grow you need a strong management team. Management is a very crucial ingredient in a restaurant’s success. When you always make changes in management that can lead to change in vision and leadership method and this can lead to disorientation of employees. Having a committed, experienced and passionate manager will go a long way to bring success to your restaurant. Get our Restaurant Business Plan In Nigeria

Risk management in Restaurant Business

Good things don’t come easily and the same applies with restaurant business. While running a restaurant business you will have to deal with all sorts of potential hazards, starting from miner employee, training issues to major liabilities. In restaurant business little problem can be of disastrous financial repercussion. You can managed risk by incorporating safety procedures, as well as by securing your establishment with insurance against injuries, damages and accidents.

Constant menu change in Restaurant Business.

While running a restaurant business, you have to always be on board with constant menu change. As a restaurant owner, you have to take a periodical review of which items are selling very well and which are not and always update your menu with new, after all variety is the spice of life. This can pose quite a challenge especially when your business is still young and you lacks adequate manpower.

Marketing in Restaurant Business

The last but not the least challenge is marketing your restaurant business. Marketing is always a challenge to every business and not just the restaurant business alone. The way your business is marketed and the style and strategy employed will greatly determine the number of customers you will get and how popular your restaurant will be. Internet marketing is the most easier way of marketing. You can get a good web designer to design your business online.

But you have to understand that the best form of marketing for a restaurant business is word – of – mouth marketing. It is the cheapest and most effective form of marketing but you need to be creative, innovative and customer service oriented to be able to generate and maintain it. Get our Restaurant Business Plan In Nigeria  to help you build you business.

TABLE OF CONTENT

Executive Summary Introduction Business Description Products and services Competitive Advantage Market Research Competitor Analysis Sales and Marketing Plan Operational Plan Business Risk Management and Structure Financial Plan and Projections

After payment text your name, your e-mail address and bank teller number or your transfer reference number to 08107015636 and A Copy of our Restaurant Business In Nigeria Feasibility/Business Plan and Manual will be send to your email immediately after your payment has been confirmed

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COMMENTS

  1. RESTAURANT BUSINESS PLAN IN NIGERIA

    After payment, Text your full name, email address and selected business plan (i.e. restaurant business plan in Nigeria) to 07033378184. The complete business plan/feasibility study will be sent to your email 15 minutes after payment. For Inquiries call – 07033378184

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

    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.

  3. How To Start A Restaurant Business In Nigeria - NaijaCEO

    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.

  4. How to write a business plan for a nigerian restaurant?

    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.

  5. TITLE : Buiness plan for The Stand Nigeria resturant ...

    Consumer expenditures for fast food in Nigeria rose during the end of the year 2019, followed by the inprovment of the national economy in the food sector. The increasing number of new establishments such as fast food franchises, fancy restaurants and gourmet bakeries around Nigeria has shown a significant growth in this sector.

  6. How To Start A Lucrative Restaurant Business In Nigeria and ...

    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.

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    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.

  8. How To Start A Restaurant Business In Nigeria - joblisto Blog

    Therefore, setting up a restaurant business in Nigeria is an excellent strategy for establishing a booming business. So, are you interested in starting a restaurant business? Then this article is for you. In this article, we bring you a comprehensive guide on how to start a restaurant business in Nigeria. Without further ado, let’s dive in ...

  9. Restaurant Business Plan In Nigeria - Business Plan Hub

    Your restaurant business plan also has to do with overall goal of the. restaurant, a description of your target and pincing. the last part is your advertising and marketing plan. 4. Start with the big three. The big 3 includes, a great location, a great chef and a great concept.