The Nation Newspaper

Tag: Tantalizers

  • Tantalizers opens new outlet in Ondo community

    Tantalizers, one of Nigeria’s leading brands in the Quick Service Restaurant (QSR) sector, has said it will open more outlets across the country in response to the demands of its customers.

    The company said it had identified new restaurant locations, including its new outlet at Ikare Akoko in Ondo State to bring the brand’s outlets to over 60 across the country.

    At the opening of the outlet located within Forte Oil filling station complex on Ikare-Arigidi-Akoko road, Deputy Managing Director of Tantalizers Plc, Mr. Gbolahan Labinjo, urged Nigerians to be a part of the brand’s growing franchise programme.

    He said the new outlet was opened in response to the desires of consumerism in Ikare Akoko and environs to enable residents get qualitative QSR outlet to serve and excite consumers in Akungba, Oba and Arigidi.

    Labinjo added that the new outlet will offer Tantalizers products, including popular local dishes.

    Tantalizers, a wholly indigenous QSR company, is the only quoted company in its category on the Nigerian Stock Exchange (NSE), with over 60 outlets.

    The QSR is a one-stop restaurant brand offering a variety of products and services, such as ‘local favourites,’ serving meals of the locality where it is sited.

  • Tantalizers optimistic strategic initiatives will improve earnings

    Tantalizers optimistic strategic initiatives will improve earnings

    Tantalizers Plc. has expressed business optimism regarding the efficiency of its on-going strategic initiatives aimed at reversing the recent declining profitability in the business.

    The initiatives which began in the last two years are designed to totally restructure the business, stem the declining performance and boost shareholders’ funds.

    Investigation shows that as a result of the positive results from some of the initiatives, the company’s total systems revenue (corporate and franchise) has grown in the last two years by a minimum of six per cent per annum and is projected to grow further by an additional 10 per cent to N4b in 2017.

    According to sources close to the company, to address the capital structure imbalance which had threatened its business fortunes, the company two years ago engaged notable consulting groups to assist in bringing in equity investors and, though the process has been largely stalled with the economic recession in the country, there has been a renewed interest from both local and foreign potential investors which is expected to crystallise before the end of 2017.

    “The company is constantly looking at its cost structure particularly with the high cost of doing business in Nigeria. To this end, we have reduced outlet space where necessary in our renovated stores to make us more attractive, compact and efficient. We will continue to explore more avenues for cost reduction, while addressing other areas that we are sure will improve our competitiveness”, a recent media statement from the company stated.

    “In the meantime, to manage the existing debt portfolio, the company has been in discussion with the local banks and IFC for debt restructuring. The discussions have been positive as the debts are already being re-structured. The overall effect of this will be seen in the results of the second half of the year”.

    While predicting a strong outlook for the second half of the year 2017, the company in a recent presentation on the floor of the Nigerian Stock Exchange said its franchise model which was adopted three years ago is already yielding positive results.

  • Tantalizers hopeful of bright business performance

    Tantalizers hopeful of bright business performance

    Tantalizers Plc., Nigeria’s top fast food company is hopeful of the efficiency of its on-going strategic initiatives aimed at reversing the recent declining profitability in the business.

    The initiatives which commenced in the last two years are designed to totally restructure the business, stem the declining performance and boost shareholders’ funds.

    The company is the only quoted QSR Company on the Nigeria Stock Exchange.

    Due to positive results from some of the initiatives, the company’s total systems revenue (corporate and franchise) has reportedly grown in the last two years by a minimum of 6% per annum and is projected to grow further by an additional 10% to N4b in 2017.

    To address the capital structure imbalance which had threatened its business fortunes, the company two years ago it was learnt engaged notable consulting groups to assist in bringing in equity investors.

    Though the process has been largely stalled with the economic recession in the country, there has been a renewed interest from both local and foreign potential investors which is expected to crystallize before the end of 2017.

    “The company is constantly looking at its cost structure particularly with the high cost of doing business in Nigeria. To this end, we have reduced outlet space where necessary in our renovated stores to make us more attractive, compact and efficient. We will continue to explore more avenues for cost reduction, while addressing other areas that we are sure will improve our competitiveness.”

    “In the meantime, to manage the existing debt portfolio, the company has been in discussion with the local banks and IFC for debt restructuring. The discussions have been positive as the debts are already being re-structured. The overall effect of this will be seen in the results of the second half of the year,” a recent media statement from the company stated.

    While predicting a strong outlook for the second half of the year 2017, the company in a recent presentation on the floor of the Nigerian Stock Exchange said its franchise model which was adopted three years ago is already yielding positive results.

    “In the second half of 2017, we will open 5 additional stores in virgin territories thereby increasing our total foot print to 65 outlets. The planned opening of these outlets is an attestation to the strong equity of the Tantalizers brand and the consumers’ yearning for its location in their community. This will have significant impact on our market share and further consolidate our position as a market leader in the industry”.

    The company further noted that “based on these ongoing initiatives and the support from all our stakeholders, we expect to commence the return to profitability position by the end of 2017 while we project dividend payment to commence as profitability improves within the next 24 months”.

    “As we continue to grow total systems revenue, we will aggressively pursue over the next five years business expansion through new outlets, franchising and diversification. With this planned growth, we will return the company to a healthy profitable position and improve shareholders’ fund to over N3billion in the next three years,” it further stated.

     

  • Tantalizers opens more outlets

    Tantalizers opens more outlets

    A leading quick service restaurant, Tantalizers Plc, has opened new outlets in Abuja and Osun State.

    The Abuja outlet is located at Mobil Filling Station in Jikwoyi, on the outskirts of the Federal Capital Territory (FCT).

    At the official opening, the company’s Deputy Managing Director, Gbolahan Labinjo, described the feat as a dream come true for customers in Jikwoyi area.

    He said the restaurant would not compromise its quality in serving the dietary need of residents.

    The Osun outlet was opened in Ile-Ife, becoming the second outlet in the ancient town.

    At the opening, Labinjo said the outlet was opened in response to request by customers.

    Labinjo said the outlets would offer the eatery’s products, including pastries, continental meals, traditional dishes and fresh bread.

    He stressed that the company was expanding its service to other parts of the country to enable the public take advantage of its franchise programme and become partners in making its business profitable.

    This, he said, is being achieved through retro-franchising of existing outlets and opening new ones in business-friendly places and shopping malls.

  • Tantalizers seeks new funds as net loss rises to N784m

    Tantalizers Plc is seeking to raise new equity funds to address acute liquidity and capital inadequacy as the quick service restaurant struggles to wriggle out of a losing circle that saw net loss rising by 39 per cent to N784.3 million in 2014.

    Chairman, Tantalizers Plc, Dr. Jaiye Oyedotun, told shareholders in Lagos that the company needs to urgently address its working capital inadequacy, which has been hampering its growth. Tantalizers’ revenue reserves contained a deficit of N1.89 billion as a result of accumulated losses over the years. The company’s shareholders’ funds dropped from N2.67 billion in 2013 to N1.79 billion in 2014. Current liabilities stood at N2.25 billion in 2014 as against current assets of N493.94 million.

    International Finance Corporation (IFC) holds the fourth largest equity stake of 8.15 per cent in Tantalizers Plc.

    Oyedotun said the company plans to raise the new equity funds through private placement. Tantalizers’ share price has been stagnant at nominal value of 50 kobo per share.

    “Pending when equity investors can be brought into the company, or other financing options achieved, we will continue to augment working capital requirement through proceeds from retro-franchising, and disposal of unused assets,” Oyedotun said.

    He blamed the poor performance of the company on socio-economic challenges and working capital inadequacy noting that efforts by the board and management of the company to execute an asset sale and lease back option to augment working capital did not yield result.

    He pointed out that the benefit of a commendable effort by the directors to curtail administrative costs was lost in the mix of several other challenges.

    According to him, the capital shortage also frustrated plans by the company to open new stores and invest in a modern central kitchen.

    “It is, however, critical that the company invests in a modern central kitchen to adequately position us to satisfy our franchises’ needs, and transform gradually the supply chain side of the business,” Oyedotun said.

    He noted that the franchising efforts of the company have started yielding positive results, which will significantly improve incomes from royalties and materials sales through supply chain.

    He said the company plans to open six new franchise stores this year as part of aggressive push for new franchise outlets, especially in new territories.

    He added that the expected net proceeds from the equity private placement would be used partly to finance the central kitchen project and adequate work-in-progress materials that would ensure consistent product quality for the customers.

    He expressed optimism that with the advent of a new government, major changes needed to address macroeconomic and infrastructural challenges would be effected, some of which are critical to the business of the quick service restaurant.

    Audited report and accounts of Tantalizers Plc for the year ended December 31, 2014 showed that turnover dropped from N3.48 billion in 2013 to N2.92 billion in 2014. Gross profit slipped from N1.56 billion to N1.27 billion. Loss before tax rose from N598.45 million in 2013 to N771.65 million in 2014 while net loss after tax rose from N564.82 million to N784.3 million. Loss per share stood at 24 kobo in 2014 as against 18 kobo in 2013.

    Tantalizers had in 2013 received $2.5 million, about N400 million, from a protracted $7 million loan facility from the IFC. The disbursement of the loan, which was approved in 2010, started in April 2013. The drawdown was reportedly delayed by the difficulties encountered by Tantalizers in the perfection of collateral for the loan.

    Audited report and accounts of Tantalizers for the year ended December 31, 2013 showed that the company’s turnover dropped from N41.20 billion in 2012 to N3.48 billion in 2013. Gross profit declined from N1.9 billion to N1.56 billion while operating loss worsened from N243.4 million to N395.54 million. Loss before tax doubled from N263.18 million to N598.45 million while loss after tax rose from N303.47 million to N564.82 million.

  • Tantalizers hosts Nigerian Idol finalists

    Tantalizers hosts Nigerian Idol finalists

    All was lively on Sunday at the Ajose Adeogun, Victoria Island outlet of Tantalizers Plc in Lagos when the quick-service restaurant hosted the 12 finalists of the fifth edition of the Nigerian Idol.

    Tantalizers, the official food partner in the on-going music reality show, threw the surprise event for the contestants to ease off stress after going through rigorous sessions in the previous rounds of the contest.

    The contestants were received by the top management staff of the eatery. Customers were thrilled by the contestants’ short performances, making the premises to come alive in excitement.

    Tantalizers’ Deputy Managing Director, Mr. Gbolahan Labinjo, said the company decided to partner with the show because of its belief in assisting the youth to achieve their dreams. He said the partnership, which started two years ago, has the objective to ensure the Nigerian Idol contestants and the organisers are nourished and revitalized in the course of the event.

    Labinjo said; “We partner with the Nigerian Idol organisers because we felt the need to keep the contestants, crew and other people involved in the project continuously revitalised and nourished during the exercise. Our continuous involvement in the project will take care of the challenge.”

    The contestants were treated to exciting fun period during the two-hour event, which afforded them an opportunity to meet their admirers for photograph and autograph. After their lunch, the contestants took turn to entertain members of the audience with songs and dance steps.

    The contestants were also presented with Tantalizers’ branded gift certificates, which they can use to buy food or gift items at any of the eatery’s outlets.

  • Tantalizers loses N528m in nine months

    Tantalizers Plc has lost about N528 million by the third quarter of this year as the fast-food company continued to grapple with declining sales and high gearing ratio.

    Operational report of Tantalizers for the third quarter ended September 30, 2014 showed a generally negative performance trend. Turnover dropped to N2.25 billion in 2014 as against N3.48 billion recorded in corresponding period of 2013. Gross profit dwindled from N1.56 billion to N977.04 million. Operating loss however stood at N384.9 million in third quarter 2014 as against N395.5 million in third quarter 2013. Loss before tax stood at N527.9 million in 2014 as against N598.5 million in corresponding period of 2013.

    Audited report and accounts of Tantalizers for the year ended December 31, 2013 had shown that the company’s turnover dropped from N41.20 billion in 2012 to N3.48 billion in 2013. Gross profit declined from N1.9 billion to N1.56 billion while operating loss worsened from N243.4 million to N395.54 million. Loss before tax doubled from N263.18 million to N598.45 million while loss after tax rose from N303.47 million to N564.82 million.

    After the 86 per cent increase in net loss to N564.8 million in 2013, Tantalizers Plc had indicated that it was seeking institutional investors that could inject new equity funds into its operations.

    The company also planned to undertake a sale-and-lease back arrangement on some of its unencumbered assets with a view to raising about N1 billion new working capital.

    Chairman, Tantalizers Plc, Dr. Jaiye Oyedotun, who outlined the strategic focus of the company in 2014, said the board and management were working on repositioning the ailing fast food companies.

    According to him, the board and management has critically appraised the situation of the company and have come up with a turnaround strategy which is now being executed and is expected to gradually return the business back to profitability.

    Oyedotun said the directors of the company were working on repositioning the brand towards the establishment of a new Tantalizer that has its outlets as the preferred destination of choice.

    According to him, as part of efforts to improve profitability, the company will continue to analyse, identify and shut down stores and institutions that continuously make losses at contribution level.

    “Our quarter one 2014 unaudited result showed a better performance as the loss trend has reduced from N124 million to N109 million when compared with the same period of 2013. We expect the performance improvement to continue as we execute the strategic turnaround program, this will get the company back to profitability in 2015,” Oyedotun said.

     

     

  • ‘Tantalizers not ‘my-husband-and-l’ business’

    ‘Tantalizers not ‘my-husband-and-l’ business’

    The management of leading fast food Tantalizers has said despite its challenges the company’s leadership position is not in doubt.

    The company, in a reaction to a special report published by this newspaper, said the decline in its revenue was not as bad as painted in the report.

    Its statement reads:  “We wish point your attention to the write-up done by Adedeji Ademigbuji both in the printed and on-line editions of your newspaper, The Nation of Monday 21st July, 2014 titled “Fast Food Industry… not so fast anymore”.

    “While appreciating the write and your organisation for the interest in our Industry, we are constrained to express our concerns regarding the wrong financial information and some contradictions concerning Tantalizers Plc in the write-up. For instance: “Tantalizers Plc revenue figure for 2012 was N4.198B. The decline in revenue experienced by our Company was from N4.198B in 2012 to N3.48B in 2013. At no time in our short history have we had a revenue of N41.2B as stated in the publication. You will agree that the difference between N41.2B and N3.48B is too wide and can mislead the public and other stakeholders of Tantalizers. Professionally, Mr Ademigbuji should have gotten his figures right before going to press.

    “Under the structure of ownership, corporate governance and business model as expressed in paragraphs 17 to 19, the writer alluded wrongly that tantalizers is owned by the Ayeni.  Tantalizers was founded by the Ayenis but Tantalizers has morphed from a “my husband and l business” as described in the publication to being the only local fast food business on the Nigeria  Stock Exchange with no fewer than 8000 shareholders.

    “Categorising Tantalizers in the same group as some fast food companies where the husband in the Chairman and the wife the Managing Director shows the apparent lack of understanding of the requirements for listing on the Nigerian Stock Exchange.  This speaks directly to the issue of corporate governance.  Tantalizers, as a public quoted company, has a regulated Board of Directors, comprising Dr. Jaiye Oyedotun as the Chairman and Mrs. Bose Ayeni as the Managing Director/CEO and other seven Executive and Non-Executive Directors in a ratio of 2 to 5.

    “While Mr. Ademigbuji did not at any time before writing the article under reference speak to anybody in Tantalizers, he quoted copiously from Tantalizers Plc 2013 Annual Report.  The strange thing is that the same Annual Report contains details of ownership and the names of the members of the Board of Directors.  Mr. Ademigbuji ignored these and chose to accept assertions from the other people he decided to directly contact, as gospel truth.  We believe that he deliberately ignored facts and selected information that supported his already taken and biased positions on the cause of the problems afflicting the indigenous fast food industry.

    “Mr. Ademigbuji further demonstrated his lack of diligence when he quoted verbatim the President, Chartered Institute of Stockbrokers, Mr. Mike Itegboje that “… I am not even sure if they have held AGM (Annual General Meeting) since raising funds from the market”.  With the prominence and attention given to our Company  in this publication and the clear reference to our performance as, according to him, revealed to the Shareholders at our AGM, it is then unfortunate that the impression left in the mind of your readers is that we hadn’t had an AGM since going public.  Was this publication intended to disparage of damage our brand?

    “We expected that he should have corrected this position presented by Mr. Itegboje or refer to Tantalizers Plc for clarification rather than his approach, which was to public deliberate falsehood or a campaign of calumny. For the avoidance of doubt, Tantalizers, has been consistently holding its AGM since 2009 when it went public.  At the last AGM, held on June 25, 2014, our shareholders expressed an understanding of our difficult position and gave valuable suggestions on how to turn around the fortunes of the Company.  Some of these suggestions we are already implementing.”

  • Tantalizers mulls core investors, sale of assets to stay afloat

    After 86 per cent increase in net loss to N564.8 million in 2013, Tantalizers Plc is seeking institutional investors that could inject new equity funds into its operations.

    The company also plans to undertake a sale-and-lease back arrangement on some of its unencumbered assets this quarter with a view to raising about N1 billion new working capital.

    Chairman, Tantalizers Plc, Dr. Jaiye Oyedotun, who outlined the strategic focus of the company in 2014, said the board and management were working on repositioning the ailing fast food companies.

    According to him, the board and management has critically appraised the situation of the company and have come up with a turnaround strategy which is now being executed and is expected to gradually return the business back to profitability.

    Audited report and accounts of Tantalizers for the year ended December 31, 2013 showed that the company’s turnover dropped from N41.20 billion in 2012 to N3.48 billion in 2013. Gross profit declined from N1.9 billion to N1.56 billion while operating loss worsened from N243.4 million to N395.54 million. Loss before tax doubled from N263.18 million to N598.45 million while loss after tax rose from N303.47 million to N564.82 million.

    Oyedotun said the directors of the company were working on repositioning the brand towards the establishment of a new Tantalizer that has its outlets as the preferred destination of choice.

    According to him, as part of efforts to improve profitability, the company will continue to analyse, identify and shut down stores and institutions that continuously make losses at contribution level.

    “Our quarter one 2014 unaudited result showed a better performance as the loss trend has reduced from N124 million to N109 million when compared with the same period of 2013. We expect the performance improvement to continue as we execute the strategic turnaround program, this will get the company back to profitability in 2015,” Oyedotun said.

    He added that the a small-sized bakery has been commissioned, which improved the supply of fresh bread to various outlets, noting that the capacity of the bakery will be increased in line with the development of their open channels and working capacity.

    “The benefits of these  investments are already being experienced this year in the area of inventory control, reduction in staff numbers and general administrative expenses,” Oyedotun said.

  • Tantalizers boosts outlets nationwide

    Tantalizers boosts outlets nationwide

    Tantalizers plc has increased its stores across the nation in its bid to be closer to its teeming customers and serve them better.

    This came as the frontline quick-service restaurant chain opened two new restaurants in Lagos. The outlets are in Ikosi Road, Oregun and ACCORN filling station, Ikorodu.

    According to Mr. Olumide Ale, the Executive Director, Marketing and Franchise, of Tantalizers plc, ACORN Ikorodu opened as the first co-branded outlet with filling station. “As part of our expansion drive, we strive to involve corporate entrepreneurs in our success story,” he told our correspondent.

    “The Oregun outlet is a franchise outlet opened to serve the Oregun community. Our goal is to be very close to our valuable customers. Our findings have shown that there are customers who will not eat in any restaurant that is not Tantalizers. We see such deep loyalty as an honour that must not be toyed with or betrayed. We therefore want to make it easier for such people to always have our restaurant as close as possible. And we will continue coming close to our customers, because they are the reason for our existence,” Ale explained.