Industry leaders in Nigeria’s food, FMCG, and retail sectors have been urged to maintain stronger discipline, operational efficiency, and scale-driven strategies as key requirements for achieving sustainable growth in an increasingly challenging business environment.
The call was made during a panel session titled “Running a Profitable Food Business in Today’s Nigeria” at Glovo’s Future of Commerce Summit 2.0, held recently at the Landmark Events Centre, Victoria Island, Lagos.
Speaking during the session, Chief Executive Officer, Grubbers, Lanre Onanuga, said that rising input costs, inflationary pressures, and supply chain constraints are reshaping the food industry, making operational discipline and efficiency more critical than ever for survival and expansion.
Onanuga noted that food businesses must build profitability into their operations from the outset and avoid overdependence on external funding. “We do not want to look outside every time for external funding. We want to grow with our cash flow and then complement it with external funding when necessary. More importantly, we stay focused on our core business, making food and packaging it for delivery. Every order that leaves our kitchen must be profitable and cover operational costs. We are not in the business of price loss; we are building sustainable business models,” he said.
Also speaking, Managing Director of Quality Foods Africa, Fredrik Van Rooyen, said profitability in the food sector is largely driven by scale, efficiency, and the ability to optimise operational costs across business units. He explained that while franchise systems often come with structured processes and limitations, profitability improves significantly when operators leverage volume and shared cost structures effectively.
“Margins will always vary across business models, but one constant is that volume drives profitability. In franchising, you operate within structured systems that include royalties, sourcing rules, and brand standards, which can limit flexibility. However, when you scale and optimise shared costs such as rent, logistics, and supply chain across multiple outlets or brands, you begin to see real efficiency gains. At the end of the day, volume and operational discipline are what sustain profitability,” he said.
In his remarks, Managing Director, Burger King Nigeria, Rushdi Ibrahim, highlighted the strict operational requirements of franchise businesses, noting that long-term agreements and global standards significantly influence sourcing and pricing decisions. He added that consistency, compliance, and scale remain essential for maintaining profitability in franchise-led operations.
In his submission, Chief Executive Officer of Omni Retail, Deepankar Rustagi, called for stronger collaboration among small and medium-sized enterprises to improve purchasing power and reduce logistics costs by sharing infrastructure and distribution systems. He noted that collective action among SMBs could help improve competitiveness and drive efficiency across fragmented supply chains.
