Factors Affecting Growth of Restaurant Business in Nigeria - Research Paper Example

Restaurants may be divided into a high-end restaurant, hot spots, budget restaurants, local favorite food restaurants, etc, however, most of them come from renowned international food chains.Chicken Republic, Mr. Biggs, Nando’s, Munchies, Tantalisers, Sweet Sensation, and Kas Chicken are some of the names that have established themselves in the Nigerian restaurant market.Most of the Nigerian restaurants and fast food chains are international brands though Mr.Bigg’s is a renowned brand name in the Quick Service Restaurant segment.

The Food and Drink industry is subject to regular regulations. However, companies in the restaurant business can ensure success through good budgeting and planning methods. Domestic factors that affect the food and drink industry include economic and financial risk, political instability, and collective grocery retail sales growth, obstacles for entry into the market, entry-level potential problem, and per capita consumption.Other factors that affect restaurant business are the size of the region where the restaurant is located, a structure of the market, underlying trends and other key players.

The Nigerian Food and Drink industry is growing rapidly despite the complex setting for operation and continuous problems of corruption. The rapid growth of the industry is attributed to major foreign investment from multinational brands due to the enormous opportunities and untapped potential.The decision of Swiss food and drink company Nestle to expand its operation in Nigeria stands testimony to this. Even though Nigeria is labeled as a risky market to do business foreign investments are welcomed by the Nigerian government and the government offers support in setting up or expanding production facilities.