In over a decade, Tantalizers Plc has never turned a profit as the business has always been in the red, which validates the deteriorating financial conditions of the Quick Service Restaurants (QSR) who face a challenging business environment.
For instance, MoneyCentral’s findings show that Tantalizers posted a loss after tax of N25.65 million in the first six months of 2025, from a loss of N265.58 million as at June 2024.
Of course, drilling down the numbers shows that in 2023 it recorded loss of N76.51 million; 2022, (264.09 million); 2021, (57.60 million); 2020, (N135.13 million); 2019, (126.32 million); 2018, (222.10 million); 2017, (308.79 million); 2016, (264.55 million); 2015, (707.07 million).
This persistent losses means Tantalizer is flirting with technical insolvency unless the owners decide to raise capital in the equity market to inject into the business, but there are concerns about receding sales that dipped by 52.09 percent as the company and peer rivals are one of the hardest hit from a tough and unpredictable macroeconomic environment.
Deteriorating level of consumer income exacerbated by the removal of subsidy on fuel and the unification of the exchange rate which ballooned inflation as well as significant infrastructural deficiencies have forced consumers to shift to small food shops and canteens.
Hitherto, QSR were making money in the 1970s, 80s, 90s, and early 2000s when there was rapid urbanization and rising disposable income.
The latest World Bank Nigeria Development Update delivers a chilling verdict, as 139 million Nigerians, over half of the nation’s population, are said to be living in poverty.
While the inflation rate has fallen to 22.12 percent in August from 21.88 percent in July of 2025, it is still in the double range as there is still elevated food prices.
It important to note that spiraling food inflation certainly has an impact on the margins of Tantalizers and peer rivals as they are reeling from increasing cost of ingredients.
For instance, Tantalizers’ gross profit margin fell to 33.06 percent in June 2025 from 35.48 the previous year.
Tantalizers cannot use its working capital to pay off its debt, indicating deteriorating short term liquidity. It has a working capital to debt ratio of 0.1492, according to MoneyCentral calculations.
Despite these challenges, Tantalizers has set a revenue target of N18 billion by the end of the 2025 financial year as the company seeks expansion into the fishery and entertainment industry.
“Tantalizers is a well-known brand in Nigeria, but we want to take things further. We still want to be in the food business, but we are expanding. We are looking at the fishery business, where we plan to bring in fish from Apapa, some of which will be exported. Nigeria currently spends nearly $1bn annually on fish imports, and this sector contributes significantly to the country’s Gross Domestic Product,” said Robert Speijer, Group Managing Director, Tantalizers Plc.
