QSR Operators Urged to Leverage Innovation for Growth

Omolabake Fasogbon

Operators in the Quick Service Restaurants (QSR) have been advised to take advantage of Nigeria’s bourgeoning middle class to drive business growth.

An expert in the QSR industry and Chief Executive Officer of FoodCo, Ade Sun-Basorun while engaging press men in Lagos recently, also advised brands to up their game by embracing innovation to be able to gain more ground in the industry.

He noted that already the sector boasts huge prospect which has soften ground for them to thrive.

Quoting report, Sun-Basorun said, “Analysts have projected a 5.1% Compound Annual Growth Rate (CAGR) for the global QSR industry between 2020 and 2027. Nigeria’s bourgeoning middle class, its young population pegged at about 60 per cent and the adoption of interval innovations have been identified as key factors that will drive sustainability and growth in the country’s QSR sector.

“As key cities continue to swell with a bourgeoning middle class and as both Gen Z and millennials – two unique demography groups with different palates, tastes and propensities to eating out and purchasing food – begin to emerge as key players in the socio-economic space, it opens up a new set of opportunities for QSR operators to provide offerings that are fit for purpose for those different demographics.

“This also opens up new ways for industry players to interact with technology, whether it is with rapid deliveries, recurring deliveries, fully cooked, partially cooked or raw items for meal kits.”

Sun-Basorun revealed further that the health food space is presently witnessing a growth trend that is fueled by proliferation of products ranging from salads to parfaits to wraps, amongst others.

He noted however that challenges such as supply chain exacerbated by the COVID-19 as well as food inflation has been hindering performance in the sector.

Notwithstanding, Sun-Basorun expressed optimism that operators’ resilience would strengthen industry’s capacity to grow and meet the demands of an increasingly sophisticated consumer class.

He said: “Similar to many other industries, the QSR space had its fair share of challenges during the onset of the COVID 19. Outlets were forced to shut down and, in some cases, operate at half capacity at the peak of the pandemic. Inflation has also led to a sharp rise in food prices, causing shrinking margins particularly for restaurants operating in the value space.

“The Agusto 2021 Quick Service Restaurant Industry Report estimates that the industry grew by a dismal 2% during the period. However, we remain optimistic because the fundamentals remain strong and the industry remains resilient. The various expansions going on is a clear sign that it is on the path to recovery.

“In 10 years time, the industry is going to look different from now and the winners will be players who understand the evolving needs of consumers and innovate to meet those needs while successfully navigating the current market. It promises to be an exciting ride”.