Nigerian fast food company, Tantalizers Plc.,has expressed optimism that its on-going strategic initiatives will reverse the profit plunge in the business.
Findings revealed 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 6% per annum and is projected to grow further by an additional 10% to N4b in 2017.
The initiatives which commenced in the last two years are designed to totally restructure the business and put an end to the plunging performance and boost shareholders’ funds.
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 in order to tackle the capital structure imbalance, sources privy to the initiatives revealed.
“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, which s the only quoted QSR Company on the Nigeria Stock Exchange, in a recent presentation on the floor of the bourse said its franchise model which was adopted three years ago is already yielding positive results.
