Food industry leaders urge lean operations, efficiency for sustainable growth
Industry leaders in Nigeria’s food, fast-moving consumer goods (FMCG), and retail sectors have called for stronger operational discipline, efficiency, and scale-driven strategies to achieve sustainable growth amid mounting economic challenges.
They spoke during a panel session titled “Running a profitable food business in today’s Nigeria“ at Glovo’s future of commerce summit 2.0, held at the Landmark Events Centre in Victoria Island, Lagos.
Speaking at the event, Lanre Onanuga, chief executive officer (CEO) of Grubbers, said rising input costs, inflationary pressures, and supply chain constraints were reshaping the food industry and making operational efficiency critical for survival and expansion.
According to him, food businesses must prioritise profitability from the outset and avoid excessive reliance 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,” Onanuga said.
He added that businesses must remain focused on their core operations and ensure that every product delivered contributes positively to the bottom line.
“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, Fredrik Van Rooyen, managing director of Quality Foods Africa, said profitability in the food sector is largely driven by scale, efficiency, and effective cost optimisation.
Van Rooyen noted that while franchise systems operate within structured frameworks that may limit flexibility, operators can improve profitability by leveraging volume and spreading costs across multiple outlets and brands.
“Margins will always vary across business models, but one constant is that volume drives profitability,” he said.
“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.”
Rushdi Ibrahim, managing director of Burger King Nigeria, highlighted the strict operational requirements associated with franchise businesses, saying long-term agreements and global standards often influence sourcing and pricing decisions.
He stressed that consistency, compliance, and scale remain crucial for sustaining profitability in franchise-led operations.
Deepankar Rustagi, chief executive officer of Omni Retail, called for greater collaboration among small and medium-sized enterprises (SMEs) to strengthen purchasing power and reduce logistics costs.
Rustagi said businesses could achieve significant efficiencies by sharing infrastructure and distribution networks, particularly within fragmented supply chains.
He added that collective action among SMEs would improve competitiveness and help businesses navigate the challenging operating environment.
The summit brought together key stakeholders across the commerce ecosystem to discuss strategies for growth, innovation, and profitability in Nigeria’s evolving business landscape.
