Tantalizers, one of Nigerias foremost restaurant franchises, paid food delivery platforms ?65,000 42 in commissions in 2024a stark contrast to the over ?6 million 5,459 it incurred in 2023. It is the lowest amount the company has spent on service fees since joining platforms like Glovo in 2020.
Despite this dramatic drop in e-commerce spend, Tantalizers, which operates about 40 franchises and corporate outlets across Nigeria, reported ?2.1 billion in revenue by September 2024, 80 of its total revenue in 2023, a year marked by its largest e-commerce spend.
Tantalizers began using delivery apps like Glovo and now-defunct Jumia Food to drive sales in 2019. By 2020, the company took a more direct approach, launching its food ordering platform and fulfilling orders with an in-house fleet of bikes, as COVID-19 restrictions caused a surge in demand for online food delivery.
As a result, service fees were significant, climbing from ?1.7 million in 2021 to ?6 million in 2023 before declining to ?65,000 in 2024.
The reduction in service feescommissions paid to food delivery platforms for their servicesreflects poor sales on the platforms. Once a trendy restaurant chain, Tantalizers, one of the countrys oldest players, has struggled to keep up with competition. Changing lifestyles reflected in online food ordering and home delivery has brought a number of faceless competitors into the food industry, the company said in a 2019 financial statement.
