Tantalizers PLC, a major fast food chain has just released its Q1 2016 result. The figures are not looking good.
The company’s gross revenue fell by 287% to 494 million compared to 1.9 billion, its revenue for the same quarter last year. The company’s loss after tax dropped by 593% to 102 million compared to loss after loss tax of 707 million the company made in the same quarter last year.
Tantalizers is still being run the same way it was about 15 years ago when the operating environment was in a different condition.
While the company is reducing is year-on-year loss, the signs of the company rebounding fast into declaring an interesting profit is bleak. The Tantalizers’ net asset is currently NGN 1.6 billion compared to its liabilities which is about NGN 3.4 billion.
Why is Tantalizers in this bad shape?
The answer is not far-fatched. The company’s business model is no longer in tune with the realities on ground. Tantalizers is still being run the same way it was about 15 years ago when the operating environment was in a different condition.
The current trend of fast food and middle-class out of home dinning has been disrupted by the boom in shopping malls development. While major competition are claiming prime spots across major shopping malls, Tantalizers still maintain its ‘town to town or neighbourhood’ model.
Many customers are now driving past the good old Tantalizers to eat at KFC, Tasty Fried Chicken and Kobis before they watch movies or while watching a movie, meeting with an old friend or lover or over a business meeting.
The next three quarters are decisive for the company, can the management stair it out of debt and loss?