Small food businesses across Nigeria are adopting new survival strategies as rising inflation and increasing food prices continue to put pressure on operations and reduce consumers’ purchasing power.
Speaking on the SME Segment of TRADE FM’s Breakfast Business Briefing, food entrepreneur Moses Joseph shared how persistent inflation has forced many small business owners to rethink their business models in order to remain profitable while retaining loyal customers.
According to Joseph, one of the most effective measures his business has adopted is purchasing ingredients in bulk. He explained that the frequent increase in market prices makes daily or weekly purchases unsustainable.
He noted that buying in large quantities helps the business cushion the impact of constant price fluctuations, allowing it to maintain operations without being affected by the daily rise in the cost of raw materials.
The entrepreneur revealed that the barbecue section of his business has been the hardest hit by inflation, with chicken and related ingredients recording the sharpest price increases. He explained that preparing barbecue involves several ingredients beyond the chicken itself, making it one of the most expensive menu items to produce.
Joseph also observed significant changes in customers’ spending habits as the country’s economic challenges continue. According to him, families that previously bought several portions of food now purchase fewer items or request smaller portions in order to stay within their budgets.
He stressed that effective budgeting and inventory management have become essential for survival in the current business environment. His business relies on an inventory manager who monitors stock levels, keeps records of daily sales and ensures timely restocking, helping the business minimise waste and maintain efficiency.
Transportation costs have also emerged as a major challenge. Joseph explained that the increase in fuel prices has made it more expensive to move supplies from wholesalers to his business location, adding another layer of operating costs.
Rather than implementing sudden price increases, he said the business adopts a customer-friendly approach by giving advance notice before reviewing prices. Customers are usually informed several weeks, and sometimes up to a month ahead, allowing them to prepare for the changes while helping the business preserve customer loyalty.
To remain competitive despite rising costs, Joseph disclosed that the business has diversified its product offerings by introducing smaller portion sizes. Customers who cannot afford a full chicken can opt for half portions, while plans are underway to introduce quarter-chicken meals. He explained that although the quantity will be reduced, the quality of the food will remain unchanged.
He added that sourcing ingredients has also become more strategic, with emphasis placed on maintaining product quality while purchasing supplies in bulk whenever possible to avoid the effects of frequent market price increases.
Offering advice to aspiring entrepreneurs, Joseph urged anyone interested in starting a food business to prioritise securing a suitable location with reliable electricity. He explained that many of the machines used in preparing shawarma, barbecue and other fast foods are electrically powered, making consistent electricity supply critical to reducing operating costs and avoiding excessive spending on fuel for generators.
He further advised new entrepreneurs to plan their businesses carefully before investing. According to him, having access to capital alone is not enough; prospective business owners should develop a solid business plan and seek financial support where necessary instead of rushing into business without adequate preparation.
On the role of technology and innovation, Joseph encouraged entrepreneurs to continuously generate new ideas that distinguish their businesses from competitors. He stressed that creativity and innovation are becoming increasingly important in a market where many businesses offer similar products.
Reflecting on the toughest periods of the economic downturn, Joseph disclosed that his business was once forced to reduce staff schedules when customer demand dropped. Instead of laying off workers permanently, he introduced a rotational work schedule, allowing employees to work on different days until business activities improved.
He also highlighted the importance of maintaining consistent product quality despite inflation. For products such as shawarma, he explained that standard measuring tools are used during preparation to ensure every customer receives the same quality and portion regardless of who prepares the meal.
Joseph identified customer satisfaction and repeat patronage as his greatest source of motivation. He noted that returning customers, commitment to quality and opportunities to cater for outdoor events continue to encourage him to keep the business running despite the harsh economic climate.
He concluded by encouraging entrepreneurs to remain resilient, embrace proper planning, maintain high product quality and continue adapting to changing market realities as they navigate Nigeria’s challenging business environment.
Surviving Inflation: Small Food Businesses Turn to Bulk Buying, Menu Adjustments to Stay Afloat
