Mr Bigg’s and Debonairs Pizza, two of Nigeria’s fast-food brands operated by UAC Restaurants Limited, recorded a combined pre-tax loss of ₦780 million ($508,962) in the first half of 2025, according to its latest earnings report.
The financial performance is 32.2% deeper than the ₦590 million ($332,667) loss reported in the same period of last year, according to the latest earnings report.
The loss also marks the seventh consecutive half-year decline, highlighting the brands’ ongoing struggle to recover amid intensifying competition and a prolonged cost-of-living crisis that continues to suppress consumer spending.
A breakdown of the report shows that revenue for the Quick-Service Restaurant (QSR) business fell by 12.2% year-on-year to ₦1.28 billion ($835.2 million), its lowest first-half figure since 2021.
Operating loss widened by 20% to ₦253 million ($165,086), weighed down by higher diesel prices, staff costs, and distribution expenses.
“While Q2 revenue rose 5% on improved menu offerings, it was not enough to offset rising costs,” said Fola Aiyesimoju, group managing director of UAC of Nigeria, the parent company. “Our performance reflects broader inflationary pressures.”
Legacy brand, modern challenges
Once a dominant force in Nigeria’s fast-food landscape, Mr Bigg’s helped shape consumer habits throughout the 1990s and early 2000s with its expansive national footprint. But in recent years, the brand has struggled to stay relevant amid shifting consumer preferences, digital disruption, and modern, design-led retail experiences.
When Mr Bigg’s opened its first restaurant in 1986 on Lagos Island, it was met with enthusiasm. Customers flocked to experience what was then a revolutionary dining option in a space long dominated by local food vendors, popularly known as mama-put. Despite offering a limited menu of pastries, sausage rolls, doughnuts, beef burgers, and apple pies, the outlet was consistently packed.
However, years of poor management, economic downturns, and rising costs forced the closure of several outlets nationwide. In 2022, Mr Bigg’s launched a rebranding initiative and expanded its menu in a bid to attract both loyal and new customers—mirroring efforts by competitors like Chicken Republic, Sweet Sensation, and Tasty Fried Chicken.
“Rebranding is a signal that you are open to innovation and new things,” said Uchenna Uzo, marketing professor and Academic Director at the Africa Retail Academy, Lagos Business School. “It helps brands reconnect with the market, attract fresh customers, and show responsiveness to consumer feedback.”
Last year, the parent company acknowledged the brand’s challenges and noted that its quick-service restaurant (QSR) division is working to improve profitability through cost optimisation, particularly in power generation at company-owned stores.
Still, Nigeria’s QSR sector has become increasingly competitive, now hosting over 290 outlets, many of which are digitally enabled, modern, and better attuned to the demands of Gen Z and millennial consumers.
Even Debonairs Pizza, a South African franchise brand under Famous Brands, which entered Nigeria in 2003 and operates across 13 African countries, is feeling the squeeze. Despite its international scale of over 600 outlets, Debonairs has also been impacted by high inflation, energy costs, and fast-evolving consumer expectations.
Group overview: UAC grows revenue despite QSR drag
Despite weakness in its QSR segment, the group posted a 32.6% year-on-year increase in revenue to ₦110.4 billion($72.0 million) in H1, driven by solid growth across its core operating segments and contributions from associate companies.
However, pre-tax profit declined to ₦11.1 billion ($7.24 million), down from ₦14.9 billion($9.91 million) in the same period of last year, reflecting pressures in its restaurant and feed segments. Still, the group maintained operating discipline, keeping expenses flat at 15.4% of revenue, a testament to improved cost control amid an inflationary environment.
Segmental breakdown
Edibles & Feed
Led by Grand Cereals and Livestock Feeds, this segment generated ₦49.2 billion($32.1 million) in revenue (+24.3%), contributing the largest share (44.6%) to group earnings. However, it swung to a ₦939 million ($612,712) loss from a ₦913 million ($607,451) profit last year, due to high finance costs.
Paints
UAC’s majority stake in CAP Plc saw continued momentum. H1 this year revenue rose by 28.7% to ₦20.1 billion ($13.1 million) while operating profit jumped 94.6% to ₦3.17 billion ($2.06 million), with segment profit rising to ₦3.77 billion (+41.2%, $2.45 million).
Packaged Foods & Beverages
Through UAC Foods, which owns Gala, Supreme Ice Cream, and Swan Water, the group saw segment revenue soar 43.5% to ₦39.9 billion ($26.0 million). Operating profit surged 141.8% to ₦6.70 billion ($4.31 million), while segment profit hit ₦6.94 billion (+68%, $4.52 million).
The figures were originally reported in naira and converted using the official average exchange rate of ₦1,554.6/$1 for the first half of 2025. For comparison, the official average rate for the same period in 2024 was ₦1,503.00/$1.
