From Cravings to Success: An Entrepreneur’s Food Delivery Adventure in Nigeria
Henry Nneji
Exclusive Interview with Henry Nneji
Co-Founder and CEO, FoodCourt
Location: Nigeria
Get ready to embark on a culinary journey like no other! FoodCourt is flipping the script on food delivery in Nigeria, introducing a revolutionary approach that’s set to tantalize taste buds and redefine convenience. With a suite of innovative, delivery-only restaurant brands like Jollof & Co. (serving up the heart of Nigerian cuisine), Wrap City (your go-to for mouthwatering shawarmas and wraps), and Good Greens (for those craving healthy options), everything is crafted in a single, ultra-efficient kitchen.
In this exclusive chat, we delve into the entrepreneurial odyssey of Henry Nneji, the dynamic co-founder and CEO of FoodCourt. Join us as we uncover the secrets behind his success!
In this engaging interview, we cover:
- The lessons learned from his previous venture, Fashion Map, and its unexpected closure
- How his mother’s experience with a Chicken Republic franchise inspired his groundbreaking vision for FoodCourt
- The unique benefits of FoodCourt’s centralized kitchen model
- The trials that led to a drastic location change and the financial hurdles faced
- Strategies for raising funds and attracting eager investors
- The impacts of Nigeria’s soaring inflation on business operations
Check out the full interview below! (Exclusively available here)
Interview Highlights
Nigeria’s food delivery market is on the brink of explosive growth, with projections estimating it will soar to $2.4 billion in the next eight years, according to IMARC. Yet, navigating this bustling landscape hasn’t been easy. Notably, heavyweights like Bolt Food and Jumia Food have exited the scene, highlighting the challenges many face.
Since launching in 2021, FoodCourt has dared to innovate. Rather than conform to the norms of traditional food delivery or restaurant models, it has embraced a “virtual restaurant company” concept. With all meals prepared in a centralized kitchen, customers can seamlessly order from multiple brands through the app, revolutionizing the way they experience dining.
“The traditional food delivery model is in decline—not just in Nigeria, but globally,” Nneji asserts. “Despite the growth, profitability remains elusive for many. By blending the roles of restaurant and delivery platform, we’ve carved out a unique niche.”
Thanks to its innovative kitchen model, FoodCourt achieves remarkable operational efficiencies. “We optimize our inventory, labor, and resources, allowing us to deliver the output of multiple restaurants without multiplying costs,” Nneji explains. Picture the efficiency: one restaurant’s overheads, yet the output of 12 to 15!
With over 32,000 monthly orders under its belt, FoodCourt has achieved a feat that others aspire to: profitability.
Building the Foundation
In its formative months, FoodCourt focused heavily on understanding its customer base. “We discovered that people weren’t fixated on big brand names; they craved local, affordable food delivered fast,” Nneji shares.
Once research was complete, Nneji assembled a talented team, prioritizing tech development and culinary expertise. Starting small in a shared kitchen, they intentionally scaled up operations—from a mere handful of orders to hundreds—ensuring every aspect was meticulously tested.
“Quality over price was our mantra from the beginning,” Nneji insists. “We promised our customers not the cheapest meals, but the absolute best in taste and experience.”
Overcoming Early Challenges
FoodCourt’s journey wasn’t without its hurdles. The company secured its first investment from an American angel investor, which was pivotal in moving to a new kitchen. However, complications quickly arose when a neighbor’s complaints led to the Lagos State Government sealing the property.
“Imagine pouring your heart—and funds—into renovations only to be told to vacate,” Nneji recalls. “We felt like we were starting all over again.” Seeking further assistance, he reached out to his investor, securing additional funds just when they needed it most.
Then, a twist of fate came when his COO’s father purchased a property nearby, offering it as a new home for FoodCourt. “It was a lifeline that allowed us to focus on renovations without the looming burden of rent,” Nneji says.
Scaling Up
With a new kitchen operational, FoodCourt surged from 100 to over 700 daily orders. But growth came with its own challenges, and the team quickly realized they needed an even larger space. Their acceptance into Y Combinator marked a pivotal point, bringing in significant investment but also some delays due to bureaucratic processes.
“We had to adapt our timelines and finance our renovations gradually, relying on operational revenue,” Nneji reveals. “It was a nail-biting period, but we made it work.”
Once the funds arrived, FoodCourt not only launched successfully but also attracted new investors eager to join the journey.
Weathering Economic Storms
“Entrepreneurship is rarely a smooth ride,” Nneji observes, as he reflects on challenges posed by Nigeria’s economic climate, including a steep decline in currency value and soaring inflation rates.
Food inflation has driven the company to adapt its pricing and processes continually. Adding to these challenges was a slowdown in venture capital funding, forcing the team to hone their focus on sustainable profitability. “It pushed us to scrutinize our unit economics and ensure we weren’t just burning through cash.”
Looking Ahead
As FoodCourt eyes the future, a new location set to open in Abuja is on the horizon, with potential plans to expand into other West African markets as well. “We believe food has no borders,” Nneji affirms. “Our adaptable culinary model allows us to cater to diverse tastes and preferences across regions.”
Stay tuned for what’s next from this trailblazing company!
