Marketing strategies and profitability analysis of restaurants in Sokoto metropolis, Nigeria

  • A Gona
  • I Mohammed
  • L Tanko
Keywords: Marketing, profitability analysis, restaurants, investment


The study examined the marketing strategies and profitability of restaurants in Sokoto metropolis. Both primary and secondary data were used for the investigation. Proportional sampling method was used to collect data from 52 restaurants in the study area in 2004. The Primary data were collected using well structured questionnaire. The Analytical tools employed were Descriptive statistics and cost benefit analysis. The study revealed that the cost of starting the business was very high, with the majority (71.2%) starting with more than N100.000.00. The marketing strategies employed by the marketers in order to adapt to market conditions include; preparation of very delicious meals (88.5%), treating customers well (84.6%), setting signboards (78.9%), distributing food to customers location (42.3%), selling food at cheaper rates (17.3%), selling food on credit (11.5%) and advertisement (3.8%). A profit of N766.10 was realized daily by a typical marketer in the survey area. Cost- Benefit ratio indicated that for every N1.00 of invested capital, N1.60 was realized as daily sales revenue indicating that there was 6% turnover. This shows that the market is profitable. It is recommended that the marketers should improve on their marketing strategies, form co-operative societies and the government should provide them with credit facilities in order to enable them procure generators to circumvent the attendant incessant problem of power failure.

Key words: Marketing, profitability analysis, restaurants,investment


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eISSN: 1597-0906