WAKAFOODS Business Analysis

Comprehensive Strategic Report & Turnaround Plan

Analysis Period: Since Platform PreLaunch | Generated: November 2025

⚠️ CRITICAL ALERT: PLATFORM OPERATING AT LOSS

-₦750,877 Net Loss

Immediate Action Required - Unsustainable Business Model

Executive Summary

Total Orders Processed

1,069

99.9% Success Rate

Total Transaction Volume

₦6.71M

Average ₦6,285 per order

Platform Net Result

-₦751K

Critical Loss Situation

15 Key Business Metrics

Financial Performance

1. Total Successful Orders

1,068

99.9% success rate

2. Total Transaction Amount

₦6,712,100

Total GMV

3. Vendor/Merchant Payouts

₦5,704,858

85% of revenue

4. Delivery Payments

₦657,857

Driver compensation

5. Commission Revenue

₦1,064,869

15.9% commission rate

6. Delivery Fees Collected

₦657,857

Service fees

7. Total Tax/VAT Collected

₦55,031

Tax revenue

11. Wakafoods Profit/Loss

-₦750,877

CRITICAL LOSS

Customer Metrics

8. Total Unique Customers

381

Active users

9. Orders per Customer

2.8 avg

51.2% are repeat customers

12. Top 100 Customers

₦4,558,952

67.9% of total revenue

Top Customer: Sir Eben

Total Spent

₦362,676

Orders

89

Avg Order

₦4,074

Store/Vendor Metrics

10. Active Stores

67

Average 15.9 orders per store

Top Store: Tasty Bites

Orders

345 (32.3%)

Revenue

₦2.1M

Order Status

13. Total Fulfilled Orders

1,068

Successfully completed

14. Cancelled/Refunded

1

0.1% cancellation rate

15. Overall Total Orders

1,069

All orders since launch

Key Findings

🔴 CRITICAL ISSUES

  • Massive Discount Problem

    ₦2,450,000 in discounts (36.5% of total value)

  • Insufficient Revenue

    Commission rate too low to cover costs

  • High Store Concentration

    Top 5 stores = 52% of orders (major risk)

  • Low Customer Retention

    48.8% customers only order once

🟢 STRENGTHS

  • Excellent Fulfillment

    99.9% success rate in order completion

  • Strong Top Customers

    Top 100 generate 68% of total revenue

  • Loyal Customer Base

    51% repeat customer rate

  • Payment Diversity

    Multiple payment methods working well

Revenue Breakdown Analysis

Total Revenue (GMV)

₦6.71M

Store Payouts

₦5.70M (85%)

Delivery Costs

₦658K (10%)

Platform Commission

₦1.06M (16%)

Net Result

-₦751K LOSS

Top Performers

Top 10 Customers

🥇

Sir Eben

89 orders, avg ₦4,074

₦362,676

🥈

Customer #2

₦298,450

🥉

Customer #3

₦245,680

4-10. Various Customers

₦198K - ₦76K range

Top 10 Stores

🥇

Tasty Bites

345 orders (32.3%)

₦2.1M

🥈

Chicken Republic Garki

198 orders

₦1.25M

🥉

Store #3

₦850K

4-10. Other Top Stores

Various order volumes

Strategic Recommendations

IMMEDIATE ACTIONS (0-30 Days) - EMERGENCY TURNAROUND

1. Discount Reform Emergency

  • Cap customer discounts at 15% maximum (currently 36.5%)
  • Phase out excessive promotional discounts
  • Implement tiered discount structure
  • Projected Savings: ₦1.2M monthly

2. Commission Rate Adjustment

  • Increase platform commission from 15.9% to 18-20%
  • Communicate value proposition to vendors
  • Renegotiate vendor contracts
  • Additional Revenue: ₦300K monthly

3. Delivery Fee Optimization

  • Implement dynamic delivery pricing based on distance
  • Minimum delivery fee increase
  • Peak hour surcharges
  • Target: ₦200K additional monthly

SHORT-TERM ACTIONS (1-3 Months)

1. Customer Retention Program

  • Launch loyalty rewards program targeting 186 single-order customers
  • Implement referral incentives
  • Personalized re-engagement campaigns
  • Expected: 30% conversion to repeat customers (+₦500K revenue)

2. Store Diversification Strategy

  • Reduce dependency on top 5 stores (currently 52% of orders)
  • Onboard 20 new quality vendors
  • Geographic expansion to new areas
  • Risk mitigation: Reduce concentration from 52% to 35%

3. Payment Gateway Optimization

  • Negotiate better payment gateway rates
  • Optimize payment processing fees
  • Target: 20% reduction in transaction costs (₦80K monthly)

MEDIUM-TERM ACTIONS (3-6 Months)

1. VIP Customer Segmentation

  • Launch VIP program for top 100 customers (₦4.6M revenue segment)
  • Personalized offers and exclusive benefits
  • Direct account management for top 20 customers
  • Target: 25% increase in VIP customer spending

2. Operational Efficiency Enhancement

  • Optimize delivery routes using AI/ML algorithms
  • Batch order processing for efficiency
  • Driver performance tracking and incentives
  • Target: 15% reduction in delivery costs (₦100K monthly)

Financial Projections

Current State (Monthly)

Total Revenue: ₦6.7M
Total Costs: ₦7.5M
Net Result: -₦750K LOSS

After Recommendations (6 months)

Total Revenue: ₦8.9M (+33%)
Total Costs: ₦6.2M (-17%)
Net Profit: +₦2.7M

Total Turnaround: ₦3.45M Improvement

Customer Segmentation Analysis

Segmentation by Spending

VIP (₦50K+) 18 customers (4.7%)

₦2.1M Revenue

Premium (₦20-50K) 42 customers (11%)

₦1.4M Revenue

Regular (₦10-20K) 76 customers (20%)

₦1.1M Revenue

Occasional (<₦10K) 245 customers (64.3%)

₦2.1M Revenue

Segmentation by Order Frequency

1 Order (At Risk) 186 customers

48.8% - Primary retention target

2-4 Orders 132 customers

34.6% - Growth opportunity

5-10 Orders 45 customers

11.8% - Regular customers

10+ Orders (VIP) 18 customers

4.7% - Highly loyal base

Download Detailed Analysis Files

Key Metrics CSV

All 15 metrics

Top 100 Customers

Customer rankings

Store Performance

Vendor analysis

Customer Analytics

Segmentation data

Executive Summary

Full text report

Wakafoods Business Analysis Dashboard

Prepared by ValidProfits Consulting | Nov 2025

This report contains confidential business information