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Is Cyber Cafe Business Going Extinct In Nigeria? - Business - Nairaland

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Is Cyber Cafe Business Going Extinct In Nigeria? by Papilo87(m): 5:03pm On Sep 29, 2011
Some few years ago cyber cafes were springing up everywhere across the country. Despite the high cost of getting internet service from the ISPs cyber cafes still made some nice profits as many persons took to the new fad of daytime and even night browsing. The yahoo boys contributed to keeping cyber cafes busy as well.

Today, however, in almost every major neighbourhood you find cyber cafes shutting down. It therefore worries one a bit to see several persons making serious enquiries as to how to set up a cyber cafe business. While we may not want to sound discouraging the basic foundation to setting a vable business is looking at immediate future prospects of such business idea.

Giving the evolving and present economic condition in Nigeria setting up a cyber cafe is not a very wise decision. Unless the investor has the capacity to add several other revenue channels to boost bottomline.

Here are three dangers to watch out for if you must embark on setting up a cyber cafe business;

http://nairabrains.com/2011/09/three-3-dangers-of-starting-a-cyber-cafe-business-why-you-should-consider-other-business-options/
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by mrinfo(m): 5:33pm On Sep 29, 2011
I think it may no longer be a good business to go into.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by mekaboy(m): 11:16pm On Sep 29, 2011
i have one, i am about selling the shop plus cafe. lipsrsealed lipsrsealed lipsrsealed
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by harakiri(m): 11:34pm On Sep 29, 2011
Yes! What do you expect with the cheap price of computers,affordable internet subscription and mobile browsing on smartphones. There isn't money in it like before. Eight to Ten years ago, you had to shell out millions of naira to open a cafe and business was booming then. Today, you can set up a cafe with much less than N500k
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by neyyo: 1:15am On Sep 30, 2011
A friend is bent on setting up one, and I am a partner. Not willing to be discouraged because we are not selling only browsing. God help us!!!!
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by tEsLim(m): 8:24am On Sep 30, 2011
Well the business needs to take a nuew dimension I guess Nigerians dont know how to handle things like this. Business do evolve over time. I can still run a cafe and make money. But now its not just gonna be a boring internet shop as people have cheap internet on their blackberries

This is what I will do if I where you.

1. Setup a coffe shop / news shop with internet access. The internet access could be monthly or per use. I'll provide wireless connection for my customers as most customers now have faster laptops and mobile devices than the big in your face desktops seen in cafe's back in the days

2. Make the place more relaxing and more like a place you just wanna go and chill and a place you always wanna come back to. Harness all the soccer fans by providing free viewing for their sports but with a catch "the gotta buy something or surf while at it"

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Re: Is Cyber Cafe Business Going Extinct In Nigeria? by Kuic: 8:53am On Sep 30, 2011
I can't remember the last time I visited one,since I do all my surfing on my laptop & phone,d biz it is not as lucrative as before becos of low patronage.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by dagboss(m): 8:56am On Sep 30, 2011
Like some contributors have said cafes can still be set up, but the key word is that you have to make it very attractive and con fortable, but sha o with all these cheap modems, internet access both on normal phone (some Chincos inclusive) and smart phones you will need to have your wits with you and some fasting and prayers to make it viable. As for me and my children o bye bye to cafe.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by Babinski: 9:32am On Sep 30, 2011
Teslim's idea is good. One could redefine the business model in the face of the challenges from telcos and cheap mobile internet access.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by Nobody: 9:59am On Sep 30, 2011
It really depends on the area.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by Nobody: 10:01am On Sep 30, 2011
It really depends on the area.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by stagger: 10:18am On Sep 30, 2011
I beg to differ from most of the posters here and agree with the last poster who said it depends on the area.

Where I used to live, there were only 2 cafes servicing that area and they are always filled with people day in day out. I recently visited and a third cafe has opened; all three are still struggling to cope with the crowd as they NEVER lack customers. Now that the exam registration season will soon kick off with UTME registration starting in December, it will be more business for them; you need to see the crowd in these cafes.

It looks like most posters here are talking of the Lagos situation, but I tell you that there are many states in the North who are practically making a Macedonian call: come over to our states and setup cafes to help us.

Where I live now, there are 2 cafes and they are always filled with people. Go to some universities and see how privately run cafes are brimming with individuals. So I do not subscribe to the idea that the business is dying. You simply need to do your feasibility studies and get your market valuation right before starting one.

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Re: Is Cyber Cafe Business Going Extinct In Nigeria? by Papilo87(m): 10:30am On Sep 30, 2011
@stagger, I agree with the area thing. Down the southeast some towns are a goldmine for cyber cafes because the level of exposure technology wise is still low. You struggle when you open cyber cafe in an up-to-date and technologically aware city.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by mjconcept(m): 10:33am On Sep 30, 2011
stagger:

I beg to differ from most of the posters here and agree with the last poster who said it depends on the area.

Where I used to live, there were only 2 cafes servicing that area and they are always filled with people day in day out. I recently visited and a third cafe has opened; all three are still struggling to cope with the crowd as they NEVER lack customers. Now that the exam registration season will soon kick off with UTME registration starting in December, it will be more business for them; you need to see the crowd in these cafes.

It looks like most posters here are talking of the Lagos situation, but I tell you that there are many states in the North who are practically making a Macedonian call: come over to our states and setup cafes to help us.

Where I live now, there are 2 cafes and they are always filled with people. Go to some universities and see how privately run cafes are brimming with individuals. So I do not subscribe to the idea that the business is dying. You simply need to do your feasibility studies and get your market valuation right before starting one.

I agree it depends on areas and also peoples' knowledge about the internet. So I do not subscribe to the idea that the business is dying. You simply need to do your feasibility studies and get your market valuation right before starting one.[quote][/quote]

I agree it depends on areas and also peoples' knowledge about the internet.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by xtremeidea(m): 10:33am On Sep 30, 2011
Nice Topic @ Poster

I believe itz a revolution that was bound to take place.

With the coming of cheap laptops and low cost internet modems from mostly gsm operators, one does not need to wear a jean and t-shirt to pay for an hour anymore. we can do this right in our room, on the comfort of our bed.

But i believe if cafe business can be redefined to accommodate things we can not readily have at home,  then cafe owners are back to business again.

instead of just having cafes for regular surfing, cafe owners can transform them to "e-centers" which we now have in some developed countries where we have facilities for e-conferencing, well equipped e-libraries, and lots more are in place. the cost of achieving this might be much but hosting a good business meetings, and providing facilities for electronic examinations in the long run will pay-off.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by splendour1: 10:37am On Sep 30, 2011
Anyway cafe business is a good business ,depending how you handle it ,if you own a cafe ,you should not sell it cause sometimes business are down.as a cafe owner you should be able to manage your business: like working on your system when they are down ,not calling some else .having a connection with someone upper than you in the business so u can share idea's together .try  making the place quiet and cool cheesy.use fast network. as  for phones.people cannot do their business comfortable with phones ,like printing ,scan etc.and try to ave everytin that it requires, grin grin grin grin

1 Like

Re: Is Cyber Cafe Business Going Extinct In Nigeria? by KokoBeware: 10:45am On Sep 30, 2011
I beg to differ from most of the posters here and agree with the last poster who said it depends on the area.

Where I used to live, there were only 2 cafes servicing that area and they are always filled with people day in day out. I recently visited and a third cafe has opened; all three are still struggling to cope with the crowd as they NEVER lack customers. Now that the exam registration season will soon kick off with UTME registration starting in December, it will be more business for them; you need to see the crowd in these cafes.

It looks like most posters here are talking of the Lagos situation, but I tell you that there are many states in the North who are practically making a Macedonian call: come over to our states and setup cafes to help us.

Where I live now, there are 2 cafes and they are always filled with people. Go to some universities and see how privately run cafes are brimming with individuals. So I do not subscribe to the idea that the business is dying. You simply need to do your feasibility studies and get your market valuation right before starting one.


Your perfectly right!!! and even in the "lagos situation", not every1 that have "cheap internet" have printers and scanners so they'll still find their way to a cafe, also internet speed is very important, IF places like the UK still have Internet Cafe's it must still be lucrative, we just have to rebrand the old "medieval cafe's we use to have
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by owohblow: 10:58am On Sep 30, 2011
I started one for my wife a year ago and we are already thinking of closing it down.
More than a million has gone down the drain.
Location is in Ibadan.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by stagger: 11:02am On Sep 30, 2011
owohblow:

I started one for my wife a year ago and we are already thinking of closing it down.
More than a million has gone down the drain.
Location is in Ibadan.

You need to rethink your business model. Did you send your wife for appropriate training on how to run a cybercafe? It will make a difference if you do. Study why your cafe is failing and re-position it. Many businesses fail not because they are not lucrative, but because of poor management. I really do not want to believe that a cafe setup in the largest city in Africa will fail.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by Nobody: 11:06am On Sep 30, 2011
well i run a cafe business and still rocks. space for expansion is my very problem.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by Sike(m): 11:08am On Sep 30, 2011
sofeco:

It really depends on the area.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by praises99: 11:38am On Sep 30, 2011
I disagree with the poster, to God be the glory i manage a cafe my average daily sales is N20,000 anytime i make below that i know there's no sales. sometimes i make over 30,000 to 40,000 daily
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by castrokins(m): 11:43am On Sep 30, 2011
tEsLim:

Well the business needs to take a nuew dimension I guess Nigerians dont know how to handle things like this. Business do evolve over time. I can still run a cafe and make money. But now its not just gonna be a boring internet shop as people have cheap internet on their blackberries

This is what I will do if I where you.

1. Setup a coffe shop / news shop with internet access. The internet access could be monthly or per use. I'll provide wireless connection for my customers as most customers now have faster laptops and mobile devices than the big in your face desktops seen in cafe's back in the days

2. Make the place more relaxing and more like a place you just wanna go and chill and a place you always wanna come back to. Harness all the soccer fans by providing free viewing for their sports but with a catch "the gotta buy something or surf while at it"


Nice opinion by Teslim. Internet Cafe service in Nigeria has grown above just setting up systems in a shop and waiting for people to come buy tickets. I'd advise anybody going into the business to tow or adopt Teslim's proposition,
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by Nobody: 12:06pm On Sep 30, 2011
A cafe is no longer a good business, the football whatever makes no sense. I want to watch football and you want me to browse, how is that possible? You will be better off running a viewing centre, lets face fact most people these days want their privacy and freedom to visit whatever site they want to or do their business without someone looking over their shoulder.

As for places that are not exposed, you can hurry in and make a kill but for how long. It hurts a lot to start a business and see it fold up. I remember the days I bought 30mins of snail connection for #500 those days are gone. There are alot of business ideas out there waiting to be explored forget this cafe business and be dynamic. I still remember those that started sachet water biz, they sold in trailers. I hope you get the point.t the point.

1 Like

Re: Is Cyber Cafe Business Going Extinct In Nigeria? by sizzlers(m): 12:12pm On Sep 30, 2011
I'm liking this, i'm planning on opening one in my villa, i wil name it jungle cafe.
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by otokx(m): 12:40pm On Sep 30, 2011
Its not easy
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by COMPAQ(m): 12:53pm On Sep 30, 2011
praises99:

I disagree with the poster, to God be the glory i manage a cafe my average daily sales is N20,000 anytime i make below that i know there's no sales. sometimes i make over 30,000 to 40,000 daily

Is that revenue or profit??
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by mekaboy(m): 1:13pm On Sep 30, 2011
YES IT DEPENDS ON AREA, MIGHT HAVE TO LOOK FOR A PLACE WHERE PEOPLE CANT AFFORD TO OWN A PC OR A PHONE THAT CAN BROWSE, BUT THEN IF YOU ARE IN THAT AREA CONSIDER SECURITY .

EVEN THOUGH I SERVICE MY PCS AND DO ALL EVERY TECH STUFF MYSELF. BUT.

WHEN YOU COMPARE HOW MUCH U SPEND ON ELECTRICITY, AND SALARY, MEN, U MIGHT HAVE VERY LITTLE LEFT.

YOU MAKE MORE MONEY WHEN YOU HAVE IT IN THE GHETTO, BUT I DECIDED TO MAKE IT FLASHY SO I HAD TO GO TO A NICE EXPENSIVE AREA. MADE SOME MONEY INITIALLY BUT THESE DAYS MAN , shocked shocked shocked angry

I TIRE OOOO,
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by Nobody: 1:36pm On Sep 30, 2011
mekaboy:

YES IT DEPENDS ON AREA, MIGHT HAVE TO LOOK FOR A PLACE WHERE PEOPLE CANT AFFORD TO OWN A PC OR A PHONE THAT CAN BROWSE, BUT THEN IF YOU ARE IN THAT AREA CONSIDER SECURITY .

EVEN THOUGH I SERVICE MY PCS AND DO ALL EVERY TECH STUFF MYSELF. BUT.

WHEN YOU COMPARE HOW MUCH U SPEND ON ELECTRICITY, AND SALARY, MEN, U MIGHT HAVE VERY LITTLE LEFT.

YOU MAKE MORE MONEY WHEN YOU HAVE IT IN THE GHETTO, BUT I DECIDED TO MAKE IT FLASHY SO I HAD TO GO TO A NICE EXPENSIVE AREA. MADE SOME MONEY INITIALLY BUT THESE DAYS MAN , shocked shocked shocked angry

I TIRE OOOO,

God de shocked shocked shocked angry

I TIRE OOOO, [/b]
[quote][/quote] God de
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by KAYD007(m): 1:58pm On Sep 30, 2011
From what i have seen hear & there whether its viability depends on the area on not, the fact remains Setting
up a cyber cafe in Nigeria  is no longer profitable as it use to few years back! & those were in the days

when yahoo, yahoo & MSn chat was an attraction,  hmm but now sad

i remember my former boss had to sell up his, cyber cafe business about 7 years ago,  when the cost of running one
out weighs returns,

SET UP A CYBER CAFE,  U WILL INCUR HEAVY LOSES!!!
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by mekaboy(m): 2:37pm On Sep 30, 2011
THE AREA STILL MATTERS, YOU JUST HAVE TO MOVE IT TO WHERE PEOPLE CANT AFFORD ONE FOR THEMSELVES, ITS LIKE GOING TO SELL USED CLOTHS IN AN AREA WHERE RICH PEOPLE LIVE, THEY WILL FEEL EMBARRASSED TO BUY THEM, BUT TAKE IT TO THE GHETTO, THEY WILL RUSH IT. BUT I DON'T THINK I AM PLANNING TO ENTER THE GHETTO. grin grin
Re: Is Cyber Cafe Business Going Extinct In Nigeria? by mrinfo(m): 3:12pm On Sep 30, 2011
COMPAQ:

Is that revenue or profit??

Good question. Most people confuse revenue with profits. Making N30,000 daily from a business doesn't necessarily translate to financial success. What is the mark up? That's the question. Do you have power supply from PHCN all day. What's the cost of your internet connectivity? What of rent? System repair costs? Taxes and revenues charges from state and local governments? Cost of ink refilling for printers and photocopier etc

When you put all this into account you'll find out how much your cafe really makes.

Still I must say, 30,000 to 40,000 is pretty impressive for a cyber cafe (talking from experience)

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