NANDO’S SA: Fiery Nando’s Ambitious as Ever in Tough SA Market

Nando’s is one of the true South African business success stories. Now a global operation enjoyed by millions, the PERi-PERi flavour competes among the elite of the fast-food giants. But less transactional and more experiential, Nando’s has carved out a niche as a restaurant among a league of over-the-counter competitors.

Established in South Africa in 1987, the secret sauce in the Nando’s story comes from Mozambique. The African bird’s eye chilli grows under the hot sun becoming tear-inducingly spicy. Combined with lemon and garlic, the chilli sauce – recognised as PERi PERi – became the signature for Nando’s expansion. In Rosettenville, south of Johannesburg’s CBD, the first Nando’s opened serving chicken lathered in the fiery goodness, and as the blend of Mozambique, Portugal, and South Africa hit people’s lips, there was no looking back.

Today, Nando’s is in more than 20 countries around the world with more than 1100 restaurants. The spirit of South Africa follows the brand, with clever marketing and uncompromising community focus.

Showing the strength of the brand globally, Nando’s announced at the end of 2023 that it would open 14 new sites in the UK with profits increasing as diners returned to the market after the pandemic. Sales were up against a loss in the previous year, displaying the draw of the company’s warm environment. 

In May, the company announced a new JV with K Hospitality in India with the aim of strengthening its presence in one of the world’s most prominent economies.

The company is also keen on further penetration in the Middle East, specifically in Dubai where a recent expansion programme was undertaken. Upgrades and improvements to existing sites in Dubai Festival City Mall, Mirdif City Centre, BurJuman, Deira City Centre, and Shams Boutik in Abu Dhabi, have create a more comfortable experience for those looking for that PERi-PERi kick. An upgrade to the Marina Walk location in Dubai, and a new opening in Nshama – a new urban lifestyle region – will further enhance the brand reputation in the UAE. In Abu Dhabi, new openings are set for Al Wahda Mall and Khalifa City by the end of 2024. Qatar now has its 12^th restaurant, in the Tawar Mall, where an appreciation of shared culture was highlighted as a drive of success. In the USA, the company is cooking up plans for new sites in Atlanta, adding Georgia to the five other states home to Nando’s chicken and sauce.

At home in South Africa, Nando’s has been looking internally at processes, products, premises, and profits as it looks to perfect its positioning in a market where it is well-recognised as an industry leader.

LOCALLY SOURCED

From a property perspective, there are now more than 300 Nando’s in SA, and each tastefully displays the company’s brand. This is not a colour scheme or a logo, but an ethos behind which is the entire employee base. Working closely with local creatives, each restaurant displays artwork that highlights South African heritage. Locally sourced equipment and furnishings are complemented by open and comfortable settings. At Nando’s, you can gather as a family, team or group, or you can sit as a couple or even alone and always feel at home. This is what makes South African tourism so appealing, and what keeps Nando’s atop a list of strong competition.

Product-wise, the company has, like most, introduced a strong vegan and meat alternative menu. This is, in part, to remain up-to-date with market trends, but also to help drive a wider sustainability initiative that sees the company aiming for a significant reduction in its carbon footprint by 2030. Since 2014, the company has reduced its carbon footprint by 40% and Nando’s hopes to half that once again before the end of the decade.

These products are, alongside the company’s world-famous chicken offering, can be enjoyed within an impressive Nando’s restaurant, or at home through various delivery apps. Lufil Packaging, a Bidvest company and a partner of Nando’s for more than 35 years, supplies Nando’s with a range of recycled packaging including PrimePak Unbleached (PPU) which offers strength and durability for the modern environment where food can take knocks en route.

Chicken is the nation’s favourite fast food, and research from consumer insights and data science firm, Eighty20, found that 20 million individuals chose to eat at one of the country’s top 10 quick service restaurants (QSR) at least once a month. Nando’s is often associated with delivery or drive through quality, and the superior packaging combined with clever marketing could be a driver behind this success.

EFFECTIVE TECH

To encourage interaction between the Nando’s brand and its customers, the company has launched a new interactive game. The goal here was to encourage increased orders through the app as Nando’s launched its new Shisanyama flavoured Cabo Sosatie and Chips. This skewed chicken coated in smoky Shisanyama spices and Nando’s PERi-PERi is a popular springtime offering from Nando’s and the game is a fun way to advertise in a typically different way. South Ah Sosatie Catch is similar to Tetris with users aiming to catch ingredients on a skewer as they fall down the screen. Success here can help customers achieve discounts for their next order while they await their delivery. 

At Nando’s restaurants, the experience is slightly different. The company has invested in 5G connectivity to stabilise communications. Helping to support back-office IT infrastructure as well as customer experiences, the new 5G is delivered through modern E300 routers. Some restaurants are already rolling out a digital ordering system where customers can place their order through the app before arriving, helping the company to be efficient while creating a profile of users for a more targeted experience. 

The whole idea is about scaling up, or down, depending on demand in restaurants. When operating on different systems or competing technology, this became difficult for Nando’s SA. Now, the system is strong, cloud-based, flexible, and makes new options available when it comes to improving the customer experience.

Initiatives such as this, combined with historically developed flavours that are well-loved, are helping Nando’s to build further momentum in South Africa. As the brand booms around the world, achieving growth that others could only dream of, the South African operation – the home of it all – must be aggressive in its bid to retain and grow market share. Upgraded restaurants, improved delivery, better technology, cheekier marketing, and a genuine connection with customers has the brand cooking nicely. In May, it was announced that Nando’s was labelled as the fourth most valuable African brand by Brand Finance Africa. The world’s leading brand valuation consultancy lauded the company’s culinary innovation and celebration of African heritage.

“When you say howzit, heita or hello at a Nando’s, the one thing you’re guaranteed to find, besides our legendary chicken, is a warm South African welcome and a smile to make you feel at home,” the company says.

“We’ve set the eating experience on fire and we can’t wait for you to join our table because if there’s one thing we love as much as PERi-PERi, it’s lots of people to enjoy it with.”