Group Presentation Background, Internal Analysis,

External Analysis and SWOT Analysis

Background
Nandos is a South African company which was created in 1987 when
Fernando Duarte and Robert Brozin ate at a caf called Chickenland. They
were so impressed with the taste of the chicken that they proceeded to
buy it and rename it Nandos after Duartes first name. The brand has
grown considerably since and now operates in over 30 countries with over
1,000 outlets.
The company has a somewhat opaque structure with little information
regarding who owns what in the company. The founders are Duarte and
Brozin but the majority shareholders are actually Brozin and the Enthoven
family, who have backed Nandos since it was just three restaurants.
Meanwhile, Duarte oversees production of Nandos famous Peri-Peri
sauce at a factory in Johannesburg.
Nandos reached the UK in 1992 and the UK and Irish arm is owned by
Dick Enthoven through a group called Nandos Group Holdings. It
performed poorly until Enthoven put his son Robert in control who
changed the focus towards a mixed service model, comprised of counter
ordering and table service, and away from the takeaway model it had
been following before Roberts appointment. Branches also got to choose
individual design and decor to move away from the restaurant-chain
image. The UK stores differ from the international restaurants as they are
privately owned whereas the international restaurants are franchises. The
UK is the most popular destination with regards to revenue and stores and
there is also a headquarters in the UK.
Nandos Group Holdings also owns Gourmet Burger Kitchen which they
purchased for 30m in 2010. We will be concentrating on Nandos
Group Holdings core business Nandos for the purpose of this
presentation.
Nandos Group Holdings has exceptionally strong financials, generating a
turnover of 535m in 2014. The group had 370 outlets by the end of 2014,
an increase of 27 outlets since the end of 2013. This increase included five
new Gourmet Burger Kitchen restaurants taking its total branches to 60.
Nandos Group Holdings reported pre-tax profits of 30.4m in 2014.
The company employed almost 11,000 people by the end of 2014.

Value Chain

Analysis

Support Activities:
General Administration/Infrastructure:
Owned by Dick Enthoven
370 outlets 66 serve Halal
11,000 people employed
Focus on mixed service model and not on takeaway model
Branches also choose individual design and decor to move away from the
restaurant-chain image
Human Resource Management:
Best Large Company to work for 2010
The Nandos Culture: Nandos is not just about the chicken. Its never
been just about the chicken. Its about the people who make the chicken.
Strong emphasis on key values: pride, passion, courage, integrity and
family
People who work at Nandos known as Nandocas
Restaurant managers known as Patros, meaning Portuguese for head of
the family
Technology Development:
Loyalty scheme changes Used to use paper card loyalty system. Have
now upgraded to a Nandos loyalty card
Means Nandos can get customers email addresses and update them on
changes in stock or upcoming events
Procurement:
Suppliers include Cargill, Moy Park, Faccenda, Freemans of Newent and
2Sisters
No Free Range chicken used as Nandos also need to consider the price
our customers are willing to pay
Halal chicken supplied by Freemans of Newent who are authorised by the
Islamic institute of Jurisprudence
Chicken is British and barn reared to Red Tractor standard

Primary Activities:
Inbound Logistics:
Chicken is never frozen and is marinated for at least a day before being
cooked
Ovens are pre-programmed to ensure the chicken is cooked thoroughly
and is then then flame-grilled to order
Halal chickens follow the Red Tractor Farm Assurance Standards and are
pre-stunned which means they are unconscious when it is hand
slaughtered and then blessed by licensed Muslim slaughter men
Operations:
Focus on friendly atmosphere for workers as well as clients
Way which consumers and workers communicate and interact within
restaurants creates an informal and personal atmosphere
Outbound Logistics:
Customers either order at the counter and then receive meal at table or
order online and collect at restaurant
Customers given responsibility by having to go to counter to order, picking
up their own cutlery and sauces
Marketing and Sales:
Television advertising was too expensive in the UK so Nandos focused
more on building the brand through its store design
Family friendly image and teen appeal relaxed, safe and friendly
environment to hang out in
o Teens encouraged to stay with free refills on fizzy drinks
Intrinsically linked with a certain type of youthful, modern, inner-city and
multicultural Britain many celebrities pictured in Nandos
o Black loyalty card given to celebrities to eat at Nandos for free
they are then pictured in the restaurant indirectly advertising
Nandos
Huge marketing of their most basic selling point their famous Peri-Peri
sauce
o Can pick levels of spice
More followers on Facebook and Twitter accounts than any other food and
beverage brand
o Use a variety of posts to create humorous and interesting content
Service:
Staff are known for their speed and friendliness with high standards being
placed on customer service, cooking and serving
3

Resource Based View

Another perspective is saying that Nandos has achieved its competitive
advantage due to its endowment of strategic resources, both tangible and
intangible.
Firstly, lets consider the tangible resources Nandos possesses. Nandos
has strong financial resources with pre-tax profits of 30.4m and a
turnover of 535m in 2014, guaranteeing the company a solid cash
account. Its purchase of GBK for 30m in 2010 also means that Nandos
Group Holding can develop new product lines through this company
without having to develop them itself. Financial resources aside, Nandos
has a key technological resource in the secret recipe for its Peri-Peri sauce
as this represents a trade secret which can allow them to perform better
than their rivals. Their organizational resources can be credited to Robert
Enthoven as his idea to switch the restaurant to a mixed service model
creates a clear process within the restaurant and ensures it always looks
busy as people are constantly moving around.
Regarding its intangible resources, Nandos has a superb central resources
team, which includes a human resources team as well as a marketing
team. The human resources team contributes to the company by
providing a friendly and family-like atmosphere that employees enjoy
working in. There is a strong emphasis on Nandos key values - pride,
passion, courage, integrity and family and Nandos employees are
affectionately referred to as Nandocas or Patros. All of this creates a
caring culture as soon as you enter a Nandos restaurant which adds to
morale and ultimately to performance. Nandos marketing team is also an
asset to the company as they have managed to create an unmistakable
brand identity without any television advertising.

SWOT Analysis
Strengths

Finances Positive profit trend

o Profit only fell in last year due to more money being focused on
expansion
Expansion 370 outlets in the UK and more money being invested in
expansion
Brand Image Strong and friendly brand image
o No advertising spending needed because brand is so strong
Healthy Chicken is never frozen and grilled when ordered meaning a
healthy meal
Individuality of each restaurant avoids restaurant-chain reputation
Relaxed and informal atmosphere within restaurants
Good service
Link to UKs youth
Offers vegetarian and Halal options

Weaknesses

Does not provide takeaway delivery

No free range chicken
Overpriced?

Opportunities

Threats

References
https://en.wikipedia.org/wiki/Nando%27s#cite_note-DT_Brown-3
http://www.theguardian.com/lifeandstyle/2010/may/16/nandos-fast-foodchipmunk-tinchy
http://www.telegraph.co.uk/foodanddrink/restaurants/9902231/Nandosnation-the-chicken-that-conquered-Britain.html
http://www.nandosperiperi.com/sauces

https://mainmarketactivations.wordpress.com/2013/07/26/why-nandosranks-as-south-africas-most-successful-restaurant-export/
http://www.ft.com/cms/s/0/6cd5bdbe-9afc-11e4-b65100144feabdc0.html#axzz3qLFjTteo
http://www.theguardian.com/business/2014/jul/10/nandos-using-secretivetax-haven-trust-avoid-inheritance-tax-bills
https://www.google.co.uk/search?
client=safari&rls=en&q=how+is+nandos+chicken+made&ie=UTF8&oe=UTF-8&gfe_rd=cr&ei=SsM3VvGGJNXBVIemiBA
http://www.nandos.co.uk/faq
http://www.theguardian.com/world/2014/jul/23/-sp-revealed-dirty-secretuk-poultry-industry-chicken-campylobacter
http://www.ukessays.com/essays/marketing/suggested-market-strategyfor-nandos-restaurant-chain-marketing-essay.php
http://www.ukessays.com/essays/marketing/based-around-nandos-therestaurant-chain-marketing-essay.php
http://www.uniquesolutions.co.uk/nandos-success