Emerald Emerging Markets Case Studies

Peri-Peri Original: the expansion decision in Pakistan

Muhammad Kashif Saeed, Michela Mingione, Muhammad Fawad Fawad Noori,
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Muhammad Kashif Saeed, Michela Mingione, Muhammad Fawad Fawad Noori, (2017) "Peri-Peri Original: the expansion
decision in Pakistan", Emerald Emerging Markets Case Studies, Vol. 7 Issue: 2, pp.1-15, https://doi.org/10.1108/
EEMCS-02-2016-0017
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 Peri-Peri Original: the expansion decision
in Pakistan
Muhammad Kashif Saeed, Michela Mingione and Muhammad Fawad Fawad Noori

The trends such as growing trend of population, increase in geographical shift from rural areas Muhammad Kashif Saeed
to metro cities, and development of a trendy lifestyle in Pakistan is the opportunities to move is Assistant Professor of
towards other segments where kids market as an attractive segment awaits us. (Rao, Brand Marketing at Business
Manager Peri-Peri Original, Pakistan) School, GIFT University,
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Gujranwala, Pakistan.
The Fast food brands are fiercely competing in all major cities of Pakistan, especially in Lahore Michela Mingione is PhD
where we need to further strengthen our foothold. The anecdotal evidence shows a greater Fellow at Department of
demand for fast food items in the mature age segments where children market although Management and Law,
attractive, but not having as much growth potential as other market segments carry. (Ali, GM University of Rome,
Customer Service Peri-Peri Original, Pakistan) Rome, Italy. Muhammad
Fawad Fawad Noori is
It was a hot summer evening when Rao, the brand manager for Peri-Peri Original, a Lecturer at School of Art,
UK-based food chain was taking notes to appear in a meeting with the General Manager Design and Architecture,
(GM) to discuss the possibilities of expansion of the restaurant chain, in Pakistan. The GIFT University,
Peri-Peri Original was launched in Pakistan in the year 2013 – almost three years ago and Gujranwala, Pakistan.
so far was meeting the expectations of the investors in terms of customer satisfaction with
service quality and revenues. Keeping in view the initial success, people at Peri-Peri were
looking for expansion to stay competitive in the face of strong competition posed by
category and brand competitors. The idea was to swing the boat towards the children’s
market to increase the market share as well as store traffic. The Brand Manager favoured
the launch of a product line of children’s meals whereas Ali, General Manager Customer
Services, was seeking a geographical expansion strategy and envisioned the opening of
additional stores in Lahore, Karachi and Islamabad. Both managers were in the position to
convince top management – the franchisee of Peri-Peri in Pakistan – to favour one decision
only. Both managers agreed that such a decision should have been implemented only at
a small-scale fast food chain, such as Peri-Peri Original, in Pakistan given the limited funds
available to ensure steady expansion and growth.

Peri-Peri Original: the brand We are grateful to Mr Abbas,

Restaurant Manager at
Peri-Peri for assisting us in
Peri-Peri Original was a UK-based fast food chain, which served its customers through meeting with company officials
various full-service restaurants. Food was their main product. The first restaurant was and allowing us to gain some
real-time data.
established in Watford, UK, in September 2010. Since then, the brand has been smoothly
soaring high with more than 40 stores operating all across the globe, including Europe, Disclaimer. This case is written
solely for educational
Middle-east, Africa and Asia. The inspiration behind Peri-Peri was the casual restaurant purposes and is not intended
concept of Nando’s, a Mozambican-themed food brand, operating in several countries. to represent successful or
unsuccessful managerial
However, both brands were still confused in consumer minds, especially in Lahore where decision-making. The authors
people used Nando’s and Peri-Peri Original interchangeably. This is mainly because of the may have disguised names;
financial and other
fact that the menu items included chicken tenders, chicken pieces, wings, burgers and recognizable information to
wraps – almost the same at both the brand outlets. However, the grilled chicken at Peri-Peri protect confidentiality.

DOI 10.1108/EEMCS-02-2016-0017 VOL. 7 NO. 2 2017, pp. 1-15, © Emerald Publishing Limited, ISSN 2045-0621 EMERALD EMERGING MARKETS CASE STUDIES PAGE 1
 Original was most in demand by city customers in Lahore and Karachi. The brand manager
further added:
Although chicken is widely consumed in Pakistan, an ethnographic study conducted amongst
the visitors of various food chains in Lahore and Karachi highlighted that people preferred the
grilled chicken products having its strong links to local culture of these two cities.

The core inspiration behind the launch of the brand in Pakistan also seemed to mirror the
culture/local traditions, which were closely tied to the type of food brand offered to its target
market(s). In particular, the franchise owner of Peri-Peri Original stated:
I have brought this chain to Lahore because it was very close to our local flavour. People here
enjoy spicy food and the sauces strike to consumer mind in hot weather of Lahore and Karachi.
Furthermore, the extra flavours are best suited to the customer’s palate.

Since its launch in Pakistan, the brand has been operating through franchise stores. The
major operations were in Lahore and in Karachi, two metropolitan cities in Pakistan. The
retail outlets were located in porch areas of both these cities. The stores were surrounded
by luxurious malls filled with shops of branded products offered by various local and global
brands. The major target segments included university students, working professionals and
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families. Another market segment comprised visitors from nearby cities to shop and to
enjoy family gatherings. The brand manager of Peri-Peri stated:
Customers belong to all walks of life, especially the middle income groups in Pakistan. Despite
the local population is an attractive market segment, the visitors from other cities also enjoy the
food offered by the brand because of its local taste. Furthermore, loyalty of visitors and families
is extremely high and I know many of them not only by their names but also have had a chance
to meet with their families once they visit stores.

Karachi and Lahore were food cities where many local and global brands of all product
categories are established. Keeping in view the plethoric competition in almost all product
categories, the company management thought they were in close competition with global
fast food chains. The brand manager added:
Since we are also an international brand, we compete with quality brands in Pakistan such as
fast food giants like McDonald’s and KFC. Our core products are nuggets, chicken pieces, and
burgers, which are already offered by global and local food chains. In terms of close
competitors, we envision Nando’s as competing and creating an advantage to keep on
attracting, motivating, and retaining customers for life. However, our edge is a taste no one else
can match.

The GM for customer service also claimed:

We have made our way at a time when fast food chains such as KFC and McDonald have had
a strong foothold in three major cities in Pakistan. However, our core is our service and product
customization at a level no other brand can match.

In terms of brand positioning, the brand managers believed in moderate pricing and high
value strategy which is possible because of several strengths, as highlighted by one of the
frontline service staff members:
Our service and care for customers from the core of our hearts is unmatchable. We believe in
truthfulness, respect for all, mutual trust, and a high reliance upon the power of smiles while
receiving, serving, and seeing off the customers.

Another customer service executive affirmed:

The price is moderate when compared with other food chains. The core reasons are excellent
human resource policies for long-term employees who are satisfied and happy with the top
management.

PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 7 NO. 2 2017

 The company believed in equality and respect for all. This was the reason why the
employees were happy, therefore, providing high quality service in return.
The GM customer service sustained:
Our people are our core advantage. As a service organization, we believe in the following four
core brand values: ambiance, food quality, service, and experience.

In particular, these four brand values were related to:

1. Ambiance: The locations of stores in Pakistan were in porches and safe areas with an
easy access for customers. Furthermore, the interior setup (e.g. seating plans,
cleanliness, fragrance of meals and space) provided a unique experience for
customers to enjoy their time.
2. Food quality: The raw material used to bake and prepare the food items was unique
and competitive when compared to the food offered by other competing brands. For
instance, the chicken was brought-in on daily basis from K&N foods, Pakistan’s leading
chicken processing brand. The goceries were supplied by Metro Stores, Pakistan’s
leading cash and carry store. Other high-quality local brands provided bakery,
chocolates and ice cream. Moreover, Nestle International, Pakistan, supplied the milk.
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Finally, the special Peri-Peri sauce was imported from United Kingdom. In particular,
there were various types of sauces offered at Peri-Peri, such as lemon and herb, mild,
hot and extra hot.
3. Service: It referred to customer-centric market vision, friendly and well-mannered staff
and minimum lead-time.
4. Experience: A combination of environment (e.g. comfort for customers), cleanliness
and several entertainments to attract families.
Although the organizational structure was mainly top-down (i.e. from Chief Executive
Officer to General Manager, Brand/Restaurant Managers and finally Supervisors), the
management did not believe in a Tayloristic attitude favouring centrality of command, rigid
structure and one-centred policies.

Culture and service quality at Peri-Peri

The management was focused on the satisfaction and retention of employees, considering
both backline and frontline staff responsible to make a difference and create memorable
customer service experiences. In particular, the service supervisor at Peri-Peri claimed:
The management of the restaurant, including CEO and GM, are very respectful. This is one of
the reasons why I am working here for many years. (Service Supervisor)

The top management believed and valued the effective management of human
resources by offering higher salaries and rewards, and frequent employee trainings to
manage daily operations. Large amounts of funds were allocated to train the staff.
Another hallmark of the brand culture was “total service experience” where top
management emphasized the creation of a memorable service experience for both staff
and customers. One of the supervisors declared:
We believe in respect for all. Working here is a fun because employees benefit from an
environment of high trust. Furthermore, the restaurant chain organizes frequent activities and
events, which are a source of great excitement.

Another supervisor for food added:

Although the setup area is limited we focus on its cleanliness, high quality, and capability to
listen to each other with a positive attitude.

VOL. 7 NO. 2 2017 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3

 Market research
Market research was routinely conducted at Peri-Peri. Every two years, a comprehensive
service audit was performed including various means of qualitative and quantitative
research methods. A service quality audit at restaurants in Lahore and Karachi provided
interesting and positive results. In the initial phase, focus group interviews were conducted
among targeted customers visiting the food chain. Upon their formal consent, the senior
staff asked simple questions such as providing their top three reasons for visiting Peri-Peri
Original. Based on the findings of focus group interviews with 15 customers, a team of
managers envisioned four core brand values: ambiance, food quality, service, and
experience. These four values were surveyed among all the customers at Peri-Peri on a
daily basis for a few months. The analysis of market research results highlighted the
customer satisfaction regarding the offered service quality, although several suggestions to
increase the variety of product line and opening new restaurants were proposed to
increase the richness and the access of the brand.
Before convening the decision to open up further restaurants in respective cities, some
interviews were also conducted among the loyal customers – mainly to discover the factors
which trigger loyalty among a selected customer group. The following observations were
drawn from the interviews:
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 The price and Peri-Peri Original sauce were highly valued and represented the main
reason to visit Peri-Peri restaurants.
 The environment was suitable for family gathering.
 The lack of an area suitable for children, which is a concern for family members while
they visit.
 Children are a great motivation for their parents, even for other family members in a
collectivist culture such as Pakistan.
 A need of a variety/mix of products despite the high quality food and services is
strongly needed.
 The Nando’s brand was on top of the mind; KFC and McDonald’s were also considered
competitors. The customers perceived Nando’s and Peri-Peri Original as being the
same brand.

Pakistani food market – A purely Asian perspective

In general, Asians are known for their hospitality where love of food is highly valued. People
from all walks of life and spheres love to eat out and enjoy with their family and friends.
People living in urban cities of Pakistan like to dine out in restaurants located in major cities.
A leading research in Pakistan revealed that more than 50 per cent of the urban population
often visits restaurants.
Among others, youth was the most relevant segment, high in number and also in per person
consumption. Considering the increase in the number of universities and colleges, the Cafe
culture and restaurants offering local food at cheap price (e.g. Dhabas) have become very
popular for socializing among young people. Alongside the university cafes, the trend to
visit Dhabas (a locally furnished restaurant offering local food at economical prices) is also
common. These cafes and Dhabas are used for socializing and as “hang-out” places for
the youth market where they mostly spend time. Therefore, the cafe culture across Pakistan
represented an opportunity for food brand marketers.
In Pakistani metropolitan cities, the entertainment culture (i.e. movie and food) was also
increasing in upper and middle class youth, probably because of migration from rural
areas. In addition to youth, individuals who like reading and spending time with their friends
and colleagues, along with middle-class families (which included major population living in

PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 7 NO. 2 2017

 metro cities of Lahore and Karachi – primarily married couples, working in service
professions such as banking, telecom and healthcare), represented two important market
segments for the food industry. These segments highly valued the food quality served in
restaurants, which is highly impeded by the presence of a dirty kitchen, followed by
unhygienic food handlers and impure ingredients.
The change in eating habits of Pakistanis, especially the ones from the urban areas, is
attributed mainly to the launch of global fast food chains in Lahore and Karachi such as
KFC (since 1997) and McDonald’s (since 1998). The young people are mainly influenced
by the US coffee culture which also triggered the increase in “hang-out” and the decline in
book reading and other sophisticated cultural norms such as spending time with family. A
dearth of a family environment in cafes has also been observed; despite the majority of
young people visiting these cafes for hanging out and to enjoy fun activities. Therefore, this
type of service/entertainment could offer real “value” and is an attractive market segment
(i.e. the traditional families with children). Lastly, it is highlighted that recently there have
been incidents of lack of mannerisms and a sexiest attitude of young people (from opposite
gender) that had the power to break the social fabric of Islamic traditions.

Market size
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A culture of openness, hospitality, low animosity towards many countries and high
population are some peculiar and significant characteristics of Pakistan making it an
attractive market for many local and global brands. According to recent data, Pakistan
stands as the fastest growing market in terms of its population (see Figure 1).
The female fertility rate is also among the highest in the region (3.2 per woman) as
compared with India (2.6) and Bangladesh (2.2) – two highly populous Asian countries. In
addition to that, the average household size in Pakistan is 6.8 which is far higher than the
household size in Europe (2.2-2.6). This also makes Pakistan a complex market where
decision-making is not individual-centred rather group decisions/group influence take
place while making purchase decisions and is attributed to a joint family system.
The subcontinent (Pakistan, India and Bangladesh) had been a British colony for centuries
which is evidenced by its buildings, local culture and norms to spend life. The class system
is still dominant in countries such as Pakistan and there are four major classes (primarily
based on income) – lower class, middle class, upper middle and rich. It is also interesting

Figure 1 Pakistan population growth

VOL. 7 NO. 2 2017 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5

 to note that the country has an age structure that can be interesting for taking an investment
decision on the food market, for two main reasons:

1. there are a high percentage of infants and children; and

2 there is an even higher percentage of potential customers (adult population: 60.4
per cent) that could spend their money on the food market (Figure 2).
The high potential of the food market is enhanced by the fact that there is a negative trend of
the expenditure on essential food and a positive trend of Pakistanis’ expenditure on other forms
of consumption (Figure 3). Despite the fact that Peri-Peri belongs to the food market, it cannot
be considered a market-selling essential food. In fact, as highlighted previously, having dinner

Figure 2 Pakistan’s population growth

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Figure 3 Expenditure on food among Pakistanis

PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 7 NO. 2 2017

 or lunch in a fast food restaurant is related to the satisfaction of hunger, but is more related to
experiencing a brand and its services. Therefore, people usually think of a fast food meal as an
alternative to a restaurant, which is not, of course, considered essential food.
Despite a growing food market with full pockets to spend on food and particularly fast food,
there are concerns regarding quality of food among Pakistanis which makes it a challenging
market to deal with. For instance, critics believe that fast food is creating a generation of obese
people where the fast food chains are mainly held responsible for this trend. There is said to be
a lack of physical activity and an increase in consumer convenience and a huge increase in
junk food consumption. Doctors, parents and social activists have started to raise their voice to
counter the obesity caused by junk food; however, the efforts seem to be having little effect. The
major reason is the recent wave of Americanization in Pakistan, which is taking people away from
the zeal and zest of local culture towards a new way of living Pakistanis are now known for.
Furthermore, Pakistan is the ninth most obese nation in the world, which is a sign of great worry for
all concerned. Children are affected too, and according to a survey, every one in 17 school-going
children is obese. On the contrary, according to a survey, 89 per cent people said that fast food is
preferred over traditional food once they go out with friends and family. Further to this, 70 per cent
people believed that fast food leads to obesity, and they use fast food for taste and convenience.
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Major concerns
Expansion is a must in the highly competitive food markets of Lahore and Karachi. Alongside
the expansion imperative, both the managers need to understand the threats and opportunities
associated with the decision. Particularly, the aspects of socio-demographic changes need to
be analysed before a decision is approached. On the other side, expansion is imperative as
well in the face of high competition from global and local food chains. Families love to spend
time together and fast food products have become a cultural icon (although only representing
modern culture in Pakistani society) to eat out. According to a survey, Pakistanis spend 47.7
per cent of their income on fast food and is declared the world’s foodie nation. The global food
chains are making maximum benefit of this habitual food consumption and now events, such
as Burger Day, are celebrated in Pakistan. The youth market is very attractive because they can
be easily motivated to buy burgers and related products at Peri-Peri. However, on the other
side, the child market has a great potential because only McDonald’s and KFC are formally
catering to the needs of children-centred products. To summarize, Peri-Peri had to make an
expansion decision between two main options, namely kids as a target versus youth as a target
market. These two options seemed to be both highly valuable, but the Peri-Peri franchisee
decided to favour only one of them. It is important to note that a branding decision, which mirrors
the desired brand identity of the company (i.e. top managers’ vision), should be aligned with the
expectations and perceptions of the target market. Therefore, the decision will have to consider also
Per-Peri’s core brand values. In fact, the “ambiance” and the “service” core values will be affected
differently depending on the selected strategy. However, the core value that will be strongly affected
by the expansion decision will be the “experience” core value. In fact, designing a brand
experience for the children’s market or for the youth target will require peculiar brand experiences
strategies that will be focused on different brand experience elements.

Case questions
1. What type of service product is Peri-Peri offering? Plot the product on the Tangibility
spectrum.
2. What is the actual brand positioning of Peri-Peri?
3. What are the key issues facing Peri-Peri as a brand that can hinder the success of
Keywords:
brand in future?
Services marketing,
4. What should be the decision and why? Develop your arguments with reference to Corporate growth,
brand extension decisions and by delivering pros and cons of each potential strategy Brand management/equity

VOL. 7 NO. 2 2017 EMERALD EMERGING MARKETS CASE STUDIES PAGE 7

 Further reading
Abdullah, A. (2012), “Please, spare us from your PDA!”, The Express Tribune, available at: http://blogs.
tribune.com.pk/story/13844/please-spare-us-from-your-pda/ (accessed 19 August 2015).

Balmer, J.M.T. (2012), “Strategic corporate brand alignment: perspectives from identity based views
of corporate brands”, European Journal of Marketing, Vol. 46 Nos 7/8, pp. 1064-1092.

de Chernatony, L. (1999a), “Brand management through narrowing the gap between brand identity
and brand reputation”, Journal of Marketing Management, Vol. 15 Nos 1/3, pp. 157-179.

Escalante de Cruz, A., Pbhillips, S., Visch, M. and Bulan Saunders, D. (2004), The Junk Food
Generation: A Multi-Country Survey of the Influence of Television Advertisements on Children,
Consumers International Asia Pacific Office, Kuala Lumpur.

Ferya, I. (2015), “Eating out: the fault in our food”, The Express Tribune, available at: http://tribune.
com.pk/story/912988/eating-out-the-fault-in-our-food/ (accessed 20 November 2015).

Hafsah, S. (2015), “Going [. . .] going: reading culture dying in capital”, The Express Tribune, available
at: http://tribune.com.pk/story/908545/going-going-reading-culture-dying-in-capital/ (accessed 10
August 2015).

Hajra, Z. (2015), “Changing trends in the lifestyle of Pakistani Urban youth: Glimpses from Lahore”,
Centre for Public Policy and Governance, available at: http://cppg.fccollege.edu.pk/changing-trends-
in-the-lifestyle-of-pakistani-urban-youth-glimpses-from-lahore/ (accessed 4 September 2015).
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Hatch, M.J. and Schultz, M. (2001), “Are the strategic stars aligned for your corporate brand?”,
Harvard Business Review, Vol. 79 No. 2, pp. 128-134.

Kashif, M., Awang, Z., Walsh, J. and Altaf, U. (2015), “I’m loving it but hating US: understanding
consumer emotions and perceived service quality of US fast food brands”, British Food Journal,
Vol. 117, pp. 2344-2360.

Kfoods Homepage (2014), “Kfoods”, available at: http://kfoods.com/photos/brand-pakistan/kandn-s-

pakistan-leading-chicken-brand/ (accessed 23 July 2015).

Maheen, N. (2014), “International burger day: a nation’s love affair with burgers”, Brandsynario,
available at: www.brandsynario.com/international-burger-day-a-nations-love-affair-with-burgers/
(accessed 12 December 2015).

Mariam, S. (2015), “Hampering growth: excessive junk food leading to unhealthy generation”, The
Express Tribune, available at: http://tribune.com.pk/story/965271/hampering-growth-excessive-junk-
food-leading-to-unhealthy-generation/ (accessed 19 November, 2015).

Momina, S. (2012), “Coffee culture: what’s brewing?”, The Express Tribune, available at: http://tribune.
com.pk/story/352588/whats-brewing/ (accessed 04 December 2015).

Momina, S. (2013), “Peri-Peri: following the trend set by Nando’s”, The Express Tribune, available
at: http://tribune.com.pk/story/593275/peri-peri-following-the-trend-set-by-nandos/ (accessed 10
November 2015).

Munazzah, R. (2015), “You are what you eat: here is what you are doing wrong”, The Express Tribune,
available at: http://tribune.com.pk/story/957515/you-are-what-you-eat-heres-what-youre-doing-wrong/
(accessed 10 December 2015).

Peri-Peri Homepage (2015), “Peri-Peri”, available at: www.crawleyperiperioriginal.co.uk/ (accessed

June 2015).

Shahram, H. (2014), “Changing trends: food and cinema – a combo for reaping a rich harvest”, The
Express Tribune, available at: http://tribune.com.pk/story/707156/changing-trends-food-and-cinema-
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Shahryar, K. (2015), “Pakistan digital landscape”, Shahryar Khan Page, available at: http://
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The Express Tribune Homepage (2014), “Pakistan 9th most obese country: study”, available at:
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Trading Economics Homepage (2015), “Trading economics”, available at: www.tradingeconomics.

com/pakistan/rural-population-percent-of-total-population-wb-data.html (accessed 16 November,
2015).

PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 7 NO. 2 2017

 Urde, M. (2003), “Core value-based corporate brand building”, European Journal of Marketing, Vol. 37
Nos 7/8, pp. 1017-1040.

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About the authors

Muhammad Kashif Saeed is an active researcher, trainer and an academician with
teaching interests in the field of Macromarketing, Marketing of Services and Consumer
Audit. With 12 years of teaching experience at higher education levels, Kashif has
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published 30 manuscripts in internationally acclaimed outlets. He is also the visiting

research fellow in a few top class universities. Muhammad Kashif Saeed is the
corresponding author and can be contacted at: kashif@gift.edu.pk
Dr Michela Mingione is a PhD fellow at the University of Rome in Italy. Her research and
teaching interests are in the field of Marketing and Brand Management. She has published
high quality research in journals such as journal of Product and Brand Management.

Mr Muhammad Fawad Fawad Noori is a fashion enthusiast by profession. With 10 years of

teaching and consultancy experience, he has travelled across the globe to present his
research and also to promote various fashion events. His phenomenal work in the field of
design has made him won several accolades from world leading fashion authorities.

VOL. 7 NO. 2 2017 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9