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Food & Beverage
What is Nando’s and what services does it provide?
The inspiration for Nando’s was a small Portuguese restaurant called Chickenland in Rosettenville, South Africa. It was here in 1987 that friends Fernando Duarte and Robbie Brozin first tasted Chickenland’s peri peri marinated and basted spicy chicken and decided the food needed a wider audience.
The pair bought the business for around £65,000, renamed it Nando’s after Fernando’s first son and opened a second restaurant in Johannesburg soon after. By 1989 Fernando and Robbie - now business partners - had three Nando’s in Johannesburg and one in Portugal.
It wasn’t long before the business caught the eye of private equity firms willing to invest in the company. Capricorn Ventures International bought the business in 1992 and expansion continued.
Today, Nando’s has over 1,000 restaurants featuring branding based on the Rooster of Barcelos, a common symbol in Portugal, in 20 plus countries - from Australia to Zimbabwe.
The company’s first UK restaurant was opened as part of a franchise agreement in Ealing, west London in 1992. Today Nando’s has over 400 restaurants in the UK and Ireland - all are now company-owned.
Nando’s restaurants pride themselves on their relaxed atmosphere, friendly service and good food. All food can be eaten in, taken away or ordered online.
Marinated in peri peri sauce for 24 hours, all the chicken served in Nando’s British restaurants is fresh not frozen and Red Tractor assured. Set up by the UK food industry, the Red Tractor logo allows people to identify food that has been prepared to high standards throughout the food chain.
The company also sells some its sauces and a range of meal kits via UK supermarkets such as Tesco and Sainsbury’s and online retailers like Amazon.
What type of food does Nando’s serve?
As well as its now-famous peri peri chicken, Nando’s offers an extensive menu of starters, mains and sides, plus soft and alcoholic drinks.
Starters include spicy mixed olives, houmous with peri peri drizzle and halloumi sticks and dips, while customers can choose from mains such as sharing platters, burgers, pittas and wraps with a side of chips, coleslaw, spicy rice or creamy mash.
Vegetarians are also catered for with burgers, pittas and wraps filled with Portobello mushroom and halloumi, sweet potato and butternut and a beanie option containing Cheddar cheese, chickpeas and sweetcorn with lentils, peas and pumpkin seeds.
How does the Nando’s franchise model work?
The company does not offer franchises in the UK and says it has no plans to do so for the foreseeable future. However, it does have franchise operations in South Africa, New Zealand and Australia.
In these countries Nando’s provides a full turnkey package to investors that comprises access to a comprehensive training programme, its proven systems of operation, business know how and supply chain. Expert ongoing support is provided throughout the duration of the franchise agreement.
How much does it cost to become a Nando’s franchisee?
The only figures available are for the company’s South Africa franchise opportunity. As is the case with all international franchises, investment levels vary depending on the country in which you wish to launch.
If you want to open a Nando’s franchise in South Africa, it will cost in the region of seven million rand in total, which is approximately £340,000. This covers the design and set up of the restaurant, project management and fittings and equipment.
In the first instance, an application fee of 25,000 rand is required to demonstrate the commitment of the prospective candidate, while a franchise fee of 230,000 rand is charged by the franchisor, which must be paid upfront.
What does the franchise fee cover?
The franchise fee gives franchisees the right to use the Nando’s brand name, systems and know-how, pays for the initial training of the franchisee and their staff and covers initial legal costs, any help provided in lease negotiations and assistance provided by the franchisor during the pre-opening and launch phase of the business.
What training and support do Nando’s franchisees receive?
Every Nando’s franchisee must complete a three-month training programme at one of the company’s training restaurants before they can open for business. The course consists of both practical, on the job training and theoretical instruction.
Areas covered include restaurant management and administration, staff management and training, customer care, safety and security, effective marketing and promotion, restaurant maintenance, the preparation and presentation of food products and general business and financial management.
When it comes to support, the franchisor helps franchisees find a suitable restaurant location and through its restaurant development team assists with fit-out, which must meet specifications set out by Nando’s. The restaurant development team can also help with lease negotiations, site development and project management.
In addition to the above, Nando’s provides franchisees with ongoing training and support in all aspects of the business as and when required.
What is the role of a franchisee in the Nando’s business?
All Nando’s franchisees are owner-operators, so they have a hands-on role in their business and must follow a tried and tested system of operation, complying at all times with the terms set out in the franchise agreement.
They must ensure service levels remain high in all areas of the franchise, conduct regular local marketing to promote their restaurant, maintain positive relations within their communities and manage their staff effectively.
What skills and experience is required to become a Nando’s franchisee?
While there are no formal qualifications needed to be a Nando’s franchisee, candidates must have experience of running their own business, possess good people and management skills and be in good physical health. They should also be self-motivated and committed to building a long term, viable business.
What are the Nando’s franchise’s terms of agreement?
These are available on request once the franchisee application process begins. Most franchise agreements last for at least five years and in the case of quick-service restaurants like Nando’s, sometimes considerably longer.
Before a franchisee signs a franchise agreement, which is a legally binding document, they must get the contract scrutinised by a qualified lawyer, who will be able to explain the franchisee’s commitments and highlight any unusual clauses.
Where in the UK is Nando’s based?
The company’s head office is in Putney, south west London.
Why is Nando’s a good investment?
This company has all the building blocks in place that are required of a successful franchise opportunity.
Its brand name is well known globally, it has a loyal and growing customer base, it has a proven system of operation that has been tested in many different locations and has developed a supply chain that ensures its food tastes the same in every one of its restaurants in every location around the world. It also has an innovative menu and uses technology effectively to drive sales and therefore the profitability of the business.
On top of this, the global fast food and quick service restaurant sectors are among the most lucrative and dynamic parts of the food industry. Worldwide revenues generated by fast food are estimated to be around $570 billion (approximately £480 billion) and industry analysis has revealed that the sector is expected to have an annual growth rate of 2.5 per cent for the next several years.