Nando’s, the popular peri-peri chicken chain, has announced plans to open 14 new restaurants in the UK as part of its expansion strategy. The decision comes after the company recorded sales that exceeded pre-pandemic levels, driven by strong customer demand. Despite facing challenges in a tough cost environment, Nando’s managed to reduce its losses in the latest financial year. Rob Papps, the group chief executive, expressed optimism about future growth and investment despite the ongoing economic uncertainties.
The chain has already opened new locations in various cities such as Edinburgh, Newcastle, Doncaster, Taplow, Bognor, Watford, Northampton, and Belfast. In the previous financial year leading up to February 2024, Nando’s successfully launched 17 new restaurants, 11 of which were in the UK and Ireland. The company reported a 7.5% growth in revenue, amounting to £1.37 billion, compared to the previous year. Additionally, Nando’s invested £86.6 million in capital expenditures, which included opening new stores and refurbishing existing restaurants.
Although Nando’s saw a positive start to its 2024-25 financial year with encouraging customer demand, it highlighted the ongoing challenge of managing elevated cost inflation. Despite this, the chain successfully reduced its pre-tax losses to £50.1 million, down from £86.2 million in the previous year. Nando’s also reported an operating profit of £59.8 million for the year, showcasing its resilience and ability to adapt to the changing market conditions.
Mr. Papps pointed out that the company’s strong sales performance and the return to pre-pandemic levels of operating profit were driven by consumer demand for their flame-grilled peri-peri chicken. While managing cost pressures related to energy, labour, and food remains a significant challenge, Nando’s is committed to addressing these issues while maintaining its growth momentum. The chain’s focus on enhancing its brand and customer experience has been a key driver of its success in the competitive hospitality industry.
Looking ahead, Nando’s plans to continue its expansion efforts by opening new restaurants and investing in its existing portfolio. The company’s growth trajectory reflects its commitment to meeting the evolving needs of its customers and staying ahead of market trends. Despite the uncertainties in the economic landscape, Nando’s remains optimistic about its future prospects and is dedicated to providing high-quality dining experiences to its patrons across the UK and beyond.
In conclusion, Nando’s ambitious plans to open 14 new restaurants in the UK signal a positive outlook for the chain as it continues to navigate the challenges posed by the current operating environment. With a strong focus on customer satisfaction and operational efficiency, Nando’s is well-positioned to sustain its growth momentum and solidify its position as a leading player in the competitive food industry.