Magazines Archives - 2009 December

Nando’s kicks off regional expansion
Story 13 - Property Update

... WITH LONG-AWAITED FORAY INTO SINGAPORE F&B SCENE

South African restaurant-chain Nando’s Group is making its way to Singapore early next year with the opening of its first outlet in the city-state, and up to 10 outlets are expected to come on stream over the next five years.

In its first venture in South-east Asia since setting up in Malaysia over 10 years ago, the company told Retail Asia at a press briefing in Kuala Lumpur last month that it is also looking to expand
into the Philippines, Hong Kong, Macau and Thailand, using Singapore as its launch pad to the region.

Well-known for its Peri-Peri flamedgrilled chicken in cities like London, Sydney, Kuala Lumpur and Cape Town, Nando’s Chickenland Malaysia Sdn Bhd’s CEO, Mac Chung Lynn, revealed
how her journey with Nando’s took off after she had her first bite of the Afro- Portuguese chicken in London. Through a franchise arrangement with the brand’s founders, Robert Brozin and Fernando
Duarte, who started Nando’s in South Africa over 20 years ago, Mac brought Nando’s to the Malaysian market, opening more than 30 restaurants in the peninsula in the past 11 years.

According to Brozin, the company’s expansion is often the result of requests by consumers and operators. “Singapore, for example, has been one of the markets that we have been looking at
for the past 10-12 years, even before we opened in Malaysia,” he disclosed, adding that it was a matter of time before they did so.

Brozin stated that while all food and equipment supplied to Nando’s in Malaysia are locally sourced, its
Peri-Peri sauce, made from African bird’s eye chillies, which is a key ingredient in the marinade for all its chicken dishes, is manufactured in and imported from South Africa, as the chillies used to make the sauce need to be“kissed by the African sun”.

The company’s general manager, Boet Zaayman, also revealed that the secret behind Nando’s success lies in its lean, flame-grilled butterfly-cut chicken that has been trimmed of extra fat. The
chicken is then marinated for 24 hours with Peri-Peri spice, to ensure the flavours permeate
the chicken right into the bone, then cooked in an oven before flame-grilled to order.

With no additives, preservatives and artificial flavourings added, Zaayman maintained that customers
are assured of not only the freshest chicken, but also a healthier option to their dining experience.

Departing from the traditional route of most restaurant chains, each Nando’s outlet features a different design. While the basic signature elements of Nando’s are maintained, such as its warm colours,
furnishings and artefacts, different outlets house a variety of commissioned artwork by local artists, or offer a more homely feel with alfresco dining area and a play-area for children.

“The good thing about Nando’s is that we are flexible. In Malaysia, most of our restaurants are currently from 2,500sqf [in area]. However, as we move into shopping centres, we [encounter space limitations … so] we adapt to our different environments — but making sure that we do not lose the aspirational
side of the brand,” Mac observed.

In bringing to customers “the Nando’s experience”, which Brozin maintained is “what it is about”, the restaurants are designed in a way to showcase its staff’s flamegrill theatrics, complete
with Afro-Luso music playing throughout the restaurant.

Mac said that the experience is not limited to just their customers. Staff too are entitled to a Nando’s
experience of their own, albeit from the perspective of providing optimal service to diners — by taking a shift at Nando’s busiest outlet at the Suria KLCC mall.

For the first outlet in Singapore, which will be operated by Nando’s Chickenland Malaysia’s subsidiary,
Nando’s Chickenland Singapore Pte Ltd, Mac revealed that the group is projecting revenues of up
to S$200,000 (US$144,320) per month, though revenue is expected to be lower in the initial months.

However, she added that the company plans to spend S$300,000 on its opening marketing
campaign. “Just by doing that, I think we will make a mark in Singapore,” she stated.

With 850 restaurants in 26 countries worldwide, Brozin added that once Nando’s has established its brand and positioning in Singapore, it is considering smaller formats to fit in food courts
and food malls. And while its Peri-Peri sauces currently retail at supermarkets and hypermarkets in Australia, the UK, South Africa and Malaysia, the company has no plans to retail its food items.

“The Nando’s experience that we have spoken about — to come into the restaurant, the music and the atmosphere— will lose a little bit of that ‘specialness’ if we put it in the supermarket,”
Brozin maintained.

At press time, the company was in negotiations to set up its first outlet in Singapore’s Marina Square mall.

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