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Nando's Swot Analysis

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Hana Davies

on 2 February 2015

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Transcript of Nando's Swot Analysis


Brand Identity
Nandos has a strong, powerful brand identity. It is instantly recognizable and stands itself apart from competitors.

By embracing its 5 values of pride, passion, courage, integrity and family the brand identity secures itself firmly with its customers furthermore ensuring faithful loyalty and return custom.

The evidence of the values can be seen through all aspects of the business thus cementing its reality for customers. Its the humble truth and honesty in this that is it greatest success.
Social Media
In today's society social media can be used as a great marketing tool. However it can be used very quickly to criticize and condemn. One bad experience or disgruntled customer can cause a large ripple effect which can attack the brand identity as a whole and threaten all the restaurants.
The staff within the Llanelli restaurant are friendly and welcoming. However some of the team appeared to be 'over familiar' with customers to the point of awkwardness and slight uncomfortable conversation. This maybe a threat if not controlled and may appear as crossing the line from warming and friendly to unprofessional.
Amazing Staff
Any hospitality business is only ever going to be as good as the staff within in. Nandos not only understands this but they go far far beyond it.
The staff are not staff, they are family and with that comes pride, loyalty and happiness.
This effortlessly shines through when working and provides a welcoming, friendly, relaxed yet still professional dining atmosphere.
Culture & History
A sense of history adds strength and integrity to a brand. Nandos has a great honest history to it which is shown via a variety of mediums throughout its restaurants, social media and marketing.
The legend of Barcelos Cockerel is a perfect example of this.
Nandos uses the sounds of afro-luso and inspirational artwork to recreate the culture of its heritage. This not only relates with its own history but also gives the customers a full sensory experience.
Chicken, Chicken and more Chicken!
The wonderfully high and ethically sound standards of each and every ingredient that is used within the simple yet vast menu is arguably one of its biggest strengths.
The menu caters for all from the health conscious to the fast food junkie to the younger clientele or nandinos!
Its ability to adapt and personalize each dish allows for a large target audience to develop.
The speed to be able to deliver such a fresh meal is also a great strength to promote.
The Nando menu explotes the chicken in every way possible but also caters outside of this with veggie options and steak giving careful diversity without losing identity.

Staff Structure
It is clear that Nandos invest in their staff however from a customer viewpoint the structure of the staff can be unclear. A restaurant should have a obvious leader, someone directing and controlling the dining experience. Either a member of management or a designated team member of experience should be a point of contact for customers and staff and remain present in authority but secondary from customer view.
This was unfortunately not witnesses in the llanelli restaurant.
The Llanelli restaurant location is its greatest strength. Ideally located within a renovated part of the town centre next to a new cinema complex and travellodge.
Llanelli town is not deemed a tourist destination nor a student area. This gives good precedent for consistent trade throughout the year and should avoid any considerable peaks and troughs.
There is also a large easily accessible car park which is free after 6pm.
Nearby is a large popular retail park and a recently built sports stadium.
The restaurant itself is well designed with a large separate area for waiting and collecting deliveries. The careful design of the table layout provides a natural divide between the catering side (kitchen / counters / drinks ) and the dining experience.
The restaurant has a small outside dining area and large panoramic windows. During warmer months this outer area and the ability to bring extra covers is a great strength.
It will also create a great atmosphere to bring new customers in but also to retain those dining to stay longer and increase spend.
The Restaurant
Local Competition
Retail Parks
The pricing structure for the restaurant avoids promotion and discounted offers. The average meal including drink will cost around 10.00Gpb. The business is advertised as a fast service meal but is priced higher than most pub / restaurant chains.
For some customers paying a premium price would warrant a higher level of dining experience and those seeking meal promotions for family dining would go elsewhere.
It would not be considered a cheap meal out for an average family with children.
Self Service
Nandos operate a relaxed self service approach to food ordering, drinks and condiments. This may deter customers who wish to have a more traditional dining experience with a table service. This can also hinder further sales as the customer may not 'be bothered' to go to the counter themselves for another drink, dessert or coffee.

This may also contribute to those requiring a more celebratory extended meal to look for alternative venues.

The layout of the restaurant is designed for ease and quick table turnover and to accommodate a large amount of covers. However when the restaurant is less busy it can feel empty and extensive. The preferred seating by the window is very cold and drafty and the large booths, which naturally create cosiness are reserved in case of large parties.
There seemed to be no ambiance created for some areas and the openness felt a little visual and intrusive.
Take Away
Nandos have expanded into takeaway service. The ability to order online or via an app creates huge opportunities. As this idea develops and gathers strength it can be increased to include home delivery options and in restaurant counters. These stations would be used just for takeaway customers providing them separate space from the diners and an easier better experience.
A further development from this would be an open counter service that had the ability to cater for quick snacks on the go... i.e the lunchtime market. This would be somewhere easily accessible and visible and quicker than with the diners in the restaurant.
Additional Products
Nandos sells great products to create the experience at home including salts, rubs and sauces. These could be more prominent in the restaurants and can easily be incorporated within design as not to be to overbearing or commercial.
Samples could also be given as promotional / marketing tools or rewards with use of the Nandos card.
Mobile Chicken
As the brand is intertwined with culture and music the potential to take it 'on the road' could be vast. Mobile vans serving takeaway options could be sighted at festivals, galas, events etc and promote not only the brand and restaurant but also the takeaway facility.
It could also be great to use to promote new openings prior to the actual opening.
Expanding on this and its culture, Nandos could organize events / campaigns that embrace its values, such as art / music and use the vans for this promotion.
After all the chicken did cross the road!
The llanelli restaurant lacks atmosphere on quieter nights. This can be turned into an opportunity to look into different ideas for certain nights that still uphold the brand. For example cocktail nights, live music , family nights etc. This way keeping the business full of atmosphere and customers!
New Business
The stability of the local community can be used as an opportunity to grow the business and build new consistent trade.
The discounts offered for NHS / Emergency services / Military should be promoted and targeted.
As the travelodge is next door and the odeon cinema opposite a discount or loyalty scheme could be established with either or both the customers or the staff to encourage dining at Nandos and not the competition.
Family Celebrations
Llanelli is a residential area densely populated. Its reputation is that of a lower general income and cheaper housing solutions than its neighbouring towns making it ideal for young families. In view of this the restaurant could look to cater for the families in a celebratory capacity during quieter times. A children's party, on a pre ordered easy to prepare banquet style menu could help boast local knowledge and trade during quieter weekdays with minimal staff and expenditure.
Trostre retail park is only 2 miles from the town centre of Llanelli. As out of town retail parks become more popular the town centres become less so. As the llanelli restaurant is based close to the town centre this could be a threat for them.
Surrounding the llanelli restaurant and competing for trade are 3 other eatery's and 2 coffee shops.
These competitors offer discounted meals and cheaper deals and are a daily treat for custom.
Operating Costs
Operating costs are set to increase throughout all businesses. Hospitality incorporates a lot of expenses and outgoings including supplier charges, delivery charges, facilities and property costs. The largest cost, as with any business, is labor. An increase in pay can have a huge impact on each restaurant and this on top of the other operating costs can really attack the profit margins. Therefore must be view as a constant threat.
Health & Safety
Every restaurant has many health and safety issues to be aware of. The protection of staff and customers is paramount at all times. However due to the nature of the high risk foods served at Nandos, i.e chicken and rice, the high health and safety risk in each restaurant is a constant threat.
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