Nandos Pursues UK Expansion Amid Rising Costs and Strong Demand

Nando’s, the South African-founded peri-peri chicken chain, has announced ambitious expansion plans for its UK operations in the face of persistent labour and energy cost pressures. Despite these economic headwinds, the company reported impressive financial results, with revenues rising by 8 percent to £1.48 billion in the year to the end of February, driven by robust customer demand and increased sales volumes.

The restaurant group, which opened its first site in Britain in 1992, currently operates almost 500 locations across the UK and Ireland. In the most recently concluded financial year, the company opened 12 new restaurants and intends to add a further 14 outlets across the UK during the current year. New sites will include Bedford, Derby, Peterborough, Bishop Auckland, Maidenhead, Sheffield, Edinburgh Gyle, Paddington, and Liverpool Edge Lane, reflecting the company’s confidence in continued domestic growth potential.

Operating profit more than doubled to £146.6 million from £59.8 million a year earlier, underlining the resilience of the business. However, Nando’s management has cautioned that higher costs, particularly related to staff and energy, are set to weigh on performance in the coming year. The chain is seeking to counteract these pressures by implementing productivity improvements and rolling out energy-efficient grills across its estate to reduce ongoing expenses.

The business remains committed to further investment, including menu innovation, development of digital capabilities, and growth across international markets. Chief executive Rob Papps acknowledged the uncertainty in the present macroeconomic climate but struck an optimistic note regarding future opportunities, emphasising the company’s strategic expansion both in the UK and abroad.

Nando’s, owned by the Enthoven family’s Yellowwoods investment firm, has successfully navigated the volatility of recent years and continues to invest in its distinctive brand of flame-grilled chicken inspired by the Portuguese galinha á Africana tradition. Side dishes such as rice, chips, salads, and sweet potato mash complement its core offering and have contributed to the outfit’s enduring popularity.

This forward-looking strategy comes after a period in which the sector faced severe disruption during pandemic-related lockdowns. Nando’s track record of growth and adaptation positions it well for the challenges and opportunities presented by the changing economic landscape.