Critically Analysis of Nando's

Executive summary

Nando’s as a fast food restaurant with casual dining environment, its core product is grilled chicken with several types of sauces. The price of food is between fast food and casual restaurant, so their target market is more likely for middle-income customers. Customers need to order food at till, frill drinks and grab cutlery by themselves, so there is no service charge in the bill. This self-service concept makes the restaurant focusing more on quality of food and speed of serves, and it also reduces the labour cost.

Servicescape of Nando’s in Guildford is described in this report. The overall decoration is simple but modern. Colour and light tend to be warm resulting in quick decision making and less negative emotions. Customers pay the bill before they get the food, so they can directly leave when they finish. This process increases the customer turnover which is benefit for capacity.

Based on experience in Nando’s, limit number of staff cause slow service and long waiting time. Therefore, the restaurant could recruit some flexible staff who only work during peak time. Furthermore, technology could be introduced to reduce queuing time like ordering online or on mobile phone and pay it directly.

Contents

1.0 Introduction        1

2.0 Service concept        2

3.0 Servicescape        3

4.0 Service delivery system        5

5.0 Service experience        6

6.0 Recommendations        7

7.0 Conclusion        8

8.0 References        8

9.0 Appendix        9

1.0 Introduction

In 1987, the first Nando’s founded in Rosettenville in Johannesburg, South Africa. By 2013, It operates about 1000 outlets in 30 countries (Brown, 2013). In 2010, Nando’s became one of the world’s top 30 hottest marketing brands (Kerwin, 2010). Expansion of the Nando’s chain in the United Kingdom was in charge by Robby Enthoven (Leigh et al., 2014).

This report will critically discuss service concept of Nando’s and describe internal and external environment. After introducing of service delivery system, the service experience in Nando’s will be mentioned. Before conclusion, the recommendation for Nando’s will be provided based on previous analysis.  

2.0 Service concept

Service concept refers to the collection of elements selling to the customer (Sasser et al., 1978), consisting of core attributes and peripheral attributes, and the mental picture of the service provided by the business (Johnston and Clark, 2008). According to Iacobucci and Ostrom (1993), core attributes mean “the core of a service is that part of the service we think of when we name the service”. Peripheral attributes can be divided into physical and interactional attributes (Chase and Stewart, 1994). Service quality and customer satisfaction are significantly associated with both core and peripheral attributes (Butcher, 2005); therefore, service concept plays an essential role in succeeding a business.

Nando’s quickly deliver flame-grilled chicken which the recipe is from South Africa with a Mozambique or Portuguese them. Nando’s not only offer chicken as a quarter, half, full or wings, with one or two regular sides, but also in a pitta or a warp, as a burger or a salad. Nando’s has a clear core product so their food cost is stable and predictable, and energy consumption is under control as they understand their necessary cost.

Their target market are middle-income class people aged between 18 to 35, particularly students. The price range of Nando’s fills the niche between the fast food and casual dining restaurant rates (Appendix A). Customers can get quick and friendly service, clean environment, South African art on the wall and big tables which customers can spread out in Nando’s. In order to increase customer satisfactions, Nando’s introduced more options available to customers such as vegetarian options and more side dishes options. Nando’s wins many returning customers as they sell unique stuff which cannot be gotten from other restaurant in the same way that it is served. Therefore, the restaurant’s profitability is positive.  

Nando’s significantly apply self-service concept so there is no service charge. They have interesting idea of serving bottomless drinks, which customers can get as much soft drinks as they want, and they are not allowed to take away from the premises of the restaurant. Customers also need to get cutlery, plates and sauces by themselves. All this moving creates a busy atmosphere for Nando’s. This service concept helps the restaurant to reduce labour cost as Nando’s could employ less staff just concentrating on cooking food, serving food and cleaning. Nando’s reduces time on observing customers, which makes them more efficient on other tasks, resulting in higher labour productivity. Everyone is multifunctional in the team which causes the low staff turnover as they feel valued in the team. However, self-service means that Nando’s cannot control the consumer behaviors, which may result in unpredictable cost.

3.0 Servicescape

Servicescape refers the environment in which delivering the service and where the business and customers interact (Solomon et al., 2006), resulting in significantly impacts on consumption experiences (e.g., Bitner 1992; Kotler, 1973; Reimer & Kuehn, 2005). Model of Environmental Responses (Figure 3.0.1) and Russell Model of Affect (Figure 3.0.2) illustrate that feelings significantly drive customer responding to service environments, which could help the business to estimate and predict customers’ responses.

Figure 3.0.1 Model of Environmental Responses

[pic 1]

Source: http://slideplayer.com/slide/7030070/

Figure 3.0.2 The Russell Model of Affect

[pic 2]

Source: http://www.slideshare.net/SQAdvisor/sq-lecture-six-crafting-the-service-environment-chapter-10-15980445

Figure 3.0.3 Layout of Nando’s

[pic 3]

Source: Own

Nando’s in Guildford is located at town centre with two levels of floors. It has open kitchen which customers can see how their meal is being prepared, and there are bigger tables upstairs (Figure 3.0.3). Till machine is next to kitchen so staff could directly make food after taking orders. Soft drink machines and cutlery are placed in obvious place so customers can easily spot them. Besides, there is a sitting area for either customers waiting for take away or waiting for seats when the restaurant is at full capacity. A proper layout can accommodate the flow of customers at any given point in time. Nando’s could control customers turnover and maximize profits based on that.