What Elements in the Surveys at Nandos Make it Stand Out As a Popular Fast Food Provider for Students in the UK?
Part I: Purpose of the Research
1.1 Background to the Study
Recession led to a reduction of disposable incomes across the globe. According to Wallop (2012), families were encouraged to cut down on luxurious spending with particular reference to eating meals in restaurants. The total amounts of money spend on first foods across the UK make up almost half the total amounts spend on foods outside homes. NPD as sited by Wallop (2012) asserts that 50.4 percent of all meals eaten outside homes were at quick service restaurants. The lower costs associated with eating at fast food chains relative to the costs linked with getting meals from restaurants and pubs explains the trend in the movement of people in favor of the former.
Nando’s profits significantly went up in the year ending in February 2012 when compared to the group returns during the 2010-11 financial year. According to Quinn (2012), the chain realized an annual profit of £14.7 million a growth from a loss of £7 million from its 313 outlets that include fast food and restaurants across the UK. Quinn (2012) asserts that the chain has become a popular venue for families in spite of the hard economic times following a longer recession period between 2007 and 2012.
The recent times have experienced the growth in the popularity of fast foods across the country. Quinn (2012) asserts that the demand for fast food products has been on the rise following the a decline in the disposable incomes of most households across the UK. The rise in the demand of foods offered by fast food chains across the country has resulted in the realization of high returns for some firms whereas some barely break even. Some fast food chains such as Nando’s have had to develop specialization strategies that entail focusing on their strengths with a view to growing their profitability levels both in the short term as well as in the long term periods. Nando’s has concentrated on the chicken which is its main competitive strength and an improvement in the quality of service to reap higher returns.
1.2 Rationale of the Study
Collis and Hussey (2009) argue that researchers are expected to make a careful decision with regard to the selection of a research topic. The aims and objectives that are expected to be realized at the end of a study need to be taken into consideration so as to ensure that the initial goal of the research in question is met. The research topic selected for any given study should be important in view of achieving long term results through the creation of a good understanding of the dependent and independent variables of research.
This research will be useful in two major ways; addition of new information to the existing body of knowledge and creation of a better understanding of specific elements that have gotten Nando’s profits and popularity on the up. The study will offer additional information on the performance of fast food restaurants in the UK with specific reference to Nando’s. The research will address specific elements that have helped boost the profits of Nando’s and how other firms can learn from these issues to enhance their growth in the industry. This research will therefore provide a foundation for future research in the same or related areas. This research will also act as a guideline to firms within the UK’s fast food restaurant industry on how to attract and retain customers with a view to growing their profits and popularity.
1.3 The Problem Statement
Fast food restaurants have become a global business that is preferred by most people all over the world. According to Finkelstein (1989), the preference of fast food restaurants by a greater percentage of people stems from the excitement and pleasure that they derive from them. Food consumers all over the world prefer going out to eating places that offer convenience and affordable prices. Fast food restaurants offer both convenience and affordability for people who enjoy eating out explaining their rapid growth and popularity across the globe. According to Quinn (2012), fast food restaurants are relatively cheaper when compared to other restaurants and pubs making them preferable all over the globe.
Waiting time plays an important role in improving the quality of services that is offered by players within the fast food restaurant industry. Nando’s has been working on improving the level of customer experience by improving on their waiting time. Other critical issues need to be addressed in order to sustain profitability and popularity in the long run. According to Smith and Zook (2011), proper communication mechanisms should be utilized by players within the fast food restaurant industry so as to ensure that customer feedback is incorporated in making long term customer retention policies of the concerned business entities. There is growing concern about the need to clearly address factors that have put top fast food restaurants in the UK above other participants in the same market.
1.4 Research Aims and Objectives
The main aim of this research will be to assess elements at surveys make Nando’s the most preferred fast food provider to students within the UK. The objectives that this study will want to achieve are;
(i). To evaluate particular elements that make Nando’s the most preferred fast food provider for students in the UK.
(ii). To assess the impact of each of these elements in shaping the demand of Nando’s fast foods in the UK.
Part II: Introductory Literature Review
MWEB (2013) argues that Nando’s is considered one of South Africa’s greatest international stories. Upon its acquisition in 1987 by Robert Brozin and Fenando Duarte and the subsequent change of name from Chickenland in Rosettenville, the chain had three outlets in Johannesburg within the first two years of its operation. Today, Nando’s runs over 1000 restaurants in over 30 countries across the globe with the first two British branches having been started in 1992 in Ealing and Earl’s Court in West London. According to MWEB (2013), the first two British branches mainly concentrated in takeaway foods, although a mixed service model was adopted to save the chain from collapsing.
2.2 Key Concepts and Themes
The expansion and growth of Nando’s in over 30 countries of its operation in general and the UK market in particular has been due to the high quality of service and better quality foods that are offered to the target customers. Quality foods and services have for a long time been a challenge to Nando’s and a turnaround strategy was necessary in attracting and retaining customers thereby growing the firm’s profits over time.
The quality of services that accompany food that is sold is an important issue that should be emphasized over time. Wallop (2012) states that the survival of a firm in an industry that is characterized by high competition requires prioritization of the needs and demands of the current and potential customers. In addition to food quality, a variety of options should also be availed to ensure that most customer needs are met profitably. Provision of a variety of food products by fast food restaurants coupled with superior services is the way to go for entities that want to grow their returns over time.
Communication is an important tool to consider in the course of operations of fast food restaurants across the UK. According to Wallop 2012 and Quinn (2012) state that firms within the fast food industry should utilize all communication platforms to ensure that a wider market is created through product awareness. Fast food restaurants not only in the UK but also in other parts of the world should also work on ensuring that customer care approaches are periodically improved with a view to attracting and retaining customers.
2.3 Key Empirical Studies
The Telegraph has continually continued to update its readers on the performance of the UK’s fast food industry players over the years. Comprehensive analysis of fast food restaurants across the country has not been without the mention of the top performers such as the Nandos. Some important issues that have continued to be analyzed include customer care management, food quality and service delivery. Studies today majorly concentrate on customer satisfaction and the effects on the overall performance of firms dealing in fast food industry business with more research work being expected to be conducted in the same field in the long run.
2.4 Comparing and Contrasting Existing Literature
Existing literatures on the operations of the Nandos fast food restaurant in the UK reveal a firm that has over the years been unable to break even its returns. The recent times have however witnessed a turnaround in the returns from losses to very high profit margins. According to Brown (2012),