Nandos

Case 18

Nando’s International: Taking chicken to the world

Re-printed with the kind permission of De Wits Business School

Late in the day of 27 April 1997, Robert Brozin, chairman and chief executive officer of Nando’s International, reflected with satisfaction on the successful listing of Nando’s South Africa on the Johannesburg Stock Exchange (JSE). One rationale for the listing had been to insulate Nando’s flourishing South African operations from the capital costs and losses that could follow from the restructuring and planned expansion of Nando’s international operations. Brozin’s international management team was confident that the global infrastructure and the strategic policies that had been developed would allow countries in which Nando’s conducted business to reach ‘critical mass’ by the year 2000. Beyond 2000, international growth and profitability were expected to increase exponentially. Nando’s had been growing rapidly and performing well in its home market. The benefits of reaching critical mass in South Africa were beginning be felt. In February 1997, the turnover of the South African operation had reached R 218 million (In April 1997, US$1 ¼ R 4.44), and the 1995 loss had turned into a net income of almost R 9 million (see Exhibit 1). Brozin believed that Nando’s success in South Africa was based on their strong culture and the skills developed over the past ten years. He pondered: Will we be able to transfer our corporate

culture and high level of skills worldwide, or would we be better off focusing our efforts at home? Have we chosen the right countries to enter? Can we find the right partners and the finance to achieve our global vision?

Origins and expansion in South Africa

Brozin, B.Com (Wits), was the entrepreneur who created the Nando’s concept. His staff saw in him a highly creative visionary who enjoyed working with people. His management style and personality reflected a passion and enthusiasm for all aspects of the business....