The purpose of this study is to investigate the extent to which the strategies employed by Nandos in the recent recession have been effective. For the topic to be extensively researched, the research proposal has been split in to the following objectives. * Identifying the customer base of Nandos.
* Investigating if and how the recession affected Nandos. * Analysing strategies used by Nandos in the recession.
An investigation of Nandos’ performance since and during the recession will need to be undertaken. This would need to be compared to its performance prior to the recession in order to investigate the effect of the recession on Nandos. Firstly, the proposal will first carry out an in depth literature review to investigate relevant theories and information related to the research objectives outlined above. Building on the findings of the literature review, the research design and strategies will be formed to investigate each of the above objectives. During the course of this study, ethical and practical issues in relation to the research altogether will also be considered. Nandos founded in 1987 is a casual dining restaurant with a Portuguese theme. It originated from South Africa and is now operating in 30 countries on 5 continents. It specializes in chicken dishes with different souses such as lemon and herb, medium, hot or extra hot Peri-Peri. In some countries, they also offer other flavor options like mango and lime, lemon and herb, or Mediterranean (Nandos 2009, p.4) The restaurant began in 1987 when Robert Brozin and Fernando Duarte bought a restaurant called “Chickenland” in Rosettenville, Southern Johannesburg. They renamed the restaurant Nandos after Duarte. The restaurant incorporated influences from former Portuguese colonists from Mozambique, many of whom had settled on the south-eastern side of Johannesburg, after their homeland’s independence in 1975. (Nandos 2009, p.4) Nandos is famous for its flame-grilled Peri-Peri chicken which is served either in quarters, halves and wholes. It also serves burgers, pitas, salads, wings and wraps. In some countries, Nandos sells chicken livers, Espetada and the Cataplana. (Nandos 2009, p.2) Nandos also manufactures a range of sauces which are sold in Nandos restaurants and in supermarkets. These include Peri-Peri sauces, marinades, cooking sauces and a Peri-Peri Essence. (Nandos 2009, p.2) In 1992 Nandos entered the United Kingdom’s restaurant industry with its first restaurant in Ealing, London and now is operating with its several branches around UK. In 2009 Nandos UK was awarded Three Stars in the Best Companies Annual Accreditation Awards becoming the only entrant in the large companies’ category to achieve the three star rating. (Harmer, 2010)
According to Edwards (2010) customer base of an organisation includes all the customers that organisation servers. One of the most important ways to establish a successful business is to build a solid base of customers who stick with the business through thick and thin. A solid customer base becomes the foundation on which a business grows. Business Cycle
Business Cycle is defined as a cycle of series of different phases of contraction and expansion of real GDP. A complete business cycle consists of five different phases and every country has to go through each phase in order to achieve its peak. A complete business cycle from peak to peak is shown in the graph below. (Arnold 2008, p.151)
. (Arnold 2008, p.151)
Phases of The Business Cycle
There are five different phases of a business cycle which include the peak, contraction, though, recovery and expansion. (Arnold 2008, p.151) A complete business cycle is measured from peak to peak. Peak – at the peak of the business cycle real GDP is temporary high. (Arnold 2008, p.151) Contraction – this phase represents the decline in the real GDP. This phase is known as the recession phase. (Arnold 2008, p.151)...