A Brief History of Nando’s
Where is Nando’s from? The story of Nando’s begins in 1987 when two young friends, Fer nando Duarte and Robbie Brozin, sat down to lunch at a local Portuguese corner store in the south of Joburg and tasted a Portuguese chicken prego dish that combined Mozambique's famous peri-peri sauce (featuring the African Bird’s Eye Chilli) that simply blew them away.
At a crossroads in their lives, the pair offered to buy the recipe and soon after opened their first Afro-Portuguese inspired restaurant in Rosettenville. At around the time of opening their third restaurant in Joburg, they were approached by Dick Enthoven (owner of Hollard Insurance and Spier Wine Farm) who had likewise tasted ‘the sauce’ and he wanted in. Dick offered to buy the rights to sell Nando’s in the UK, setting up his son Robby with restaurants in the west London suburbs of Ealing and Earls Court.
Back in South Africa Nando’s was consistently able to punch above its weight thanks to its tongue-in-cheek, satirical ad campaigns that made light of the New South Africa in a way that simultaneously appealed to homesick South Africans now living in London.
The company’s roots remain firmly planted in Johannesburg, where their original “Central Kitchen” (CK) in Lorentzville now plays a pivotal role as their Head Office, where they oversee 300 Nando’s restaurants in South Africa. Globally, there are over 1200 restaurants in more than 30 countries.
How Much Does It Cost to Open a Nando’s Franchise?
How much is a Nando’s franchise in South Africa? Opening a Nando’s franchise requires significant financial preparation, starting with an application fee of R37 500. There are stringent background requirements too, with the franchisee expected to be an owner-operator (i.e. to get their hands dirty).
Nando’s franchising costs include a R250 000 franchising fee to operate under the Nando’s name, which includes such things as owner and staff training, site selection, and launch assistance. For establishment costs, expect a traditional restaurant to cost around R5.5 million, whereas a drive-thru model will set you back around R7 million!
Franchisees must contribute a minimum of 50% of the total investment as unencumbered cash. VAT is payable upfront but can later be claimed back from SARS.Not ‘cheap cheap’ , as the chickens might crow. Other, more affordable franchise opportunities in South Africa do exist if a Nando’s career seems too rich for your blood.
Is Owning a Nando’s Franchise Profitable?
Profitability depends on various factors, including location, management quality, and market conditions. While Nando’s doesn’t publicly disclose earnings, franchisees who manage their businesses effectively and follow the brand’s operational standards typically see a return on investment within a few years.
With Nando’s strong brand recognition, consistent customer base, and unique positioning in the market, franchisees benefit from steady demand. However, success requires dedication, effective marketing, and operational excellence.
What Training and Support Does Nando’s Provide?
Nando’s ensures its franchisees are well-equipped to run a successful business. Key areas of support include:
- Comprehensive Training: New franchisees receive thorough training covering food preparation, customer service, and business operations. This includes practical experience at existing restaurants.
- Marketing Assistance: Franchisees contribute 5% of their net sales to a national advertising fund, which drives brand awareness through impactful marketing campaigns. Local marketing strategies are also supported.
- Operational Support: Consultants provide ongoing guidance, ensuring franchisees meet the brand’s standards and improve efficiency.
- Supplier Network: The Central Kitchen in Lorentzville guarantees access to high-quality ingredients and signature sauces.
Steps to Becoming a Nando’s Franchisee
Here’s what the journey looks like:
- Submit an Application: Complete an online application on the Nando’s website, specifying your preferred location and providing financial details. Here you will also find a list of existing Nando’s franchises for sale .
- Assessment Process: This involves psychometric testing, interviews, and in-store assessments to evaluate your suitability as a franchisee. The application fee of R37 500 is payable at this stage.
- Approval: Successful candidates are offered a franchise, pending legal agreements and financial arrangements.
- Training and Setup: Franchisees undergo training and work closely with Nando’s to design and equip their restaurant.
- Grand Opening: Once everything is ready, your Nando’s restaurant opens its doors to the public! Bem vindo a casa! Welcome home! …is what you’ll soon be saying to your returning customers.
Challenges of Owning a Nando’s Franchise
While the Nando’s brand offers numerous advantages, franchisees should be aware of potential challenges:
- High Initial Costs: With setup costs ranging from R5.7 million to R6.9 million (excluding VAT), opening a Nando’s franchise requires significant capital.
- Stringent Brand Guidelines: Franchisees must adhere to strict operational and design standards, which limits flexibility but ensures brand consistency.
- Competitive Market: South Africa’s fast-food industry is highly competitive, with rivals like KFC, Chicken Licken, Hungry Lion, and Pedros… to name just a few! Franchisees need to differentiate their outlets through excellent service and local marketing initiatives such as community outreach.
Why Choose Nando’s?
Nando’s isn’t just a restaurant—it’s a brand with a uniquely South African story. Its commitment to quality, creativity, and community makes it a standout choice for franchisees who share its values.
Nando’s is increasingly eco-conscious too, with a forward-thinking approach to sustainability and a reduction of their carbon footprint that includes an impressive vegan and meat alternative menu along with a range of recycled packaging (PrimePak Unbleached PPU) that stands up to the rigors of food that needs to be delivered and eaten on the go, Mzansi style.
Investing in a 5G rollout across all their restaurants for improved franchisee (and customer) communication, along with a sleek Nando’s ordering app has seen Nando’s break into the Top 5 of Africa’s most valuable brands .
When considering whether a Nando’s franchise for sale is your next smart double-click, know that connection and community are as much a part of the secret recipe as their patented pERI-pERI sauce.
From the art-adorned walls of its restaurants all over the globe to the bustling Central Kitchen in Lorentzville, Nando’s offers franchisees a unique opportunity to be part of something bigger than a business— it’s a people-inspired ethos.
Final Thoughts
Becoming a Nando’s franchisee is a significant commitment, both financially and operationally. It’s not a passive investment but a hands-on journey requiring hard work and dedication. For those passionate about flame-grilled peri-peri chicken, creativity, and community, joining the Nando’s family offers a unique and rewarding experience.
However, owning a Nando’s isn’t the only path to entrepreneurship. If the setup costs feel out of reach or you’re curious about other opportunities, there’s an entire world of franchise possibilities out there. From coffee shops to cleaning services, fast food to fitness centers, the right franchise can align with your passions, skills, and budget.