Precision-based advertising, food influencers & frequent menu tweaks are major ingredients in Nando’s expansion recipe

Nando’s India means different things to Indian consumers. Some remember seeing it in Mumbai before it vanished. Some believe it is a condiment brand. A few know it from TV shows as a place for chicken. And a good portion of people in Delhi and Chandigarh do not understand such opinions of Nando’s.

In reality, all of these perceptions are true.

Born in South Africa, Nando’s is a restaurant chain famed for its flame-grilled peri-peri chicken and it serves items like wraps, burgers, salads, and desserts. However, it is not a quick-service restaurant, according to its India head of marketing, Anushree Bose.

It is an “affordable yet premium dining option” that entered India in 2006 with a franchise model and had about 20-odd Casas (its term for restaurants) before it left the country in 2008.

“We realized it was a compromise on how our stores were run, the quality, the service…” says Bose. Nando’s returned to India in 2012 and now owns all 11 Casas operated in Delhi, Chandigarh, and Bangalore.

In June 2024, the brand announced a partnership with K Hospitality Corp and they plan to open as many as 150 restaurants in new cities over the next decade. The first stop is Hyderabad, followed by a return to Mumbai where Nando's had franchisee outlets between 2006-08.

Due to its size, the brand relies heavily on “precision-driven advertising,” with influencers taking up 40% of its digital budget. Bose also discusses why the brand doesn’t have any screens in its Casas, why she’s not overly concerned about competition, and how she views influencer marketing for the restaurant business.

Edited Excerpts:

Why is there a lack of mass advertising from Nando’s?

We are not a pan-India brand like KFC or McDonald’s, which count their stores in the 500s, or Domino’s, which has over a thousand outlets. Once we have around 50 stores, then we will be able to justify that kind of investment.

As of today, we are able to define a target group (TG) based on geography, so we choose mediums that offer precision-based advertising.

What kind of people consume your offerings?

We position ourselves as an affordable yet premium dining option, and our target audience consists of young adults, millennials, and their families. At the same time, we remain an aspirational brand for Quick Service Restaurant (QSR) goers. Our menu is quite competitive compared to the likes of KFC and McDonald’s.

Along with foreign QSRs, homegrown restaurants are your rivals too; say your famed flame-grilled peri peri chicken versus butter chicken.

Regarding competition from the unorganised segment, we differentiate our product and brand on several parameters.

Number one is our core product—flame-grilled peri peri chicken. You can compare it with roasted chicken or kebabs, but it is not exactly the same. It is not widely offered by our competition, and its cooking style and flavour are what bring in the customers.

Second, we maintain high standards in quality and consistency in food preparation, which is probably a major reason why we have a robust, loyal customer base.

We also strongly emphasise our overall dining experience, starting with the Casa ambience. The music in the background is very unique; the moment you enter Nando’s, you’ll know it has links to South Africa.

And we frequently update our menu with many limited-time offerings. If you visit Nando's today and then return after two or three months, you will find something new, whether in the appetizers, main course, or desserts. Product development is our strong suit.

You say Nando’s sees a lot of repeat consumers with its loyalty program. How does that work?

We don't really market it; our service team makes sure customers are informed about the loyalty program when they pay the bill.

We give out points in terms of chillies. You earn one chilli for registering, another for dining, and if you have a minimum of three chillies, you get a free item.

You mentioned precision marketing to get people into the Casa. So, what is your go-to platform?

Our media mix is heavily skewed towards social media and digital advertising. Social media helps us propagate word of mouth with testimonials and influencer content. Digital advertising is important when targeting specific demographics.

We are not big spenders on traditional offline channels like outdoor, print, or TV ads. However, we have seen a positive impact from radio advertisements, but they are regional and city-specific as well.

Additionally, there is local restaurant marketing (LRM), where we spend a decent amount. All our outlets are inside malls or on high streets. So, LRM helps us ensure our adverts and marketing are visible in these areas through in-store promotions and near cinemas, leading to conversions.

Coming to influencers, especially food influencers, how do you rate them now versus three to four years ago?

There are different kinds of food influencers. Some only focus on beverages, and a few only on health drinks. Then there are food influencers who cover local street food stalls, and those who focus solely on restaurant food blogging.

For a brand, it is very important to focus not just on the influencer but also on who follows the influencer. Another crucial point is the engagement rate of these influencers. Why? Because the more they engage, the more authentic they are towards their followers. They are willing to talk to them and tell them about the brand, and their followers are genuinely interested in their content.

With influencers also comes the question of brand safety. How do you manage it?

It is an occupational hazard, and brands take it with a pinch of salt because you cannot get everybody to say nice things about you.

There is nothing to manage. As a brand, we have always given influencers the freedom to create their content and voice their views about the brand. Yes, there are some tenets we try to ensure they cover. For example, the brand history—we want everyone to know where Nando’s came from because it helps with brand awareness.

Then it’s about the whole product. People want to know what exactly Nando’s is. So, there are two or three things we wish to see in influencers’ content. But in terms of their creative output, they have complete freedom.

How are you preparing for the festive season?

We believe in localising our content and picking up events and festivals relevant to the market. In India, we focus on major events like Diwali, Holi, New Year, and Christmas. However, we associate more closely with those events that align with the brand's personality.

For example, we may not go all out with a Valentine's Day campaign. But for something like International Beer Day, we would obviously do something around it because beer and chicken go hand in hand.

Do you offer screenings at your Casa?

We want people to enjoy the food, the ambience, and just, you know, relax. So, by design, our Casas, globally, do not have screens or big televisions. We associate with such events through promotions online and/or on Zomato or Swiggy, or maybe a campaign on social media.

Delivery, of course, plays a big part. How much do you market on apps like Zomato and Swiggy?

Nando's is primarily a dine-in restaurant.

Almost 70% to 75% of our revenue comes from dine-in and the rest from delivery. Naturally, my marketing budget is split according to these proportions.

However, promoting the brand on these two apps is important. We are quite competitive there and ensure optimal visibility of the brand through Cost-Per-Click (CPC), banner ads, or restaurant ads.