Yahoo News Nando's ramps up UK opening plans as sales return to pre-pandemic levels
Popular restaurant chain Nando's has announced it will ramp up the opening of new outlets following a year of strong sales that exceeded pre-pandemic figures, driven by "strong customer demand".
Despite facing a "challenging" cost environment, Nando's managed to reduce its losses, as detailed in the full accounts for the last financial period. Group CEO Rob Papps expressed that while the economic climate is "uncertain", their focus is on further investments to fuel growth.
This entails opening multiple new restaurants in the coming financial year, which includes 14 across the UK, some of which have already welcomed customers in locations like Edinburgh, Newcastle, Doncaster, Taplow, Bognor, Watford, Northampton, and Belfast.
READ MORE: PSG make dramatic stadium admission as Newcastle United learn staggering €153m PSR truth
During the year ending in February 2024, the eatery brand launched 17 establishments, with 11 in the UK and Ireland. The company's optimism is also bolstered by solid customer demand observed in the first quarter of the 2024-25 financial cycle.
However, Nando's underscored ongoing challenges due to persistent cost inflation, emphasizing efforts to manage expenses throughout its operations. The latest financial reports showcased a revenue increase of 7.5% to £1.37 billion compared to the previous year, with capital investments totalling £86.6 million primarily channelled into new openings and refurbishment of their dining spots.
The accounts have revealed that Nando's slashed its pre-tax losses to £50.1 million for the year, down from a loss of £86.2 million the previous year. Nevertheless, the group has reported an operating profit of £59.8 million for the year.
Mr Papps commented: "The 2024 financial year saw Nando’s deliver a good sales performance and a return to pre-pandemic levels of operating profit driven by robust consumer demand for our flame-grilled peri-peri chicken supported by our strong brand and customer proposition."
He added, "Despite the improved sales performance, ongoing cost pressure with energy, labour and food remained very challenging."
