Nando's to open new restaurants across UK after slashing loss

Nando’s has unveiled plans to open new restaurants across the UK after reducing its pre-tax loss during its latest financial year.

The chain, renowned for its peri-peri chicken, intends to launch 14 sites during its current financial year, as reported by City AM.

It has already opened new establishments in Edinburgh, Newcastle, Doncaster, Taplow, Bognor, Watford, Northampton and Belfast. In the year ending February 2024, Nando’s launched 17 restaurants, with 11 of these in the UK and Ireland.

During that 12-month period, the chain’s revenue rose by 7.5 per cent to £1.37bn while its pre-tax loss was reduced from £86.2m to £50.1m. The group reported an operating profit of £59.8m for the year.

Nando’s stated its sales had exceeded pre-pandemic levels due to "strong customer demand". Rob Papps, group chief executive of Nando’s, said the economic backdrop remains "uncertain" but it is pushing forward with more investment to drive growth.

Nando’s said the latest growth plans come after a positive first quarter of its 2024-25 financial year, where it was "extremely encouraged by customer demand". However, it emphasised cost inflation has remained at "elevated levels", indicating it is still seeking to address its costs across the business.

Nando’s said it made £86.6m of capital investment over the year, as it opened more stores and refurbished a number of restaurants.

Papps stated: "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."