COMPANY ANALYSIS

Nando’s The Shore Melaka

PRINCIPLES OF ENTREPRENEURSHIP (ENT530): CASE STUDY

FACULTY & PROGRAMME :BA242 - BACHELOR OF BUSINESS
ADMINISTRATION (HONS.) FINANCE
SEMESTER : 4
PROJECT TITLE : CASE STUDY OF NANDO’S THE SHORE

GROUP MEMBERS

NO NAME NO. MATRIX

1 MUHAMMAD AZRUL KHAIR 2017769355
BIN MUHAMMAD FUAD
2 MUHAMAD AFIQUE FARHAN BIN ROSLAN 2017769355
3 NORRUL HIDAYAH BINTI ZULKIFLY 2017302675
4

LECTURER : MADAM RAHAYU BINTI HASAN

TABLE OF CONTENT

PAGE
TITLE PAGE i

AKNOWLEDGEMENT ii

TABLE OF CONTENT iii

LIST OF FIGURES iv

LIST OF TABLES v

EXECUTIVE SUMMARY vi

1. INTRODUCTION

2. COMPANY INFORMATION

3. COMPANY ANALYSIS

4. FINDINGS AND DISCUSSION

5. CONCLUSION

6. RECOMMENDATION AND IMPROVEMENT

7. REFERENCES

8. APPENDICES

ACKNOWLEDGMENT

We would like to express our deepest appreciation to all those who provided us the
possibility to complete this report.  A special gratitude we give to our lecturer, Madam
Rahayu, whose contribution in stimulating suggestions and encouragement, helped us to
coordinate my project especially in writing this report.

Moreover, we would like to acknowledge with much appreciation the crucial role in
this case study, Mr. Firwan, who has spent some time for us to having interview session
about NANDO’S THE SHORE, and also the permission for us to carry out case study
regarding problems or challenges faced by this business in operating its services to the
customer and managed to come out with several solutions or recommendations.

Many people, especially our classmates and team members itself, have made valuable
comment suggestions on this proposal which gave us an inspiration to improve our
assignment. We thank all the people for their help directly and indirectly to complete our
assignment.
 EXECUTIVE SUMMARY

This report provides a case study about one of the Small and Medium Enterprise
(SME) in Bandaraya Melaka which is Nando’s The Shore Melaka that provide food services.
Based on the study made on this SME, Nando’s The Shore has operated their business since
the year 2013 and has faced many challenges or problems to maintain their business
throughout the year until now. In this study, we managed to identify some challenges or
problems faced by Nando’s The Shore and come out with several solutions and
recommendations.

This report also provides information about how Nando’s The Shore operates its
business through some excellence strategies and strength like business, marketing and
operation strategy. For instance, through sales promotion, good facility, strategic location,
promote through media socials and many more.

As conclusion, this report provides information of a case study conducted on Nando’s

The Shore as a whole about the background of the business, how it operates, product/services
provided, problems/challenges and suggestion or recommendations on findings and so on.
 INTRODUCTION

Background of Study

Nando’s is an Afro-Portuguese chain restaurant serving flame-grilled chicken in spicy

chilli sauce. Nando’s is originated from South Africa. The brand was founded in 1987 in
Johannesburg. Nando’s has been established in Malaysia since 1998. As of February 2019,
there were 76 restaurants operating throughout the country. They also planning to operate 100
locations with about 2000 employees within 4-5 years. Most of the restaurants are located in
Kuala Lumpur and the subject of the study is their one restaurant in The Shore, Melaka.

Nando’s is in the foods & beverages industry. So far in 2019, the revenue generated
from the industry is approximately US$268 million. This shows the importance of the
industry in increasing the Gross Domestic Product (GDP) of the country.

Problem Statement

There are several problems faced by Nando’s The Shore that run a grilled chicken-
based restaurant. The problems faced by Nando’s are as below.

Firstly, the target market. Running a restaurant, in a historical city is very challenging
as the number of customers are seasonal. They did not come often.

Secondly, the limited storage spaces. Restaurants needed enough spaces to store raw
materials in attempt to avoid shortage in operation especially during peak hours.

Third problem is coming from the staffs itself. This is controllable but it still very
important to overcome as the target is to minimize the problems and maximize the quality.

Fourthly, the location of the restaurant. As far as we concerned, the restaurant is

located in a hotel building, there were many problems arises.

Lastly, the customers. Customers are an external element yet very important. The
problems that arises from the customers are unpredictable and uncontrollable.
 Purpose of Study

The purpose of this case study is that we want to know more about foods & beverages
industry in Malaysia. By doing this research, we will get to know the growth of the company
in terms of their financial, how the company operates and many more. This also can lead us
to know further about entrepreneurship. The main objective is to structure and model the
success dimensions that contribute to and can be used in evaluating the business development
success in foods & beverages industry. In addition, we could learn valuable experiences from
the company’s failures and through failures we will avoid the same mistakes and it will help
us to learn faster.
 COMPANY INFORMATION

2.1 Background

Nando’s The Shore was started their operation on May 2015 by Sir Firwan as Patrao
with the other 2 assistants and 25 staffs at Lot GF-21, Ground Floor, The Shore Shopping
Gallery, No. 193, Pinggiran @ Sungai Melaka, Jalan Persisiran Bunga Raya, Melaka 75100.
The business hour for Nando’s The Shore start from 10 am until 10 pm on every Monday to
Sunday. Nando’s The Shore mission is to be best chain in the world by offering a world class
chicken experience at affordable prices with consistent quality, value and commitment to its
customer base meanwhile their vision is to be the premier provider of chicken to our
customers with superior product and outstanding services. After 4 years Nando’s The Shore
operated, they just have only 13 staffs altogether.

Nando’s is a casual dining restaurant group originating from South Africa with a
Portuguese/Mozambican theme. Nandos specializes in chicken dishes with either lemon or
herb, medium, hot or extra hot Peri-Peri marinades it called as Peri-ometer. Peri-Peri is the
Mozambican name for the African Birds-Eye Chili and it mixed with fresh herbs and spices
to make an unique bastes. This small reddish orange member of the Copsicum family is
known as the spice of fire. Even though they are spice but they are rich in vitamin A and C
which help the digestion of the food. Their fresh chicken is marinated in Peri-Peri for 24
hours. Nandos are trying to focus on chicken as a main strength as well as increasing the
service quality. In addition, they also provide a service of delivering their food to the
customer’s place as soon as possible.
2.2 Organizational Structure
2.3 Products
 2.4 Business, marketing, operational strategy

2.4.1 Business Strategy

The Strength of the Nando’s The Shore

a) Good Facility

Positive customer experience is the key of achievement for Nando’s The Shore
because 60 percent of customers reported that a positive restaurant experiment would cause
them to dine in more frequently, 39 percent said a good experience causes them to spend
more at the restaurant and 41 percent said they will recommend the restaurants at which they
have a good experience to friends and family. Like many other businesses, the restaurant’s
atmosphere may be a factors that influenced the customers including to the cleanliness,
temperature, lightning and other important environmental factors such as calmness. Nando’s
The Shore will make sure that the air-conditioning is not too cold, the floors must be clean
and the lights not really flickering. Nando’s The Shore also provide with a Wi-Fi Internet
access as a necessary and it increase the length of time customer spend in the restaurant. This
is an opportunity to upsell such as offering them menu of fire-starter or dessert.

b) Strategic Location

Nando’s The Shore is a strategic location because it sitting right at the heart of the
historical city of Melaka. The Shore Hotel and Residences is the ideal place to experience the
wonders of the city. Meanwhile, The Shore also near to Sungai Melaka and The Shore Sky
Tower, so usually the people who stay in that hotel mostly are from tourist either foreigner or
local people.
 2.4.2 Marketing Strategy

1) Sales Promotion

Sales promotion is a tried and true way to increase your sales, acquire new
customers and take advantage of seasonal opportunities. Sales promotion is a short-term
marketing. For example, Nandos is having its “Buy 3 Free 1 Promotion”. Customer just have
to present the flyer above on your mobile or printout upon ordering to enjoy free set of
quarter chicken with 2 sides dishes when you make purchases of another 3 sets of it.

Next, Nando’s The Shore also do a tester to the people around The Shore
Hotel and Residence as to introduce the new menu to the customer. Moreover, Nando’s The
Shore also distribute a voucher when to the event nearby River Cruise Melaka to attract more
people to come to dine at Nandos The Shore.

2) Nando’s Membership

Nando’s Membership is a loyalty programme with guaranteed returns.

Customer just have to eat chickens and collect Chillies. Customer may only collect 1 Chilli
per day with minimum spend of RM 30. Every time the customer collect 3 chillies, they can
earn quarter chicken as a reward. 6 chillies can earn half chicken and 9 chillies can earn
whole chicken.

2.4.3 Operational Strategy

Stock

Nando’s The Shore is really concern about the quality of their food. They will restock
their chicken for everyday meanwhile for other stock on every Tuesday. Nando's The Shore
promise to give the customer excellent flavour and quality to maintain their image. If
customers became dissatisfied service or quality of the food served in the Nando’s restaurant,
they might decide to eat somewhere else. Customer satisfaction is directly tied to the quality
of the goods and the service which is offered in a Nando’s The Shore restaurant.
 2.5 Financial achievements

Nando’s The Shore had achieved to receive between RM 100 000 to RM 110
000 as their monthly sales. However, they have other expenses such monthly rental RM 10
000, utilities bill RM 6 000, stock is around 30% from sales, maintenance is 1.5% from sales
and labour around 15% to 20 % from sales.
COMPANY ANALYSIS
1. Key partners

Healthy partnerships are crucial as they contribute to the success or failure of a

business. In the case of Nando’s The Shore, it is a franchise registered under Nando’s
Chickenland Malaysia Sdn Bhd. The company has its own factory and warehouse to
supply goods to the franchise outlets throughout Malaysia. The price, menus,
equipment are decided by the main company. The Shore Shopping Gallery Mall is
one important key partner of Nando’s The Shore. It is where the restaurant is located
and they need to pay rental cost there. In order to implement the new information
system (IS), Nando’s build a strong alliance with a reputable IT company in order to
get its supply of good quality mobile Apps and Website such as Google Play Store
and Apple App Store.

2. Key activities

Nando’s The Shore is produce and serves food. As mention in key partners, all
Nando’s franchise need to follow the menus decides by the main company. The
restaurant will only produce and serve what that have been decided, and do promotion
for the menu. Meanwhile, for the Nando’s The Shore recruitment activities, they
provide career opportunities to those in need of employment. They offered a lot of job
for part time workers especially university students.

3. Key resources

The resources can be grouped into 3 main categories which are, physical, human, and
technological and IT resources. Currently, the physical resources that Nando’s The
Shore has are its own storage facilities, machines, buildings, and most importantly its
raw materials. The workers are needed for the manufacturing products whilst its
marketing need to ensure that Nando’s products are being advertised and promoted
effectively. In terms of technological and IT resources, Nando’s The Shore has a
website and mobile Apps which customers can easily browse to search for menus and
place orders for deliveries. Additionally, Nando’s social media pages have also been
set up in order to attract and inform the local community of the latest events
happening at Nando’s.
4. Value proposition

In simple terms, a value proposition describes the reasons why some customers would
choose one product in the market over others. What sets Nando’s apart from other
restaurants of the same market segment?

Firstly, Nando’s have high taste and quality of food, they famous for its unique PERi-
PERi flame-grilled chicken. The tenderness of the meat captures the hearts of its
customers. Nando’s also manufactures its own special sauce that comes in various
levels of spiciness to suit each individual’s taste bud. The unique taste introduced by
Nando’s brings a whole new level to the poultry food industry, attracting both new
customers and loyal long-time customers.

To further enhance value, Nando’s has also come up with a loyalty card system to
reward its loyal customers. A customer who has this card will have his or her
information, including his or her food preference, collected and stored in a data base.
Customers can also collect points with this card and will get a free meal once a certain
number of points are collected. This is one of the initiatives taken by Nando’s to show
its appreciation towards its loyal customers. Customer can register to be member at
Nando’s Website.

In addition, customers are also often attracted and inspired by the design of Nando’s
restaurants. The concept and design of the outlets are simple yet elegant. Natural
elements are incorporated where the choice of furniture resembles materials found in
the natural environment. This contributes towards the creation of a comfortable,
earthy and cozy environment for Nando’s customers.

In terms of price, an average meal at Nando’s would typically fall within the range of
RM20-RM50. This can still be considered reasonable, considering the fair portion of
the meal, the taste and quality of the food, as well as the comfortable ambiance
experienced by customers who dine at the Nando’s outlets.
5. Relationship

Through a loyalty program, Nando’s customers can earn points for every Ringgit
which they spend in Nando’s restaurant and they can turn those collected points into
food. A loyalty program can increase value for lifetime customers, which is
recognized as one of the important measures of the worth of a customer. As example
“Let Us Belanja You” event, Nando’s provide surprise voucher and free soup towards
their customers. Besides, building a relationship with customers lead to improved
behavioral loyalty and will increase bottom-line profit. This program will attract new
customers and turn them into loyal customers who will tend to buy more and be
willing to pay more. Nando’s also make event according to the season and holiday, as
example #NandosExtraHuat event for celebrating Chinese New Year by giving out
voucher in ang poa.

6. Channels

Nando’s The Shore has four channels. First their own restaurant located at ground
floor of The Shore Hotel and Mall for walk-in customer and reservations. Next,
customer can easily download mobile App, Nando’s Malaysia App at Apple App
Store and Google Play Store to access everything about Nando’s. Moreover, customer
can follow the event happen by following the social media like Instagram, Facebook
and Twitter which is @NandosMY. Lastly, for further information customer can
search the website www.nandos.com.my.

7. Customer segment

Nando’s is located in The Shore Hotel and Mall, the market segment is more towards
walk-in customer who is the local who came to shopping, the students, family, the
staff who working near there and etc. Tourist also the most of Nando’s The Shore
customer because of the hotel.
8. Cost structure

Cost will always remain a major concern for all businesses. One of the costs incurred
by Nando’s in the running of its operations is labor cost. Labor cost includes salaries,
wages, benefits, and service commissions. It cans also include miscellaneous smaller
items such as the cost of providing employees with uniforms. For most restaurants,
labor costs are considered as a variable item. Restaurant managers at each of Nando’s
outlets have to carefully predict their manpower needs so that they will not make the
mistake of hiring too few or too many employees.

Meanwhile, administration costs incurred at Nando’s include expenses for telephone

charges, electricity, and water. Occupancy expenses is a category of cost which
includes all the expenses related to the restaurant's physical building, for example,
transportation used by Nando’s workers to deliver their products to customers. Its
marketing expenses cover the cost for all promotional and marketing activities
conducted to entice customers to come and eat in the restaurant, such as advertisement
costs and investment in the design and printing of high quality food menus. Product
expenses, manager needs to careful in ordering raw materials to make sure there no
waste.

9. Revenue streams

The term ‘revenue stream’ refers to the earnings of a business, calculated by

subtracting the total cost from the total revenue generated from each customer
segment. If customers are generally regarded as the heart of the business, revenue can
be likened to the arteries in the heart. The revenue stream for Nando’s is focusing on
high sales.
 4. FINDINGS AND DISCUSSION

4.1 Problems and Solutions

1. Target Market

Target market is a particular group of customers at which a product or service is

aimed. Target marketing involves breaking a market into segments and then
concentrating your marketing efforts on one or a few key segments consisting of the
customers whose needs and desires most closely match your product or service
offerings. It can be the key to attracting new business, increasing your sales and
making your business a success.

The beauty of target marketing is that by aiming your marketing efforts at specific
groups of consumers it makes the promotion, pricing, and distribution of your
products and services easier and more cost-effective. It provides a focus to all of your
marketing activities.

For Nando’s The Shore, they are located in a hotel building, so they are most
probably depending on the hotel guests as their target market. It is actually a good
strategy as the guests are most likely to come to their store. However, this will cost
the company during weekdays. These people will usually come only during weekends
and public holidays. During weekdays, there is a very few people who will come to
eat there as they are not staying at the hotel. Only regular customers will aware the
existence of Nando’s at The Shore.

Moreover, besides the hotel guests, Nando’s The Shore also targeting the students
nearby such as students from UiTM, KPM, UTeM, MiCoST, and other institutions
that are reachable. However, these students cannot afford to come regularly as we all
know that the pricing at Nando’s are quite high. They can only come maybe once a
month. Meaning that most of the time, Nando’s are not really busy and their sales
target are also not achieved.

Customers are the key element for a business in deciding their survival in the
industry. By not having quite a number of customers regularly, this will affect the
income of the business thus will affect them in the long run.
Solutions:

i. Wider the market segment.

Nando’s The Shore must have more market segment besides the hotel guests and
students only. They have to spread out the news of their existence through
advertisements. They have to target the tourists who come to Melaka, not only the
people that are staying at the hotel but also the people who are staying nearby.
Moreover, they also should aware that Melaka is always packed with tourists every
weekend, so they must grab the chances to attract more people by increasing their
marketing. They also can advertise their store through billboards that are available
throughout Melaka city. They also should make use of the social media. Nowadays,
the people are with their smartphone most of the time. By advertising their brand
through social media, it will increase the number of customers eventually. Hence,
people will aware the existence of Nando’s at The Shore and they will come to enjoy
meals offered there.

ii. New product.

Nando’s also can introduce new products that are actually attractive enough to
increase the number of customers. By introducing new product, people will eager to
give a try, at least once. Moreover, the product must be suiting the Malaysian taste.
The Malaysian loves foods. Almost every new food will be tasted by them. Recently,
they have actually introduced a new product named ‘Chicken Salsa Bowl’. It is a
juicy chicken tenders with a unique mix of colourful Salsa on a delicious bed of
Mediterranean Rice. It is actually a good product by Nando’s. They are actually doing
well since the launching of the ‘Chicken Salsa Bowl’.
STORAGE

Storage is an important component in foods & beverages industry. Bad storage

conditions and procedures have an adverse effect on the standard of food and drinks
sold. Food items are kept in various types of storage which are dry stores, vegetables
stores, dairy stores, and meat boxes and freezers.

For Nando’s The Shore, they have very limited space for storing the raw materials.
Sometimes, during peak hours, where the number of customers is high, they may face
the problems of not having enough stocks for certain menu. They then by hook or by
crook must ask the customer to order other dishes. This will give bad reputation to the
business where the customer services are not good.

Moreover, by having limited storing spaces, the number of stocks turnover might be
high. Most people think this is very good, however it is not always good. High
turnover of stocks may be led to a high number of sales, but it somehow may give
negative effects on the customer services. Besides that, most of the raw materials are
imported directly from South Africa, the cost of transportation is very high for sure.
Business wanted to keep their customer happy and wanted to keep the loyalty of the
customers. Hence, this is not very good.

This problem also will affect the smoothness of the business. For example, if the
frequency of stock arrival is high, this means that the staffs have to reduce the pace of
the operation to handle the process of topping up the stocks. It may take some time
and again, the delivery time of products to the customers will be longer than the usual
time.
 Solutions:

i. Nando’s The Shore should work on increasing the number of storage spaces. This will
help them in increasing the effectiveness of the operations. By having large spaces,
they can prevent the problem of not having enough stocks during peak hours. This
will improve their customer services rating. The customers will not face the problems
of delay in delivery. Moreover, by having large storage, Nando’s will reduce the
transportation cost of their raw materials. If they often receive stocks from their
supplier, they will have to incur higher costs for the transportation. If they have more
spaces, the unused costs can be used for other expenses such as maintenance and
other stuffs.

ii. On the other hand, Nando’s can apply the JIT concept. JIT means just-in-time where
the stocks are not kept for longer time. By doing so, the stocks are always fresh by the
time of delivery. Customers will love to come again for the freshness offered.
Moreover, the value of Nando’s will be increasing. In addition, they do not have to
increase the spaces that will incur higher cost of installations. This concept is very
good because the raw materials most likely will be prevented from damages. This will
save the cost of ordering new and fresh stocks.
2. Insufficient Staff (Waiters)

Waiters are those who work at a restaurant or bar. They attending customers and
supplying them with food and drinks as requested. A server or waiter takes on a very
important role in a restaurant which is to always be attentive and accommodating to the
customers. Each waiter must follow rules and guidelines that are developed by the
manager. For example, Nandos The Shore has provide a specific uniform for their staff to
wear for every time they work. Patrao and Buddy Trainer will trained their staff to
provide good customer service, learn food menus and drinks and maintain a neat and tidy
appearance.

In Nando’s The Shore, they have 7 different stations such as Hostess, Cashier, Service,
Front Griller, Back Griller, Kitchen and Coordinator. They just have only 13 staffs
altogether including full-time and part-time staff of every station. All of the stations play
the important roles to give the efficient and effective to give the best service to the
customers. Insufficient staff in an organization may lead to the fall of the organizational
performance. An organization which recruits enough personnel and has good
management members can improve on the problems of the personnel and will be able to
meet up with its objectives and also their target sales to gain more profit.

According to the problems, all the staff has to work overtime and increase workload adds
stress to complete work and meet performance expectations. Moreover, it also will
increased stress lowers morale and employee job satisfaction, takes a toll on an
employee’s mental and physical health. For example, one staff has to do more than 1
work at the same time.

However, quality of the product and service will suffer when fewer staff to serve to the
customers and run production lines. Fewer staff must work faster to handle a higher
volume of work, and errors increase when quotas are stressed over quality. Poor quality
over time diminishes a company’s reputation and drives away customers. For example,
late on serving food and drinks to the customers so customers have to wait for a long time
to get their food and drink.

 
Solutions:

i. Hire more Part-time staff.

Hiring part-time staff would help Nando’s The Shore to grow, whilst minimizing the
financial strain on their budget. Besides, hiring more part-time staff especially among
student will help maximize the production of the organization. Students cannot usually be
employed more than 20 hours per week. It has been an efficient way to keep costs down
in areas where an organization does not yet need full-time cover.

Hiring part-time staff can help to improve diversity initiatives and in turn enhance their
workforce. Employing part-time and flexible staff can be a great way of facilitating the
business to become more agile. Part-time workers can help to respond and manage
changes in peak demands. For example, they can use more workers at peak times and
extend the operating hours by using part-time staff in the evenings or at weekends.

ii. Offer rewards and recognition.

Rewards and incentives in the workplace have benefits for both employees and
employers. As a result, employers experience greater efficiency and an increase in sales
and productivity. Employees who receive recognition for their work accomplishments
tend to have increased morale and positive workplace attitudes. Recognition rewards can
include award ceremonies and public announcements. Many employers offer rewards and
incentives through employee assistance programs. These programs help workers maintain
a balance between work and home life by supporting workers' mental and physical well-
being. Rewards that incorporate peer-to-peer recommendations are great for team spirit,
as they encourage staff to see the positive attributes in one another. A happy and fulfilled
employee can be motivated to perform better because of the positive feeling they have
towards the company.
3. Location

The location of your food service business will impact its success nearly as much as the
menu. If your restaurant is in the wrong place, you won't attract the amount of customers
you will need in order to stay in business. The same is true if your location is inundated
with competitors, or has poor visibility, or is hard to find. There are many things that
must be considered as you look for a location in which to open your business. Positioning
has always been an important element of setting up a business. Your success as a business
depends on how well you are positioned to be found. Positioning includes various factors,
from location to the price of your product or service to the message you use to promote
the business, online and offline.

Problems that occur on Nando’s The Shore Melaka is people or the customers didn’t
recognized the restaurant because the building is the 2 concept designed which is
shopping mall hotel. So people will expect that the building is just a hotel so they would
find a better place for looking food for example the best and the nearest the city for
searching food is Aeon Bandaraya because people would go there rather than shopping
mall hotel because Aeon Bandaraya is bigger and a lot of selection for food. In addition,
the new Nando’s restaurant just located in Aeon Bandaraya so there would be a
competition between them. Other than that, for the people who stayed in The Shore hotel
they probably take the buffet that hotel served for example for breakfast, lunch and
dinner. Therefore, the number of customer will be decreasing.
Solutions:

i. Follow Up on Repeat Customers

While it’s easy to stress out over the day-to-day business of running a restaurant, Nando’s
Restaurant should still use email and social media to reward those loyal customers. For
example, Nandos let the customer having a photo session for those who always came by
the restaurant. It can be as simple as a Facebook post or Instagram story that directly
addresses your followers and friends. The goal is to show people who take the time to
follow you that you are thinking about them, too. Engaging with the customers through
photo session or email will inspire them to become and remain loyal supporters of your
brand. It is also very likely to lead to referrals or review. Good review from customers is
one of the main strategies to attract new customer. Recommendation from a happy
customer is more impactful than any television commercial and follow up customer often
make for happy customers.

ii. Show Transparency

Nando’s Restaurant The Shore Melaka are surrounded by universities and colleges such
as UiTM Bandaraya, Micost, UTEM and others they had an advantage to attract student
to come the restaurant. Students become more health conscious and value knowledge of
the food they are consuming and where it originated from. Therefore, Nando’s The Shore
should share the core values and story in a visible location such as on website shows the
commitment towards full transparency. For example, display the source of the ingredients
in a clear and compelling way on sections of the website or in the restaurant. In addition,
Nando’s should giving a special price for student it will more likely to attract more
students. As a result it will resonate with many students who appreciate your level of
transparency and will soon become a regular face in Nando’s Restaurant. Also, customers
from other category would come.
4. Customer Behavior

Nando’s The Shore is located at ground floor of The Shore Shopping Gallery Mall, near
to The Shore Hotel. The target market for them is tourist and local community that
shopping there. Tourist that came to the restaurant usually is the foreigner and almost of
them is non-Muslim. The behavior issue of this type of customer is they always bring an
outside food and sometimes it is a non-Halal food.

Malaysia is very sensitive country towards the halal ness of food and drink. As example,
Secret Recipe having a major loss in 2016 because there is a rumor that they serve non-
Halal food and their kitchen is too dirty. In fact it is just a rumor, Muslim customer still
having the doubt and chooses not to go to Secret Recipe. To gain the trust of Malaysian
citizen again its takes almost two years, the CEO of Secret Recipe make appeal to JAKIM
to make inspection to all the outlets and inform the result to all media platform. For
recover the loss, Secret Recipe diversify their business by making new business called
Hokkaido but they try hard to hide the fact that Hokkaido is under Secret Recipe, to make
sure the customer does not doubt the Halal ness of their tart.

At Nando’s The Shore the way them face this problem, they usually inform the customer
by telling them to not open and eat the non-halal food. They just hoping that the customer
will have common sense to do so but several customer will not care about the
information. By that, the workers of Nando’s The Shore choose to throw away the plate
and utensils. It will incur loss to the Nando’s The Shore if this problem keep happened.
The cost to replace back the equipment actually can be used to develop the restaurant
design and quality. This problem not only will affect Nando’s The Shore but all Nando’s
outlets will be in the risk just like what happened to Secret Recipe.

 
Solutions:

i. Use Sign

Nando’s The Shore can put the sign such as “no outside food allowed”, “Non-Halal items
are restricted” and etc. They can put it at the front door and on every table. Even the sign
does not mention the fine by bringing the item, by reading the sign only it will help the
customer to understand the ethics and rule that apply in the restaurant. Mostly customer
will choose not to break the rules. Actually this is what our government does to stop
people smoking inside the restaurant. Every restaurant must put the “no smoking” sign to
every table and door.

ii. Advertisement

Nando’s The Shore can do a lot of advertisement about how they want the customer to
behave in the restaurant. Example like McDonalds and KFC advertisement, they always
show how the situation in the restaurant, it is not directly show how they want customer
to behave but their advertisement always show how the group of family sitting, eating
together happily, be in queue to order food and only eating the food from their restaurant.
It seems like small details but it is really show the real situation that McDonald and KFC
hoping happened in the restaurant. If Nando’s do this it will take time because its indirect
method but it will show the very good result.
5. RECOMMENDATION AND IMPROVEMENT

1. Target Market

Nando’s The Shore should expand their market segments. They should also focus on
targeting the tourists who came every weekend, the people who make Melaka busy.
These are the people who will help in the survival of their business in the industry. In
order to attract these people, they have to step up their game by aggressively advertise
their existence to the people. As compared to introducing new product, this initiative may
incur more cost in the short run, but in the long run it will actually benefits Nando’s. This
is because people will aware the existence of Nando’s at The Shore without having to
stay at the hotel. Besides having another branch at AEON, Nando’s The Shore should use
this opportunity to attract more customers because they are actually located in a place that
are less congested than the one in AEON.

Moreover, by using social media platform, the messages are quicker to reach the people
because it has become a habit to have smartphone all the time in hand. This is actually
does not incur much cost as it is very simple method yet effective. The people will
literally read the advertisement whenever and wherever they are. This is a more effective
way to attract more customers as compared to introducing new product as it involves the
whole branch throughout Malaysia.
2. Manpower

The problem of having inadequate number of workers is actually very crucial. It can
affect the entire business operations. For Nando’s The Shore, they should stop or reduce
the culture of easily hiring part-time staffs especially among students. It is not to stop the
students to look for extra pocket money, but it is for the sake of the business. There are
many job opportunities out there that can be applied by these students.

Moreover, the move to restrict the hiring process actually helps in reducing the costs. The
higher the number of staffs, the higher the cost incurred to pay them. This will affect the
auditing process and it surely not good for a business to have high labour cost. This
shows that they pay high for employees, but the productivity does not show. This will
increase more idle time during operations where staffs may not have tasks to do during
non-peak hours.

3. Insufficient Staff (Waiters)

As a recommendation to solve this problem, Nandos The Shore has to hiring more part-
time staff especially during peak time. Peak time usually occur in every weekend or
school holidays. Moreover, hiring part-time staff will helps the organisation by lower
payroll costs. Companies typically pay part-time employees an hourly wage and can
schedule them for whatever number of hours the company desires. Besides, minimum
hours for part-time staff work in Nandos The Shore is usually 20 hours per week. They
will pay for RM 6 per hour for part-time staff.

Many businesses such as KFC and Mc Donald use part-time workers to fill evening and
weekend hours not covered by full-time workers. During peak time especially in every
weekend or school holidays, Nandos The Shore must to give the best quality either in
service or food to their customers. When they have sufficient manpower, it helps Nandos
The Shore to achieve their daily target sales.
4. Location

The best solution for this problem, Nando’s should follow up on their repeat customers.
As advantage Nando’s already have their own social media. Posting about their customer
will attract potential and new customer to come by.

It can be as simple as a Facebook post or Instagram story that directly addresses your
followers and friends. The goal is to show people who take the time to follow you that
you are thinking about them, too. Engaging with the customers through photo session or
email will inspire them to become and remain loyal supporters of your brand. It is also
very likely to lead to referrals or review. Good review from customers is one of the main
strategies to attract new customer. Recommendation from a happy customer is more
impactful than any television commercial and follow up customer often make for happy
customers.

Actually almost all business in Malaysia are using this method to appreciate their
valuable customer and promote their location.

5. Customer Behavioral

Nando’s The Shore can put the sign such as “no outside food allowed”, “Non-Halal items
are restricted” and etc. They can put it at the front door and on every table. Even the sign
does not mention the fine by bringing the item, by reading the sign only it will help the
customer to understand the ethics and rule that apply in the restaurant. Mostly customer
will choose not to break the rules.

Actually this is what our government does to stop people smoking inside the restaurant.
Every restaurant must put the “no smoking” sign to every table and door. This is very
effective method to stop some bad behavior from people because it is very obvious and
direct. Many people use to not breaking law when there a signal show.
6. CONCLUSION

In conclusion, Nando’s The Shore Melaka is facing problem in their target market,
manpower, insufficient staff, location and customer behavior. Overall Nando’s The Shore
having basic problems that usually affected to the growth phase business. The problem is
not rare and can be overcome. In order to overcome the problems, Nando’s the Shore need
to prepare them to be in good financial planning. Every problem in business will be end up
to using a lot of money. The silver lining for overcoming problem is having sufficient fund
and great budgeting. After recover these five problems, we able to suggest some solutions.

The best solution for these five problems; firstly, target market problem is Nando’s
need to wider their market segment. Next, for the manpower recruitment problem Nando’s
need to make new strict rules in offering job towards people. Insufficient staff especially
waiters problem, we suggest Nando’s to offer part time work especially to student because its
low cost and flexible. Moreover for Nando’s location problem they need to follow up more
about their regular customer at social media to attract potential customer. Lastly, the
customer behavior problem, we suggest Nando’s use sign at the restaurant to show what the
ethics that need to be follow by customer.
REFERENCE

https://nandos.com.my/restaurants/nandos-the-shore/

https://nandos.com.my/menu/

https://www.theshorehotelmelaka.com/
APPENDICES