The popular peri-peri chicken chain Nando's has announced plans to significantly accelerate its UK restaurant expansion, riding a wave of strong sales and profit growth. The South African-owned business intends to open 14 new sites across the UK by February, building on the momentum of the 12 new locations it launched in the previous year.
Profits Soar as Customer Demand Grows
Freshly filed accounts reveal a robust financial performance for Nando's. For the financial year ending 23 February 2025, the company reported that revenues climbed by 8% to £1.48 billion. This growth was primarily driven by what the company described as "strong customer demand," which helped increase sales volumes.
Even more impressive was the performance in operating profits, which more than doubled to £146.6 million, up from £59.8 million the year before. This substantial increase was boosted by the stronger sales and a one-off receipt.
Where Are the New Nando's Restaurants Opening?
The company has confirmed that the new UK restaurants will be located in a variety of towns and cities. The planned sites include:
- Bedford
- Derby
- Peterborough
- Bishop Auckland
- Maidenhead
- Sheffield
- Edinburgh Gyle
- Paddington
- Liverpool Edge Lane
This expansion is part of a dual strategy to increase the number of company-owned restaurants in the UK while also growing its international footprint.
Navigating Economic Headwinds
Despite the positive news, Nando's has also issued a note of caution. The company flagged that increased cost pressures, stemming from April's tax and wage hikes, are expected to impact its financial performance in the current fiscal year.
Rob Papps, Group Chief Executive of Nando's, acknowledged the challenges, stating, "The macro-economic outlook for the financial year ending February 2026 remains uncertain." However, he remained optimistic about the company's prospects, adding, "We see significant growth potential in all our markets and are continuing to invest for the future."
To manage these rising costs, Nando's has been implementing productivity improvements and measures such as rolling out energy-efficient grills across its UK and Ireland estates to reduce energy consumption. While these actions have helped mitigate some of the impact, the company anticipates that cost pressures will continue to affect its overall performance.
Looking ahead, Nando's is committed to its growth strategy, with plans for further menu innovation, enhancements to its digital capabilities, and the 14 new restaurant openings in the UK, demonstrating continued confidence in the brand's appeal.
