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Nando's (South Africa) Expands in Singapore & Malaysia Before SE Asia

17 May 2010 - International grilled chicken restaurant chain Nando's is boosting its businesses in Singapore and Malaysia.

It has just opened one outlet in Singapore, with another branch due in July.

All in, Nando's is planning for 10 outlets in Singapore in five years, and at least 20 in Malaysia.

It is a sizzling hot market for food in Southeast Asia. Nando's has already blazed a trail through the region, and it has now chosen Singapore as the next course of expansion after gaining much momentum and presence in Malaysia.

With its renowned Portuguese Peri-Peri flame-grilled chicken, the restaurant chain hopes to win over a wider base of customers.

Mac Chung Lynn, chief executive officer, Nando's Singapore and Malaysia, said: "We've been working in the Malaysian market for 12 years now. Over the last five years, we were getting a lot of demand from Singaporeans on a weekly basis now.

"And Singapore, being the middle ground between Australia and the rest of the world, is a perfect ground for us to spread our wings."

In Singapore, Nando's has just started an outlet at Bugis Junction.

It comes after two years of planning through a joint venture partnership of Nando's Chickenland Malaysia and Master Franchisors - the franchising affiliate of Nando's Resources - with a 70 per cent and a 30 per cent stake respectively.

Nando's is planning to invest S$4.5 million to open 10 branches in Singapore in five years.

Originating 13 years ago from Johannesburg, South Africa, the restaurant chain opened its first branch in Marina Square 13 years ago but closed in six months due to differences with franchising partners.

The restaurant chain intends to establish the Nando's brand in Singapore and Malaysia before looking at growth opportunities in the rest of the region.

Robert Brozin, chief executive officer, Nando's, said: "We have 32 restaurants in Malaysia and we are going to grow that base to 50 to 70 restaurants and then we are going to expand in Singapore.

"We'd rather focus on Singapore and Malaysia, and then maybe look at Thailand and Indonesia and look at the neighbouring countries. But for the next couple of years, we are going to focus on the two existing markets here."

Nando's added that it will benefit from timing its expansion and sees opportunities in the global economic recovery.

At the peak of the Asian crisis, while other resturants gave up the good sites, the chain was able to open in KLCC and the Twin Towers in Malaysia.

But it also said it will not rush into expansion, sacrificing its quality and deep relationships with franchises and customers.
Channel News Asia

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