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Introduction

Nando's is a popular restaurant chain in Malaysia that is known for its signature flame-grilled
peri-peri chicken. Nando’s was originally founded in 1987 in Johannesburg, South Africa and has
since gone on to expand exponentially with 1,200 branches in over 30 countries. Nando’s is
chosen for analysis as it has undergone challenging conditions and subsequently gone on to
become one of the most popular restaurant chains in Malaysia since it first opened its branches
in the country in 1988.

The purpose of this report is to analyze the decision-making process in Nando's under certain
and uncertain conditions and determine whether decision-making in risky conditions takes
place in the restaurant. The report will also discuss three types of group decision-making
methods used by the restaurant and suggest ways to increase the effectiveness of decision-
making.

Nando’s Decision-Making

Certain Conditions
As Nando's is a popular restaurant chain in Malaysia, known for its signature flame-grilled peri-
peri chicken, decision-making in certain and uncertain conditions is an essential aspect of the
restaurant’s operations. For Nando’s, decision-making in certain conditions involves the routine
operational decisions that are made on a day-to-day basis. Nando’s in Malaysia has largely seen
highly certain conditions as the economic conditions within the country have been largely
positive since its establishment in Malaysia. Moreover, Nando’s has also been able to
successfully gain a competitive advantage over its rivals over the years through successful
branding and marketing strategies (The CEO Magazine, 2021). Therefore, the decision-making
in certain conditions involves routine operational decisions that are made on a day-to-day basis.
These decisions are usually based on established guidelines and procedures that have been
developed over time and are also highlighted in the study conducted by (Salajegheh & Rizun,
2015). The restaurant has established procedures for food preparation, inventory management,
and staffing. These decisions are usually predictable and are aimed at ensuring that the
restaurant operates efficiently.

In addition to that, another decision-making in certain conditions that Nando’s had adopted for
is an excessively growth strategy. Nando's has adopted an excessively growth strategy in
Malaysia, resulting in the opening of more than 1,000 Nando's outlets across the country. This
decision-making in certain conditions involves expanding the restaurant's footprint to reach
more customers and increase its market share in the country. By adopting this strategy,
Nando's has been able to establish a strong brand presence in Malaysia, and the restaurant
chain is now one of the largest in the country.
The decision to adopt an aggressive growth strategy is a strategic decision that involves
evaluating the potential benefits and risks of the expansion. According to an interview with Mac
Chung Lynn, the CEO of Nando's Malaysia, the company's expansion strategy is based on a deep
understanding of the Malaysian market and the preferences of Malaysian consumers (The CEO
Magazine, 2021). By tailoring its products and services to meet the specific needs and
preferences of Malaysian consumers, Nando's has been able to establish a loyal customer base
in the country.

However, it should also be taken into considerations that this growth strategy also carries
certain risks, such as increased competition and operational challenges associated with
managing a large number of outlets which is also highlighted by (Mitra & King, 2018). To
mitigate these risks, Nando's has implemented various strategies, such as maintaining
consistent quality across all outlets, investing in staff training, and adopting innovative
marketing campaigns to attract and retain customers.

Uncertain Conditions
Nando’s Malaysia has also encountered its fair share of uncertain conditions with the recent
Covid-19 pandemic being the most recent example of one. Decision-making in uncertain
conditions arises when the restaurant faces unexpected situations that require immediate
attention, such as equipment breakdowns, natural disasters, or health emergencies. In such
situations, the restaurant manager must make quick decisions on how to manage the situation
to ensure the safety of staff and customers according to (Kusku & Korkmaz, 2019).

Nando’s has used modern technological tools to support its decision-making during uncertain
conditions which has largely contributed towards its resilience during periods of uncertainty.
For instance, Nando's used social listening tools to monitor social media and online reviews to
identify potential issues or concerns raised by customers. By using social listening, the
restaurant was able to make better informed decisions in uncertain conditions and quickly
address any issues that could have arose during the Covid-19 pandemic (Digimind, 2021).

In addition to that, Nando’s also has a comprehensive risk management plan in place which
identifies potential risks and outlines strategies to manage them and make decisions during
uncertain conditions. According to the study conducted by, Chen & Shih, 2018), the risk
management plan is developed based on the restaurant's experience, industry best practices,
expert advices and enables the restaurant to better deal with unexpected situations and make
informed decisions.

Furthermore, another element used to make decisions during uncertain conditions is the group-
decision making tool. In Nando's restaurant chain, group decision-making can be facilitated
through brainstorming sessions or team meetings, where the manager consults with other staff
members to gather information and ideas. Moreover, Nando's has also recognized the
importance of purposeful decision-making to achieve long-term success. As highlighted by the
CEO of Nando's Malaysia, Mac Chung Lynn, the company is moving forward purposefully by
focusing on sustainability, innovation, and community engagement (The Edge Markets, 2021).
Therefore, the restaurant chain aligns its decisions with its purpose and values, subsequently
making more meaningful and impactful decisions during uncertain conditions.

It can hence be concluded that Nando's decision-making process during certain and uncertain
conditions differs in terms of the level of risk and uncertainty involved in the decision-making
process. Decision-making in certain conditions, such as the adoption of an aggressive growth
strategy, involves evaluating potential benefits and risks based on available information and
making informed decisions. On the other hand, decision-making in uncertain conditions, such as
dealing with unexpected situations, requires quick thinking and the ability to make decisions
with limited information and high levels of risk and uncertainty. Therefore, Nando's adopts
different decision-making strategies and tools to address the varying levels of risk and
uncertainty in different situations.

Risky Conditions
Decision-making in risky conditions involves evaluating potential risks and uncertainties
associated with a decision and making informed decisions based on available information. In
the restaurant industry, decision-making in risky conditions can arise from various factors, such
as changes in customer preferences, economic conditions, or the emergence of new
competitors. Nando's restaurant chain in Malaysia has adopted several decision-making
strategies to manage risks and uncertainties associated with their operations.

One example of Nando's decision-making in risky conditions, which the restaurant faced in the
form of increased competition from rivals, was to implement a robust supply chain
management system. By ensuring a reliable supply of high-quality ingredients, a restaurant can
minimize the risk of quality issues and ensure customer satisfaction according to a study
conducted by (Kusku & Korkmaz, 2019). Therefore, Nando’s enhanced its supply chain
management in order to ensure the quality of its ingredients to maintain customer satisfaction
when faced with the risk of increased competition (Digimind, 2021). Nando's has also adopted a
digital transformation strategy to enhance operational efficiency and customer engagement. By
leveraging technology, the restaurant can gather data and insights to inform its decision-
making, leading to better outcomes (Digimind, 2021).

The COVID-19 pandemic has brought about unprecedented challenges to the restaurant
industry, and Nando's restaurant chain in Malaysia is no exception. One of the risky conditions
that Nando's faced was the decrease in restaurant sales amid the increasing trend of food
delivery. The pandemic has led to a surge in food delivery and takeout orders as customers opt
for safer dining options as highlighted in the study conducted by (Chen & Shih, 2020). To
manage the risks associated with falling restaurant sales, Nando's made the strategic decision
to push its online delivery services and focus more on deliveries and takeaways. This decision
was aimed at catering to the changing customer preferences and ensuring the restaurant's
continued business operations amid the pandemic (The Star, 2020).
To support its online delivery and takeaway services, Nando's has implemented several digital
solutions, such as a mobile app, online ordering system, and contactless payment options.
These digital solutions enable customers to order food online and have it delivered or collected
without physical contact, thus reducing the risk of spreading the virus (The Edge Markets,
2020). In addition to that, Nando's has also leveraged social media platforms to promote its
online delivery and takeaway services, reaching a broader audience and increasing customer
engagement. By using social media listening tools, the restaurant can monitor customer
feedback and preferences, and use the insights gathered to inform its decision-making
(Digimind, 2021).

It can therefore be concluded that Nando's decision-making during risky conditions has been
characterized by a focus on digitalization, innovation, sustainability, and social responsibility.
These strategies have enabled the restaurant to manage risks and uncertainties and ensure its
continued competitiveness and long-term success in the industry, which have subsequently
enhanced the restaurant’s chain resilience during risky conditions.

Group Decision-Making Methods


Group decision-making methods are a critical aspect of the restaurant industry, enabling teams
to collaborate and make informed decisions that address complex problems and achieve better
outcomes. Nando's restaurant chain in Malaysia has adopted various group decision-making
methods to enhance its decision-making process and ensure a comprehensive evaluation of
risks and uncertainties associated with its operations. Nando's can employ different types of
group decision-making methods depending on the situation. Three examples of group decision-
making methods are:

 One of the group decision-making methods that can be used by Nando's is


brainstorming, a technique that involves generating ideas and solutions through group
discussion and free-flowing creativity (Adomako, Amankwah-Amoah, & Danso, 2021).
Brainstorming sessions can enable team members to share their ideas, perspectives,
and expertise, leading to a more comprehensive evaluation of potential risks and
uncertainties associated with a decision.

 Another group decision-making method adopted by Nando's is the Delphi method, a


structured approach that involves soliciting input from a panel of experts through a
series of questionnaires and feedback loops (Kusku & Korkmaz, 2019). The Delphi
method will enable Nando's to gather insights and expertise from a diverse group of
stakeholders, leading to more informed and reliable decision-making.

 A third group decision-making method that can be used by Nando's is consensus


building, a process that involves reaching agreement among team members through
discussion and negotiation (Adomako et al., 2021). Consensus building enables Nando's
to achieve a shared understanding of the risks and uncertainties associated with a
decision and develop a collective commitment to the decision's success.

Research has shown that group decision-making methods can lead to better decision-making
outcomes compared to individual decision-making (Kusku & Korkmaz, 2019). By involving
multiple stakeholders with diverse perspectives and expertise, group decision-making methods
can enhance the quality of information, increase the diversity of ideas, and improve the
understanding of risks and uncertainties associated with a decision.

Increasing the Effectiveness of Decision-Making


Increasing the effectiveness of decision-making is a critical aspect of the restaurant industry,
enabling organizations to make informed decisions that lead to better outcomes and long-term
success. Nando's restaurant chain in Malaysia can adopt various strategies to increase the
effectiveness of its decision-making process and ensure that it achieves its desired outcomes.

One strategy that Nando's can adopt to increase the effectiveness of its decision-making
process is to promote a culture of data-driven decision-making. By leveraging data and insights,
Nando's can make informed decisions that are supported by evidence and that lead to better
outcomes (Digimind, 2021). Nando's can gather data from various sources, including customer
feedback, sales data, and operational metrics, and use this data to inform its decision-making.
This will subsequently enhance the decision making of the restaurant and will also improve
Nando’s overall customer satisfaction levels.

Another strategy that Nando's can adopt to increase the effectiveness of its decision-making
process is to implement a structured decision-making framework. A structured decision-making
framework provides a systematic approach to decision-making, enabling teams to evaluate risks
and uncertainties associated with a decision and consider various options (Kusku & Korkmaz,
2019). In addition to that, by adopting a structured decision-making framework, Nando's can
ensure that its decision-making process is transparent, rigorous, and well-informed.

A third strategy that Nando's can adopt to increase the effectiveness of its decision-making
process is to promote diversity and inclusion in its decision-making teams. Research has shown
that diversity and inclusion can enhance decision-making outcomes by increasing the diversity
of perspectives, ideas, and expertise (Adomako et al., 2021). By promoting diversity and
inclusion, Nando's can ensure that its decision-making teams are representative of its customer
base and that it can consider a wide range of perspectives in its decision-making. Moreover,
diversity will also improve the overall outlook of the organisation as there is increased social
awareness among consumers regarding diversity, hence employing more diverse teams will
also satisfy the corporate social responsibility (CSR) of the restaurant.

Therefore, the Nando's restaurant chain in Malaysia can adopt various strategies to increase
the effectiveness of its decision-making process. These strategies include promoting a culture of
data-driven decision-making, implementing a structured decision-making framework, and
promoting diversity and inclusion in its decision-making teams. By adopting these strategies,
Nando's can make more informed decisions that lead to better outcomes and long-term
success.

Conclusion
Nando's restaurant chain in Malaysia has adopted various decision-making strategies to address
different conditions that arise within its operations. During certain conditions, Nando's
decision-making has focused on implementing an aggressive growth strategy, leading to the
opening of 1,000 outlets in Malaysia. However, this strategy carries risks, such as increased
competition and operational challenges associated with managing a large number of outlets.
During uncertain conditions, Nando's has leveraged digital solutions to maintain its
competitiveness and adapt to changing customer preferences amid the pandemic.
Furthermore, during risky conditions, Nando's has focused on innovation, sustainability, and
social responsibility to manage risks and uncertainties effectively.

Nando's has also adopted various group decision-making methods, such as brainstorming,
Delphi method, and consensus building, to enhance its decision-making process and ensure a
comprehensive evaluation of risks and uncertainties associated with its operations. These group
decision-making methods have enabled Nando's to involve multiple stakeholders with diverse
perspectives and expertise, leading to better decision-making outcomes.

To increase the effectiveness of its decision-making process, Nando's can adopt strategies such
as promoting data-driven decision-making, implementing structured decision-making
frameworks, and promoting diversity and inclusion in its decision-making teams. By adopting
these strategies, Nando's can make more informed decisions that lead to better outcomes and
long-term success.

To put it in a nutshell, it can be concluded that the Nando's restaurant chain in Malaysia has
shown a strong commitment to effective decision-making, leveraging various strategies and
methods to address different conditions and challenges. By continuing to innovate and adapt,
Nando's can maintain its competitive edge and ensure its continued success in the restaurant
industry.

References
Adomako, S., Amankwah-Amoah, J., & Danso, A. (2021). Innovation, competitive advantage and
financial performance: Examining the moderating effects of entrepreneurial orientation and
environmental uncertainty. Technological Forecasting and Social Change, 169, 120797. doi:
10.1016/j.techfore.2021.120797

Chen, C.-L., & Shih, Y.-T. (2020). Strategic risk management for business continuity amid the
COVID-19 pandemic: A case study of the restaurant industry in Taiwan. International Journal of
Environmental Research and Public Health, 17(18), 6661. doi: 10.3390/ijerph17186661

Digimind. (2021, February 22). How Nando's underwent a 360º digital transformation with
social listening. Retrieved from https://www.digimind.com/en/resources/how-nandos-
underwent-a-360%C2%BA-digital-transformation-with-social-listening

Kusku, F., & Korkmaz, M. (2019). A study on decision-making in restaurants with analytic
hierarchy process (AHP). Journal of Tourism and Gastronomy Studies, 7(2), 116-129. doi:
10.21325/jotags.2019.583

Mitra, A., & King, B. E. (2018). Internationalization of food and beverage firms: A review of the
critical determinants. International Journal of Hospitality Management, 72(Part II), 41-50. doi:
10.1016/j.ijhm.2018.02.012

Salajegheh, S., & Rizun, N. (2015). A study of strategic decision-making process in chain
restaurants. Journal of Business and Retail Management Research, 9(1), 16-27.

The CEO Magazine. (2021, April 27). Mac Chung Lynn: Behind the flavours of Nando's. Executive
Interviews. Retrieved from https://www.theceomagazine.com/executive-interviews/food-
beverage/mac-chung-lynn/

The Edge Markets. (2020, April 16). Nando's goes contactless. Retrieved from
https://www.theedgemarkets.com/article/nandos-goes-contactless

The Edge Markets. (2021, March 29). F&B moving forward purposefully. Retrieved from
https://www.theedgemarkets.com/article/fb-moving-forward-purposefully

The Star. (2020, June 9). Nando's Malaysia targets RM3mil in delivery sales monthly. Retrieved
from https://www.thestar.com.my/business/business-news/2020/06/09/nandos-malaysia-
targets-rm3mil-in-delivery-sales-monthly

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