Impact of Covid-19 Pandemic on Customer Retention in UK Restaurant Sector: A Study on Nando's

This study assesses the impact of Covid-19 pandemic on customer retention in the UK restaurant sector, with a focus on Nando's. It explores the concept of customer retention, factors affecting it, and the impact of Covid-19 on Nando's customer retention. It also recommends strategies for improving the influence of Covid-19 on customer retention.

The impact of the Covid 19
pandemic

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Background of the study..............................................................................................................3
Aim and objective........................................................................................................................3
Research question........................................................................................................................3
Rationale of the study..................................................................................................................4
METHODOLOGY..........................................................................................................................4
Research type:..............................................................................................................................4
Data collection.............................................................................................................................4
Data analysis................................................................................................................................4
Timeline ......................................................................................................................................4
LITERATURE REVIEW ...............................................................................................................5
RESULTS AND ANALYSIS..........................................................................................................7
Analysis and summarizing data ..................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

Topic: To assess the impact of Covid-19 Pandemic on Customer Retention within the context
of UK restaurant sector: A study on Nandos
INTRODUCTION
Background of the study
In the current era, competition and complexity to operate in business environment due o
number of factors. Covid 19 is one of the adverse situation which has largely impacted the
business of restaurants due to fear of getting virus. Customer retention refers to the ability of the
organization to retain its clients for specified period. In the pandemic only essential activities are
allowed to be distributed and restaurant were included in non crucial practice. Thus, operational
practice of restaurants were restricted which has influenced the monetary and non financial
functioning affected. Nando's is the fast food chain that specializes in flame grilled peri peri
style chicken.
Aim and objective
Aim:
The main aim of the current investigation is to ascertain impact of covid 19 pandemic on
the customer retention of Nando's.
Objectives:
 To understand the concept customer retention and its significance
 To identify the factors affecting customer retention within the restaurant sector.
 To assess the impact of COVID 19 pandemic on Nando's customer retention
 To recommend the strategies for improving influence of COVID 19 which can favorably
affect retention of customer.
Research question
 What is the concept customer retention and its significance?
 Which factors affects customer retention within the restaurant sector?
 How COVID 19 pandemic impact on Nando's customer retention ?
 Which are the strategies for improving influence of COVID 19 that can favorably affect
retention of customer?
Rationale of the study
The main reason behind conducting the study on assessing the impact of Covid 19 on
customer retention. In addition to this, it can specify that there are several restrictions which are

imposed due to COVID 19 which are needed to be managed for gaining depth understanding.
The present report will help in recognizing concept, significance, factors affecting customer
retention and strategies to improve COVID situation impact on firm.
METHODOLOGY
Research type:
There are two types such as qualitative & quantitative for accomplishing the objective of
research. For the recent study qualitative type of research is suitable as assessing impact of
COVID 19 on customer retention is theoretical concept. It will help to gather qualitative data so
that depth ability to achieve objective can become possible. (Pitts, 2021)
Data collection
Primary and secondary are two methods which can use in gaining data for attaining
significant ability to accomplish objective. Primary is used to gather data which has been used
previously and secondary source provided already published data (Vnoučková, 2020). For the
current investigation secondary data from journal, articles & books will be collected.
Data analysis
Thematic and SPSS are two technique to evaluate gathered information so that deeper
insights about particular research can be obtained. It will use thematic analysis technique to
achieve objectives via assessing theoretical concept so that proper information to accomplish
purpose of conducting research can become possible (Moore, Dishman and Fick, 2021). In
addition to this, thematic analysis is highly suitable for assessing theoretical concept in turn
accurate, reliable and significant information to evaluate performance can become possible.
Timeline
Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Topic selection
activity
Formulating
Aims and
Objectives
Evaluating

Literature
Review
Recognition
and selection of
Research
Methods
Designing
Questionnaire
Data gathering
through survey
Organizing the
Data in
structured
format
Data Analysis
Concluding,
findings
Recommendati
on
Consulting with
tutor for
outcome
obtained.
Feedback
Submission
after feedback

LITERATURE REVIEW
According to Iibrahim and et.al., (2021) Customer retention (CR) is related with ability of
the company to retain its buyers for longer duration. There are several benefits which can be
obtained by applying proper CS technique such as having loyal customer, greater brand value
and boosting sales revenue. On the other side, Elsafty and Ragheb, (2020) depicted that CS
diverts the firm from its objective of gaining higher markets share. It results on limited time
discounts, lack of segmentation & low appreciation from buyers. In against to this, _ said that
constant income, exploring brand, engaged customer are benefits. On the other side- specified
that increased competition, ignoring feedback, changing customer taste and preferences are the
crucial drawback that can obtained by not applying CR.
In views of Joy and Venkatesh (2020) there are number of factors which affect CR but
one of the crucial aspect include service quality of products. On the other side, Baum and et.al.,
(2020) satisfaction from the product can influence CR rate of company which need to be
improved. Ibrahim, (2021) said that trust and commitment is one of the highly affecting aspect
that affect in both positive & negative manner. On contrasts to this, Dalpiaz and Parente (2019)
articulated that managing expectation & offering lifetime value to customer can allow getting
higher profitable situation.
According to Davies and et.al., 2020 Covid 19 is adverse situation which has negatively
affected the performance of company. CR has highly affected from COVID 19 situations which
has negatively impacted the revenue generating capacity of organization. In against to this,
Kayani and et.al., (2021) articulated that customer engagement has declined due to increased
push h for digital connection due to pandemic. This has resulted into performance of company as
low information regarding the products and services to customers due to their changing
preferences regards to safety. On the other side, Van Rooyen and et.al., (2021) said that
pandemic has disrupted performance of the company due to h AR and VR implementation. In
contrast to this, Morden, (2021) articulated that gaining accurate feedback, charging higher
prices, having proper word of mouth, etc are the issues which is need to be improved to declined
its impact pandemic influence on CR.
In the opinion of jayathilake and et.al., (2021) complying with rules & regulation can
improve impact of COVID CR. On the other side_ said that keeping problem solving approach
in business helps to get positive review from buyer and make feeling of loyalty towards

company. _ said that using business & artificial intelligence can help in receiving greater
amount of stability to maintain CR. In against to this, said that Majumder and Biswas, (2021)
conducting market research to coordinate properly helps in receiving CR.
RESULTS AND ANALYSIS
From the evaluation of the above presented chart regarding the performance of the UK
restaurants in the time of covid 19 is presenting that there is declining trend of growth. The
revenue is decreasing due to ineffective performance in managing all the norms & condition of
pandemic in order to maintain hygiene. Restaurant sector in UK is facing continuous downward
fall.

On the basis of above illustrated table it can be mentioned that dine out in UK in the
covid 19 has declined as compared to previous. In UK, restaurant performance is less effective
due to larger number of cases which has created fear among people to eat outside. Thus, there
has been decreased in customer engagement which has outcome in ineffective performance of
company. On the basis of this, it can be mentioned that there is requirement to focus on lacking
areas which lead to impact the performance of companies offering services.
In the hospitality sector there are clubs, restaurants, bar, etc. which has been affected
from the pandemic situation. Restaurants which operates in UK are negatively impacted by
prevailing circumstances in higher extent. In addition to this, it can be interpreted that there are

factors such as revenue, profitability, market share, customer engagement, etc. on the basis of
this, it is recognized that there are number of issues which has arisen due to pandemic situation.
These all has highly impacted Nando's negatively as operates in specified sector.
Analysis and summarizing data
From the evaluation of above presented information it can be specified that Nando's is
one of the food chain that functions for offering number of chicken based dishes in UK that has
been impacted adversely. It can be supported by Haque, (2021) that there are number of actions
which are altered due to pandemic such as quality standards, compliance with industrial
requirement, safety measure, low personal interaction with customer, etc. This has decline
operational & financial efficiency of the company to satisfy customer to incline their retention
rate.
On the basis of obtained data through secondary evaluation it can be mentioned that there
are various factors which influence the functioning of organization in duration of COVID 19.
There were number of aspects which were unable to obtain due to situation of COVID such as
factor of production. It can be justified by referring Imran. and Ahmed, (2020) that there are
various components which has influence on customer retention such as service of restaurant,
communicating strategy, etc. These all has been impacted due to pandemic which declined trust
and commitment.
CONCLUSION
From the above report it can be concluded that customer retention is helpful in achieving
organizational objectives like higher market share, profitability, etc. The present study has
involved research aim, objectives, questions, literature review, etc. the current study has given
emphasis on qualitative secondary study which emphasize on assessing that Nando's customer
retention is highly affected due to lower industrial performance. Customers taste & preferences
for food & safety has changed due to COVID which has impacted performance of company.

REFERENCES
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