Evaluating the Impact of COVID-19 on Customer Retention: Nando's Case

This case study investigates the impact of the COVID-19 pandemic on customer retention at Nando's, a South African multinational fast-food chain. It defines customer retention, analyzes its importance, evaluates the pandemic's impact on Nando's, and explores strategies to enhance retention. The research uses a qualitative approach with secondary data analysis to understand the challenges faced by Nando's due to reduced customer engagement and altered consumer behavior. The findings reveal a significant drop in customer engagement and business scale, highlighting the need for effective strategies to regain customer trust and loyalty amidst ongoing health concerns. The study concludes that the pandemic has significantly affected Nando's customer retention, emphasizing the need for innovative approaches to navigate the changing market dynamics. Desklib offers solved assignments and past papers for students.

The impact of the Covid 19
pandemic

Table of Contents
INTRODUCTION...........................................................................................................................3
RESEARCH METHODOLOGY.....................................................................................................4
LITERATURE REVIEW ...............................................................................................................4
RESULTS AND ANALYSIS..........................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Background — The research which is conducted on the topic impact of Covid — 19 pandemic
on customer retention at Nando's has helped in knowing that how the research is being conducted
and what is they basis through which scale of customer retention is being analysed and evaluated
(Maital and et.al., 2020). This has helped in knowing the basis of impact of customer retention
due to the effects of Covid — 19. Nando's is a South African multinational fast food chain which
specializes in making chicken and other materials. The company is facing customer retention
problem due to the impact of Covid — 19 pandemic.
Aim — To study the impact of Covid — 19 pandemic on customer retention — A case study on
Nando's.
Objectives -
 To define the concepts of customer retention.
 To analyse the importance of customer retention on organization.
 To evaluate the impact of Covid — 19 on customer retention at Nando's.
 To frame strategies used by company to enhance customer retention.
Research Problem — The problem of this study is that due to Covid — 19 pandemic, Nando's
is facing problems in customer retention. Due to this problem, the research is being conducted
which helps in analysing the impacts which Covid — 19 has placed on the customers
(Kaczmarek, 2019). The company has been impacted largely due to the impacts of Covid — 19
through which customers have been lost and there is less engagement of them in incurring the
services which Nando's is offering them.
Research Questions -
 What is customer retention?
 What is the importance of customer retention on organization?
 What is the impact of Covid — 19 on customer retention at Nando's?
 What are the strategies used by the company to enhance customer retention?

RESEARCH METHODOLOGY
Research Type — There are two types of research which are qualitative and quantitative.
Qualitative research involves analysing and collecting of non-numerical data to understand the
concepts and experiences. Quantitative research is the research which involves numerical data
for statistical analysis (Allan, 2020). The researcher in this study has chosen qualitative research
to analyse and collect information in non-numerical form. The reason for choosing qualitative
research type is that it helps in saving money, it provides creativity in the study, it provides
insights which are specific in nature.
Research Philosophies — There are two types of research which are — Interpretivism and
positivism. Interpretivism helps in defining the theories and how the knowledge is gained.
Positivism is defined as the knowledge on the observable facts and information. The researcher
uses Interpretivism which helps in defining the theories and gain knowledge through them.
Interpretivism research is chosen for the research because the responses are valid and are close to
truth.
Data Collection — There are two types of data collection — primary and secondary. Primary
data collection is defined as gathering the data through interviews, surveys etc. Secondary data is
defined as the data which is collected by someone else (Mkandawire, 2019). The researcher uses
secondary data analysis which is gathering of information through someone else other than
primary researcher. The reason for choosing secondary data collection is that it is time saving,
easy to access etc.
Timeline -
Activities / Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Research topic
selection
Developing
research proposal
Designing the
research aims and
objectives
Literature review

Defining research
methodology
Drafting
questionnaire
Sample selection
Collection of data
Analysing the data
Concluding the
findings
Recommendations
Report preparation
Submission to the
tutor
Updating the
feedback
Final submission
LITERATURE REVIEW
According to Linas and et.al., (2021), As there is huge impact of Covid — 19 on the
businesses in which the company is being affected at large scale. Author Ibrahim and et.al.,
(2021), denotes that Covid — 19 has impacted businesses and due to this there has been the
major section of customers which are not engaged in buying the products and services of the
company. As depicted by Rangachari and et.al., (2020), Covid -19 has created problem for the
business as the customers are lost in the market and this has created problem for the company.
As noted by Oblander and et.al., (2021), Covid — 19 has impacted the customers at large scale
as there perspectives have changed regarding buying and going outdoors for buying the product.
As per Crick and et.al., (2021), Customer retention is the term which is defined as activities and
actions organizations take to reduce the number of customer defections.

Author Min and et.al., (2021), denotes that, customer retention helps in measuring the
intention of customer loyalty for the products and services displayed in the market. According to
Abdou and et.al., (2021), this helps in knowing that how much the customers are engaged in
buying the products and services of the company and helps in increasing the business. As
denoted by Sardar, (2020), Covid -19 has impacted customer retention for the company and
business running during these tough times. According to Morden, (2021), the perspectives of the
customers have changed due to the effects of pandemic. As per the view of Rawat and et.al.,
(2021), Customers are more concerned about their health and are less interested in buying the
products and services of company.
Author Wang, (2021) says that, Customer retention is the major issue which the company
is facing because there are harsh effects of Covid — 19. As per the view of Dirsehan and et.al.,
(2021), Perspectives of customers have changed according to the needs and requirements during
this pandemic. As denoted by McAdams and et.al., (2021), It has become difficult for the
business to engage the customers by providing effective products and services in the market. As
viewed by Athar and et.al., (2021), Covid -19 has impacted customer retention of the company in
the manner as the customers fear in buying the products and services of the company which has
reduced the customers in the market.
RESULTS AND ANALYSIS

It has been analysed from the above graph that Covid — 19 has impacted the business of
Nando's as this has reduced the customers due to this situation which has been occurred. There
has been 89% of the services which are dropped globally and specifically the services of
Nando's. The supply chain has been affected due to shortage of food which has been created due
to the impact of Covid — 19. It has been also analysed form the above graph that the restaurants
are also facing the effects of Covid — 19 due to which there has been drop of 89% of the
services which have been dropped. Covid — 19 has impacted the business of Nando's as the
company is able to gain most of the customers after the situation of lock down (Ardito and et.al.,
2019). There have been major changes which are observed due to the impact of Covid — 19. It
has been also analysed that there has been decrease in the customers due to the impact of Covid
as they fear of going out and incur the services of Nando's. It has also been found that the
customer retention scale has been increased due to which restaurants such as Nando's is facing
the problem of retaining the customers. It has been also found from the above graph that along
with UK, there are various other countries which are facing the impact of Covid which has
overall decreased the scale of business. The business has been reduced to 89%.

By using the secondary research methods, it has been analysed and identified that Covid
— 19 has impacted business of Nando's at large scale and this has created negative impact on
business of Nando. The customers are less engaged in incurring the services of Nando. And so
the customers are now having fear of going outside. It been summarized from the findings that
Covid — 19 has lost customers ion the market as there are very high chances of how Nando has
lost the business scale. Customer engagement has reduced and this has impacted the business of
Nando. Nando is facing the problem of how to regain the customers in market and this has
created major problems in gaining engaging the customers to buy the products and services of
Nando (El Bilali, 2019). It has been also found that Nando is facing problems in regaining the
customers in market. Impact of Covid — 19 has caused problem for Nando as customers have
fear towards their heath and are not taking any risks of eating outside in restaurants specifically
to be mentioned at Nando's. The pandemic has brought changes in delivery of food products and
services which has made difficulty in delivering the products and services of Nando. Customers
can only be retained with the help of applying effective ways and manner in which aspects of
business are considered as important. It has been also been found that due to Covid — 19 the
business of Nando has seen major downfall in their profits.
CONCLUSION
Thus, it is concluded from the above research that impact of Covid -19 pandemic has
been the major cause of affecting the aspect of customer retention of Nando's. Along with this
research methodology was framed which helped in knowing type of research, philosophy of
research and how data was being collected for research. Further, literature review was also done
for topic Impact of Covid — 19 pandemic on customer retention at Nando's. Aims and objectives
also helped in contributing to the research by knowing the topic chosen and how the research is
being done with the help of research objectives.

REFERENCES
Books and journals
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Allan, G., 2020. Qualitative research. In Handbook for research students in the social sciences
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Ardito, L. and et.al., 2019. A bibliometric analysis of research on Big Data analytics for business
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Athar, M.A. and et.al., 2021. Impact of influential attributes on purchase intention during covid-
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Crick, J.M. and et.al., 2021. Interfirm collaboration as a performance-enhancing survival strategy
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