Well-Known Take-Away Chicken Franchise Rapidly Rolling Out Restaurants Across South Africa.

Seven years ago, some saw the idea of starting a successful flame-grilled chicken chain as a far-fetched dream in a country characterised by fierce quick-service restaurant (QSR) competition.

However, since Pedros Chicken opened its doors in 2018, it has seriously ruffled some feathers in South Africa’s take-away market.

In just over six years, it has opened 173 locations across South Africa and Botswana, becoming the country’s fastest-growing chicken franchise.

This rapid growth means the brand is going toe-to-toe, or beak-to-beak, with established flame-grilled chicken franchises like Nando’s and Barcelo’s.

This is a fierce battle for market dominance as South Africans consume more chicken than any other meat.

49% of animal protein consumed per person is poultry, 26% is beef, 13% is eggs, 7% is pork, and 5% is mutton and goat.

Nando’s, the industry leader in flame-grilled peri-peri chicken, launched its first restaurant in Johannesburg in 1987.

Since its humble beginnings, it has grown into a global powerhouse, boasting over 1,250 outlets across 22 countries.

Now, it faces a rising challenger in Pedros, a fast-growing newcomer determined to compete on its home turf.

The Economist has comically dubbed this the great “chicken wars,” as the battle over South Africa’s spicy-chicken market continues to heat up.

The Pedros journey

Pedros Chicken’s journey traces back to Moosa Bux, who has been involved in retail, property, and fast food for over ten years.

Bux holds a BCom in Economics from the University of Johannesburg and a Master of Business Administration (MBA) from the Gordon Institute of Business Science.

Before entering the peri-peri flame-grilled business, he held directorships with Spar and flame-grilled chicken-branded outlets.

According to Pedros, it all started from an idea and belief “that everyone deserves to experience… delicious flame-grilled chicken without breaking the bank.”

Its first location opened in 2018 in KwaZulu-Natal and was an instant success due to its well-placed locations and reasonable pricing.

Pedros began expanding at an astonishing pace. In just five years, it opened 125 stores, and within six years, 173.

The striking Afro-Portuguese-inspired decor, iconic Rooster of Barcelos mural, and signature baskets of sauces ranging from “mild” to “extra hot” instantly grab customers’ attention.

The unmistakable scent of grilled peri-peri chicken fills the air, and sauces and spices are available for purchase.

Its pricing is better than its competitors’. For example, 1/4 chicken, chips, and a roll will cost you R49.90. Its biggest competitor will set you back R65 for the same item without the roll.

Pedros says it has lower costs because of in-house marketing, manufacturing, and distribution.

“We employ a highly competitive pricing strategy, offering affordable options that cater to a broad customer base,” said the company. “Picking the right spot is critical to our success.”

“Collectively, our team has decades of experience in retail, property and fast food. From store set up to staffing, advertising, marketing, operations, HR and accounts. We do it all, and we do it well.”

“We’ve developed extensive knowledge of the property market and are experts in choosing the best locations and negotiating the best deals for franchisees.”

Another draw of the company is its strong links to its South African identity. “Although our vision, inspiration and strategy are global, we are a truly South African company, born and managed locally.”

“We believe that ‘local is lekker!’ and source all our products from South African partners and producers,” added the company.

Along the way, like its similar competitors, it has built a bold brand known for its fiery chicken and even bolder advertising. This has caused some controversy.

For example, one ad depicted a war room led by established chicken brands strategizing against Pedros Chicken’s rising popularity.

The visuals cleverly referenced Nando’s and KFC, with an “over-priced chicken head office” sign in a familiar font and heavily floured buns – causing blowback from these companies.

“Our aim is to disrupt the market with our unique flavour, excellent product, and unbeatable value for money and to be one of the leading flame-grilled chicken brands in the country,” said Pedros.

In 2019, Bux won the Young Business Achiever Award. The event’s organisers described him as “a role model for other entrepreneurs.”

“His founding values of quality product, quality experience, and value for money has seen Pedros expanding nationally.”

Overall, the tussle for market dominance in South Africa’s bustling fast-food chicken sector is going to have one true winner: the consumer.

South Africans are spoilt for choice by brands without the flexibility to jack up prices due to their equally enticing competitors.

Source: BusinessTech – www.businesstech.co.za

 

Pedros Chicken photos