In response to the dynamic growth of the chain, on 24 April this year. Żabka officially opened a modern logistics centre in Kąty Wrocławskie. In the first phase of operation, the facility will serve around 1.5 thousand stores in the Wrocław area. The warehouse area is as much as 35,000 sq m, with an expansion potential of another 6,500 sq m. Ultimately, the new logistics centre will provide approximately 600 jobs

- Efficient logistics is like the mechanism of a precision watch, in which every tiniest component must fulfil its role and add up to a well-functioning whole. It is this precision that underpins the dynamic growth of our organisation. By opening close to a thousand new stores a year, we can scale our operations effectively without sacrificing the highest standards of quality and efficiency. From the customers' perspective, this means they can be sure to find what they need on the shelves - always on time. It's also our advantage to respond quickly to changing market needs. Efficient logistics also responds to the real needs of franchisees, supporting them in the day-to-day running of their business and providing a reliable operational base – says  Adam Manikowski, EVP, Managing Director of Żabka Polska.

Ecology and modern solutions

The logistics centre, located just off the A4 motorway, is a semi-automated facility - combining modern technology with the work of qualified specialists. At the heart of the warehouse are three modern zones: an automated cold store (with an area of 5,000 square metres), a freezer (with an area of 1,500 square metres) and a dry zone (with an area of 17,000 square metres). By supplying nearly 1.5 thousand stores in the region of Wrocław and its surroundings, the warehouse will partly relieve the logistics centre in Komorniki, as the completion of all refrigeration and freezing orders for stores located in Lower Silesia capital's region shifts to Kąty Wrocławskie.

Żabka's new in-house infrastructure facility features several pro-environmental innovations, such as a photovoltaic installation, electric car chargers, and a refrigeration and freezing installation that uses the heat generated by the production of cold to heat the freezer floor and for hot water preparation in the main office building.

Support for the region

The eighth Żabka store will strengthen the chain's operational potential and boost the local labour market. Nearly 600 people will find employment in the just-opened facility - those employed directly by Żabka and cooperating companies. With a view to employees commuting from Wrocław, a transport service has been set up, enabling convenient and efficient access to the logistics centre.

Positions currently offered at the logistics centre include forklift operators, warehouse employees and logistics specialists.

More information on recruitment at: https://zabkagroup.com/pl/tywcentrumlogistycznym/ 

Żabka's logistics network currently includes eight logistics centres and 19 transhipment terminals, including 2 of its own, from which goods are distributed to stores throughout Poland. Modern solutions enable efficient service of over 9,000 franchisees running more than 11,000 stores, to which about 3 million deliveries are made annually.

2024 marked by continued network expansion, solid like-for-like (LfL) growth, and improved profitability.

In 2024, the Żabka Group sustained its strong growth trajectory, fuelled by an 8.3% LfL growth and the ongoing expansion of its retail footprint. Over the year, the Group opened 1,166 new stores, while further scaling its Digital Customer Offering (DCO). As a result, Sales to End Customers reached PLN 27.3 billion, up nearly 20% year on year.

The Group’s adjusted EBITDA rose to PLN 3.5 billion, up 23.7% relative to the previous year. This improvement was driven by both operating leverage and enhanced margin performance. Supported by continued cost optimisation and lower energy prices, the 2024 adjusted EBITDA margin stood at 12.8%, having increased by 0.4 pp year on year. Adjusted net profit grew by 66% year on year, reaching PLN 714 million. In parallel, the Group generated PLN 1.5 billion in free cash flow over the period, while its net debt to adjusted EBITDA ratio declined significantly, from 2.3x to 1.5x. In addition, the Group successfully delivered on its key ESG objectives.

Tomasz Suchański, CEO of Żabka Group, commented: 

“In 2024, the Żabka Group delivered strong revenue growth across all core business segments, demonstrating the successful execution of our strategy as outlined to investors during our IPO. The continued rollout of our retail network resulted in more than 1,100 new store openings, bringing our total to over 11,000 locations by year-end. This increased scale, coupled with enhanced operational efficiency, has further cemented our position as a leading modern convenience network in the region. Over the course of the year, we reached two strategic milestones: our entry into Romania and our listing on the Warsaw Stock Exchange. We also met our key ESG commitments.

Looking ahead to 2025, our priority remains the sustainable creation of shareholder value by further strengthening the Group’s market leadership. We intend to continue broadening our retail footprint, deepen our presence across digital channels, and optimise our ultimate convenience ecosystem offerings to fully unlock the Group’s long-term growth potential.” 

Tomasz Blicharski, Group Chief Strategy & Development Officer, said:

“By leveraging prevailing consumer megatrends and our distinctive competitive advantages, we continue to expand Żabka’s ultimate convenience ecosystem, with a view to further simplifying people’s everyday lives. A key milestone in 2024 was our entry into the Romanian market through the acquisition of DRIM Daniel Distributie, followed by the rollout of several dozen stores under the dedicated Froo brand within just a few months. Our medium-term ambition is to double Sales to End Customers between 2023 and 2028. We aim to achieve this by consistently opening over 1,000 new stores annually, while driving growth across both existing locations (LfL) and our digital channels. Within our DCO, we have set ourselves an ambitious target of increasing Sales to End Customers fivefold by 2028.” 

Marta Wrochna-Łastowska, CFO of Żabka Group, added: 

“In 2024, the Żabka Group delivered strong financial and operational results, achieving all of our targets outlined during the IPO. Our adjusted EBITDA margin rose to 12.8%, approaching the upper end of our target range of 12–13%. This uplift was driven by strong per-store sales growth, successful cost-efficiency measures, ongoing process optimisation (particularly in logistics), and increased scale and profitability within the DCO segment, which reached EBITDA break-even during the year. Our strong operational performance translated into robust free cash flow (FCF) generation and further deleveraging. Our profitability is underpinned by a strong culture of operational excellence. By applying new technologies and granular data analytics, we have reduced the payback period for newly opened stores from 20 months in 2017 to just 12 months for those opened in 2023. In accordance with our IPO guidance, we expect to maintain a stable adjusted EBITDA margin close to the upper end of the 12–13% range over the short and medium term. For 2025, we also anticipate mid- to high-single-digit LfL growth, alongside continued net profit improvement.”

Key performance highlights for FY 2024:

• Adjusted EBITDA increased by 23.7% year on year, to PLN 3,505 million, supported by greater business scale, LfL growth, effective cost management, and the DCO segment becoming EBITDA positive. In Q4 2024 alone, adjusted EBITDA reached PLN 987 million, up 18% year on year.
• Sales to End Customers totalled PLN 27,277 million for the year, having increased 19.8% relative to the previous year. In the three months to 31 December 2024, Sales to End Customers rose by 18%, reaching PLN 6,885 million. 
• Total revenue for 2024 amounted to PLN 23,797 million, which represents a year-on-year growth of 20.2%. Q4 revenue increased by 20.8%, to PLN 6.1 billion. 
• Top-line growth was driven by a combination of LfL growth and the continued store network expansion.
• As at 31 December 2024, the Żabka Group operated 11,069 stores, maintaining its position as Europe’s largest convenience network, following the opening of 1,166 new locations over the year. In 2024, the Group entered the Romanian market, launching 60 stores by year-end. In 2025, Żabka will further consolidate its presence in Romania under the dedicated Froo brand, adapting its proven Żabka store format to local consumer preferences. In line with its IPO guidance, the Group estimates a total market potential of approximately 19,500 stores in Poland and around 4,000 stores in Romania, which offers a sizable runway for future growth in both geographies. 
• In 2024, LfL growth came in at 8.3%, supported by higher per-store sales volumes and the positive impact of inflation. A key contributor to this growth was also the continued rollout of Żabka’s street food offering, which by year-end was available in more than 75% of our stores in Poland.
• Rapid organic growth, bolstered by the evolution of the Żappka mobile app, drove a 32% increase in revenue from the DCO segment. The Group remains on track to deliver its IPO commitment of achieving a fivefold increase in DCO sales by 2028. 
• The adjusted EBITDA margin reached 12.8%, having improved by 0.4 pp year on year on the back of sustained cost efficiencies and lower energy costs. In Q4 2024, the adjusted EBITDA margin was 14.3%, unchanged from the same period last year. 
• Adjusted net profit for 2024 reached PLN 714 million, up nearly 65% from PLN 433 million in 2023. In Q4 alone, adjusted net profit amounted to PLN 294 million, having risen 28.4% from PLN 229 million the year before. Reported net profit for the full year was PLN 593 million, up 66.4% year on year, with Q4 reported profit at PLN 216 million, an increase of 4%. The net profit growth was primarily driven by operating leverage, reduced net finance costs, and a lower effective tax rate, partially offset by one-off IPO-related costs. 
• The adjusted net profit margin improved to 2.6% in 2024, up from 1.9% in the prior year. In Q4 alone, it rose to 4.3%, compared to 3.9% in Q4 2023. 
• Free cash flow (FCF) totalled PLN 1,531 million in 2024, a substantial increase from PLN 460.8 million a year earlier. This was driven by strong post-rent EBITDA performance and effective working capital management.
• The Group’s robust cash generation enabled the financing of total capital expenditures (CAPEX) of PLN 1,675 million in 2024 (+24% y/y), including PLN 623 million in Q4 alone (+35% y/y). A significant portion of this investment was allocated toward new store openings and the ongoing remodelling of existing locations, including the rollout of the Żabka Café 2.0 concept. 
• Supported by this strong cash flow performance, the Group made significant progress on its deleveraging strategy, reducing its net debt to adjusted EBITDA ratio from 2.3x in 2023 to 1.5x in 2024.

Selected financial and operational metrics for Q4 2024 and FY 2024
(all margins calculated in relation to Sales to End Customers)

*Represents Sales to End Customers from Żabka stores, as well as of New Growth Engines, and does not represent the Company’s revenue.
** Adjusted EBITDA calculated as EBITDA pre-Rent and margins calculated based on Sales to End Customers.
*** Adjusted net profit includes net profit plus EBITDA adjustments (mainly IPO costs in 2024), net of tax effect.

Sustainability reporting

The Żabka Group’s 2024 Annual Report is its first to include a consolidated sustainability statement. The statement is prepared in conformity with the Corporate Sustainability Reporting Directive (CSRD) disclosure requirements ahead of their formal enforcement timeline. Accordingly, the statement complies with the European Sustainability Reporting Standards (ESRS) and the EU Taxonomy for sustainable activities. The report provides a comprehensive overview of the Group’s double materiality assessment, which served to define the scope of its sustainability reporting. It also includes detailed information on the Group’s environmental, social, and governance (ESG) impacts. 

The Group’s voluntary early adoption of these enhanced reporting standards showcases its commitment to advancing sustainability disclosures and ensuring transparent communication with all stakeholder groups, particularly investors. The report also incorporates selected disclosures from the latest Global Reporting Initiative (GRI) standards, issued by the Global Sustainability Standards Board, and adopts the recommendations from the Sustainability Accounting Standards Board (SASB) for Food Retailers & Distributors.

The report outlines the Group’s progress and achievements in sustainability, in line with our ESG Framework and Responsibility Strategy. 

In 2024, the value of own-brand products promoting a sustainable lifestyle reached PLN 1.8 billion. Close collaboration with suppliers led to 82% acknowledging the Żabka Group Code of Conduct for Business Partners. Employee engagement remained strong, reaching a score of 4.54, an increase of 0.13 points year on year. This places Żabka in the 83rd percentile globally, among the top 25% of the world’s most engaged organisations. We also made meaningful progress in reducing our environmental footprint. Notably, we decreased the share of virgin plastic in our own-brand product packaging to 33.5%, cut GHG emissions from own operations by 31.2%, and achieved a 64.4% reduction in store (Scope 3) emissions intensity – all relative to our 2020 baseline. Our ESG leadership was once again recognised by EcoVadis, which awarded the Żabka Group a Platinum Medal for the third consecutive year, placing us among the top 1% of companies assessed globally.

Żabka store chain has reached another milestone with the opening of its 11,000th outlet in Poland. The new store, located in Warsaw at 8 Moliera Street, near the Grand Theatre, fits into the fabric and character of the city. This is a significant moment in the history of the chain, which has been supporting the development of entrepreneurship for more than two decades, creating a stable foundation for the growth of thousands of local businesses. Żabka maintains the pace of expansion and, in line with earlier declarations, opens more than 1,000 stores yearly.

For 26 years, the chain has been successfully growing in the convenience sector in Poland, providing customers with convenient solutions at their fingertips. Interest in cooperating with the chain remains consistently high - currently more than 9,000 franchisees run their outlets under the green banner. This reflects not only a desire to develop entrepreneurship but also proves the attractiveness and effectiveness of Żabka's business model. Today, Żabka is a leader in the modern convenience segment and a brand recognised by millions of customers, which continuously adapts its operations to the changing needs of consumers and franchisees. The chain is growing dynamically, opening more than 1,000 stores a year. Such a scale allows it to consistently expand its offer, searching for new and innovative solutions, which translates into increased turnover in franchisees' stores.

– Żabka is more than a store. It is a chain that invests in people, and local communities and influences the development of the Polish economy. Thanks to cooperation with franchisees, Żabka Group has already created 63,000 jobs. Our 11,000 stores are not only a symbol of development, but also proof that we can combine business success with a positive environmental impact – says Adam Manikowski, EVP, Managing Director of Żabka Polska.

The store's unique location adjacent to the Grand Theatre in Warsaw made the opening day of the 11,000th outlet a real spectacle. At the entrance, customers were greeted by actors from the Lufcik na Korbę theatre from Gliwice, playing the roles of the greatest characters from the world of theatre, while opening a huge green curtain revealing the store's doors. Żabka is located in a building at 8 Moliera Street, which since the 1960s has been inhabited by employees of the opera house located next door. In turn, the street was named after an outstanding playwright and comedy writer.

The outlet is distinguished not only by its location but also by its modern approach to customer service - it has been equipped with a consumption area where guests can relax while enjoying aromatic coffee or hot meals and look out over the neighbouring National Theatre through tall display windows. Ergonomic technological solutions, including a kiosk for ordering products from Żabka Café offer, as well as the store's intuitive layout ensure fast and convenient shopping.

– The opening of this store is a special moment for me – says Jakub Kunecki, franchisee of the new outlet. – Żabka at 8 Moliera Street is not only a place for shopping, but also a space where customers can slow down for a while and feel comfortable. I am glad to be able to run a store in such a prestigious place, and at the same time, I am proud to be a part of a brand that supports entrepreneurs every step of the way. The dynamic growth of Żabka, which has been consistently developing its business and building local entrepreneurship since 1998, is the result of the support the chain offers its franchisees. Over 9,000 entrepreneurs, including nearly 900 in Warsaw, benefit from an innovative business model that combines a low barrier to entry with comprehensive operational and technological support. Żabka provides tools that help effectively manage outlets and improve their efficiency, not only in agglomerations such as Warsaw - the smallest town in which one of the chain's stores operates is Porażyn-Tartak, inhabited by 100 people.

The top Żappka app has been on the market for 5 years and has surprised its users more than once with unique solutions. This time, in the new version, Żappka users will gain access to the offers of brands present in Żabka Group, such as Żabka Jush, Maczfit, Dietly or Żabka Nano. The app has an improved, intuitive interface and several new features. The first stage of making the app available is underway, and users will see new Żappka solutions periodically in the coming weeks. To date, the app has been used by more than 10 million people.

Even more Żappka

The improved version of Żappka includes, among other things, new features to enable the use of the services of Żabka Group companies.

–Technology development is one of the pillars of the Żabka Group's long-term strategy. Thanks to the synergy of our brands in the Żappka app, users will gain better access to our full range of products and we, in turn, can use the potential of the entire Group –comments Tomasz Suchański, Group Chief Executive Officer, President of the Management Committee.

During the development of the new app, comprehensive research was carried out with real users and people who had not previously been exposed to Żappka. The respondents included minors, adults and those in the 50+ group. As a result, the new version of the app received a new design and features that will make using it even more intuitive.

–To remain a leader and trendsetter in the retail industry, we have decided to take Żappka to the next level. The coherent architecture of the new app will be even more intuitive and thus user-friendly. Together with our partners, inside and outside the Żabka Group, we have created an ecosystem of common benefits for users, and they will find even more interesting offers. Today, we are handing over the app, which is the result of months of work by our teams. Still, we will continuously add new functions so that Żappka becomes our customers' companion during days filled with various activities –saysWojciech Krok, Managing Director, Żabka Future.

Improved navigation and even more offers

Among the most important changes, users will notice a division of Żabka's offer and menu, where they will find, for example, PROSTO z PIECA products. The Wszystko za żappsy section has been divided too – from now on the offer of Żabka stores, companies belonging to the Żabka Group and partners will be displayed separately. Also new are sections dedicated to diet catering and the Żabka Jush section, enabling online shopping with delivery. Users have also been given new opportunities to use żapps, including for services offered by Żabka's business partners, which include Allegro, Multikino, Lime and Traficar. Żapps will also temporarily be able to be exchanged for coins in the Allegro app. Customers will also gain new payment options via Google Pay or Apple Pay.

The launch of the new app is supported by a marketing campaign promoting ways to use żapps, featuring influencers Przemek Pro, Monika Kociołek and Czvjnik.

The new Żappka will be made available to users in stages. The legacy version of the app will provide information about the available updates.

For the third time in a row, Żabka has received the highest platinum award in the EcoVadis Sustainability Rating. It has thus strengthened its position among the 1% of companies worldwide best integrating ESG factors into their strategies and operations. Amongst others, Żabka’s environmental activities, management systems certifications and HR activities were listed as strengths.

In this year's rating, the EcoVadis agency particularly appreciated Żabka's commitment to the environment - including, among other things, its efforts to decarbonise and reduce plastic. It also cited the chain's management system certifications, as well as the company's maturity in terms of actions taken in the area of HR and business ethics as the chain's strengths.

As a result, Żabka Polska maintained its high score in all four areas assessed (environment; working conditions and employment practices; business ethics; supply chain practices), again scoring as high as 90 points out of a possible 100. This, in turn, again placed it among the top 1% of the world's best-rated companies by EcoVadis.

Such a high rating is the result of the many activities that, with the commitment of the entire organisation, Żabka has implemented in recent years within the framework of the priorities set out in the Responsibility Strategy. These include the continuation of the implementation work on the Code of Conduct for Business Partners (which shows the chain's approach to building a sustainable supply chain) - additionally complemented by a Human Rights Policy, or the development of a Biodiversity Policy, integrating the chain's approach to the protection of biodiversity and ecosystems.

Transparent communication regarding the company's approach to managing ESG factors, the actions taken and the results achieved in this sphere, and reporting in line with best practice, also played a major role. Read more about the Responsibility Strategy at: https://zabkagroup.com/pl/nasza-odpowiedzialnosc/

EcoVadis (https://ecovadis.com) is one of the world's most trusted rating agencies providing sustainability ratings for companies. Backed by a powerful technology platform and a global team of multidisciplinary experts, EcoVadis' easy-to-use and practical sustainability scorecards provide detailed insight into environmental, social and ethical risks for more than 200 industries, in over 160 countries.

Żabka is expanding its long-standing cooperation with Microsoft in the field of innovation, focusing on dynamic acceleration of growth based on artificial intelligence. The strategic partnership agreement aims to strengthen the development of the chain using AI in four key areas: store efficiency, international growth, internal transformation, and data analytics responding to customer needs. Żabka, which is a leader in technological transformation, will be the first retail organization in Central Eastern Europe to work together with Microsoft among others on the use of an intelligent assistant to support the work of as many as 2,500 employees.

“Digital transformation is one of the strategic pillars of the Żabka Group. The knowledge we derive, for example, from data analysis, allows us to expand our convenience ecosystem and increase its operational excellence. Thanks to the partnership with Microsoft, we are ahead of trends in the retail market also in terms of the use of AI. We see a very high potential for development in this area. Artificial intelligence is already helping us minimize customer service time, make it easier for our franchisees to run their businesses, allow us to better select the assortment for stores and personalize the offer for customers," says Tomasz Suchański, CEO of Żabka Group.

The cooperation involves not only the implementation of new services and solutions, but also support for the transformation of the organizational culture towards AI. This means even greater openness to learning new competences and exchanging knowledge in the field of the latest technologies.

"Żabka is a pioneer in the retail industry. From the very beginning of our partnership, they’ve been at the forefront of retail innovation leveraging the power of AI to deliver new consumer experiences and strengthen their position as a leader in both Polish and European retail markets. In this new era of AI, strong partnerships are not only important to drive continued innovation but also do so in a way that’s responsible and fosters trust. I’m proud of our longstanding partnership with Żabka and look forward to our continued cooperation”- says Shelley Bransten, Corporate Vice President, Global Industry Solutions at Microsoft.

The long-term cooperation between Żabka and Microsoft has already resulted in many strategic solutions for the development of the industry based on the most innovative technologies - from the vision of the store of the future presented jointly six years ago to the presentation of the Żabka Nano concept in New York during the largest retail conference in the world - NRF 2023 Retail's Big Show. Żabka was one of the few companies from Europe that received an invitation from Microsoft to participate in this prestigious event and present its innovations.

AI has revolutionized the shopping experience by making it as easy as opening a fridge. It has allowed the development of Żabka Nano autonomous stores where customers can simply take products from the shelves and leave, and payment is collected automatically. The first Żabka Nano store was established in June 2021 in Poznan. Currently, the Żabka Group manages the leading network of autonomous stores in Europe, with 50 outlets. Żabka has been a pioneer of innovation for years - the company was the first retailer in Europe to implement Microsoft Cloud for Sustainability, created the largest Azure Marketplace in Central Europe and has long invested in solutions based on artificial intelligence.

Retail of the future "here and now"

The strategic partnership between the two companies means intensive cooperation in the area of using artificial intelligence to automate processes, optimize logistics and assortment, and better understand and meet customer needs. The partners will also work together to develop innovative services and products for consumers, business partners and local communities, using AI-generated data and analytics. Żabka and Microsoft will also take care of improving the AI competences of Żabka employees through training, workshops and mutual knowledge sharing.

Żabka is an AI pioneer

As part of the partnership, Żabka Polska will be the first company in Poland to provide 2,500 of its employees with an intelligent assistant - Copilot for Microsoft 365. Copilot, embedded in tools such as Outlook, Excel, Word, PowerPoint and Teams, will help them perform repetitive and often tedious activities faster and "free up their time" for more creative activities and the development of digital competences. The assistant, i.a., will summarize the meeting, help prepare the content of the email, design a presentation or support employees in effective planning of the week.

The partnership between Żabka and Microsoft is an expression of mutual trust and long joint experience in implementing the most innovative industry solutions. By joining forces of two leaders – technology and retail – customers, employees and the community will benefit from the increased quality of services, products and added value generated by artificial intelligence.

Already 9,000 franchisees run their local businesses under the Żabka banner. The 9,000th entrepreneur has just joined the chain and manages a store in Kosina (Podkarpackie voivodship), with a population of less than 4,000. Żabka successfully attracts motivated and committed people with its business model, offering them premises, extensive training, and logistical and marketing support. It is the diversity and uniqueness of the franchisees that are the strength of the chain. Thanks to them, Żabka's offer is available in almost every corner of Poland, also in small towns.

– We are delighted to welcome our 9,000th franchisee. Entrepreneurs running their stores with the Żabka logo play a key role in our chain's development. We are constantly enriching our offer by adapting it to the needs of customers also from small towns, who increasingly value time and convenience. At the same time, we are developing our business model with comprehensive training, modern store management tools and a benefits package. Franchising is the best school for entrepreneurship, and we aim to support franchisees in developing their businesses – says Adam Manikowski, EVP, Managing Director of Żabka Polska.

Jakub Uberman became the 9000th franchisee. Until now, he has supported his wife in running a beauty salon. Previously, he was also a sales manager and sales representative for an agricultural company.

– Joining Żabka was an obvious choice for me, primarily because of the comprehensive support the chain offers at every stage of running a store. The possibility of development and a proven business model were key in my decision. In addition, the recognition of the Żabka brand gives me confidence that I will attract a wide range of loyal customers from the very beginning –says Jakub Uberman, the 9,000th franchisee to run a Żabka store in Kosina.

The potential of small towns

Last year, Żabka chain opened over 1,000 new stores, including 130 in towns with fewer than 50,000 inhabitants. In the Podkarpackie voivodship alone, there are almost 280 stores, including 75 in Rzeszów, and the newly-opened store in Kosin is the first in this locality. Statistical data shows that ladies comprise a vast majority (75%) of those who decide to set up their own business and run their Żabka store in the said voivodship.

Entrepreneurs developing their business with Żabka in small towns and rural areas can count on additional support from the chain. One of the solutions offered is the 'Vehicle for a Start' programme, which provides a car to get to the outlet. This programme is aimed at entrepreneurs who run stores in towns with up to 30,000 people or live in other locations daily. An additional benefit is the relocation package, i.e. monthly financial support for franchisees who decide to move to open a store in a town with a population of up to 50,000.

Benefits of the Żabka franchise

Franchisees joining the chain receive fully equipped and furnished premises. From the beginning of the cooperation, entrepreneurs benefit from substantive, service and technological support. The chain provides innovative solutions such as the Optiplan programme and the Cyberstore application, which enables remote store management via smartphone, including ordering, generating reports and verifying delivery times. Franchisees also receive a comprehensive training package that prepares them to run the store and is tailored to individual needs. Importantly, the chain offers franchisees a unique collective insurance on the market, 'Policy for Business', which, under the terms and conditions agreed with the insurance company, protects them against possible financial failure and ensures economic stability in the event of termination of cooperation with the chain with a negative balance.

More information about franchising with Żabka can be found at: www.zabka.pl/franczyza

One of Europe's biggest modern convenience brands is launching a new chain of stores in Romania. Over the past month, five stores have been set up in Bucharest under the Froo banner. This is a new brand within the ecosystem of the Żabka Group in the European market. The Group, which owns, among other things, a chain of over 10,000 Żabka stores in Poland and Maczfit, a leading diet catering company, joined forces with DRIM Daniel Distributie in February this year, taking a majority stake in a leading FMCG distribution company in Romania. Froo are modern convenience stores equivalent to the Żabka stores operating in Poland.

Żabka Group is a comprehensive convenience ecosystem originating in Poland with both physical and digital sales channels. Its products and services are used daily by more than 3 million people who value their time and the convenience of shopping.

The Żabka Group in Poland includes over 10,000 stores under the Żabka banner, Nano unmanned stores, q-commerce, e-commerce solutions and diet catering. Żabka has been building its leading position since 1998 when the first store was established in Poland. In entering the Romanian market, the Group is building on more than 25 years of experience gained in the Polish market, knowledge of consumer behaviour and the know-how of its Romanian partner DRIM Daniel Distributie – a leader in FMCG distribution in Romania.

– Romania is a significant market in Central and Eastern Europe, with a population of over 19 million inhabitants, making it the second-largest consumer market in the region. The similar consumer profile to Poland and the growth prospects for the Romanian market made this direction a natural step in the expansion of the Żabka Group. Romanian consumers appreciate small, nearby shops where they can make impulse purchases for immediate consumption - which is why Froo fits in well with their needs with its mission statement "Everything you need, you will find in Froo". – says Anna Grabowska, CEO of Zabka International.

An analysis of the Romanian market and a survey of local consumers conducted by Kantar[1] shows that 47% of Romanian citizens surveyed prefer to shop spontaneously or on impulse when time allows. The same group indicated that they like to buy groceries in small stores close to where they are staying. Froo aims to respond to the needs of this group of people.

Development of local entrepreneurship

The name Froo refers to the DNA of the Polish brand from which it originated. Żabka's characteristic smile has remained in the Froo logo, under the letters RO - on the one hand, this is a reference to Romania, on the other hand, the smile itself is an important symbol for the brand of openness and a positive approach to customers, and the name itself is short and easy to pronounce. Although the name of the chain is different in Poland and Romania, the branding and character of the brand have remained the same.

Froo Romania Retail S.R.L., a company belonging to the Żabka Group, is responsible for the development of the store chain in Romania. It aims to support local entrepreneurship, so the stores will operate under a business partnership model. Froo plans to open stores in major towns and cities across Romania, with outlets ranging from 50 to 70 sqm. Each location is analysed in terms of its attractiveness to customers, but also logistics and growth potential. There are currently five stores operating under the Froo banner in the country's capital.

– In the first stage, we opened the stores in the friends&family formula, which allowed us to test the IT, assortment and logistics solutions introduced. We then opened test outlets for customers. We asked for their opinions and perceptions of our stores. We are committed to responding to our customers' needs in the best possible way, which is why we are constantly improving our processes and enhancing our offer. We are aware that we still have a lot to learn, but thanks to the cooperation within the Group and the local market experience of DRIM Daniel Distributie, we can provide customers with a new shopping experience.  – says Radu Trandafir, General Manager, Froo Romania Retail S.R.L.

Everything you need can be found at Froo

In the Froo chain's stores, more than 80% of the assortment consists of well-known and well-liked Romanian brands and international brands from Romanian suppliers. Following the example of the Polish market, Froo also offers private label products - the range includes Tommy Bites sandwiches, Good Soul lunch products and Barefruit drinks. A wide range of hot snacks, such as a hot dog or fries, and coffees are also available at all stores, operating under the Froo Bistro banner. An offer prepared for customers who want to quickly satisfy their hunger and thirst on the go.

In all stores, customers can return product packaging covered by the deposit system - with a capacity of 0.1 to 3 litres. Reverse Vending Machines (RVMs) are available at selected outlets for the collection of plastic, aluminium and glass packaging. Packaging can also be left at retailers. The deposit activities undertaken by Froo are a result of Żabka Group's Responsibility Strategy, which includes activities promoting a closed-loop economy. It is also a fulfilment of the regulations in force in Romania.

[1] Source: Kantar CAWI survey, 2022.

Women in Poland are strengthening their professional positions and increasingly realising their leadership roles, and Polish businesses are doing more and more to equalise the situation of women and men. According to data from the CEIDG [the Central Register and Information on Economic Activity] at the beginning of 2023, there are 25 per cent of women on the boards of Polish companies[1]. At Żabka Group, they make up almost half of the Management Board, managing key business areas such as finance, HR or foreign expansion. Ladies also make up the majority - 65 per cent - among franchisees cooperating with Żabka, running stores all over Poland. For comparison, the percentage of women among all owners of sole proprietorships in Poland is around 34 per cent.[2]

Żabka Group is an organisation that, by developing a culture of equal opportunities, actively supports women. They can develop and successfully combine their professional and private lives - only in 2023, 273 female employees were promoted at Żabka. Currently, ladies account for 40.3 per cent of all employees at the company. They are in charge of such important areas as finance, legal department, logistics, human resources department, price analysis department, sales or adaptation. As of the beginning of 2024, 155 women are employed in managerial and executive positions - an increase of nearly 10 per cent compared to 2023. Żabka was one of the first organisations in the Polish market to achieve parity on the Management Board. Currently, due to changes in the Group's management structure introduced as of February this year, three out of seven members of the Board are women (for comparison, in Q1 2023, on the boards of commercial companies in Poland, traditionally understood as companies, business women accounted for 25 per cent[3]).

– Gender balance in employment is very important to us. We have built an organisation that supports women and gives them the same opportunities for development and promotion as men, thanks to which they have a real impact on the shape of the business and social environment of our company. More and more women are using their competencies and potential to achieve responsible managerial and leadership positions within the Żabka Group –  says Jolanta Bańczerowska, Member of the Management Board, Chief People Officer.

An important step in supporting women's professional development was Żabka's implementation of an equal pay policy, thus recognising that women and men must be treated and paid equally. Żabka is the first Polish company with EQUAL SALARY certification, indicating equal pay in the organisation regardless of gender. As part of its support for female employees, the company also runs a mentoring programme, 'Super Babes from Żabka', which aims to promote female energy in business and strengthen female leaders in the organisation.

The woman at the helm of Żabka International

It was Anna Grabowska, in the role of Executive Vice-President and Managing Director, who was entrusted with the extremely responsible task of managing a new organisational unit established at the beginning of February this year - Żabka International. It will provide operational support for the Group's entities in foreign markets. Anna Grabowska has unique experience in retail management in areas such as consumer strategies, supplier relations, marketing communications and ESG, among others. Her knowledge of consumer needs and modern convenience helped build Żabka's success in Poland. During her career path, she has also dealt with markets outside Poland, which is an asset in building new markets for the organisation.

Women develop their own business with Żabka

According to data from the CEIDG [the Central Register and Information on Economic Activity]in early 2023, approximately 1 million women are owners of actively operating sole proprietorships in Poland[4]. In total, women account for approx. 34% of all owners of sole proprietorships in Poland[5]. Among the franchisees cooperating with Żabka, the percentage of women is almost twice as high - ladies account for 65 per cent of the more than 8,800 entrepreneurs running stores under the chain's banner.

– Women perform well as entrepreneurs because of their perseverance, creativity, but also their diligence. The report 'Businesswoman of the Year: Polish Women and Entrepreneurship 2023' shows that as many as 45 per cent of female respondents work more than 40 hours a week and 41 per cent devote more time to their professional duties than a year ago. Polish female entrepreneurs want to create inclusive teams: 75 per cent of respondents would hire a person over 50 and 58 per cent. - a person with a disability or neuroatypical condition. Women are constantly proving how ambitious and courageous they are - one in four respondents declares that they would like to develop their company internationally –says Olga Kozierowska, creator of Sukces Pisany Szminką and President of the WłączeniPlus Foundation.

Żabka's 5700 female franchisees are successfully developing their businesses in both metropolitan areas and small towns across Poland. Almost half of them are women aged between 26 and 39. And nearly 40 per cent of the franchisees come from towns with a population of up to 50,000.

Żabka supports women in various ways to broaden their knowledge and acquire new competencies in the area of entrepreneurship. Regardless of their age, professional experience or background, it creates space for development and confidence building. It also helps them daily to run businesses under its banner.

[1] Women in Business in Poland 2023 - Data and Statistics | by Transparent Data | Blog Transparent Data | Medium

[2] Ibid

[3] Ibid

[4] Ibid

[5] Ibid

Every year, the Polish economy is supported by more and more foreigners, who are often very good specialists and fill gaps in industries with personnel shortages. Many of them run their businesses, create jobs, pay taxes and are involved in the life of local communities thus contributing to the development of the Polish economy. An example of the entrepreneurs involved is the more than 300 franchisees of Żabka shops coming from outside our country. Thanks to the scale of the chain, this contribution to entrepreneurship is even greater!

According to the Central Statistical Office (CSO), Poland's population was 37.6 million at the end of 2023, down from 2022. Further forecasts are not optimistic - by 2050, more than half of our country's population may be over 50, which will translate into a greater demand for economically active people. Negative data on our country's shrinking population and ageing population are already influencing public discussion about the future of the labour market. Already today, an increasing number of foreigners are contributing not only to the employee market. Those with ties to Poland, who have lived here for a long time or who want to stay in our country for the long term, are developing their businesses.

There are currently more than 8,600 entrepreneurs representing 8 nationalities in the chain. In total, more than 350 non-Polish nationals run their shops. The vast majority are from Ukraine and Belarus, but there are also entrepreneurs from Moldova, Romania and even Egypt.

Natalia Vaitovich, a Belarusian who has been running the facility in Warsaw since September 2022, emphasises: – I came to Poland to study in 2014. I worked for a few years, also in a managerial position in a clothing shop. During this time I met my now fiancé - we wanted to change something in our lives and start something of our own. One of the things that convinced us to join Żabka was the low investment, the extensive support offered by the chain from the very beginning, including an almost turnkey store, as well as the support from recruiters who helped me complete the documentation necessary to start the business. My fiancé is Polish and I plan to start a family here. Therefore, by running a store in the capital, I am contributing to the development of a place I want to be associated with permanently.

In turn, Olena Saroyan, a franchisee also from the capital, says: – I am glad that my parents connected with Poland - apart from being Armenian, I now also have Polish citizenship. One of my friends, who has been running a Żabka franchise store for 5 years, inspired me and recommended this business to me. In September 2022, I opened my outlet in Warsaw, while continuing my studies in management. This is my first professional job and thus my first business of my own. My family ran grocery shops in Ukraine, you could say we are a family with a tradition in trade. Those closest to me helped me to develop the shop, which was extremely valuable during the first months requiring the greatest effort. The smooth introduction to the role of a franchisee was also possible, thanks to a lot of support from the chain.

Benefits of being part of a franchise network

By opening a shop with Żabka, franchisees from outside Poland gain the same benefits as those with Polish citizenship. They receive an outlet from the chain ready to run, equipped with equipment, computer systems, furniture or goods. They are covered by the "Business Insurance Policy", which, according to the terms and conditions agreed with the insurance company, protects them from various unforeseen situations that may arise during running their own business and ensures financial stability at the end of the cooperation. They can also count on access to the chain's more than 25 years of experience, a package of free training, direct shop deliveries, IT, service and marketing support, as well as several modern tools (the Cyberstore application or the Optiplan package with Żabka Assistant) to make running their business easier. In 2023, more than 81% of franchisees achieved at least PLN 25,000 in revenue per month.

Franchising with Żabka - Requirements for non-Poland residents

People of non-Polish origin wishing to start a business with Żabka, like everyone else, must, among other things, undergo a recruitment and training process completed by an exam, register a sole proprietorship in Poland, and make their contribution of around PLN 5,000.

An additional requirement for candidates who do not have Polish citizenship and come from non-EU countries is the need to have legal residence, which entitles them to establish a sole proprietorship (JDG in Polish). On the other hand, based on the "special law" (Law of 12.03.2022 on assistance to citizens of Ukraine in connection with the armed conflict on the territory of that country), citizens of Ukraine may set up a JDG and carry out economic activity on the territory of the Republic of Poland on the same terms as Polish citizens. However, the requirement in this case is that the Ukrainian citizen obtains a PESEL number and submits an application for a residence permit to the competent Office of the Governor. There is also a requirement for language certification at the B2 level, which is organised by the Żabka chain. Persons who have been legally residing in Poland for 2 years can take advantage of the promotional conditions for securing business in the form of a promissory note with 1 guarantor or a promissory note with a deposit of PLN 20,000 without a guarantor. Otherwise, they should present two guarantors for the bill of exchange or a bill of exchange with one guarantor and a deposit of PLN 25,000.

– Żabka gives young people and those with non-Polish roots a chance to develop. I develop under the chain's banner personally and professionally. As an entrepreneur, I also have a micro-contribution to the Polish economy. I recommend this business to ambitious and hard-working people, regardless of their backgrounds. –concludes Olena Saroyan.

Golden Heart No. 1 of the Great Orchestra of Christmas Charity is already at Żabka's headquarters in Poznań. The handover ceremony took place on February 14, Valentine's Day, at the Foundation's headquarters. It was collected from the hands of Jurek Owsiak by Tomasz Suchański, President of the Management Board of Żabka Group. The Golden Heart No. 1 was auctioned by Żabka during the 32nd Finale of the Great Orchestra of Christmas Charity for PLN 1,050,000.

During a meeting at the Foundation's headquarters, Jerzy Owsiak summarised what equipment would be purchased with the amount that the Żabka Group donated during the heart auction. PLN 1 050 000. is the equivalent of 4.5 specialised ultrasound machines, almost 3 Digital PCR machines or 1 fluorescence microscope for FISH genetic tests.

The motto of the 32nd Finale was: 'Lungs after the pandemic. We play for children and adults, and the goal was to support pulmonology wards and provide them with appropriate equipment to fight the effects of the pandemic. The topic is very close to our hearts, as from the very beginning of the outbreak of the pandemic, Żabka Group has been heavily involved in activities to increase the safety of its customers, franchisees and employees, as well as supporting Polish hospitals on a large scale in the fight against Covid-19. Participation in the auction of the Golden Heart No. 1 was therefore a continuation of the company's efforts to improve the quality of healthcare, as well as the crowning achievement of its long-standing involvement in the activities of the Great Orchestra of Christmas Charity and highlighting Żabka's 25th anniversary celebrated last year.

The company has been involved in the Great Orchestra of Christmas Charity (GOCC - WOŚP in Polish) activities for several decades, creating, together with its franchisees, the most numerous staff in Poland. This year, colourful WOŚP moneyboxes were displayed in more than 10,000 Żabka shops; moreover, users of the mobile application could donate Żapps to the Foundation, and Żabu, the virtual hero, wore a special volunteer T-shirt for the occasion. Thanks to the commitment of customers and franchisees, the company donated a total of more than PLN 1,450,000 as part of the 32nd GOCC Finale.

In the new year, Żabka launched the "Franchise Ambassador" project. Fifty franchisees have been appointed to this elite group in recognition of their commitment, professionalism and desire for continuous development. The entrepreneurs will participate, among others, in industry events, and some of them will become protagonists of a series of podcasts hosted by Jarosław Kuźniar, a well-known journalist and entrepreneur.

– The Ambassador programme we have set up is an inspiring way to engage our franchisees in wider activities and activity in local communities. The selected entrepreneurs identify with the values of our business model and want to co-create a credible image for the franchise. They have an in-depth knowledge of all aspects of the cooperation and are aware of the support we offer and the difficulties that may arise in running a business under our banner. Honesty and truthfulness is their greatest advantage – says Przemysław Kijewski, Chief Operating Officer at Żabka Polska.

The project involves 50 franchisees of different ages, with different life and work experiences, coming from both big cities and small towns, including from abroad. The initiative aims to facilitate direct contact with the Ambassadors for people who are considering setting up their own business and want to hear the opinion of an entrepreneur who knows the business inside out. Franchisees will be available to meet at many local or industry events. Many of them plan to build their brand through social media channels.

Part of the initiative is a series of 25 interviews with franchisees, which are published every Wednesday starting from January 31, this year, among others on the YouTube channel Żabka Biznes, in podcast applications and on www.zabka.pl/podcasty. Each meeting is hosted by Jarosław Kuźniar. During the conversation, the well-known and respected journalist and entrepreneur often touches upon difficult issues related to running one's own business, asks about breakthrough moments in professional life, and also finds out what their recipe for success is.

– The common denominator of all the talks is the drive of our franchisees to achieve the best possible results and the desire for continuous development. By listening to the conversation, the audience will be able to better understand the franchise model, get to know the people who decided to open their own business and the emotions accompanying them in their daily duties as a franchisee – adds Przemysław Kijewski.

Currently, more than 8,600 entrepreneurs who run their stores under the chain's banner already benefit from Żabka's more than 25 years of experience, its partnerships and extensive support in business development from the start.

Read more about Żabka franchise and the Ambassador Programme at: https://www.zabka.pl/franczyza