Mindful business impact 2.1 Fostering entrepreneurship

    Why is this important?

    Small and medium-sized enterprises form the foundation of the Polish economy and generate almost half of Poland’s Gross Domestic Product (GDP). Companies from this sector are active primarily in service and trade sectors, creating jobs directly and indirectly, along the entire value chain. Six out of ten Poles believe that running their own business is a good way of making a career and that people who succeeded in setting up a company deserve recognition. In the Żabka Group, we have created an ecosystem of solutions that supports entrepreneurs – both those who open their first business in cooperation with Żabka (nearly 70% of all new franchisees opening their stores) and those who have many years of professional experience and are looking for new opportunities to foster their own growth.

    Our contribution

    We are one of the largest franchisers in Poland and we make a significant contribution to the development of micro and small businesses. We act in accordance with clearly defined rules, offering a chance to succeed in business to thousands of our partners. In 2021, we cooperated with nearly 7,000 franchisees running their own companies. Those franchisees who, for the purposes of cooperation with us, set up their first company, are provided with the necessary knowledge and assistance. They are also offered comprehensive support in continuing their activities. The opportunity may be taken advantage of by those having trade experience, as well as by new entrepreneurs. Żabka stores operate both in small towns and in large cities. Uponcommencing cooperation, franchisees are able to take advantage of numerous training and development programmes to boost their entrepreneurship skills. They also receive continuous support from our field personnel serving as the first line of contact with Żabka. Being a franchisee-oriented organisation, we focus on continuously increasing the quality of our franchise. We pursue this goal in cooperation with the Board of Franchisees – an advisory and opinion – making body made up of 14 franchisees appointed in free elections.

    What have we done so far?

    Continuing COVID-19 restrictions, stricter regulations preventing stores from being open on Sundays and rising employment costs have all significantly affected the structure of our franchisees and the level of their satisfaction. In response to these challenges, we have prepared a comprehensive system for supporting franchisees under the Żabka brand. Our franchisees may take advantage of a long-term business risk mitigation programme. They are also provided with tools supporting business operations and allowing them to improve their financial performance. Our system of cooperation with franchisees is based on three components – security, motivation and partnership. Each of those components may be broken down further into simple elements that ensure financial security, serve as a source of motivation and rewards long-term cooperation. We build long-term relations and increase the percentage of franchisees who have been cooperating with Żabka for at least three years. It equalled 66% in 2021 and was 2pp higher than the year before. We also maintain a stable share of franchisees who set up their first business in cooperation with Żabka. This means we are able to effectively establish and maintain cooperation with a dynamically growing group of entrepreneurs operating together with our company. We provide them with valuable support at the initial phase and minimise the costs of joining our chain. Considering the scale of our activities and the related opportunities, we actively shape standards binding on the franchise market in Poland. We are a co-author and one of the first signatories of the Code of Good Practices for the Franchise Market adopted in 2021. It identifies a number of good practices, principles and standards, and it may be acceded to by any franchise chain or organisation associating entrepreneurs under the franchise model.

    „I had never worked at a Żabka store before, but I noticed how smoothly it was dealing with the pandemic, yet growing at a rapid pace. I was persuaded to try the franchise model by a friend who had started to cooperate with Żabka earlier. His success and the support offered by the chain were the remaining factors that encouraged me to take this decision and give it a go as a franchisee. The low contribution of the franchisee required while commencing operations was also a factor. I was ultimately convinced I had made a good choice by the internal training programme held by Żabka, especially since it was organised in a perfect manner and allowed me to expand my knowledge. I was convinced that running a Żabka store was a secure way of doing business that has already been verified in practice by thousands of other entrepreneurs.”

    Klaudia Laskowska
    7,000th franchisee from Warsaw

    „I decided to continue my family tradition. Żabka has been present in my life since I can remember, as both my parents run their stores under the chain’s brand, which gave me some practical knowledge about entering into a franchise agreement with Żabka. I am proud to be operating the chain’s 8000th store in Poland. My store is unique thanks to the availability of a number of smart tools, as well as bike stands and a bike repair station.”

    Julita Szulczyk
    Franchisee operating 8,000th Żabka store

    Selected activities

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    Responsibility Report 2021