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
Reducing
business risk
Reducing business risk
Running a business involves a series of inherent risks, also those of a financial nature. In the interest of our franchisees we are the first franchise network in Poland to prepare a new product, “Business Insurance Programme,” in cooperation with Towarzystwo Ubezpieczeń Wzajemnych Polski Zakład Ubezpieczeń Wzajemnych (TUW PZUW). “Business Insurance Programme” is the first product on the Polish insurance market that increases the security of running a business through the compensation of a portion of the potential debt. The monthly cost of the policy and the sum insured depend, among other things, on the number of stores operated by the franchisee. Attractive insurance premiums are guaranteed not only by the scale of Żabka’s operations, but also by the fact that financial support is provided to cover the expenses of the policy at the initial stage of its term. Work on the terms of the policy was performed asked franchisees cooperating with us to participate in the campaign. This attractive offer stands out from the proposals of other chains on the market, as confirmed by the franchisees’ willingness to contribute with the participation of a wide range of franchisees, and the solution itself is intended for all of them, regardless of their history of cooperation with the chain, or of their financial standing. By the end of 2021, all franchisees enjoyed protection offered under this risk-mitigating instrument.
Stimulating the
entrepreneurial
spirit
Stimulating the entrepreneurial spirit
In 2021, we launched a new campaign known as “To żabkość na rynku” (a play of words in Polish incorporating the word “Żabka” to convey the message “It’s a rare thing on the market” — translator) targeted at potential entrepreneurs who do not have a specific business plan or the funds required to start a business. In 2021, our campaign focused on informing about the financial conditions of operating one’s own Żabka store: an upfront payment of PLN 5,000, PLN 16,000 in basic revenue per month, a fully equipped and stocked store for starter, and emphasised how efficient the process of establishing your own company is. We want to offer greater support and to foster local entrepreneurship all over Poland, which is why we asked franchisees cooperating with us to participate in the campaign. This attractive
offer stands out from the proposals of other chains on the market, as confirmed by the franchisees’ willingness to contribute to the campaign and share their own experiences. In our communications, we
also emphasise the support tools and mechanisms which franchisees take their first steps in the world of business.
Optimising
the work
of
our franchisees
Optimising the work of our franchisees
We provide our franchisees with a set of tools helping them run their stores in an effective manner. OptiPlan is a set of initiatives and solutions aimed at optimising the activities performed in the day-to-day management of the store. The proposed, tested solutions will support some aspects related to the store’s work. The said set comprises solutions related to food safety management and store logistics. It also includes the following: Żabka Assistant (an app allowing each franchisee to conveniently check and plan the scope of works for the coming days), and planograms available in the Żabka Manager app. We support franchisees in their daily operations, thus allowing them to find the time to care for their store, to expand their knowledge and to stimulate the engagement of their employees.
Assistance
in hiring staff
Assistance in hiring staff
The range of systemic solutions supporting franchisees is supplemented by flexible forms of assistance in emergency and unforeseen situations. Although the franchisees, being private entrepreneurs, are responsible for all personnel-related issues at their stores, they may count on significant support offered by the “Here and now” programme enabling every franchisee to take advantage of the services of a temporary worker. As in any other business, emergency situations take place in commerce too. They affect the number of staff reporting to work or require that additional help be provided during the peak season. If any of the employees calls out sick, or if additional support is needed during the holiday season, it is often the case that help for the store’s team must be found very quickly. The programme allows those running Żabka stores to pay only for the time during which the temporary employee is completing the tasks ordered. In practice, this means that franchisees are able to conveniently plan labour costs and the division of tasks in the store, regardless of unforeseen situations and unplanned emergencies. Depending on the actual needs of the store, temporary workers may be providing assistance over a period of several hours, days or months.
Responsibility Report 2021
