Mindful business impact

A positive impact on Polish healthcare

Żabka has been involved for most of its 25-year history in supporting the Great Orchestra of Christmas Charity (GOCC) Foundation, helping to raise money for paediatric and elderly care. Today, GOCC (WOŚP in Polish) is not only Poland’s largest non-governmental, non-profit charity organisation. According to research, it is also the country’s most trusted third sector organisation. 


So we are very proud that Żabka is established as the charity’s largest supporter in terms of the people numbers involved in fund-raising – employees and franchisees alike. In fact, over the last year more than 10,000 of our stores displayed GOCC moneyboxes in support of the year’s theme, ‘Lungs after the pandemic’. In addition, not only could users of our mobile app donate Żapps to the Foundation; the app’s public-facing character, Żabu, was also our honorary volunteer for the year’s fundraising effort.


Fighting the impact of C19
As the theme’s name suggests, the primary focus for the year was on fighting the lingering effects of the C19 pandemic with a clear focus on buying equipment to support pulmonology wards. Countering the impact of C19. The topic was 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 C19.

The charity’s effort for the year climaxed with the auction of 100 Gold Hearts, of which the heart imprinted with the number 1 is the most valuable, and it was this precious item that was auctioned by the Żabka Group. On Valentine’s Day 2024 GOCC founder Jurek Owsiak presented the award to Żabka Group Chief Executive Officer, Tomasz Suchański.

The auction raised PLN 1,050,000 for the charity. When added to the amounts raised through the stores, the mobile app and a separate donation made by Żabka,over PLN 2,500,000. In a meeting at the Foundation’s headquarters after the event, Jurek Owsiak summarised the equipment that could be bought with the amount raised by the auction alone: more than four specialised ultrasound machines, nearly three.

The auction was not only an important step towards improving Polish healthcare. It was also an immense privilege, the crowning achievement of our long-standing involvement with the charity – and a great way of highlighting our own 25th anniversary.

Further extending our lead in advanced technologies

We at Żabka are already leaders in the use of AI and other advanced technologies to streamline and strengthen multiple areas of our business. And now we have significantly expanded our long-standing partnership with Microsoft to stretch yet further our innovation lead in Central Eastern Europe’s retail sector.
Now, our focus is sharper than ever before on four key areas that are at the heart of our future development plans: store efficiency; international growth; internal transformation; and, above all, the use of data analytics to help us respond better than ever to customer needs.

AI: delivering significant competitive advantages
As a fundamental pillar of the company's strategic vision, digital transformation serves as a key driver across all these areas. In the field of AI, we maintain a significant competitive edge through the successful implementation of multiple solutions across the company's core processes. With Artificial we are reducing the time required to meet customer demands and equipping our franchisees with the tools to manage their businesses more efficiently. Most importantly, it enables us to optimize the product mix for each store by analysing historical and real-time sales data, ultimately allowing us to tailor our offerings to better align with customer needs.

Europe’s leading operator of autonomous stores
Over recent years, in fact, AI has already brought us a significant lead over almost every competitor as the enabling technology behind our unique network of autonomous Żabka Nano stores, where the most difficult thing a customer ever has to do is open a fridge door. Customers simply load their bags and leave, with payment being collected automatically. Having opened the first Nano in 2021, we are now Europe’s leading operator of autonomous stores, with a growing network that stands at 50 outlets at the time of writing.

Through our extended partnership with Microsoft, we have also become the first company in Poland to provide its 2,500 employees with the support of a digital assistant. This takes the form of Copilot which, when embedded in tools including Outlook, Excel, Word, PowerPoint and Teams, will free up our employees’ time by taking over many aspects of repetitive tasks such as drafting contact reports, preparing emails and daily or weekly activity planning. This will allow them to focus more thought and energy on creative tasks that add value, both to the business as a whole and to their individual career progression.

Together with business partners for sustainable development - fair business brunch

Effective development of cooperation with our business partners is possible through sharing knowledge and mutual inspiration. That is why we organized the first fair business brunch – a meeting within the fair business platform – thus creating a space for exchanging best practices and discussing common challenges in a select group of our business partners. 

In the context of decarbonisation, cooperation is of exceptional importance, especially when it comes to reducing Scope 3 emissions. At Żabka, besides aiming to reduce greenhouse gas emission intensity in stores by 70% in Scope 3 (base year 2020), we also strive to involve our business partners in the fight against climate change. We want to engage 75% of thembusiness partners responsible for 75% of purchasing and service expenditures in setting scientifically validated decarbonisation targets. Therefore, we asked experts from the companies we collaborate with daily and Żabka representatives to present best practices and inspirations in the field of decarbonisation. Representatives from Microsoft, Carlsberg, Stock Spirits, and Maspex shared their experiences with the invited group.

The meeting focused on decarbonisation, but issues of ethical and sustainable supply chains also accompanied the discussions. In this context, particular attention was paid to the Code of Conduct for Żabka Polska Business Partners and the Human Rights Policy for Business Partners. We aim for 100% compliance of our partners with the first of these documents by 2026. To achieve this ambitious goal, we offer our suppliers substantive support and recommend that they undergo ethical audits. By aligning with our Code of Conduct, we can ensure that our partners also create value sustainably and with care for the planet. 

We believe that developing further cooperation and joining forces with our partners will allow us to create a fair business together!

How ‘Franchise Ambassadors’ are driving the best possible results

Right at the beginning of 2024, Żabka launched a unique new project designed to help people who are considering setting up their own businesses gain privileged insights into the challenges and opportunities they should consider before making a firm decision about their future careers.

Called project ‘Franchise Ambassador’, this has involved 50 of the company’s 8,600 franchisees being carefully selected on the grounds of their different ages and experience of life and work. Now, they are bringing the benefits of their own learning to many thousands of potential entrepreneurs through business events, face-to-face contact, social media channels and a series of regular podcasts hosted by well-known journalist and businessman, Jarosław Kuźniar.

Promoting business and entrepreneurship

At Żabka we’ve always been committed to supporting programmes that promote education in business and entrepreneurship, and this does so in two ways. First, it engages our own franchisees in wider activities in local communities. And second, it brings people, considering building a business with us, the opportunity to make a decision based on first-hand experience.

It was very important to choose ambassadors who reflect the diverse backgrounds of our franchisees. Our ambassadors represent a variety of life and work experiences, coming from big cities, small towns, and even from abroad. Żabka supports the education of ambassadors through regular, dedicated training sessions specifically designed for them and helps them build their personal brands.

According to Żabka Polska’s Chief Operating Officer Przemysław Kijewski, ‘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 are their greatest advantage.’

Recipes for success

A key part of the initiative has been a series of interviews with Franchise Ambassadors on Żabka’s YouTube channel (Żabka Biznes) and a range of podcast apps including www.zabka.pl/podcasty. During these, Jarosław Kuźniar covered many issues with the interviewees, including the challenges they have overcome, their breakthrough moments and their recipes for success.

As Przemysław Kijewski comments, ‘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’.

Award marks our commitment to communities and the environment

The Polish Economic Society has presented Żabka Group with its highly respected Azymuth PTG award for Social Engagement, recognising our systematic and effective work for the thousands of local communities where our stores operate as well as our sustainable, environmentally-aware business practices.

The award was received on 3 February 2024 at the Society’s Entrepreneurs’ Ball by our Head of Franchisee Development & Support, Damian Rybak. He commented: ‘This is a genuine cause of satisfaction for us at Żabka Group, as it recognises the effectiveness of the Social Engagement Strategy at the heart of our business that supports five of the UN Sustainable Development Goals: Good Health and Wellbeing, Sustainable Cites & Communities, Quality Education, Decent Work and Economic Growth and Reduced Inequalities.’

Three pillars: Wellbeing, Neighbourhood and Equal Opportunities

The strategy is based on three central pillars, the first of which – ‘Wellbeing’ – popularises a healthy lifestyle through the organisation of sports initiatives and encouraging physical activity among employees. Under the ‘Neighbourhood’ pillar, employees can dedicate up to eight hours of working time each month to a range of company-recommended volunteering opportunities, or to local initiatives they find and support on their own. And the third ‘Equal Opportunities’ pillar supports programmes including Good Internship at Żabka and the Żabka Scholarship Programme.

Significant business success

The Social Engagement award was for one of the seven categories recognised under the Azymuth PTG scheme. According to Damian Rybak, ‘In their document explaining why the Polish Economic Society selected us for their Social Engagement award, they stated: “Żabka has not only achieved significant and visible business success but has also demonstrated an exceptional and sustained commitment to supporting the community and activities for the general good”. That makes us very proud.’

Specific reasons cited for the Society’s decision included Żabka Group’s focus on minimising negative impact on nature, commitment to enabling employees to participate in social activities and desire to create a working environment based on social values.

Franchisees at work in their own communities

We actively encourage our franchisees to get involved in efforts to help the most vulnerable members of their communities, but so many go far beyond any call of duty to make a real positive difference. It’s incredibly moving to hear some of the stories of amazing generosity and commitment that genuinely help people live richer, healthier and happier lives.

A shining example
One shining example is franchisee Artur Hasiński, based in Poznań, whose experience of personal tragedy has inspired him to help people suffering from oncological problems though his ‘Mam tę moc’ (‘I have the power’) Foundation. The foundation also supports educational, social and sports organisations, with a special focus on young athletes with talent but no means to develop it. In addition to all this, Artur has also become qualified as an addiction specialist, and now helps people who are struggling with alcoholism and other forms of addiction.

Many other examples are evident right across the store network, including a group of franchisees in Pabianice who for more than two years have been holding collections and auctions to support a girl with a long-term illness. In one recent event for her, they put up hot dogs for auction at a motorcycle picnic, with one selling for 100 PLN. To date, more than a third of the 3m PLN needed for her treatment has already been raised.

Helping families in need
Continuing the hot dog theme, a franchisee opening a new store in Mieścisko awarded 50 free hot dogs to the local football club, while several others from Chełm collaborated to donate free products to 50 local families in the greatest need.

Another example is Szlachetna Paczka (‘Noble Parcel’), an initiative carried out since 2001 in which franchisees running 12 stores across Żyrardów, Skierniewice, Parzniew and Kuklówka Radziejowicka help families in need. They also give customers the opportunity to help in any way they can. This sort of work is incredibly important in local communities. The many, many franchisees contributing to happier communities in this way are not only expressing the spirit of Żabka: they’re also an essential part of our continuing evolution together.

Good Internship in Żabka address social-exclusion risks for young people

We have now operated the ‘Good Internship in Żabka’ programme for seven years, running it in partnership with the Independent Robinsons Foundation to help young people at risk of social exclusion gain professional experience through paid internships at our stores. The programme takes a strategic approach based on Social Engagement Strategy and supports the implementation of 5 of the UN SDGs.

Today, the numbers of people the programme has helped are impressive: our 280 participants have clocked up more than 220,000 hours between them in internships lasting between two weeks and three months.

A better quality of life
According to Katarzyna Przewęzikowska, Manager of the External Relations and CSR Team at Żabka Polska, ‘As part of our Social Involvement Strategy, we take part in many actions aimed at ensuring a better quality of life for local communities, including equalizing opportunities in the labor market. Thanks to the ‘Good Internship in Żabka’ program, young people at risk of social exclusion have a chance to gain their first professional experience. Our mentors – franchisees are eager to get involved in this program, sharing their knowledge and skills with interns’

In the programme, we provide training to those franchisees who want to get involved as mentors, enabling them to share their knowledge and skills with our interns. Each internship is supervised by a representative from the Independent Robinsons Foundation, ensuring the positive and supportive environment.

Preparing for employment
As Anna Żelazowska-Kosiorek, Leader of programs implemented by the Independent Robinsons Foundation adds ‘Thanks to cooperation with franchisees all over Poland, young people learn what work is, develop communication skills, learn responsibility, and build their confidence.’

This year, a film about the programme, produced by Żabka and the Independent Robinsons Foundation, won a Bronze Shield at the SDG-themed ’17 Goals’ Responsible Film Festival. The jury commented positively on the film’s aesthetics approach and how it presented its focus on important social issues in a moving and inspiring way.

Supporting the best young artists, athletes and scientists

2023 saw the 12th time that we at Żabka ran our special programme to help the most gifted children of our franchisees, employees and co-workers develop their interests and talents.

A key part of our Żabka Scholarship Program, the initiative identifies young artists, athletes and scientists at primary schools, technical colleges and high schools whose skills and achievements stand out from those of their peers.

Skills, creativity and determination
During the year, 73 young people applied for scholarships, which provide annual financial support of PLN10,000 to help successful applicants cover the costs of developing their passion. During the selection process, every candidate was required to demonstrate their skills, creativity, determination, commitment to their discipline, and sheer hard work.

Ultimately, out of an extremely talented group, 22 amazing young people were selected: 14 athletes, 5 artists and 3 scientists.

Thanks to the granted funds, our scholarship recipients are able to participate in sports training, workshops and development camps, as well as purchase a new musical instrument or other materials necessary to further improve their skills and develop their passions.

Educational and personal development
According to Jolanta Bańczerowska, Żabka Group’s Chief People Officer, ‘Our focus on educational and personal development involves providing help where it’s needed most. We’re very proud to be able to support these exceptional young people, who have all worked hard for their scholarships, showing outstanding skills and achievements along the way. We very much hope the scholarships mean they’ll able to develop their skills with greater freedom.’

Taking steps to combat disability discrimination

At Żabka, we’ve long been active across many fronts to help ensure that we and all our franchisees are sensitive to the particular needs of people with disabilities. Our ambition is to gradually adapt our stores to their requirements, in term of access, communication, product range and more.
This is one reason why we became a strategic partner of the Avalon Foundation in 2023, helping to support the charity’s mission of enabling people with disabilities to lead independent and active lives. Another reason is this statement by the Avalon Foundation’s General Director, Krzysztof Dobies, with which we wholeheartedly agree: ‘Disability does not make people less valuable, less important or worse. Every person is first and foremost a human being, and disability is one of the many traits that make up the fullness of personality.’

We see this partnership as a key step in our journey to help improve the quality of life for the 5 to 7 million people in Poland with various disabilities, many of whom experience regular discrimination in many areas of life.

‘I Respect. I Do Not Discriminate’
Participating in the Foundation’s ‘I Respect. I Do Not Discriminate’ campaign was part of the company’s action to make our stores even more friendly for people with disabilities. With over 10,000 stores, we are highly aware of the positive impact we can make by combating discrimination against disabled people.

And when the Avalon Foundation designated May 2023 as the ‘Month of Fighting Discrimination against People with Disabilities’, we were ready to take positive action on many fronts – both instore and in the wider world.

For example, we commissioned Jakub Stanisławczyk – who has been deaf since birth and is strongly committed to breaking down barriers between hearing and deaf people – to appear in all our TV advertising during May and June 2023, making it more accessible to people with hearing issues by translating all speech into Polish sign language.

Understanding individual needs
We also worked hard, to ensure all our franchisees understand the particular needs of those with disabilities, publishing articles and hosting a webinar to highlight some of the challenges they face in their day-to-day lives. The input of one of our franchisees, Paweł Błachowicz, was essential in this work.

Paweł, who has been running two of our stores for the last six years, is a wheelchair user. And he believes that working with Żabka Group is a very realistic opportunity for people in his situation. He believes, in fact, that at least 90% of any problems that might arise in running a store have nothing to do with a lack of physical capacity.

As he says, ‘Żabka provides a truly safe and convenient opportunity for people with disabilities. It has adapted the premises to suit my needs, including easy toilet access and the ability to manage the store remotely. For example, the Cyberstore app means I can order goods remotely, receiving them directly to the store without having to drive anywhere. And if something breaks, I report it and Żabka service team comes to fix it.’

Wider participation
While participation in the campaign marked the start of our collaboration with the Avalon Foundation, it is not the only charitable effort to support people with disabilities in which we are involved.

For example, also in May 2023, close to 130 employees and franchisees took part – many with their families – in the international Wings for Life run that raises money for research into spinal injuries. Quite simply, participants run as far as they can before being overtaken by the judges’ car. Our team came a highly creditable 68th out of nearly 1,500 teams, clocking up close to 1,200km between them.

That represents many steps on the way to combating disability discrimination.

Putting entrepreneurship at the heart of franchisee education

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March 2023 was a notable moment in the history of Żabka Group. This was when we launched the Entrepreneurship Academy, aiming to bring the company’s franchisees all the sales, financial, organisational and people-management expertise they need to make a success of their stores.

We run it in partnership with franchise-market experts and the Warsaw University of Technology’s Faculty of Management, which confirms the Academy operates in line with the widely adopted Franchise 2.0 model. The initiative is now set to be an essential part of the training we offer our franchise partners.

Shared knowledge and personal development
In this first iteration of the scheme, close to 70 franchisees participated in nearly 200 classroom-based events and more than 60 online sessions designed to teach them the entrepreneurial skills involved in running a store. As well as formal learning, the Academy also gave participants the opportunity to exchange insights, share knowledge with one another, and to leverage opportunities for personal development and self-realisation.

The programme was very well received, delivering clear improvements in participants’ knowledge and skills across multiple areas of expertise, from business management to HR, customer relations, planning and budgeting. Before completing the course, all students not only had to pass every module – they also had to take a final test and prepare the so-called Entrepreneurship Development Map – an individual entrepreneurial growth proposal for their franchise.

According to trainer and Żabka franchisee Beata Świerczyńska, “It’s extremely important that the company invests in such ventures, helping to ensure that people with a wide range of backgrounds and needs get all the support they need on their franchising journey.”

Grasping every improvement opportunity
Following completion, participants received a certificate marking their successful participation at a special event during September at the Warsaw University of Technology. In the words of Eryk Głodziński, Ph.D., Professor of the Academy and deputy Dean of the Faculty of Management at the university, “We received many warm words about the Academy, its usefulness in running a business, and its importance in personal development.”

Now, as part of ‘business as usual’, we carry out regular surveys and interviews with participants to ensure we’re taking every opportunity to improve the programme further.

This was not the only major step we took forward in upskilling our franchisees during 2023. We also decided to extend the initiative to cover all aspiring franchisees. Until now, all new franchisees have received 'entrepreneurial basics' training. For 15 days, they gained knowledge in areas such as HR, sales, finance, taxes, management and customer service. From now on, everyone joining the franchise will be covered by an extensive training programme of the Entrepreneurship Academy, which will allow them to explore entrepreneurship and running their own business in more depth.

In addition, we’re providing access for all franchise employees to our special educational platform for franchisees, which includes knowledge and information resources, news, training courses and webinars.

Building entrepreneurial skills for sustainable business advantage

At Żabka, we have long been a committed supporter of programmes promoting education in business and entrepreneurship. During 2023, we moved this commitment to a new level as Strategic Partner to Global Entrepreneurship Week, which took place in towns and cities across Poland in November.

Launched at our headquarters in Poznań, we delivered a programme of events to share our 25 years’ experience of how to build a highly successful franchise business. As well as covering our approach to safety and security, the launch lectures also described educational initiatives including our Entrepreneurship Study Programme.

The week then went on to include multiple webinars and onsite discussion sessions focusing on subjects ranging from franchise business models to the essential roles of innovation and technology. We also ran open days across some of our stores in Warsaw, Zamość and Puławy, including recruitment booths at some of the meetings to provide information to any participants interested in finding out how to become a Żabka franchisee.

It is also part of our ongoing culture to help our employees and franchisees continuously improve their business and management skills. We therefore also participate in ongoing external educational programmes, including the ‘ABC Business – The Basics of Your Own Business’, as well as delivering a six-month onboarding initiative and continuous access to an educational platform for all our store operators.

We recognise that it’s in both their and our interests to support the business knowledge of these entrepreneurial individuals. Participating in initiatives such as Global Entrepreneurship Week is a wonderful opportunity to share our business experience.

Ensuring the skills, success and diversity of our franchisee network

During 2023, we welcomed the 8,000th franchisee to join the Żabka network, Izabela Wilgos with experience working in the banking sector, by opening her store in Dobieszowice became one of the 60% of our franchisees who are female.

Allied with our focus on supporting older people (10% of franchisees are over 50 years old) and Ukrainian citizens to develop their own businesses within the Żabka ecosystem, this emphasises our commitment to encouraging diversity among the entrepreneurial characters who form our fast-growing network.

As a result, our network comprises franchisees of 14 different nationalities, and over 5,600 women, as well as people from widely differing working backgrounds, education levels, age profiles and marital or family status.

One essential factor unifies our approach to all of them: that our franchise system is designed to always help eliminate all the potential dangers associated with running one’s own business. Our integrated approach therefore focuses on several different areas of risk, with the flexibility to intensify support for those franchisees who have particular requirements.

Something that is always in place for all franchisees is our unique collective insurance, known as Business Policy, protecting them against potential failure. We also provide from day one free training and education services focused on running their own businesses, as well as comprehensive support in marketing, customer service, logistics and recruitment.

We additionally make sure that all new starters with us are given premises, tailored to the specific needs of each store, as well as a wide range of essential items including refrigeration units, display racks and computers loaded with the warehouse and accounting systems they will need.

All franchisees can offer their customers a wide range of convenient additional services, such as parcel delivery and collection, cash withdrawals, bill payments, ticket purchases and more. And they are provided with advanced solutions that streamline and simplify store management, including our Optiplan package with the Żabka Assistant and Cyberstore app.

There are also many special cases, when we typically provide additional services that take particular needs into account. For example, those franchisees operating in small towns or rural locations can receive special support including access to our ‘A car to start’ programme and a relocation package that includes monthly financial support.

We are also on a course of continuous improvement, constantly aiming to introduce new benefits and solutions to make franchising with Żabka an increasingly safe and attractive option. This is why so many older people see it as a viable option following on from their first career.

It’s also why we attract so many franchisees from abroad, seeking to make a new life in Poland. This is particularly important for Ukrainian citizens, who comprise our largest group of foreign nationals. We do everything we can to make onboarding as easy for them as possible, with the provision of Polish language tutorials and e-learning training courses. We also provide Ukrainian applicants with a franchise agreement in their native language to ensure they fully understand everything involved.

Helping young people’s entrepreneurship dreams come true

During 2023, we significantly extended the scope of the Entrepreneurship Study Programme we first launched in 2022 with the aim of helping young people learn a range of invaluable business disciplines.

According to Żabka Polska COO Przemysław Kijewski, ‘Entrepreneurship is an extremely important area that is worth developing from an early age. As various studies or analyses show, a large part of society is perceived as not very entrepreneurial, while at the same time dreaming of running their own business.’

Leading academic partners
Targeting participants from a broad scope of backgrounds, ranging from university students to those in non-formal education, we initially ran the programme in partnership with some of the best-known academic institutions from across Poland, including 14 universities and one post-secondary school.

Other partners included several local entrepreneurship incubators and NGOs as we collectively launched a wide-ranging programme of classroom and online classes. Specialists from our own Development Training Department primarily delivered the main content, with a focus on different aspects of entrepreneurship, including essential soft skills and the franchise business model.

The programme also included a series of Open Days with Żabka, where we talked to many interested young people about how the franchise system works and Żabka’s own operations.

Exciting and significant
We developed the programme further in 2023, with several new partnerships with careers offices and other organisations with an interest in developing entrepreneurship in Poland, including among students. But perhaps the most exciting and significant development has been the creation of an online course for those interested in starting their own business. Called ‘ABC Business – The Basics of your Own Business’, we’ve launched it hand-in-hand with TEB Education, the nationwide network of post-secondary schools.

This 10-month programme delivers knowledge across all the essentials of creating a successful business, from developing a business plan to finance, team building, creating a brand image and delivering marketing campaigns. Once again, experts from Żabka are closely involved in delivering the course’s content. On completion, participants receive official documentation including a diploma signed by TEB Education and Żabka , as well as a certificate based on the Regulation of the Minister of Education and Science.

We have more activities coming to ensure that entrepreneurial knowledge is widely available. Soon, the open-access free educational portal of the Entrepreneurship Study will be launched, making entrepreneurship education even more accessible. The portal will provide content aimed at everyone who is interested in running a business or is already running one and wants to develop with our guidance.

We comply with the best standards

To maintain the highest standards in the areas of food safety management, environmental management, occupational health and safety management and energy management, we have implemented and maintain standards consistent with ISO 22000 (since 2015), 14001 (since 2018), 45001 and 50001 (since 2019). The procedures and solutions implemented as part of the Integrated Management System guarantee our effectiveness in the areas covered by the standards mentioned above, which was confirmed in 2023 by over 70 internal audits and the re-extension of certificates by an accredited unit.

We expect our suppliers to implement and certify quality and food safety management systems. A business partner who has not implemented such a system or is a supplier of own brand products shall be qualified, in accordance with the Quality Qualification Manual in place, as a high-risk supplier and may cooperate with us only after undergoing a qualification audit whose assessment criteria are equivalent to the requirements of international standards for quality management and food safety. In the case of suppliers of own brand products who have implemented their own quality procedures, we shall audit their effectiveness before establishing a business relationship.

In 2023, we conducted 24 qualifications audits — 22 suppliers passed them successfully. We also periodically verify compliance with quality standards by means of announced and unannounced verification audits — in 2023, we carried out 95 audits of this nature. 10 suppliers were obliged to establish a remediation plan addressing the deficiencies identified. Those entities shall be subject to an audit ensuring that the corrective actions set out in the remediation plan have been implemented. We are also conducting qualification audits with regard to suppliers of producers’ brand products. The audit procedures revealed that 19 of them receive a positive result.

If any complaints are submitted or improper product quality is reported, we perform intervention audits at our business partners - in 2023, such audits accounted for 6,7% of all audits performed among suppliers of own brand products, and for 0,67% of audits conducted among suppliers of producers’ brand products. The introduction of additional controls is a response to the challenge of ensuring the highest quality of the food produced and is intended to reduce the number of recalls caused by quality defects. In 2023, we recorded 3 (dotyczące 4 produktów) such events — all of them related to producers’ brand products.

In our stores and distribution centres, we also maintained the Safety and Hygiene+ certification system which we created, as the first chain of stores, together with TÜV Nord Poland. The system covers also suppliers of our own labels and franchisees operating stores under the Żabka brand. During the verification process, such areas as approach to safety and hygiene management in production processes, organisation’s crisis management, requirements for subcontractors, infrastructure and the environment, are verified. Conformity assessment is performed by auditing documentation, as well as production and storage premises, in order to verify the implementation of processes and to introduce crisis management procedures. The level of the employees’ awareness and their attitude are evaluated as well. In 2023, such reassessment and certification were performed at 58 of our own brand suppliers.

To ensure that we properly secure data in the organization, we decided to implement the ISO 27001 standards - an international standard regarding the requirements for creating, maintaining and developing information security management systems. Being aware of the importance of the information used and processed by the Company, we implement organizational and technical safeguards to ensure its protection. At the same time, being open to new solutions, we believe that ISO27001 certification naturally fits into our company's policy of maintaining credibility towards our clients, franchisees and contractors.

Ongoing format innovation creates value for customers and franchisees

An important aspect of Żabka Group’s role in society is to create value for our customers by responding to their needs, simplifying their lives and freeing up their time.

This is the thinking behind the launch of two innovative new store formats during 2023, both of which benefited from the insight and experience of our franchisees and will in due course offer them new opportunities for business development. In a parallel initiative, during the year we placed one of our autonomous Żabka Nano store, designed for locations with limited space or legal restrictions, at the Regional Hospital in Poznań.

New formats for convenience and comfort
The first of the new formats is Żabka Non Stop, a hybrid store in Warsaw that enables customers to shop around the clock. It offers a personalised human service during the day, and autonomous unattended shopping at night when shoppers can use a payment card or the Żappka mobile app with Żappka Pay. The new format offers customers a wide range of private-label products, including ready meals, sandwiches, juices, freshly ground coffee and much more.

The other new concept, Żabka Drive, was piloted in Piaseczno. It enables people to pick up an extended range of snacks known from Żabka Café, such as hot dogs, nuggets with fries, paninis, shakes and Italian ice cream, all this without having to leave their cars. Those who want to take a break from their journeys, of course, also have the option to sit, eat and rest in our dining space before getting back on the road.

Referring to these new concepts, Adam Manikowski, EVP, Managing Director of Żabka Polska, reflects on where they fit into the overall development of the business. As he says, ‘Żabka Non Stop and Żabka Drive are the results of the path we have taken from small, traditional stores to a modern convenience ecosystem that delivers products and services to more than 3 million customers every day.’

An enriched hospital experience
Now the customers have access to Żabka convenience even when visiting hospital. The autonomous Żabka Nano store opened in Poznań’s Regional Hospital. Patients, visitors and employees are able to choose from a range of around 900 products at the 16m² site, including many private-label products such as our Szamamm ready-made dishes, Tomcio Paluch sandwiches, Foodini liquid snacks and more. Due to its hospital location, the store also offers an extensive range of hygiene products.

According to Hospital Director Piotr Nowicki, ‘The step is in line with our vision of providing high-quality services and reaching out to modern solutions. Having a Żabka Nano store means our non-medical offer will be enriched by a much-needed, friendly place at the highest European level.’

Read more about our store formats: Development of types of Żabka stores | Żabka Group

Christmas, crocuses and kids: delivering positive community action

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It’s an important part of our ethos at Żabka that social engagement is about far more than just words – above all, it’s about positive action. That’s why, as a key part of our focus on and around the communities where our people live and work, we enable all our employees to dedicate up to eight hours during work time to volunteering activities every month.

We naturally encourage people to engage in local initiatives with a positive social significance. We also offer advance and guidance to those who are keen to help but unsure of where to start. As another source of guidance, since 2021 we have defined those areas that are most important to local communities, and emphasised the activities that we believe contribute most to sustainable positive change.

Targeting what people need
As a result, the 150+ employees who collectively contributed more than 930 hours to volunteering during 2023 targeted their attention primarily on people and their needs, as well the environmental priorities in and around their communities.

And the sheer range of activities was extremely wide, embracing support for Ukrainian refugees, providing animal care and support for people with cancer. The two primary areas of focus, however, were on helping children in need and making a positive environmental difference.

For example, 36 Żabka volunteers gave their time to helping children at the Social Welfare Home at ul. Św. Rocha in Poznań, installing furniture donated by the company, renovating the kitchen and corridors, and gifting a wide range of nutritional and therapeutic items. In November, 50 employees took the time to package 600 Christmas parcels for children from across Poznań’s hospitals.

A focus on gingerbread
Gingerbread was the focus for three further special child-oriented schemes. In one of these, close to 40 of our people cooked around 70 trays of it, which is more than 400 biscuits, to donate to the My Wings Foundation (Fundacja Moje Skrzydła) who used it as part of their therapeutic work with children.

In another, our volunteers hosted workshops on decorating gingerbread for children being treated by the Cardiology Department at the Karol Jonscher Clinical Hospital in the Poznań University of Medical Sciences.

And in the third, as well as buying presents for children at the Markot Shelter for homeless women and single mothers, 15 volunteers organised a gingerbread baking and decorating session for them in the run-up to Christmas.

Foodtech lab acceleration

The Żabka Group is always seeking solutions whose implementation will accelerate the development of the convenience ecosystem. We do this through our Venture Studio, whose task is to search for and attract to the organisation modern solutions that give a new perspective to the whole Group. 150 startups from 20 countries have taken part in the Foodtech Lab Acceleration Programme launched in 2022, in which we seek solutions that approach nutrition and its impact on the planet in an innovative way. Projects were selected according to current business needs, considering the most important trends that stimulate the development of the retail industry – not only in Poland but also across the world. For the best startups the Group offers collaboration, consumer tests, commercial pilots, and even financial support for further development. In addition, startups can receive access to a sensory laboratory, expert support and personal opportunities to navigate key relationships in this industry. During the final, held in January 2023, 11 companies presented their products, from which we selected five winners.

Celebrating 9,000^th and 9,001^st stores

In an important milestone for the business, in late December 2022 Żabka opened the 9,000th and 9,001st stores in our network. These are on the A2 motorway, at Gnilec (the last stop before the German border) and Sosna (the first on entering Poland from Germany).

The new-format stores, which include self-service checkouts, are designed to give customers quick and convenient round-theclock access to a wide range of hot snacks, sandwiches and salads, meeting the particular needs of those with little time. The new format gives franchisees a great opportunity to run a strong local business. The franchisees in this case are a married couple who have worked with Żabka for several years, making them living proof of the entrepreneurial opportunities that the right people can gain from a close relationship with us. The dynamic design of the new stores aims to enable private and professional drivers to easily identify where they can get the rest

Sustainable collaboration

Sustainable development requires efficient cooperation, sharing experiences, inspiration and joint actions.

"We believe that the key to success is sustainable and collaborative action. Our business partners play a key role in fulfilling our mission, so we actively want to engage them in building a partnership based on shared values, principles and trust. We believe that this is the only way our business can bring real change and enable responsible business and value creation for our customers. To strengthen our collaboration we introduced fair business platform – an online space, where we support and communicate on various shared projects. We regularly gather feedback as part of the dialogue. We obtained first place in the nationwide satisfaction study (NFS), ahead of the 20 retail chains participating. Moreover, we received the Grand Prize ‘Retailer of the Year 2022 – Chosen by Suppliers’in the category Small Format/Convenience Chain and special award Sustainable Retailer of the Year."

Piotr Rajewski,
Trading Director

Smart solutions supporting smart business

Żabka Group is committed to using smart technologies as a
means of realising some of the primary aims of our Responsibility
Strategy. These include reducing emissions intensity related
to franchisees’ stores by 2026, doing so in own operations by 25% by 2025, and empowering franchisees to operate safe and successful local businesses.

Central to our efforts to provide our franchisees with only the best technology is Żabka Smart, our Poznań-based centre of excellence. From here we provide selected stores with a range of innovative, energy-efficient solutions for testing.

These range from flood sensors and stock-control devices to automatic temperature and energy-consumption gauges that communicate with managers, enabling better customer service as well as more efficient energy usage. Vision and voice systems, meanwhile, are designed to deter potential burglars, improving security and making our stores a safer place to work. After analysing the test results, we then implement the best solutions across more stores. It’s an approach that’s driving environmental, satisfaction, safety and sales improvement in a single unified programme.

Cooperation with start-ups

We hold meetings with the authors of projects that may exert the greatest positive impact on the Group’s business. Having conducted a careful analysis of the presented solutions, we decide to cooperate with start-ups at different stages of their development journey. The MIT Enterprise Forum CEE accelerator programme is one of the tools we rely on while looking for ESG-related solutions. Our attention is drawn by projects focusing on alternatives to plastic packaging and on replacement protein sources, i.e. solutions helping reduce meat consumption. Together with Huge Thing, an accelerator of innovative solutions, we launched the Żabka Future Lab accelerator programme. We also strive to attempt cooperation with start-ups whose solutions will be helpful in reducing the amount of wasted food (by supporting stock management), or in increasing the comfort of consumers taking advantage of autonomous stores. We have also become a partner of the “Positive Impact Start-ups” campaign overseen by the Koźmiński University’s Koźmiński Business Hub. It focuses on supporting those initiatives that contribute to improving the quality of life and the quality of the environment.

We grow together with our business partners

Acting together, we analyse the results of our cooperation, so as to make the necessary changes in real time. In order for this to be possible, we have introduced the Advanced Customer Insight Tool (ACIT) providing us and our partners with access to the same multidimensional data, based on which new solutions related to our cooperation are implemented. The work based on ACIT data is accompanied by joint workshops with our trading partners – 170 such working meetings were held in 2021. It is crucial for bilateral development to ensure that our partners are engaged in thinking about the strategic development of the Żabka Group. By presenting the Group’s long-term plans and regularly meeting for a joint review of the results achieved, we provide partners with the knowledge enabling them to build scenarios for the long-term growth of their own companies. Open dialogue and readiness to implement our partners’ ideas are important element of cooperation as well. The workshops are used to jointly identify the changes in the range of products carried by the individual companies, so that they are able to best respond to changing consumer needs. Our suppliers value the openness and cooperation characterising our relations. In 2021, they voted us the Retailer of the Year. We also ranked first in the nationwide NFS survey in which over 400 suppliers and 20 retailers participated.

Helping people settle in Żabka and in Poland

It is important to Żabka that the business presents a friendly face to everybody in the workplace. The Group has therefore created the role of ‘Cultural Assistant’, especially to help colleagues for whom Poland is a new country. The key aim is to prove that diversity – of nationality as well as of age and gender – can help the business be more successful and profitable. To this end, the Cultural Assistants have been recruited to help find a common language between recent arrivals and native Poles, helping them settle in and properly feel part of the organisation. There are many areas in which the Cultural Assistants are able to provide support, from helping with documentation to explaining cultural and linguistic differences. Offering guidance on settling into life in Poland can be very valuable too, from dealing with public organisations to getting the right work-life balance. They can also help our recruitment professionals by preparing written information in various languages for recent joiners, as well as helping with workshops, webinars and materials on equality, diversity and cultural inclusivity.

Helping by shopping

We encourage our customers to support initiatives promoting social engagement – when shopping at Żabka stores, taking advantage of the Żabka Jush! platform or using the Żappka app. As it is the case each year, our franchisees were collecting money for Wielka Orkiestra Świątecznej Pomocy and were the largest group of volunteers participating in the effort nationwide. Donations could be made via money boxes available in stores. Cashless deposits could be made as well, (for instance via the e-money box, by transferring funds to the Foundation’s account or by using payment cards). The users of our app were able to exchange Żapps loyalty points collected during shopping, for charity donations. The total value of funds transferred in 2021 amounted to PLN 3 million. The mechanism relying on using Żapps points for supporting charities is very flexible and we rely thereon as one of the means of implementing our Social Engagement Strategy. In 2022, our customers using the app were also able to donate their Żapps points for supporting refugees from Ukraine. The total amount of support amounted to over PLN 1 million.

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.

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.

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

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.

Supporting those willing to engage

In 2021, we continued to pursue Żabka’s Scholarship Programme that has been, for a number of years now, an important part of our social engagement initiatives. The programme is aimed at ambitious and talented children of franchisees, employees and co-workers who, thanks to our monthly support, are able to develop their extraordinary passions and skills. During the 11th edition of the programme, we awarded as many as 60 scholarships: 13 for artistic, 9 for scientific and 38 for sports achievements. Biographical notes of the scholarship holders, along with a description of their talents and the results they achieved, are published in Żabka’s information materials. This allows the young people to communicate the impact of support they receive under the programme has on the expansion of their passions. For employees and co-workers valuing cooperation and physical activity, we have created Żabka’s Sports Team. It is made up of active members of our company’s staff who are keen on practicing sports, often work out together and represent Żabka at numerous sports events. The team is currently made up of approximately 130 people showing interest in individual and team sports. They participate in a number of competitions, primarily between March and October, but our players train all year round — they run, ride bicycles, swim, and play basketball and football.

Offering a good start

When defining our agenda for the “Equal Opportunities” pillar of our Social Engagement Strategy we relied, among others, on the experience gained while supporting youths in a difficult situation and at risk of exclusion. The “Safe internship with Żabka” programme is aimed at people over the age of sixteen. It allows them to take part in an internship at a selected store, thus taking their first steps along the path towards independence. The programme is implemented in cooperation with Fundacja Samodzielni Robinsonowie, with active participation of our franchisees who, as mentors and caretakers, share their experience with our trainees and help them build entrepreneurial skills. During eight editions of the programme, we organised internships for 146 young males and females that the Foundation is caring for. Interns have already worked more than fifteen thousand hours in Żabka stores. Eighteen of them were employed at Żabka stores after the programme had ended, and one of the female interns became our franchisee. So far, ninety franchisees operating Żabka chain stores have been involved in the programme at seventeen locations throughout Poland. Young interns could also count on the support of twenty-six mentors designated by the Foundation.

Olympic silver medal

In August 2021, we took part in a charity auction organised by Maria Andrejczyk — a silver Olympic medalist from Tokyo. Maria put up her medal for sale, with all proceeds benefiting a campaign raising funds for medical treatment (available in the US) needed by an eight-month-old boy named Miłosz. We offered PLN 200,000 for the medal and won the auction. Maria Andrejczyk admitted the medal was “a symbol of struggle, faith and ability to make dreams come true, despite many difficulties”. It was natural for us, as winners of the auction, that this extraordinary symbol should remain where it belonged. That’s why we returned it to our proud champion. In addition to the PLN 200,000 from Żabka, Maria’s fans raised an additional PLN 300,000 for the treatment of Miłosz. The fund raiser has allowed to finance the child’s heart surgery at the Stanford hospital in the US. Maria Andrejczyk’s gesture was widely commented by Internet users. Information about the auction was trending very high on social media. The event was reported by the largest media in Poland and by the press worldwide (“The Times” or “The Sun”).

Partnerships for positive change

 
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