Mindful business impact

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.

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.

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.’

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.

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.

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

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.

Franchisees at work in their own communities

At Żabka , we are extremely proud of the many franchisees across our store network who find time away from the demanding occupation of running a shop to run charitable campaigns in the local 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.