July 2015

Volume 3, Issue 118

Night ‘n Day Foodstores Ltd

INSIDE THIS ISSUE

Message from CEO……....2-3

Marketing.………..……..….4-7

Operations……...….……....8

Procurement……………….9

“The purpose of

business is to create a

customer who create

customers”

Lucky Winners at Kingsland

2

MESSAGE FROM THE CEO

Finance and Strategy Meetings

It was a pleasure to meet you all last month to cover off your financial results to 31 March 2015 and

look at strategy for the forthcoming year. There are some really positive vibes in the group with a num-

ber of opportunities being exploited and increased profitability being realised. The good news for 2016

is there is room to build on what has overall been a great year for the group.

A more detailed analysis of the group will be provided at conference but as an overview there are

some insights that I picked up during the trips that are worth sharing:

Negatives

Sales in the books and magazines department are generally declining. The increased

prevalence of smart phones and ready access to topical information, news, gossip and

other stories via applications or the internet are affecting this area.

Milk in general has declined. Our pricing may need to be reviewed and/or the market seg-

ments we are targeting may need addressed. As an example the single unit price

could be looked at to attract those wanting just one or two litres of milk.

Bread has taken a hit due to the competitive discounting undertaken by the supermarkets.

In general customers are happy to be inconvenienced more and top up shop at the super-

market. There is no doubt supermarkets understand this and are tailoring there for-

mats to suit the different shoppers such as top up shoppers.

Phone top ups and other electronic products sales are declining. The plethora of cheaper

phone plans and access via the internet to purchase top up and other products is af-

fecting in store sales.

Glow bugs is increasing in sales for those who stock it, each purchase only provides the

Franchisee 40c per transaction, regardless of the value sold, the more you sell, the

more you lose……. You need to seriously consider what additional sales you get from

Glowbug before you would continue to sell them. If you don’t sell them now – don’t

start!

There was a general decline in sandwich bar sales. This was not true in a number of

stores but overall there is a sense of decline in this area.

Mixed bag

Confectionery varied across the group and across the confectionery sub departments.

Hardware saw some good increases in car accessories but loses in the other hardware

areas.

Positives

Several milkbar sales were well up and I mean well up! Admittedly the addition of the Fro-

zone units did help to lift this category but even those without Frozone saw good in-

creases in this sub department.

Pies sales have moved up with some stores experience significant increases ($10k -

$20K). There were a handful of stores who decreased in pie sales but overall there

was a clear positive increase in sales (and comments).

The majority of stores had good increases in drink sales and in particular hot drinks. There

were a few that had decreases but not many.

Bain Marie sales had some big swings up and down. With the ups outweighing the downs,

sales for the group did increase overall.

Overall tobacco in the majority of stores is up but some stores did have a decline in pouch

tobacco.

Overall sales are up!!!

3

MESSAGE FROM THE CEO

System

We continue to wait for the upgrade to the core release before we can progress any further with Infinity.

This is frustrating for all concerned however we can only move as fast as Triquestra can at this stage.

News

Last month we reported a male customer that was seriously assaulted in the Wanaka store. We are

pleased to advise the victim is recovering and it is hoped he will make a full recovery. It was a tough

battle for the victim and we are very pleased to report the substantial improvement over the last 6

weeks.

Marketing

I cannot impress upon you all enough the emphasis I would like you and your team to place on the

24/7 promotion. A substantial amount of work goes into this promotion and our suppliers are very gen-

erous with what they provide so we need to positively support it. 24/7 is a chance to get out from be-

hind the counter, talk to and reward your customers. Done well it creates immense goodwill both within

your area and across New Zealand.

We have done our best to provide everything you need well before the promotion date as requested. I

am keen and very hopeful for a massive day that is rewarding for all concerned both in the short and

long term.

Welcome and Farwell

This month we welcome two new groups of Franchisees who started 1 July:

Alexandra: Sukhwinder, Sukhjeet , Rajwinder and Rupinder

Rosebank Roundabout Auckland: Ashwani and Jasvir

We farewell Dave and Raewyn who have been part of the Night ‘n Day group for just over 13 years.

Both Dave and Raewyn are looking forward to their move to Melbourne and spending more time with

the children and grandchildren – we wish them all the best!

Vishal and Darshna have sold Rosebank but remain in the group through their original store Kingsland.

At the South Island support centre we welcome Bev Horrell into the monthly charge thru team. Bev

replaces Jess V who has now moved to reception.

4

MARKETING. . .

$1 Hot Dogs

On average we sold 120 Hot Dogs per store per week, 16 less than 2014 at an average of 136. Last year we were on both TV One and TV Two including radio and social media. This year we were only on Social Media and Google Adwords. Taking this into account we did do well but there is room for improvement. There are a lot of stores who have stopped asking customers on Tuesday if they want the deal as they assume customers already know about it. We are keen to build on the Tuesday specials so I encourage you to ask every customer if they want the current special on offer. We may not have mass media coverage but customers definitely expect our deals each Tuesday.

Although there is no Tuesday deal this month we can confirm it will be back in August as $1 Hot Chips. Details to follow.

Not Long To

Go

Our biggest annual promotion is almost upon us. All stores should now have their promotional materials up including posters, coreflutes and flags. Do not put any balloons up until the 22nd or 23rd as these will otherwise go flat or be popped by customers. For the stores who still have not told me their t-shirt sizes for staff you need to do so ASAP.

If anyone is unsure about any aspect of the campaign please refer back to the emails I sent other-wise you can give marketing a call.

Date Week 1 Week 2 Week 3 Week 4 Week 5

Total

Tuesday

Sales

Total Month

Sales

June 15 5683 6157 6043 5639 5256 28778 38776

June 14 5070 6599 6548 7086 N/A 25167 36325

5

MARKETING. . .

Mat Solution

I have found a nationwide solution for our Night ‘n Day mat situation and they go by the name of Apparel Master.. For just $10 per week a representative from Apparel Master will pick up your dirty mat to be cleaned and swap it with your other clean mat. The main things are:

These mats are higher quality meaning they will look better and last longer than the existing ones;

You will have a clean Night ‘n Day branded mat at your store at all times;

You do not need to clean them yourself;

These are guaranteed to last 1 –2 years;

Once the mats look tattered they will be replaced at no additional charge.

For stores that require 2 mats to be on site at all times, your fee will simply double to $20 per week and you will have 4 mats in total.

The cost of this will come directly out of your local marketing funds . If you are interested please email me and tell me how many mats you require. I will also send this out as a separate email to remind you all.

New sponsors

We are now the new major sponsors of the newly acclaimed Night ‘n Day Junior Interfield Ski Race Series thanks to the Arrowtown and Queenstown stores.

This is a highly successful ski race which has been running for several years now to over 250 children aged 6 –17 years from all over the country. Some of these kids even go on to represent New Zealand all over the world. Got any kids who love to ski? Then send them along to this!

As part of our support each kid will receive goody bags filled with Night ‘n Day goodies plus vouchers and sports bags for top finishers. Pictures to follow upon completion.

6

MARKETING. . .

Biofuel made from Beers

It’s been on the D-low for a good part of this year but Gull and DB have teamed up and now selling the first ever

commercially available biofuel made from the by product of beer. There campaign is all about ‘saving the entire

world by doing the thing we love “drinking beer”. Heavily targeted at males, just like DB Export, this looks to be a

great idea. DB Export Brewtroleum is now available at all Gull stations including our 21 Night ‘n Day @ Gull sites

for a limited time. Night ‘n Day @ Gull Kingsland was the flagship store for the campaign launch. Pictured below

is the store fully kitted out DB Export Brewtroleum attire. Even the trucks got dressed up!

To launch this campaign, between 12pm and 1pm at Kingsland they were giving out $50 worth of free

Brewtroleum to the public. This entire campaign is advertised on TV, social media and radio. Including giving out

thousands of vouchers calling for people to try the product.

Here is a few Q & A ‘s Difference between Brewtroleum & Gull Force 10

Brewtroleum is chemically identical to 98 Octane Gull Force 10, the only difference is the ethanol is made from natural beer waste instead of by products from the dairy industry.

Pricing queries

DB Export Brewtroleum is selling for the same price as Gull Force 10 would have been.

Why is it more expensive

Brewtroleum is cheaper than other 98 octane fuels in the market

Will it work in my car?

99% of cars produced after 1986 can use 10% ethanol fuels so unless you have some super exotic vintage sports cars we are quite sure you will be absolutely fine joining all the other Gull customers who are helping save the world. Brewtroleum is 98 Octane

7

MARKETING. . .

How Brewtroleum is made

8

OPERATIONS

Lights:

Lights in your refrigerated sandwich bar, ambient sandwich bar, pie heater, scoop ice-cream freezer, novelty freezers, drink coolers plus exterior and interior lights should be consistently checked to en-sure they are always working as there is a big difference in the looks of products with and without lights.

Ice Cream

As vanilla 2L are 25% of the 2L Tip Top ice creams sold it is important you always have vanilla in stock

Counter Mats

All customers see the counter mats both on our side and their side of the counter so it is important they are replaced when looking worn – Contact Bronson.

Griffins/Eta

All stores were emailed the planograms for the core range and the placement of biscuits recently but many have not yet complied with this. Your great pricing you are enjoying was on the condition of the core range and the planogram so please give this urgent attention as the sales of biscuits in particular have changed significantly. While visiting a store recently a customer came in and purchased four packets – how often did this happen before the pricing reductions

Paint

All paint and supplied to NND is organised by the Wattyl Dunedin branch – 0800 735 551 - ring Andy Campbell the Branch Manager if you have any queries.

He can arrange for it to be mixed and collected from a store close to you.

Colour specifications are documented in the Operations Manual.

Interior Walls – Taubmans Eco-proof nil odour acrylic silk Night n Day interior

Interior Trim – Taubmans Ultra-proof acrylic enamel Night n Day interior (same as for exterior)

Ceilings – Taubmans Eco-proof nil odour ceiling flat white

Exterior – Taubmans Sun-proof satin exterior acrylic

· Night n Day Exterior Blue

· Night n Day Exterior

9

For Sale

Toner Cartridges

TN-2150 = $80 inc GST = A4 2600 pages

TN-2130 = $60 inc GST = A4 1500 pages

QI-TN3185 = $ 50 inc GST

PROCUREMENT

Please be aware that it is a requirement that all stores have all Promotional Calendar specials dis-played, stores cannot pick and choose which products to promote. As a group we receive special pric-ing based on all 48 stores promoting all the products listed on the Promotional Calendar.

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Night ‘n Day Foodstores

Support Centre

268 Stuart street

PO Box 5769

Dunedin, New Zealand

9016

Remember . . .