March 2019

Night ‘n Day Foodstores Ltd

“I am a great believer in

luck. The harder I work,

the more of it I seem to

have.”

Coleman Cox

Author

Christchurch Terrorism Attack:

First and foremost, our sincere thoughts are with the many families touched by the brutal

terrorism attack on the 15th March in Christchurch just around the corner from the Hagley

Night ‘n Day. We have many nationalities and religions throughout our Franchisee network

and our Support Centre, this provides daily interaction with others who do hold different

beliefs which we respect and embrace. Thank you for your support to make a sizeable do-

nation to help the victims of this senseless attack.

Business:

Wow what a start to 2019! The changes over the past year have certainly helped continue

our growth from the big increase in 2018. A big thank you to all the Franchisees who at-

tended the Franchisee forums last month, we always look forward to these events and the

positive outcomes for all concerned. The feedback, shared insights and thoughtful discus-

sion all impact on your profitability and our strategy and planning.

We will continue to execute our plans this year as best as we can, the process has not

changed. It is circular, plan, do, check, adjust and then repeat. On reflection for the past

financial year we recognise our Franchisees, the Night ‘n Day support team and our trade

partners for the many things they do, both the visible and invisible, that keep the vision of a

profitable and growth focused franchise network thriving.

Data from many sources is assisting us to improve our retail decision making, we will keep

investing and exploring new ways to collect, analyse, protect and leverage data across our

purchasing, sales and operations. Despite the ever-changing competition we are increas-

ing the number of customers that not only want to buy our range of products, but they also

want an experience that they won’t find anywhere else.

Daylight Saving – 7th April:

Unfortunately, with daylight saving and shorter cooler days people tend to stay inside more

so keep a very close eye on wage percentages and amend your staffing levels for the qui-

eter trading. Make sure if you are using manual timeclocks for exterior lighting that they

are adjusted, POS systems and CCTV systems should update automatically but a double

check on Sunday morning should be undertaken – a restart usually fixes the issue.

DIRECTORS’ NOTES

3

Uber Eats:

Has now been rolled out to all regions where Uber Eats is available and the initial sales

levels are very exciting, critical to the success is ensuring you are on line, have the products

in stock and the quality of the food is of the very highest standard. For Franchisees who

are connected to Uber Eats make sure you are very familiar with the App, for Franchisees

outside of the Uber Eats area who wish to have a look at our menu, download the Uber

Eats App and put in 52 Filleul Street Dunedin as your location and you will see Regent, Oc-

tagon and Mornington stores and what is available.

Wages:

Minimum wage rates increased on 1 April 2019 and we are moving to payment of all em-

ployees from weekly to fortnightly, once again keep a close eye on wage percentages and

staffing hours as turnovers start to decline. Furthermore, detailed information will follow

from the Operations and Accounting teams.

Coalface:

Coalface is one of several companies that undertake research on our behalf and the many

suppliers we partner with. They will be in contact with you in the coming weeks to survey

the suppliers to your store, please take the time to answer the questions as is does make a

difference and rewards the many companies and their team members that do provide an

exceptional service. It also makes companies aware if they are not up to standard and

what areas they need to concentrate on. Your participation will help supplier service levels

to your store.

A big shout out to all the South Island stores from Jenny our fantastic foodie, after visiting

all the South Island stores during March there has been a very noticeable improvement in

the food on offer since last year. During April Jenny will be on the road calling on all the

North Island stores and we expect a similar result. The food within the group continues to

grow strongly with the improved offer and investment.

All the best and be assured the accounting team will be working solidly preparing your end

of financial year account – please forward through the stock taking sheets and all the end

of year information if you have not already.

DIRECTORS’ NOTES

4

MARKETING

Date Week 1 Week 2 Week 3 Week 4 Week 5

Tuesday

Average

Total

Tuesday

Total

Month

Mar-19 7,105 6,953 6,856 6,339 N/A 6,813 27,253 37,471

May-18 6,954 8,192 7,745 7,285 7,410 7,517 37,586 45,548

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Uni

ts S

old

Criss Cross Chip Sales

2016 2017 2018 2019

5

2019 Tuesday Specials:

April: $2 Churros (+$1 Sante Bar, +$1 Cream Freeze/Ice Cream)

May: $3 Iced Drinks

June: $2/3 Regular/Large Hot Drinks

July: $2 Pies

August: $2 Cordon Bleu

September: $2/3/4 Wedges (Works/Deluxe as upgrades)

October: $3 Energy Shakes, includes Spiders (more kid-friendly option)

November: $1 Ice Creams

December: $2 Pies

IMPORTANT CHURROS INFORMATION:

When ordering: “orders received by 5pm Friday are dispatched Tuesday the following

week, with delivery into store 2-5 days after that depending on where you are located, this

is because stock is manufactured to order to allow maximum shelf life.

This means that at the beginning of the month you will need to have enough stock on

hand to cover the first two weeks of April. Understand that many of you would ordinarily

use the first Tuesday as a guide for how much stock you will require for the following Tues-

day but this wont be possible as orders placed week of 1st April won’t be received until just

before the 3rd

Tuesday of April”.

Admin:

Please ensure you are emailing all advertising invoices to Will directly rather than sending

them with your store mail. They need to be sent as a PDF attachment.

We will not be accepting invoices for advertising that are not emailed going forward.

Invoices for the prior month need emailed by the 10th of the month following to be included

in the month they are due.

Account Sweeps:

Any unused balances over $2,000 as at June 30th will be swept to National marketing.

MARKETING

6

ExpressPak receive a number of small orders often for a single pack or car-

ton. Obviously there is a cost associated with freight as well as processing of the

order, there is also the cost of the extra time Franchisees spend placing multiple

small orders to consider.

Therefore effective 8th April Expresspak will implement a $100 minimum order val-

ue. Any orders received under this threshold will incur a $10 handling fee.

Alexander Marketing now has the following Reeces and Hersey’s novelty bars avail-

able to order, priced at $0.99 per unit:

Given these novelty bars aren’t widely available we recommend setting up a perma-

nent dump bin in store. We have loaded an everyday price of $2.90 and 2 for $4.50,

you will be sent out A4 posters for the dump bins next week.

PROCUREMENT

Reeces Peanut Butter Pieces

Hershey’s Milk Choc Bar

Hershey’s Cookies & Cream bar

Reeces Fast Break

Recces Peanut Butter Cups

Reeces Sticks

Hershey’s Skor

7

New Black Polos are available to order from AMS, $31.80 + GST delivered into

store. The blue & yellow polo shirt is being phased out and from 1st June 2019 they

are not to be worn.

PROCUREMENT

8

Spillage from Oil Drums at the rear of your stores can be a major issue from both an

appearance as well as a Health & Safety perspective.

The Support Centre has negotiated a price from Hazero to supply a product that will

help you in containing any potential spillage from the Oil Drums, please see details

below.

The price for the unit is $491.03 + GST. Freight is free into the main centres, however

there is a $75.00 + GST fee for stores outside the main centres, this includes Central

Otago, rural Southland, Otago, Canterbury and the Wairarapa.

If you would like to order one for your store please contact Paul Thompson at the

Support Centre on 021 999 866 or paul@nightnday.co.nz

PLANT & EQUIPMENT

9

Food Cabinets:

We are aware that there has been some issues around the country with the sand-

wich cabinets blowing hot air, not keeping food at appropriate temperatures and

generally not working as they should. In order to maintain the best performance for

these units there is a few things you can do:

- Do not stack products up against the units in a way that blocks vents

- Regularly clean filters – task staff to do it on a monthly basis

- Check the condensers are cleaned on a monthly basis

- Ensure staff are cleaning the machine regularly so there isn’t dust build-up

These small and easy steps will help you to get the best performance out of the units

and avoid costly repairs. It is important to note that the steps above don’t replace

periodic maintenance by a qualified person, rather they are intended to be in con-

junction with a service plan.

PLANT & EQUIPMENT

10

Cigarette Vending Machines:

Below is a trouble shooting document with some quick fixes that will hopefully ad-

dress some issues you may encounter. This can also be found on Bracken. For more

urgent / major issues see a phone number, email address and backup number be-

low.

NZ Service - 09 887 1081 or service@vdms.com.au

Back up – Scott Mainwaring, NZ Sales Manager 027 970 0511

Service Desk hours are 11am – 8pm during daylight savings time and 10am – 7pm for

the rest of the year (service desk is based in Brisbane), Scott is available during the

earlier hours of the morning. Physical store visits for servicing are contracted to ECL.

In terms of what can cause issues, there is a sensor inside the machine behind the

trays on the back wall. When the tray is not pushed in square the sensor does not

pick up that it is in at all and will not dispense product, the tray needs to go in square

with both sides all the way. This is potentially a second stage solution if turning off

the vending machine doesn’t work.

OPERATIONS — FIELD MANAGERS

11

Uber Eats is live for 17 stores and we are happy with what we see. $12,000 worth of

sales in the first week and we still have a lot of refining to do.

Thank You to the stores that have embraced this offering and allowing us to bring

convenience to the next level. We see massive potential, not just with Uber Eats, but

other delivery parties nation wide.

We know change isn’t easy and there has been some hiccups on the way through

but all stores that did a transaction last week should have been reimbursed Tuesday

night for the sales they made.

Why everyone? I could have just sent this information to the Uber Eats stores that are

completing it but after seeing how focused on expansion Uber Eats is, I have no

doubt other towns will be getting it soon enough.

No Hiding Uber Eats is a community sharing platform. You are rated, you are criti-

cised, people can be unforgiving with their comments. Those committed to quality

are achieving incredible rankings and positive comments. Others are not. We will be

working with the stores that aren’t achieving good ratings to improve, because when

it becomes visible and you are ranked a 1/5 people won’t buy from you. I would like

to think this rating only relates to you Uber rating but likely raises concerns of quality

in store.

UBER EATS

12

We are not finished. We will continue refining menu items adding, deleting and

changing different pieces. We will let you know to ensure you have the stock on hand

but we are learning as quickly as you are.

UBER EATS

13

Turnover reports:

Please send through your turnover report to accountant21@nightnday.co.nz by Tues-

day 11.00am each week.

If you receive any extra deposits from e.g. Uber eats, Ministry of Justice or Store Ac-

counts, please make a note of this in the additional deposits section.

Drive offs and UTP’s (Unable to pay):

- If you are a Gull petrol site and a customer drives off without paying or if

they are unable to pay, please make a note of this under the Drive offs

column in your report.

In addition, please note if any subsequent payments are received this will

not be added again to your turnover.

If you have any issues with filling out your spreadsheet or if you have any questions,

feel free to send an email to support@nightnday.co.nz and we will get back to you as

soon as possible.

FINANCE

Night ‘n Day Foodstores

Support Centre

52 Filleul Street

PO Box 5769

Dunedin, New Zealand

9016