11th July, 2014

Volume 2, Issue 10

Night ‘n Day Foodstores

INSIDE THIS ISSUE

Message from CEO…….......2

Ideas from Franchisees…...3

Marketing Activity…......…….4

Operations.………..……..…..6

Accounts…………….……...10

Coffee Car...……...………...11

Nathan Xu……………….….12

It’s a Newsletter thing

“Read the newsletter, it

helps answer a few

questions and provides

some good insights”

Tony Allison

Get lucky 24/7 is Back!

Set for another 24 hours of fun and free giveaways on the 24th

July. More information to follow.

2

MESSAGE FROM THE CEO

It has been pleasing to hear the feedback from customers and the general public about the

exposure Night ‘n Day has been getting. We have really pushed the brand in the last few

months and the results are speaking for themselves. I am sure you are also getting the feed-

back in store and this is resulting in increased sales. I have talked to a number of people that

are impressed with the brand exposure Night ‘n Day has received and the general buzz as-

sociated with what we are doing. The Tuesday thing has caught on with people engaging with

our brand and looking forward to the Tuesday deals.

The flip side to the exposure is the significant cost of the internet, radio and TV advertising,

these have had a significant drain on the National marketing fund. With the Tuesday deals set

to continue we are scaling down other National marketing initiatives. The only other National

campaign will be the 24/7 giveaway in two weeks’ time. The focus will now shift to local mar-

keting where we believe we can provide further assistance to boost the return on investment.

On the process and systems review I am now investigating options with existing suppliers.

The first stage of the review is to consider existing point of sale software and what additional

benefits it can provide. The stage is focused on adding value to the store or franchisee. While

this will take some time to get through I am working to providing enough information at confer-

ence to explain the way forward and expected time frame.

Of concern lately is the number of complaints we have received. It would be a good time to

train or remind your staff on how to deal with difficult situations and complaints. The com-

plaints we receive are normally as a result of the actions following an issue or compliant being

raised and the poor handling of that issue or complaint. There are some basic customer ser-

vice skills that are lacking and it’s not doing any of us any favours.

I am looking forward to the 24/7 giveaway in two weeks. A significant amount of time and en-

ergy has gone into organising this campaign in a short time frame. We are hopeful it provides

the same response in store and we continue to create Night ‘n Day fans. The feedback was

amazing last year so I encourage you all to be energetic with the promotion and get your

team in behind what should be a great day.

Tony Allison

3

IDEAS FROM FRANCHISEES

REGENT SALES

The sales at Regent are not only just because of students. The display of food and the

presentation is key to provoking impulsive buying. The aim of the game is to motivate people

to purchase more than they originally set out to when entering our stores. By having stocked

shelves which are presented neat and tidy, will certainly do this.

4

MARKETING ACTIVITY

“IT’S A TUESDAY THING”

Our Tuesday specials have really caught on now and we are experiencing heightened ex-

citement around the mystery of “what product will Night ‘n Day do next month?”. This has

especially been the case where we are having requests on social media and even some

emails from our beloved customers.

There is still much more room for improvement in selling our Tuesday special across the

group. We say this because some stores are selling hundreds in a day whilst another store

not far away is selling next to none. To increase sales on these day’s ask yourself

‘Are you and your staff asking EVERY customer that comes in the door if they are interest-

ed in the Tuesday special?’

If the answer is no, then this is a good start to bumping those numbers right up.

$1 HOT DOGS

The Hot Dogs promotion we believe ran very smoothly. It will be interesting to see how

much Hot Dog sales increase in a non-promotional month thanks to this so watch this

space.

Some numbers from the Hot Dog promotion

In total we sold 25,167 across the group on Tuesday

Total 2014 June Hot Dog sales were 36,303

Total 2013 June Hot Dog sales were 9,760

24/7 PROMOTION

The 24/7 promotion is nearly upon us and to reiterate what was said in the previous news-

letter the promotion will be very similar to last year except the 24/7 promotion will be con-

ducted throughout the entire Night ‘n Day group. Goody bags will be in a lucky dip bin.

When a customer purchases something they have the chance to pick a bag out of the bin

and win vouchers, product or a major prize (one per paying customer).

5

MARKETING ACTIVITY CONT’D

$2 COFFEES –AUGUST PROMOTION

August is another big drive in advertising for “it’s a Tuesday thing” with the $2 coffees. This

will be advertised on television, radio and social media so no doubt you will either see or hear

it when you are out and about. The margin on each coffee we have calculated to be $1 per

regular coffee sold. Yes we know the below T.v snap shot say’s June but won’t when it is

launched don’t worry.

BETTER MEDIA WORKS DEAL

We are in negotiations with Media Works over trying to gain a better group radio deal, both

nationally and locally. In order for us to achieve this we need to bring some numbers to the

table regarding planned spend. Can each store please provide Bronson with their marketing

plan for the next 12 months. If you do not have a plan, but have an idea of what you would

like to do then pass this on still so we know what is coming up and can organise well ahead

of time.

Bronson Te Tau

6

OPERATIONS

IN STORE COMBO BOARDS

We are currently reviewing our in store combo’s and would appreciate some ideas from

stores, what works for you? And what would you like to see advertised? Please email

your ideas through to SISC.ops@nightnday.co.nz

Damon Johnson

UPGRADE OF EFTPOS TERMINALS – LIMITED TIME:

With the Verifone Vx810 terminals having been heavily used for the past 3-5 years

many sites are facing issues with these units failing and the replacement of Vx810 units

costing around $300 + GST for refurbished units.

Gilbarco in association with Verifone New Zealand have put a package together for

Night ‘n Day sites to upgrade to the latest model Vx820 terminals, details are:

Increased warranty period from one year to three years at no cost. Warranty is re-

turn to base (RTB) and this can be sent via courier.

Price reduced from $735+GST to $485+GST per terminal. Excludes installation

and travel costs – as installation is non urgent, sites where there is not a local

Gilbarco branch are able to share travel costs when a technician is next in the area.

Installation will take approximately 20 minutes per terminal plus another 20-30

minutes to load the VEAC. Allow between 60-90 minutes on site.

Vault licenses are transferred at no cost

The Vx820 has the new Paywave or Tap ‘n Go technology built in however we strongly recommend this is not activated at petroleum sites as it will incur a sub-stantial cost in merchant fees.

No additional cost for the three metre cable required for petroleum sites with a night pay window

This package is only available until 1st October 2014. Contact your franchise

support representative to order.

7

OPERATIONS CONT’D

TOBACCO CATEGORY COMPLIANCE AND AN UPDATE

Overall across the group the level of compliance to OOS’s and ranging has been very

good we have received special mention on the low number of OOS’s from our BAT key

account manager during recent planogram relays.

We continue to have issues with selected sites not ranging all products in the core and

optional ranges from Philip Morris and Imperial Tobacco. Equally non-compliant are

sites ranging additional products to the core and optional products from Imperial Tobac-

co and Philip Morris.

Ranging non-compliance at a few sites continues to be a negative during supplier nego-

tiations and discussions. Sites that are identified as being non-compliant during Q2 (1

Apr – 30 Jun) will forfeit their tobacco rebates for Q2 2014.

We have stressed on many occasions that compliance is the responsibility of the retail-

er and will continue to do so. A very large six figure sum has been negotiated from

manufacturers and distributed to the franchisee network on agreed terms. When com-

pliance is disregarded by a few franchisees this reduces our ability to negotiate better

terms for the entire group. Unfortunately there is a correlation between audit results,

financial performance and tobacco compliance, it is unfair for franchisees who maintain

standards to be financially disadvantaged by those who do not.

A full evaluation of sales for the Q2 period is being undertaken along with store audits

result to identify all the stores concerned. All sites that are non-compliant will be aware

of the fact and I suggest immediate removal of all non-compliant stock and ranging of

all items that are on the core list and their selected optional list. Failure to do so will

result in further action.

Cigars – There is no limit on the cigar range that you stock, the only compulsory prod-

ucts that must be stocked as they are part of Philip Morris core range are Wee Willem

10’s Gold, Regular and Blue.

Pipe Tobacco – There is no limit on the pipe tobacco range that you stock, pipe tobac-

co is not restricted in any of the agreements with the manufactures, they only cover Tai-

lor Made Cigarettes (TMC) and Roll Your Own (RYO) products.

8

OPERATIONS CONT’D

TOBACCO CATEGORY COMPLIANCE AND AN UPDATE CONT’D

Planograms – New planograms are steadily being rolled out, this has proved an easier exer-

cise in the North Island where the majority of cabinetry is very similar. The South Island has

been challenging with many different hardware configurations, this is being worked through

with the supplier BAT to ensure all sites can achieve compliance not only with the BAT con-

tract but also the agreements in place with Philip Morris and Imperial Tobacco along with our

long term requirements.

e-cigarettes – are a growth category and you can expect to see more in the media and par-

liament on these products as they are used and touted as an alternative option to tobacco

ATM MACHINES:

Night ‘n Day has entered into a Preferred Suppliers Agreement with Next Payments New

Zealand Limited to supply ATM machines. All sites in the Auckland region with Westpac

ATM’s are excluded from this agreement as through the wall ATM’s provide a better return

on investment.

The ATM’s require cash replenishment by the retailer and are not serviced by a security com-

pany.

In summary:

Next Payments agrees to do the following:

Provide and deliver the ATM to the merchant site

Provide ATM installation, set up, training and support information to the merchant

Facilitate all transactions

Provide full help desk support, onsite support when required

Provide all receipts paper to the merchant

Pay rebate to the merchant as per the agreed terms in the merchant placement agree-

ment

Provide a warranty for the life of the contract on all parts and service.

If the transaction volume on a per monthly basis is lower than 300 transactions per month,

Next Payment may remove the ATM from the retailer’s premises.

9

OPERATIONS CONT’D

ATM MACHINES CONT’D

Each retailer that has agreed to and signed a Next Payments merchant placement agree-

ment will need to provide the following:

Each merchant to comply with the Next Payments, Paymark information that is required

by the New Zealand banking Law which includes a full AML (Anti Money Laundering)

documentation completion, including the Next Payments merchant placement agreement

Arrange installation of one double power point where needed

Maintain the supply of all electricity to the ATM

Ensure the ATM is funded during business hours with the merchants own cash.

Insure the ATM for a replacement value of $16,000 and note Next Payments on the insur-

ance policy

Balance and reconcile the ATM when requested in case of claim by card holder

Replace and order in advance the receipt paper

Attend training provided by Next Payments relating to the service, balancing and opera-

tion of the equipment

Ensure that all staff are up to speed with the working of the ATM

Report any errors or faults to our support team on 0800NEXTATM

Cease all cash out via the normal term of EFTPOS greater than $20.00, all cash out

transactions greater than $20.00 to be directed to the Next Payments ATM terminal.

Site plan to Night ‘n Day detailing the proposed location for written approval by the Na-

tional Operations Manager prior to installation.

The cost to the card user is $2 per transaction, the rebate structure to you as the retailer is:

0-300 transactions per month $0.15 per transaction

300-750 transactions per month $0.45 per transaction

750+ transactions per month $0.65 per transaction

From experience it is difficult to estimate the number of transactions a site will achieve. They

have proved uneconomical where there is a traditional ‘through the wall’ ATM nearby. The

handful of sites that have installed self-cashed ATM’s have monthly transaction rates of 200-

600. A recognised benefit is the additional people coming in-store for cash and spending on

impulse lines.

Contact at Next Payments NZ is Wibo Bosma 0800 639 8286. Contact at Night ‘n Day is

your Franchisee Support Representative (Denise Boyce or Damon Johnson)

Andrew Lane

10

ACCOUNTS

Monthly Charge Through

Over the last couple of months we have seen a great improvement in the number of invoices

and stores that we have to contact in relation to missing store documents for your accounts.

This has been a great help to Rose and myself as it reduces the follow up we have to do

when reconciling to the suppliers statements. This also means you have spent less time deal-

ing with us, so it’s a win for everyone. Thank you to all of you.

Tips for those wishing to improve further:

Mail is sent every Monday with all of the invoices and packing slips from the previous

week.

Make sure all mail for the previous Month is in the following Mondays mail, this should

mean we receive it before the 9th of the month. If received after this date it increases the

chances of us needing to get approval from you, and in some cases the packing slip is

between your store and the Support Centre.

If you realise you have a packing slip for the previous month still at your store after you

have sent the mail, a fax or an email of it is beneficial.

I would also like to take this opportunity to let you all know that from the 1st of August I start

my next adventure in life and will be on maternity leave. I hope that you give a warm wel-

come to whoever moves into this seat, and I will be back in touch with you all on my return

next year.

Toni Alexander

IRD Cheque Payments

We have received the following letter from IRD regarding cheque payments:

We want you to know about an important change that will affect customers who make pay-

ments to Inland Revenue by cheque. From 1 October 2014, you’ll need to ensure Inland Rev-

enue receives your cheque payment on or before the due date to avoid penalties and inter-

est.

Paying on time

It’s important that your payment and return reaches Inland Revenue on or before the due

date. If they’re late you may incur penalties and interest. This means you’ll no longer be able

to post cheques on the due date. You can however, make payments online up to and includ-

ing the due date.

There’s never been a better time to go online

11

ACCOUNTS CONT’D

IRD CHEQUE PAYMENTS CONT’D

There’s never been a better time to go online

It’s easy, fast and secure to file returns and make payments online and the service is availa-

ble 24/7. Last year, over 70% of all Inland Revenue payments were made electronically.

We recommend you pay using the “pay tax” function provided by most New Zealand banks.

To make an online payment or find out more about making payments, go to www.ird.govt.nz/

makepayment .

Jessica Campbell

COFFEE CAR

We are still selling the coffee car – this includes the coffee machine and generator.

We are asking $18,000 including GST.

12

Night ‘n Day Foodstores

Support Centre

268 Stuart street

PO Box 5769

Dunedin, New Zealand

9016

Phone: 03 477 2340

Fax: 03 479 2903

www.nightnday.co.nz

NIGHT ‘N DAY SPONSORED ATHLETE

A huge congratulations to our young sponsored athlete Nathan Xu. He competed in the 2014 ITTF

World Hopes Tournament in Slovenia. Nathan was the youngest to compete at 10 years old and came

13th out of 24 boys aged 12 and under.

This could not have been possible if it weren't for the combined help of the Auckland stores. Nathan,

his family and coach have all expressed tremendous gratitude numerous times. I translate this as they

are all now lifetime shoppers of Night ’n Day. Just another 4.433million kiwis to go and we have 100%

market share!

Further more, Nathan has even been selected in the World Hopes Team for an event in Puerto Rico

and Barbados. Check out his sweet gears he will be rocking! Until he out grows them.

Bronson Te Tau