www.nightowl.com.au © 2015 NightOwl Convenience.

Page 2 – Word from leadershipWise Words to the Parliament Marketing Update

Page 4 – Our PeopleStaff Profile Franchisee Profile

Page 6 – Commercial Team UpdateStore of the Future

Page 7 – Sales Success TipsCigarette Display Innovation Bran Flakes Fresh Produce Displays

Page 9 – Wise Owl FactsOwlando’s Facts

In This Edition

Owl you need to know!OwlNewsMonday 20th April to Sunday 26th April

Owl you need to know!OwlNews2

Information is Power

You will notice this new Owl News is focused on having more interesting, engaging, informative, fun and cultural content. We urge you to share this publication with all of your staff. Encourage them to sign up or print out a few copies for them to read when it’s quiet. We have a great team of dedicated employee’s across the network and the better informed they are the better we become as a business. Read Owl News!

Benchmarking for Excellence

You will see from this edition that we will be putting the spotlight on those franchisees within the network that are going above and beyond, doing innovative things and really pushing the culture of what it means to be a NightOwl franchise. Here’s your chance to learn some really valuable tips and tricks from those who are leading the way. If you believe you are doing something innovative or inspirational in your store then please share it with the rest of the network by dropping us a line here at FSO and we will feature your store. By sharing excellence we become better together!

Rewards

Did I mention how important it is that you and your staff read OwlNews? Every week we will compile a list of all of the staff who have read owl news and do a lucky draw from a hat (or owls nest if we can find one) and one lucky reader will win a $50 NightOwl voucher to spend for their cleverness in being a regular reader! The winner will be announced in the following week’s Owl News and the catch is you must phone us at FSO to claim your bounty before 5pm on the same day the announcement is made.

Business Critical isn’t just a fancy name!

Critical updates will now be sent out weekly as a separate ‘Business Critical’ publication. This publication is for franchisee’s and store managers only and will recap all of the critical updates from the week such as recalled/deleted lines and pertinent promotional updates. This is serious stuff that must be adhered to or you could find yourself either impacted legally (failure to recall dangerous products) or financially (failure to update promotions/pricing). 100% of franchisees

and Store Managers should be reading Business Critical! We will SMS you a reminder on Friday mornings at 11am, so no excuses, right?

Marketing Budget

Many of you are keen to know how we plan to spend the marketing budget next year. Outlined below is a pie chart indicating how the funds will be divided up. I must express how excited I am about how the next 12 months are looking for NightOwl from a marketing perspective.

2015/2016 Budget

The marketing team is now looking well-resourced to achieve all of the goals we have set out to accomplish with our new digital technology. You should have read in the last edition of Owl news that we have hired a dedicated Digital Media and Marketing Executive to drive everything digital and PR and we also have a dedicated Brand Ambassador- Mascot to drive promotional activity.

I’ll summarise below the key changes you may have already noticed and those that you will see more of over the next few months:

• LED, TV, CFD, and beacons packed full of Engaging advertising and great offers with calls to action.

• Engaging and fun Social Media campaigns.

Wise Wordsto the Parliament

Welcome to the new version of Owl News. The marketing team has put a lot of time and effort into producing this new version. The decision to give Owl News a complete overhaul came about as a result of your feedback. The old format was tired and many of you simply weren’t reading it…Despite the fact that much of the critical information you need to know is published in Owl News! Anyway…

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• Tactical promotions utilising Owlando and the Owl Van.• Availability to book subsidized Store Promotions to drive footfall through your stores.• Press coverage for individual stores and the NightOwl Group.• A complete overhaul of in-store pricing displays.• An exciting new promotional campaign to coincide with the annual conference- Sorry, details are top secret for now! • More comprehensive feedback on marketing campaign outcomes.

Campaign Review – 100 Days of Summer

The 100 Days of Summer campaign has now officially ended and if you didn’t know this you clearly haven’t read Owl News! The below graph shows the steady increase in sales and transactions as a result of the campaign. There were a total of 36,335 redemtptions, 35,678 app members and 24,097 Facebook likes driving the success of the campaign.

Owlando Hits the Streets with HOT CHIPS!

Orlando hit the streets with some hot chips to see what the Kangaroo Point locals thought! Check out the photos below:

We hope you enjoy reading this new Owl News publication and we are always open to suggestions on how to make things better and of course receiving praise on how good it is now! Please do flood us with all of your innovative processes and ideas as well as fantastic news items to include in future editions. Let’s help each other out and make NightOwl an even bigger success! Happy reading…

Craig Scarr, Director of Marketing and Buying

-0.7%

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-0.3%0.2% 0.3% 0.1%

-0.4% -0.3% -0.2% -0.1% -0.1% 0.1% 0.0% 0.1% 0.2%0.5% 0.6%

1.0%1.3%

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2.3% 2.5% 2.6% 2.9% 3.0% 3.1% 3.2% 3.4% 3.4% 3.7% 3.8% 3.9%

-1.0%-0.5%0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%

Transaction Count YTD Variance

Owl you need to know!OwlNews4

Our PeopleGetting to know the team

Outstanding Member of the ParliamentThis week’s Outstanding Member of the Parliament is Lita from the Fernbrooke NightOwl! Lita lives and breathes the fun, friendly NightOwl culture and has been with the company for two years. I sat down with Lita to find out some more:What makes NightOwl stand out for you as a company?

I really like the customers we attract, they keep me happy and being a local myself, I now know so many of them. My manager, franchisee and colleagues do a really good job to work around my schedule and it’s like a family here.

When you aren’t selling combo deals or hanging out with Owlando, what do you enjoy doing?

I play volleyball and I coach too! I coach all age groups at the local Anglican college. I also like to eat!

What makes you an Outstanding Member of the Parliament?

My bubbly personality and willingness to get to know the customers. It makes a huge difference to the overall experience they have.

Lastly, tell us your best sales tip!

Build rapport, be bubbly and get to know the customers! The friendliness is the main reason they keep coming back.

Great work, Lita!

If you or any of your staff go above and beyond, day in, day out, then email me at cobey.bartels@nightowl.com.au and I’ll be in contact.

Top-Notch FranchiseeThis week’s Top-Notch Franchisee is Roy Meng, who owns the Indooroopilly and Cannon Hill stores with his wife Nancy. Roy and Nancy have been dedicated NightOwl Franchisees for eight months and are a perfect example of what we’re all about as a company! I sat down with Roy to find out how he has taken his franchises to the next level:

Tell me Roy, what do YOU love about NightOwl?

Honestly, the NightOwl offers are great and owning a franchise is such a good opportunity. The market for NightOwl is very good and it offers the franchisees a chance to create a healthy work/life balance and a great life. You’re not just a franchisee; you have a big contribution and a great amount of autonomy.

Where do you feel your stores really excel?

I think our service is very important to us. We focus on promotions and upselling that can really benefit the customer. We want to offer great value and that means getting to know what offers people want. The range is also second to none. We finished the renovations in Indooroopilly and we have developed a range that has shown an increase in sales.

How do you motivate your staff and train them to outsell your competition?

We have regular customers that will come to us, and we have to know what they want. We know a lot about them and they have shared exactly what they want from us! We focus on upsells that can really benefit the customers, more than our competition in the area. Before each promotion starts, we will focus on how to upsell and how to really benefit from it. I really focus on making sure my staff members don’t forget about promotions, so I’ll often place a sheet in front of the POS machine.

Lastly, tell us your best tip for owning and operating a successful franchise!

I think the customer service comes first. We focus on upselling, but we need to know our customers first. The afternoon for example is very quiet, so every customer during the afternoon is treated very carefully – great service and information about promotions is essential.

Great work, Roy, thanks for speaking with us!

If you like to think outside the box and offer exceptional service within your franchise, email me at cobey.bartels@nightowl.com.au and I’ll be in contact.

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DID YOU KNOW?

The number of Australians drinking sparkling water has increased dramatically over the past five years, while softdrink consumption has decreased.What does this mean for you? It means two things need to be done: take advantage of the exciting new NightOwl Sparkling Water, and maintain softdrink sales through combo deals and other valuable promotions.

The shift away from traditional softdrinks that contain a high sugar content can be attributed to the consumer opting for healtheir choices. This trend allows stores to take advantage of healthier, fresh and packaged offerings.

Roy Morgan Research, an Australian research organisation, conducted a four year study finding that Baby Boomers were the most likely age group to consume sparkling water, while younger generations were the least likely, opting instead for more traditional soft drinks.

People will always drink soft drinks because, well, they taste great. But it’s important to remember that there is a high sales potential with sparkling water and healthier options, as well.

Welcome Port Douglas to the NightOwl Family!

Mukund and Kajal Kathiriya are the proud owners of the exciting new store in Port Douglas, Queensland.

The new store opened on Thursday 2nd April in the Portico Building on Macrossan Street and features the revolutionary Store of the Future design along with all the classic NightOwl elements we know and love.

The NightOwl store will further improve the area and will be a welcome edition for locals and tourists.

Mukund said the store has a small team of staff handpicked for their professionalism and friendliness.

“We will go the extra mile for our customers, ensuring they receive exceptional service and a friendly smile,” Mukund said.

Welcome to the team, Mukund and Kajal, we’re looking forward to sharing a bright future with you at NightOwl!

Owlando had a hoot at Byron Bay’s Bluesfest!! Our resident feathered friend recently flapped his wings down to Bluesfest to see what all the fuss was about!

Owlando enjoyed the weekend of quality music, paying his dues to the great gift of blues!

He made sure he didn’t miss any of the action as people flocked to the main stage to sing-a-long to the likes of Jack Johnson, Ben Harper, David Gray and the Alabama shakes.

Owlando said the highlight for him was tweeting about the soulful vibes and dancing with the exuberant locals owl night long.

Our PeopleGetting to know the team

Owl you need to know!OwlNews6

Commercial Team Update

As Nightowl’s Store of the Future upgrades continue, more and more franchisees are becoming proud owners and operators of the revolutionary stores. The NightOwl commercial team continues to implement the upgrades and ensure the network keeps growing.NightOwl Fairfield Waters in Townsville is the latest store to undergo the Store of the Future refurbishment. The store was shut on Monday and Tuesday so the new counter and bulkhead could be installed. On Tuesday afternoon a temporary Point of Sale area was installed so the

store could start trading while the work was still continuing. NightOwl Fairfield Waters had construction finished on Friday 16th of April and the merchandising will be completed by close of business Monday.

Today the Store of the Future Refurbishment is starting at NightOwl Charles Street in Townsville. This will be followed by NightOwl Deeragun starting next Monday.

The construction of the new Airlie Beach store is under way and the store will be completed by the 19th of May. Last week we saw the beginning of plumbing and ceiling work at the store. The refrigeration works and gyprock were also started this week. Please see the below progress photos!

News & Updates from the Commercial Team

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Sales Success TipsTips & Tricks to Increase Sales

Cigarette Display InnovationOur CEO has been out ranking stores recently and has ranked Brunswick Street and Taringa as two of the best stores for their tobacco cabinets.Tobacco can account for between 30-40% of our total business sales at any one point, with numbers flactuating slightly from store to store. This month alone, 36.4% of all sales have been tobacco, clearly outlining the need for exceptional cigarette merchandising and planograms.

The exciting news for stores is that they can take a number of proactive steps to significantly increase tobacco sales, items per basket and overall revenue. Stores that have shown consistent tobacco sales growth have focused on providing exceptional customer satisfaction through user-friendly display techniques.

Similar results can be achieved by exercising the following practices:

• Planogram inside cabinet doors to ensure locations are accurate.• Clear single and twin-pack pricing displayed.• Colour-coded stickers providing cigarette strength and quantity.• Upsell through effective twin-pack positioning.

An example of the user-friendly tobacco merchandising initiative can be seen to the right. It is vitally important that all stores are focusing their attention on driving tobacco sales and ensuring poor merchandising isn’t hindering their revenue.

Brand Flakes A key food line worth focusing on is the humble breakfast cereal. See to the below for a breakdown of breakfast cereal line sales. Nearly all stores stock the top 10 breakfast cereal lines, although not all stock the top 11-20, as seen below.

Make sure you aren’t missing out on an oatlandish amount of breakfast cereal sales.

Owl you need to know!OwlNews8

Sales Success TipsTips & Tricks to Increase Sales

Fresh Food and Produce The exciting new fresh produce section at selected Store of the Future NightOwl stores is proving to be an overwhelming success!The feedback we’re receiving is that customers love the ever-increasing range offered and the phenomenal quality of our fresh produce. Gone are the days of expecting brown, heat affected bananas from your local convenience store.

The Kangaroo Point NightOwl is making great use of the produce stand, selling $805 per week or 2.4% of their total weekly sales. We’ll let you know when they reach 3%! This is a clear example of the success fresh produce can offer your store.

Bananas are a particularly useful upsell with workers and locals buying lunch, or even just a snack. The team at the Enogerra NightOwl has done a fantastic job of achieving a consistent four week average of 66 bananas per week, sold at $0.80 with 40% GP. Esplanade Cairns are doing over 500 units of bananas per week!

The stores receiving the fresh produce stands next are Cairns Spence, Cairns Sheridan, Cairns Shields Cairns Earlville, Townsville Deeragun, Townsville Fairfield, Townsville Hugh and Townsville Charles.

Phone: (07) 3088 1200

NightOwl Franchise Support Office Level 1, 184 Main Street, Kangaroo Point, QLD 4169

Would Your Staff Like Owl News?If you would like your store managers to

also receive the newsletter, feel free to email their

name and email address to

cobey.bartels@nightowl.com.au

Owl News - What Do You Want More Of? We aim to make Owl News a useful and engaging resources for franchisees.

Let us know what you would like more of, or less of,

so we can make it work for you.

Email me at cobey.bartels@nightowl.com.au

Get in touch

© 2015 NightOwl Convenience.www.nightowl.com.au

Wise Owl TriviaOwlando’s Facts and Trivia

Each week Owlando shares his wisdom with the NightOwl parliament. Nothing gets his feathers in a bunch like poor company knowledge!

Wise Fact:

NightOwl opened its doors for the first time in 1975 in Auchenflower, with just one store and a very young Owlando at the time!

Wise Fact:

Owlando tried the irresistible new crinkle cut chips that are in selected stores and told us that he’ll be wrapping his beak around them every chance he gets!

Wise Fact:

Owlando has given up nest bowls and switched to long-distance running! Keep an eye out at local marathons and sporting events….