Magazine: The system protects you!

Géza Tóth
CEO
Co-op Hungary

We learned from Géza Tóth, CEO of Co-op Hungary Zrt. that the buying-fever during the first wave of the pandemic put great pressure on store workers, but they managed to cope. By the second wave Coop developed a well-working system in terms of both stock management and safety measures. The retailer was able to realise the majority of its development projects and maintained the pace of its product innovation work too.

Márk Maczelka
head of communications
SPAR

Márk Maczelka, SPAR’s head of communications reported to us that they had to postpone the store openings scheduled for March-June to the second half of the year. Still, the retailer was able to achieve the business results set for 2020.

Reacting swiftly!

Szilárd Kelemen 
international franchise
and concept division
director
Fornetti Group

Szilárd Kelemen, Fornetti Group’s international franchise and concept division director told Trade magazin that their sales took a dip practically overnight in the spring, when schools closed, many people started working from home and tourists disappeared. In the autumn the sales decline was smaller, and Fornetti could react to the new consumption habits: they put a home-baking product range on the market in no time.

Péter Tóth
owner
Lipóti Pékség

Péter Tóth, the owner of Lipóti Bakery talked to us about opening 10 new bakeries by the end of 2020. Last year was a good one for the bakery chain in spite of the pandemic. Since the more than 200-bakery franchise concept is a well-working system, they didn’t have to modify their concept and price strategy after the initial shock.

With new vigour

Gábor Molnár
sales director
Pek-Snack

Gábor Molnár, sales director of Pek-Snack pointed it out to our magazine that they had been on a successful path up until March, when the market suddenly changed. With the introduction of the lockdown sales in school, hospital and workplace snack bars and grocery stores fell sharply. As a reaction the company introduced what they call the consumer variant of products. Currently sales represent 80 percent of last year’s level.

Dániel Novák
managing director
Diéta Life Market

Diéta Life Market is active in the market of reform food. Sales increased in this segment when the pandemic broke out – told Dániel Novák, managing director of Mediline. They were lucky in the sense that COVID-19 didn’t have an influence on their basic concept, so there is no need for making changes in their plans.

Ágnes Vadnai, head of public affairs and communications at Progress Étteremhálózat Kft. – they operate the McDonald’s restaurants in Hungary – said: they carried on with their network expansion during the pandemic and also gave 15 restaurants an overhaul until the end of 2020. The opening of 4 new McDrive restaurants created hundreds of new jobs.

Help for partners

Mr Tóth informed that Coop franchise partners gave help to those who needed the most in their own communities. In fighting the coronavirus, Coop assisted the efforts of franchise partners with protection equipment, disinfectants and setting up a knowledge base with essential information. Mr Kelemen explained that Fornetti Group kept in touch with partners even in the most difficult periods. External communication concentrated on informing shoppers about how they can get their favourite products. The company helped franchise partners with postponing fee payment.

Mr Maczelka reported that they were forced to postpone the regular meetings with franchise partners. Communication continued electronically and via sales consultants. When the pandemic broke out, SPAR immediately increased the framework available to franchise partners, so they could work with a bigger stock. Mr Tóth spoke about Lipóti Bakery’s charity work: they supported the projects of Caritas Hungary, which helps malnourished children. Mr Molnár told that they gave a helping hand to partner in several areas: in their communication activities, providing the necessary equipment for delivering frozen bakery items, etc. Pek-Snack was also open to renegotiating partnership terms with those units that were fighting for survival.

Knowledge sharing

Mr Novák expressed his opinion that franchise owners must communicate with clear and unambiguous messages in order to maintain the trust of partners. Mediline paid special attention to this when launching its franchise. He added that passing on the know-how wasn’t really affected by the pandemic.

Ágnes Vadnai
head of public affairs
and communications
Progress Étteremhálózat

Ms Vadnai told that Progress Étteremhálózat Kft. gave constant professional support to franchise partners during the pandemic, e.g. for managing the situation, developing best practices, etc. In the first half of 2020 the company also helped partners with the expansion of delivery areas and the modernisation of restaurants. //

Perspectives

What will the next 2-3 years be like from a franchise perspective?

Szilárd Kelemen, Fornetti

Fornetti is already introducing its next generation franchise model programme, which is based on modernisation and digitalisation.

Márk Maczelka, SPAR

SPAR stores showed their strength during the pandemic. These strengths are noticed by more and more independent retailers, and they are interested in our franchise programme.

Gábor Molnár, Pek-Snack

We can serve our franchise partners the best if we expand their selection of products and services in accordance with their needs. We back their operations with ready-made concepts.

Dániel Novák, Diéta Life Market

Our long-term objective is turning Diéta Life Market into a nationwide network in both classic and online retail. The first half of 2021 will bring the debut of our online shop system, which all franchisees will join.

Géza Tóth, Co-op

We hope that by acquiring new stores, innovating and increasing operating efficiency we will be able to hold on to our positions in most towns and villages in the next 2-3 years.

Péter Tóth, Lipóti

The tasks and strategies of the next few years will be shaped by building our state-of-the-art new factory in Hatvan and starting production there. By increasing the production capacity we can enter new markets.

Ágnes Vadnai, Progress

More restaurants will be refurbished as part of our ‘Experience of the Future’ concept all over Hungary. New McDonald’s units will also open. These steps will affect several franchise partners too. //