Convenience & Impulse Retailing Article
Category: Store Review
Issue: Jan/Feb 2010
Healthy challenge
The direction may be new … but the commitment to care is the same
Of the many future challenges that will doubtless face the proud new franchisees of the NightOwl store in Little Mountain, Caloundra … learning to cope with the stress of their new roles is unlikely to be one with them.
Having served as a paramedic with the Queensland Ambulance Service for the past 12 years, Jonathan Jones faces critical situations on a daily basis, so he should find dealing with awkward customers, deciding what stock to carry and what promotions to run, a relative breeze. Similarly, after two decades working as a registered nurse, his partner Jo McNeill should find the responsibility of looking after the business's bottom line something less of a daunting task than taking care of sick patients.
Not that the two newcomers to the retail work will be taking their new roles lightly. While the couple and their three children – Katelyn (16), Matthew (13), and Nicholas (11) – were looking for a change in direction they were also looking for a challenge, and one in which they could work together as a family.
Both Jonathan and Jo intend to continue practising as a paramedic and nurse respectively so this family support will be crucial.
Interestingly enough, it was their daughter Katelyn who first spotted the 'franchisee wanted' sign on the empty store in Little Mountain, and suggested that it would be a good business to enter. Having worked part-time in a supermarket for the past 18 months whilst at school, Katleyn volunteered to help out in the store and Jonathan says his two boys will also be a great asset to the business.
The NightOwl image
The shop itself is a green field site and larger than some NightOwls at 167m2 and hopes to present as cutting edge for other stores to be modelled on. It is well lit and has an attractive layout. Certainly, its 1.4-metre shelving height makes it feel more spacious and enables customers to see across the aisles. The feel of the openness and bright lighting and attractive point of sale throughout the store naturally draw customers in.
It is built in a medium density residential area which has a lot of young families, a large and ever expanding school (prep-year 12) close by and a retirement village within walking distance. There are also plans for more than 700 new residential dwellings to be built across the road starting early this year … so it is a business that can only grow.
"Its appearance is aesthetically very pleasing as it is based entirely on the NightOwl model store program," said Jonathan. "What attracted us to the business was the fresh new image that NightOwl portrays and its strong market presence in the retail sector."
The Little Mountain store will be supported by NightOwl Convenience marketing, including promotional leaflets, local advertising and online promotions support. Since its inception over 30 years ago, NightOwl Convenience, which along with its franchisees operates 59 stores across Australia, has become one of the most successful franchising models in Australia.
While the NightOwl store in Little Mountain is still very much in its infancy the early signs are good. Business has been growing on a daily basis and there has been much positive feedback from customers who are delighted there is a shop in the area boasting a wide variety of reasonably-priced products which are available before 7am and after 8pm. The store is open seven days a week from 5am - midnight.
"The retirees love that they can get up early, go for a walk and get the paper on the way home," said Jonathan. "As it is a safe suburban area, the young school kids can also walk or ride to the shop and they love the Frozen Coke! "
Staffing levels are currently being kept at a minimum until the business establishes itself and the couple determines what staffing is appropriate.
"At present there are four staff employees and Jo and I both fill shifts with our daughter lending a hand whilst on school holidays," said Jonathan. "Due to the hours, we aim to employ adults as we are conscious of our staff's security."
The store already has state-of-the-art security systems in place, with more than 10 CCTVs and a panic button that goes directly to the police if there is a security issue. The office also locks automatically if the door is closed.
Jonathans says the NightOwl franchise has designed the store to be a destination rather than just a convenience store. It has a wide variety of fresh food, cakes and slices, as well as fresh bean coffee and hot meal solutions including pies and hot chickens.
The secret to success
"The store's point of difference is a great hot food offer and fresh bean coffee and it also has the new bread/milk offer - two loaves or bread or a loaf of bread and carton of milk for $5- that is the best value on the market, outdoing the large supermarkets," he said. "With the pace of life getting faster all the time, top-up grocery items continue to play an ever increasing role in our customers' lives. … and what sells well so far has been the bread and milk offer, the Frozen Coke and the newspapers and cigarettes."
Jonathan says promotions like Coca-Cola's 'win a Harley Davidson' are proving very effective draw cards with a bit of a cheeky element to them.
Although they are extremely new to the retail business, both Jonathan and Jo are in no doubt about the long-term secret to their store's success.
"Customer service is still the most important thing in retail as a happy customer is a frequent customer," said Jonathan. "NightOwl Little Mountain customers can expect to receive great customer service while shopping in our store."
Already, Jonathan and Jo are thinking about what more they can do to improve their store and say that at some stage in the future they may put some tables and chairs on the lawn at the side of the shop to allow people to sit and relax with a morning coffee and paper.
"Coming from a background in the health industry we both have a caring attitude for the community and so looking after the community will always be our first priority," said Jonathan. "Our plans and ambitions are to be the best we can be in delivery of quality customer service."
The store is now actively on the lookout for local charities and community groups for future sponsorship or fundraising opportunities.
"We strongly believe in giving back to a community which has chosen NightOwl Convenience as their number one convenience store," Jonathan said. "There are so many local organisations that contribute enormously to our community – their generosity is truly inspirational. So, the least we can do here at NightOwl is support the groups that support our community."
It would seem then that the retailing needs of Little Mountain are in very safe hands indeed.
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