Measure

Source

2018-19 Result

a) Competitive retail selling prices benchmarked to the external market:

• Coffee in the bottom quartile of prices
• Snacks in the middle quartile of prices

Achieved

b) For operational consistency through availability and training, target an average customer spend better than $8.60/head across all outlets excluding petrol, alcohol and cigarettes.

Not achieved

c) Build the first standard mobile food van and assess ongoing viability. Target 10% sales growth for that run against prior period.

Achieved

d) Serve our customers through implementation of new technology platforms and software, targeting stability and faster service. Aim for 10% increased transaction volume at ADFA between 12.00pm - 2.00pm (base year FY2018 excluding December/January)

Achieved

e) Upgrade or establish at least two retail facilities. Include self-service tills in the larger developments if applicable.

Achieved

f) AAFCANS support at least two of the three major exercises (Exercise Pitch Black, Talisman Sabre and Hamel).

Not achieved as only one exercise was run.

An internal national survey of pricing of retail products was undertaken. 58 different local competitors were surveyed, representing businesses surrounding 25 AAFCANS outlets. 86 top-selling food products and 35 top-selling retail product lines were compared with a data set of 1,355 price entries collected.

AAFCANS coffee and hot drinks offer surveyed on average between the median to 5-11% below median pricing. 95% of AAFCANS coffee and hot drinks offer, when compared to market, placed in the bottom two quartiles.

With barista-made coffee products AAFCANS provide a quality offering at some of the lowest retail selling prices in Australia. AAFCANS loyalty offer scores highly with comparable external offers. The coffee menu, loyalty APP incentive and ice-drinks menu continue to show growth and form an important connection with customer frequency and overall brand loyalty.

15 top-selling hot snacks benchmarked AAFCANS pricing as competitive. Overall 89% of AAFCANS hot snack prices were placed in the two bottom quartiles and on average surveyed 11-30% below median pricing.

AAFCANS breakfast offer remains relevant and competitive. 90% of the key products in AAFCANS' offer placed in the bottom two quartiles, with only two of the key products' prices being above market pricing.

Our retail offer (cold drinks and snacks) benchmarked in the bottom to mid quartile of prices. Multiple pricing levels exist for some ranging so two regions were chosen for the comparison. The survey showed the AAFCANS central band pricing structure would benefit from review to improve competitiveness and pricing consistency. This will be undertaken over the next couple of months.

Data showed the top selling energy drinks were on average 4-11% lower than competitors. Flavoured milks and carbonated drinks were on average equal to market pricing or 5-40% below market.

AAFCANS customers directly benefit through the maintenance of competitive retail selling prices.

The average customer spend decreased by $2.35 over last year.

Due to the changing Defence environment and the significant expansion by AAFCANS of kiosks and MFVs our average transaction value varies considerably between facilities and is no longer meaningful, nor a reliable representation of performance. This measure has been removed from our 2019-20 Corporate plan.

The 2WD MFV was built in early June 2018 but returned for further specification improvements. The 4WD van and trailer were finished for inspection in April 2019. Much was learnt from these initial builds with numerous refits and upgrades implemented throughout FY2019.

After trialing, the coffee machine on the MFV was removed from future specifications, given the low uptake in sales for this product. Greater space will be provided for hot and cold food and cold drinks.

Whilst trials were undertaken (Enoggera 2WD, Lavarack 4WD), the runs were sporadic. Data from these trials could not be reliably compared to prior periods.

d) Serve our customers:

Implement new technology platforms and software.

Target 10% increased transaction volume at ADFA between 12.00pm - 2.00pm (base year FY2018 excluding December/January)

The implementation of a new technology platform in the cloud with superior security was completed in late 2018. The transition was smooth with penetration testing revealing only minor required improvements, promptly rectified.

The new electronic point-of-sale implemented under this update exceeded the target. Annual sales transactions at ADFA between 12:00pm to 2:00pm increased from 108,000 to 210,000, demonstrating faster process speeds. Data also revealed that peak trading times have moved to earlier in the day, with transactions slowing significantly in the afternoon.

In this environment, the timing and volume of trade is dependent upon the lecture timetables.

e) Upgrade Facilities:

Upgrade or establish at least two retail facilities. Include self-service tills in the larger developments if applicable.

If self-service tills are installed, target a 10.0% increase in transactions compared to prior year.

The following facilities were upgraded or established during FY2019:

• ADFA LTN relocation of kiosk
• Enoggera canteen – refurbishment in progress as at June 2019.

No new self-service tills were incorporated in these upgrades. The viability of the self-service tills is under review. As a consequence, this measure has been removed from our 2019-20 Corporate plan.

f) Support Defence:

AAFCANS support at least two of the three major exercises (Exercise Pitch Black, Talisman Sabre and Hamel).

AAFCANS participated in the only exercise run in FY2019, Exercise Pitch Black. The other exercises did not fall in the FY19 financial year due to their timings.

Our participation in exercises is a key element of our business, ensuring that AAFCANS is not only of assistance and service to Defence personnel but increases our understanding of the Defence environment and improves communication with our stakeholders.