Annual Performance Statements
AAFCANS operations for 2020 were delivered in line with:
- Our legislative purpose
- The 2018-22 Strategic Plan
- The 2019-20 Corporate Plan
Introductory statement
On behalf of the directors of the Army and Air Force Canteen Service I, Leonie Taylor, Chair, present the 2019-20 annual performance statements of the Army and Air Force Canteen Service, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
In our opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of AAFCANS, and comply with subsection 39(2) of the PGPA Act.
Results and Analysis
PURPOSE | Provide Defence members with convenient access to quality food, beverage and retail items, and support base welfare. | |
Measure | Source | 2019-20 Result |
a) Competitive retail selling prices to our customers. Benchmark retail selling prices (RSP) against external target market to show AAFCANS in the bottom quartile of coffee sales prices and in the middle quartile of snack item sales prices. | 2019-20 Corporate Plan | Achieved |
b) Target a 10% sales growth on the redesigned MFV for that run against prior period. | Partially Achieved | |
c) Serve our customers more efficiently through improved technology platforms. Post implementation: using ADFA canteen, increase transaction volume by 10% between 12.00pm – 2.00pm over base year FY2018 excluding December/January. Trial an online portal and APP called “AAFCANS On-Demand”, supplying customers with products for pickup or delivery. Assess ongoing viability. | Partially Achieved | |
d) Two facilities established or upgraded. | Achieved | |
e) AAFCANS deploys on request in support of at least 2 of the 3 major exercises (Exercise Pitch Black, Talisman Sabre and Hamel). | Not Achieved as only one major exercise was run |
ANALYSIS | |
a) Competitive retail selling prices: Coffee and hot drinks are 13-31% below the average street price and placed in the bottom quartile: AAFCANS Coffee
MARKET Coffee
AAFCANS continues to offer one of the most competitive loyalty plans in Australia. 50% of AAFCANS top-selling hot snacks surveyed in the bottom two quartiles (below market pricing). 80% of AAFCANS key breakfast products surveyed in the bottom two quartiles (below market pricing). Top selling energy drinks and retail showed pricing at median or an average 4-11% below median pricing. | An internal national survey of pricing of retail products was undertaken. 74 different local competitors were surveyed, representing businesses surrounding 25 AAFCANS outlets.
- 50% of products were less than median - 20% of products were 45% less than median
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b) Target a 10% sales growth on the redesigned MFV for that run against prior period. | The 2WD MFV that was initially built in early June 2018 continues to be fine-tuned with rectifications being done to ensure the consistent delivery of AAFCANS offerings. The 4WD MFV has been utilised for exercises and on base activities at Gallipoli Barracks through the year. No growth comparisons can be made as the new MFVs have not yet replaced specific runs. |
c) Post implementation: using ADFA canteen, increase transaction volume by 10% between 12.00pm – 2.00pm over base year FY2018 excluding December/January. Trial an online portal and APP called “AAFCANS On-Demand”, supplying customers with products for pickup or delivery. Assess ongoing viability. | The new electronic point-of-sale system increased transactions at ADFA between 12:00pm to 2:00pm from 108,000 to 210,000 during FY19, demonstrating faster process speeds. During FY20 the impact of the COVID-19 pandemic has significantly affected the sales at ADFA. The transactions slowed significantly in the Feb – June period making comparisons on previous years inaccurate and ineffective. AAFCANS On-Demand webstore development was completed in June 2020. Live trials were undertaken in the first quarter of 2020-21 (outside the year in review). |
d) Two facilities established or upgraded. | The following facilities were upgraded or established during 2019-20:
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e) AAFCANS deploys on request in support of at least 2 of the 3 major exercises (Exercise Pitch Black, Talisman Sabre and Hamel). | AAFCANS participated in the Gallipoli Barracks Open Day, Exercise Hamel and AASAM at Greenbank (Qld). The other exercises did not run due to COVID-19 restrictions. Our participation in exercises and events are 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. |
Visit
https://www.transparency.gov.au/annual-reports/army-and-air-force-canteen-service/reporting-year/2019-20-6