I want to talk about the franchisee economics. They talk about 450,000 zł per year, which is effectively revenue for the franchisee. What is the franchisee P&L below revenue? I know the franchisee puts in 5,000 zł to start, but what is their profit out of that 450,000 zł?

Fast foods are much more labor intensive in preparation. Żabka pays for the Merrychef oven, the machine that is used to heat those frozen products. But it is up to the franchisee to find the additional time to prepare that food while running the store. That is a chokehold which Żabka is aware of. They are thinking about how to fix it because suddenly you need much more time per customer. You need much more operational power to make pizzas and hot dogs, operate the cash register and pack shelves. The street food is very annoying to do, but it is high margin so they swallow it. It is difficult to do with the same labor you had before.

Are they not allowed to discount it?

One of the questions they ask in the survey is, "What is the most annoying thing about running Żabka?" Without fail, it is that pricing. Every day you get new price tags that you need to cut out and input at the end of the day.

I imagine that annoys current operators.

The franchisee doesn't want to lose a good employee. They never communicate that there is an opportunity to fast-track your own Żabka because they want to keep their good employees. Even though Żabka is paying bonuses for recruiting new store owners, the penetration of employees is very small. We were never recommended the good ones because they kept them. Żabka couldn't really enforce it because that would strain the relationship with existing franchisees.