American Coin-Op -December 2015

PORTRAITS OF

COIN-OP 101: IS A TURNKEY LAUNDROMAT RIGHT FOR YOU?

Some distributors take their role of assisting customers further by completing the design and construction so that an investor can step in to acquire the business once the Laundromat is ready to open. If you’re thinking about investing in a turnkey Laundromat, Steve Millman of Huebsch distributor H&M Co. offers five key considerations to help you determine if this concept is right for you.

A CLOSER LOOK 22

With the turnkey concept, the distributor coordinates everything required for the Laundromat to open.

LOOKING BACK

PORTRAITS OF SUCCESS

This issue of American Coin-Op is our last of the year, so I thought it might be nice to take a look back.

Our main feature, Portraits of Success, visits several recently opened coin and/or card laundries, briefly profiles their owners and describes how their construction/installation projects came to pass.

There’s a Bronx store that delivers perks to customers and owner alike, a business opportunity that a pharmacy owner found was “Spot-On,” and a Mojave Desert Laundromat that doesn’t fear drought, for starters. I’m certain that the stories we share this month are just a small sampling of store development that is ongoing.

Owners, if you have a unique story to tell about your store or business, reach out to me (bbeggs@atmags.com) with the details.

And the same goes for you manufacturers, distributors and suppliers that serve our industry. If you’ve played a part in birthing a new store or giving an existing store new life, contact me.

STRIKE THREE CALLED!

If you read my column last month, you know that I was playfully dreading the possibility of my two favorite baseball teams squaring off in the World Series. So, I would be remiss if I didn’t follow up: the Kansas City Royals defeated the Toronto Blue Jays in the American League Championship Series, then the New York Mets in the World Series to capture their first title since 1985. And as for the Chicago Cubs ... well, there’s always next year.

On behalf of the American Trade Magazines staff, happy holidays! Here’s hoping that 2015 has been positive and profitable for you.

Bruce Beggs Editorial Director

EDITORIAL

Charles Thompson, Publisher

E-mail: cthompson@ATMags.com Phone: 312-361-1680

Bruce Beggs, Editorial Director

E-mail: bbeggs@ATMags.com Phone: 312-361-1683

Roger Napiwocki, Production Manager

Nathan Frerichs, Digital Media Director

E-mail: nfrerichs@ATMags.com Phone: 312-361-1681

ADVISORY BOARD

ADVERTISING

Donald Feinstein, Natl. Sales Director

E-mail: dfeinstein@ATMags.com Phone: 312-361-1682

OFFICE INFORMATION

Main: 312-361-1700 Fax: 312-361-1685

SUBSCRIPTIONS

630-739-0900 x100 www.AmericanCoinOp.com

American Coin-Op (ISSN 0092-2811) is published monthly. Subscription prices, payment in advance: U.S., 1 year $39.00; 2 years $73.00. Foreign, 1 year $89.00; 2 years $166.00. Single copies $7.00 for U.S., $14.00 for all other countries. Published by American Trade Magazines LLC, 566 West Lake Street, Suite 420, Chicago, IL 60661. Periodicals postage paid at Chicago, IL and at additional mailing offices.

POSTMASTER, Send changes of address and form 3579 to American Coin-Op, Subscription Dept., 440 Quadrangle Drive, Suite E, Bolingbrook, IL 60440. Volume 56, number 12. Editorial, executive and advertising offices are at 566 West Lake Street, Suite 420, Chicago, IL 60661. Charles Thompson, President and Publisher. American Coin-Op is distributed selectively to owners, operators and managers of chain and individually owned coin-operated laundry establishments in the United States. The publisher reserves the right to reject any advertising for any reason.

© Copyright AMERICAN TRADE MAGAZINES LLC, 2015. Printed in U.S.A. No part of this publication may be transmitted or reproduced in any form, electronic or mechanical, without written permission from the publisher or his representative. American Coin-Op does not endorse, recommend or guarantee any article, product, service or information found within. Opinions expressed are those of the writers and do not necessarily reflect the views of American Coin-Op or its staff. While precautions have been taken to ensure the accuracy of the magazine’s contents at time of publication, neither the editors, publishers nor its agents can accept responsibility for damages or injury which may arise therefrom.

www.americancoinop.com

Bruce Beggs

Kurt Archer Ann Hawkins

Wayne Lewis Kathryn Q. Rowen

‘TURKEYS’ OUT THERE, BUT MUCH TO GIVE THANKS FOR

As Thanksgiving approached on the calendar, American Coin-Op asked self-service laundry owners to answer some questions with thankfulness in mind. Their responses when asked about current business-related conditions were hugely positive, based on the results of November’s Your Views survey.

American Coin-Op asked its trade audience if they agreed with the following statement: “I’m thankful, because our operation is performing well.” More than 84% of respondents said they agreed, while 15.8% said they weren’t sure. No one who took the survey disagreed with the statement.

Another statement: “Our equipment works well and isn’t a concern.” The level of agreement was less concentrated, yet the feeling was still overwhelmingly positive. Roughly 47% “completely agree” with the statement and another 44.7% “somewhat agree.” Much smaller shares “neither agree nor disagree” (5.3%) or “somewhat disagree” (2.6%). No one who took the survey “completely” disagreed.

And the final statement: “Our customers appreciate the service we provide.” Where this item garnered the widest variety of responses from store owners in a similar survey three years ago, there was much less uncertainty in this poll. Seventy-one percent of respondents “completely agree,” 26.3% “somewhat agree,” and the remaining 2.6% “neither agree nor disagree.”

Who or what is the biggest “turkey”—headache-causer— in your self-service laundry? The top pick among respondents is “employee(s),” at 35.1%. Equal shares of 16.2% each picked “equipment,” “customer(s)” and “landlord.” Approximately 14% selected “other.” The remaining 2.7% pointed to “competitor(s).”

The magazine also asked respondents to name one aspect of their business for which they are most thankful. The most popular responses related to loyal customers, good employees, and the provision of a steady income.

While the Your Views survey presents a snapshot of readers’ viewpoints at a particular moment, it should not be considered scientific. Subscribers to American CoinOp’s Wire e-mails are invited to take the industry survey anonymously online each month. Percentages may not add up to 100% due to rounding.

Anumber of vended laundry projects are completed around the country each year, resulting in brand-new or rejuvenated stores primed and ready to serve customers.

As a way to celebrate the hard work that goes into designing, building and equipping a modern vended laundry,

The customer- and Earthfriendly R&S Express Laundry Center, in Bronx, N.Y., transforms laundry day into laundry hour, according to co-owner Robert Danza. The 6,000-square-foot megastore is equipped to nurture customer loyalty, simplify management and stunt utility costs.

It’s lined with high-speed Continental ExpressWash® and ExpressDry® laundry equipment and features an ESD Synergy Wireless Card System.

“This is my second vended laundry,” says Danza, “and it completely outperforms my first laundry, which is half the size. I wanted to bring something new to the public. Customers save a lot of money and time here.”

Developed with assistance from Fowler Laundry Equipment Co., Union, N.J., the laundry features a robust lineup of nearly 50 ExpressWash Washers, several 75-pound-capacity Continental PowerLoads Washers; and 50 ExpressDry Dryers.

The washers are engineered to reach extract speeds of up to 400 G-force, according to Danza. In doing so, they remove more water from laundry loads and shorten resulting dryer time by up to 50%. Customers wash, dry and fold laundry in less than an hour, which is the central theme of Danza’s advertising

efforts. The laundry serves more customers per day thanks to shorter dry times, and the dryers run less often, which reduces wear and tear and cuts natural gas and electrical usage.

The laundry is one of the first in the country to use the wireless Synergy System. It features wireless card slide readers (mounted to washers and dryers), an on-site server, and Value Transfer Machines (VTM). Customers use loyalty cards to operate equipment, and Danza gains remote access to MyLaundryLink—a cloud-based reporting suite accessible via the Internet—to facilitate store management.

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PORTRAITS OF SUCCESS 3

Through MyLaundryLink, Danza controls washers and dryers; programs time-of-day pricing and in-store specials/promotions; tracks employee hours; monitors turns per day, revenue and wash/dry/fold activity; reissues lost customer loyalty cards; and tracks and verifies customer card usage and balances.

Attendants, who provide personal service 24 hours a day,

assist customers and handle full-service wash/dry/fold and drop-off dry cleaning.

Open daily, R&S draws customers looking for “faster, cleaner, better.” It touts personal customer care, a spacious children’s play area, full-service wash/dry/fold, card operation, flatscreen TVs, and snack and detergent vending machines.

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—Haley Jorgensen

[1&2] R&S Express Laundry Center provides customers with a mix of high-speed Continental Girbau washers and dryers—more than 100 machines in all—in the 6,000-square-foot megastore.

(Photos: Continental Girbau)

[3] Co-owners Robert Danza (left) and Scott Sartory created the laundry for convenience and efficiency.

[4] The Synergy Wireless Card System integrated with the Continental laundry equipment helps nurture customer loyalty, R&S Co-owner Robert Danza says.

American Coin-Op created this Portraits of Success feature to spotlight memorable projects of recent vintage.

And so equipment manufacturers and distributors were invited to tout their latest and greatest coin laundry projects. Here are the stories they shared.

PORTRAITS OF SUCCESS

1 Clean Laundry: Finding an Opportunity Close to Home

After deciding they wanted something a little less hands-on than their Orlando, Fla., area property management company allowed, Ed and Rachael Ellis opened their first Laundromat in 2010. After some five years of running that business, Speed Queen distributor Statewide Laundry Equipment contacted them about a new Laundromat location that had become available.

A store in a St. Cloud, Fla., strip mall had recently gone out of business, and the property owner was looking for a new owner to take over the space. It turned out the site was near the Ellis home, which would reduce their commute and give them more time and freedom to manage the business.

Speed Queen provided a detailed demographic analysis of the area to ensure there was a continued need for a Laundromat and that opening the store would be a good investment for the Ellises. While their first Laundromat was still profitable, the Ellises chose to sell it to focus on opening and running the new store they called 1 Clean Laundry.

The couple worked with the manufacturer and distributor to determine the best store layout. Speed Queen and Statewide provided support throughout the planning and build. Statewide’s design services enabled the Air America Services construction team to review the professional designs, obtain the proper permits and complete the build in a timely manner.

As they had for their original store, the Ellises worked with Speed Queen Financial Services (SQFS) to develop a customized financial plan.

The Ellises finalized paperwork for their new store in midMarch, and 1 Clean Laundry opened for business in mid-June.

They replaced the existing equipment with brandnew Speed Queen hard-mount washers and washerextractors and tumble dryers, equipped with Quantum™ controls. There are 32 washers ranging in capacity from 20 to 80 pounds, and 27 dryers ranging in capacity from 30 to 75 pounds. Total capacity in the store is 2,095 pounds.

ble dryers, equipped 2

The Quantum controls provide customizable cycle options and add convenience for customers by accepting coin or card. The controls also help generate more revenue by allowing the owners to run pricing specials at different times of the day, such as a regular deal they run on Tuesday mornings—one of their slower times—to attract customers.

The Ellises receive e-mails each evening that provide an update on machine usage, daily revenue generated and any machine maintenance needed. Online access made possible by the controls enable the couple to manage machine operation via computer. They can be constantly connected without having to

physically be in the store.

“The controls allow me to stay up to date on machine operation and revenue at all times, which has been very helpful in tracking profit since I opened the Laundromat in a new neighborhood with a new customer base,” Ed Ellis says.

The Ellises provide additional services and amenities, including free Wi-Fi, automatic sliding doors, snack/beverage machines, attendant on site at all times, wash/dry/fold, a change machine with bill breaker, and additional items for purchase such as laundry detergent and bags. ACO

[1] With help from Speed Queen, Statewide Laundry Equipment and others, Ed and Rachael Ellis breathed new life into a coin/card store they call 1 Clean Laundry. (Photos: Alliance Laundry Systems)

[2] There are 32 hard-mount washers and washer-extractors ranging in capacity from 20 to 80 pounds.

[3] Rusty Parks (left), Statewide Laundry Equipment, joins 1 Clean Laundry owners Rachael Ellis (center) and Ed Ellis in their new store.

• LaundryPass.com card reader is the secret for real profit

• LaundryPass.com card reader will stop the broken machines

• LaundryPass.com No insert in any washer/ dryer–just show your card and it will serve your customers needs

Since we started using TheLaundryPass card reader system in June 2009, we saw outstanding changes in our Laundromat. WE WERE MAKING MORE MONEY! We had no more service guys robbing us daily by jammed machines, our 24 hour facility is giving us cash instead of aggravation.

Kevin Walker

In House Laundromat Brooklyn, NY

• LaundryPass.com card reader will give 24 hours access to your loyal customer without worry how many machines will be jammed in the morning… phone: 1.855.870.5625 • web: www.thelaundrypass.com e-mail: info@thelaundrypass.com

START seeing your machines work daily Start paying profits to yourself Start a 24 hour cash cow access Start enjoying your Laundromat profits

PORTRAITS OF SUCCESS

Senor Bubbles Laundromat Owner

Always on Lookout for Next Store

When multi-store owner Steve Mendez looks out over the Wascomat laundry equipment in his latest Senor Bubbles Laundromat, located in Ocala, Fla., his first thought is “home.”

“The Wascomat brand has always reminded me of my home—the south side of Chicago,” Mendez shares. “I might have been born and raised in the grocery store business, but I was so intrigued by my friend’s Laundromat, which of course had all Wascomat equipment. I remember really liking the name ‘Wascomat’ and the look of the machines. It made a big impression on me.”

In 1996, after leaving Chicago for Clearwater, Fla., Mendez opened Pepe’s Grocery and Mexican Restaurant. When the antique mall flanking Pepe’s came on the market in 2005, he bought it.

“I imagined myself taking down the old green canopy and shining up the enormous window to reveal rows and rows of washers and a whole back wall of dryers,” he says.

A year later, Mendez’s fantasy became reality. What started as a Laundromat dream quickly grew into a full-blown addiction. Over the next several years, he opened a total of four Laundromats located in Clearwater, Live Oak, Gainesville and Ocala.

“Everything I learned from my dad about the grocery business holds true for the laundry business,” he says. “‘You’ll get out of it what you put into it,’ that’s

what my dad always said.”

In 2014, Steve set his sights on opening store number five, also located in Ocala, by purchasing a 6,500-square-foot space. He turned to his longtime distributor, Marlon Reese, of Alabama Laundry Systems LLC, to help him once again on his latest build.

The newest Senor Bubbles, which opened in April, is their biggest build to date, with 68 washers and 68 dryers. The laundry owner might have been smitten by Wascomat’s coolsounding moniker and sleek look as a youngster but today Mendez appreciates the brand’s efficiency and durability.

“I have found that Wascomats truly are built to last and take the abuse of a coin laundry,” he says. “Both washers and dryers have heavy-duty construction. And if there is a problem, they are easy to service.”

The Gen 7 washing machines are designed to lower water and energy usage. Senor Bubbles patrons are gravitating to the Quick Wash feature, according to Mendez. “That’s where the wash cycle is cut in half; only 15 minutes instead of 30. It’s less money too—$1.75 vs. $2.50. And it’s proving to be a big hit with my customers.”

Meanwhile, the Gen 7 Wascomat Dryers greatly improved drying time and reduced energy consumption by 25%, he says.

The laundry boasts a children’s play area with games, flat-screen TVs and ample seat-

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ing. There are no fewer than 32 security cameras, and the store’s high ceilings give the space a bright, open feel.

Senor Bubbles has a design element of bubbles cascading down its walls. It even has a little store that sells soap, fabric softener, snacks and drinks. The fully attended laundry also offers wash-and-fold services.

Mendez is already scouting locations for the next Senor Bubbles Laundromat.

“I have to keep moving,” he jokes. “It’s in my blood.” ACO

[1] Steve Mendez poses inside his newest Senor Bubbles Laundromat, one of five Florida stores he owns. Mendez relies upon the experience he gained while working in his family’s grocery business to run his portfolio of properties.

(Photos: Laundrylux)

[2] The 6,500-square-foot space is the largest of Mendez’s builds, featuring 68 washers and 68 dryers, all Wascomat brand.

[3] From this vantage point looking toward the front of the store, you can get a better look at the folding areas provided to customers.

[4] From its little store, Senor Bubbles sells soap, fabric softener, snacks and drinks.

PORTRAITS OF SUCCESS

For Pharmacy Owner, New Business Opportunity was ‘Spot-On’

With the compounding frustrations over insurance policies and regulations that came with owning and operating several pharmacies, Trent Akins decided to join the vended laundry industry, investing in and building his own Laundromat, Spot-On Laundry, in rural Vidalia, Ga.

Akins wanted a business venture that didn’t entail 24/7, hands-on management, and required fewer hoops to jump through than his pharmacy business. He also wanted to make sure that whatever business he invested in fulfilled a need in his community, and Akins wanted to create a Laundromat with an environment that felt safe and welcoming to everyone in the area.

Equipment manufacturer Huebsch and local distributor Gulf States Laundry Machinery collaborated to share their laundry expertise and helped to ensure that Akins was confident throughout the development process and set up for success with his laundry business. Huebsch Financial assisted with project financing.

The 2,500-square-foot store is a stand-alone structure, next to a strip mall but not connected to it. It was built specifically to house Akins’ Laundromat.

Akins worked with Huebsch and Gulf States to design the store, as he had a specific image in mind that would resonate with his rural surroundings and target audience.

The manufacturer and distributor helped Akins decide on

internal features and the proper equipment mix to maximize revenue in the space available. Both companies continue to support him in the operation of his business and the maintenance of his equipment.

Construction on the store began in December 2014, and Spot-On Laundry opened in April.

The Laundromat features 30 washers and 31 dryers, with a total capacity of 2,375 pounds when full. Washers are available in capacities of 20, 30, 40, 60 and 80 pounds, and dryers are available in capacities of 30, 45 and 75 pounds.

Akins has experienced and isn’t required to

Akins has experienced a “great return on investment,” Huebsch says. While he still manages three pharmacies, he enjoys the flexibility and steady incremental income that the Laundromat offers him. He manages the store remotely, and isn’t required to be on-site, even though his store is open to the public 24/7.

Huebsch reports that Spot-On Laundry has turned a profit the last two months. Overall, Akins finds satisfaction knowing that he was able to provide his community with a much-needed service and one that he believes is much appreciated, the manufacturer adds.

[1] Trent Akins had a specific image in mind for Spot-On Laundry, one that would resonate with his rural surroundings and target audience. (Photos: Alliance Laundry Systems)

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[2] The Spot-On Laundry team includes (from left) Erik Spikes, manager; Gloria Calderon, drop-off/ assistant manager; Lyn Akins; and owner Trent Akins.

[3] Color-coordinated signage describes the available drop-off service and reminds customers that there is free Wi-Fi available.

[4] The Laundromat offers 30 washers and 31 dryers. The Huebsch equipment ranges in capacity from 20 to 80 pounds for the washers, 30 to 75 pounds for the dryers.

“We wanted a card system that would give us a competitive advantage, but we also wanted a company that was as celebrated for their service and customer care. ESD is the gold standard in the industry because of superior products, well-trained personnel, and outstanding customer service.”

Brian Holland & Tyrone Akins

The Laundry Café - Philadelphia, PA

Owner Deechen Horton knows that the versatility of the ESD payment system has attracted many new customers into her laundry. The ESD reports that track the card and coin income from each individual machine give her exactly the information she needs, and the reliability of the ESD LaundryLink® software is exceptional.

“We decided on ESD because they industry. ESD has provided us with in getting the Crosslink TM system

& Peter Herbein Family Wash Day Super Laundry

“We’ve owned and operated over 200 laundromats and the only card system we buy is ESD.”

To learn more about ESD Payment your local ESD distributor or ESD

Stephanie

Alexander Katsman Clean Rite Centers New York

Our Beautiful Launderette - Los Angeles, CA

they have a great reputation in our with excellent service and assistance system up and running smoothly.”

“As inexperienced first time owner / operators, we chose ESD to get us and our new 6,000 sq. ft. laundry up to speed in a hurry. We were right, it has exceeded all of our projections.”

“In my opinion, there is no better payment system available on the market today, especially if you are seeking to develop more stores, create operational efficiencies or enhance your stores overall control and reporting systems.”

“My experience with ESD has been a total positive experience. I do not believe my store would be as successful as it has been so far without the ESD CyberLaundryTM system and the company and the people that stand behind it.

Vladimir Bakers Centre Laundry Philadelphia, PA

Payment Systems contact sales representative.

Larry

Ed McCobb, Angelica McCobb, Richard McCobb Lavanderia El Gringo - Canoga Park, CA

Laundry - Reading, PA

Jerry Jamgotchian Coast Laundry - Los Angeles, CA

Brian Holland, Partner - The Laundry Café

PORTRAITS OF SUCCESS

Has Mojave Desert Met Its Match in Lucy’s Laundromat?

Strict water conservation efforts, severe drought conditions and low water supplies might have dissuaded the average investor from opening a Laundromat in Palmdale, Calif., located in the Mojave Desert. But that didn’t stop Sterling Phillips Jr., a multi-store owner and SES Laundry distributor.

In fact, he thought the desert locale was ideal for his next venture, Lucy’s Laundromat. “For starters, the area is spread out and attracts customers far and wide,” he says. “I liked that the existing store was large, approximately 3,000 square feet, plus it had ample access to parking, and great visibility.”

He credits his father, Sterling Phillips Sr., for his chosen career path. The elder Phillips was a store owner before becoming a distributor in 1988, and he often involved his children in his businesses. Thus, Phillips Jr. has experienced every aspect of a laundry business—from cleaning, maintenance and management to multi-store development and ownership.

Today, Phillips Jr. still works with his family. “As the family business diversified throughout the years, my brother [Sean] moved in the direction of managing our self-serve laundries, while I took on the SES distributorship.”

With his hands-on knowhow and the resources of SES Laundry behind him, Phillips Jr. began the business of retooling the outdated laundry into a welllit, wide-open space that offers a roomy folding area and a large

mix of machines for broad customer appeal.

“All the utilities and carpentry were in place,” he says. “We just needed to paint, fit LED lighting in the walls, and install a card system and, of course, get allnew equipment.”

The store opened in March 2014. The only equipment he considered for the project was Electrolux Professional brand.

“Electrolux Professional washers offer incredible custom programming, which gives me control over my utility consumption per wash, saving me up to 30% on water. The G-force extraction is very important to the customer and business owner, allowing for a much faster dry time, and, again, reducing energy consumption.”

The Compass Pro feature gives Phillips Jr. the opportunity for higher revenue. For instance, he can offer his customers special wash cycles like “heavy soil” or “extra rinse.”

He says the average Lucy’s Laundromat patron is in and out in 45 minutes to an hour.

Because Lucy’s is a card store, Phillips Jr. can offer bonuses, discounts and promotions that competitors can’t.

The desert may have its challenges, yet Lucy’s is designed to be comfortable and appealing in spite of drastic weather changes or water restrictions.

“I receive so many compliments on the store—how airy,

clean, and safe it is—but honestly the majority of the raves are about the Electrolux washers and dryers,” Phillips Jr. says. ACO

[1] Ample access to parking and “great visibility” were among the factors that drew Sterling Phillips Jr. to retool an existing laundry in Palmdale, Calif., into what became Lucy’s Laundromat. (Photos: Laundrylux)

[2] Phillips Jr. was intent on creating a well-lit, wide-open space that

offers a roomy folding area and a large mix of machines to appeal to all customers.

[3] The Phillips brothers: Sean (left) and Sterling Jr.

[4] The large windows keep the store bright and enhance its security.

TOP FIVE NEWS STORIES

COLUMNISTS/FEATURES

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• On-Demand Laundry Service Expands in Metro Areas (WE)

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• How to Prepare Your Small Business for Winter Weather Threats (WE)

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• Too Small to Fail, CLA, Others Launch ‘Wash Time is Talk Time’ (WE)

• Survey: Customer Service, Management Skills Vie for Title of ‘Greatest Strength’

OUR SISTER WEBSITES

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• At Your Command (‘Laundry Jenie’ vended laundry kiosk makes U.S. debut)

• StatShot: Coin Laundry Sales Up Across Country in September, Third Quarter (WE)

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• Continental Girbau Inc. Celebrates 20 Years in Business

• The ‘Unlimited’ Potential of Wash/Dry/Fold

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• In Memoriam: Sue Rose Wright Pellerin

• Blueprint for Self-Service Laundry Success

From AmericanLaundryNews.com:

• Coyne’s Chapter 11 Bankruptcy Case Progressing, Has Buyers for All Plants

• Denver Area Hotel Owner Upgrades Equipment in One Fell Swoop

From AmericanDrycleaner.com:

• Rent the Runway Deepens Executive Bench

• Survey: High Percentage of Dry Cleaners Believe Prices Charged are ‘Too Low’

After about a year and a half in business, owner Steve Foshee’s HomeTowne Laundry in Newport, Tenn., had grown to the point that it was too busy during much of the week. It was a nice problem to have, and Foshee consulted with D. Michael Davis, owner of equipment distributor Star Distributing, and Commercial Sales Manager David Brooks about what he could do about it. Their solution: Build another laundry.

PORTRAITS OF SUCCESS 1

Relying on the distributor for its demographics analysis, Foshee determined the area would support another Laundromat.

Then, the distributor suggested appropriate equipment sizing and mix, along with a layout that would appeal to customers and provide Foshee with the maximum income per square foot.

Foshee found a suitable location some two miles away from his first store where he purchased an old residence on Cope Boulevard, a half-block off the main road that runs through Newport, population approximately 7,000. He demolished the house and built a brand-new, 2,000-square-foot laundry.

Foshee had done much of the build-out on his first store himself, Brooks says, so he was no stranger to the work. While Foshee hired some outside contractors, he worked there every day during construction.

Just as the name implies, Foshee wanted his laundries to have a “hometown feel,” so he adopted similar down-home motifs for both, inside and out.

Work on HomeTowne West Laundry began in July 2014, and the equipment was installed and ready for operation in December 2014.

The laundry features only Speed Queen equipment and has a wash capacity of 650 pounds per cycle. There are 21 washers ranging in capacity from 20 pounds to 80 pounds, and nine dryers with pockets ranging in capacity from 30 pounds to 75 pounds. All but one of the dryers are stack models.

All of the machines are equipped with Speed Queen’s Quantum Gold controls, as well as SpyderWash card acceptors by Setomatic Systems. Foshee utilizes a Rinnai tankless water heating system. The store is equipped with video cameras and alarms for security.

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According to Brooks, Foshee’s total income from the two laundries is 16% ahead of his projections at opening. Giving customers the flexibility to pay using either coin or card has contributed to Foshee’s success, Brooks adds.

ACO

[1] Owner Steve Foshee wanted his Newport, Tenn., laundries to have a “hometown feel,” so he adopted similar down-home motifs for both, inside and out. (Photos: Star Distributing)

and dryers are equipped with Quantum Gold controls that monitor the equipment to deliver in-depth reporting for better store management.

[3] David Brooks (left), commercial sales manager for equipment distrib-

utor Star Distributing, congratulates Steve Foshee, owner of HomeTowne West Laundry.

[4] All but one of the HomeTowne West Laundry dryers are stack models.

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IS A TURNKEY LAUNDROMAT RIGHT FOR YOU?

Five key factors to consider

At the age of 12, I started helping out at our family’s laundry equipment distribution company. Now, after having worked there full-time nearly 30 years, I have learned a lot about what it takes to run a successful vended Laundromat. I find the process of transforming Laundromats into something new intriguing. I consider customers partners, and I support them through all of the stages of planning, building and growing their operations. Some distributors take their role of assisting customers even further by completing the design and construction so that an investor can step in to acquire the business once the Laundromat is ready to open. This concept is known as a turnkey Laundromat.

Distributors take different approaches to this model: some will build the entire Laundromat and find an investor once the construction is complete, while others will identify a potential investor and then facilitate construction.

If you are thinking about investing in a turnkey Laundromat, here are five key considerations to help you determine if this concept is right for you.

HANDS-OFF ROLE IN PLANNING, CONSTRUCTION

With the turnkey concept, the distributor is responsible for coordinating everything required for the Laundromat to open. No two stores are exactly the same, so the needs are different when building out and planning each one. Distributors will manage everything from providing professional design services to determining the layout, color and lighting, as well as identifying the right equipment mix.

The turnkey Laundromat allows the investor to have a hands-off role before they take on running the day-to-day operation. This ultimately provides the investor with more time to focus on other responsibilities they may have, such as running an existing Laundromat or continuing another job.

One of my customers owns a Laundromat in a strip mall. When the business next door went under, they bought the building in order to expand. My customer asked me to organize the remodel to turn the entire building into a Laundromat that had the same branding, look and feel of the existing business. By developing this turnkey model, it did not divert attention from the existing Laundromat while remodeling the new space.

TAKING ADVANTAGE OF EXPERIENCE, EXPERTISE

With their extensive knowledge of equipment and running successful businesses, the best distributors can be used as a trusted source to develop a turnkey Laundromat.

Steve Millman

(Photo: © iStockphoto/AlexLMX)

REBUILT MACHINES

WASCO 185’s 220/1 & 220/3 $3,500

WASCO 184’s 220/1 & 220/3 $2,700

WASCO 125’s 220/1 & 220/3 $2,400

WASCO 124’s 220/1 & 220/3 $1,850

WASCO 74’s 110 v & 220/3 $ 975

WASCO 75’s 110 v & 220/3 $1,200

WASCO 620’s 110V $1,600

PARTS

Our Parts Department has thousands of products on over an acre lot.

If we don’t have what you want, ask us, and we’ll find it for you.

FACILITY DESIGN

From initial site inspections and recommendations to equipment purchase and installation, we are here to help with every aspect of your project.

We can help you with specifications, dimensions, illustrations of commercial and on-premise laundry equipment.

FINANCING

We are able to offer competitive rates and low, affordable monthly payments for financing coin laundry and laundromat facilities.

We have a coin laundry financing solution to meet the needs of new store owners, and veterans alike.

ACRES OF HARD TO FIND USED WASHER & DRYER PARTS WASHER & DRYER FRONT & SIDE PANELS ALL MAKES AND MODELS STARTING @ $50

WASHER DOOR $35 & UP COMPLETE DRYER DOOR $35 & UP COMPLETE ANY WASHER TUB 18#, 35#, 50#, WITH NEW BEARINGS $175 & UP WITH EXCHANGE ALL DRYER BASKETS $75 & UP ESD CARD READERS $150 EA

EMERALD SERIES COMPUTER BOARDS $575 EA

LET US REFURBISH YOUR PANELS ~ FRESHLY PAINTED PANELS IN EITHER ALMOND OR WHITE ... $70 EA

CALL FOR SPECIAL NEEDS

Before moving forward with developing a turnkey Laundromat for an investor, a distributor will evaluate the location, studying the market and pulling demographics to determine the potential customer base and its needs. Additionally, by studying the market, they evaluate the competition in the area and can make recommendations on how to set their customer’s business apart, such as offering additional services like wash-dry-fold, or extending business operating hours.

Distributors can recommend the right mix of washers and dryers. They understand the value of investing in industry-leading equipment built for optimal performance. This investment improves efficiency, ultimately helping to reduce overall utility costs and boost the bottom line.

Additionally, many distributors have mastered the design elements associated with opening a Laundromat and realize their importance. Customers want the store to be clean, and they want to feel comfortable and safe. Adding elements such as security cameras, TVs and seating areas will ensure a pleasant atmosphere for everyone.

GETTING INVOLVED IN PLANNING, DESIGN

As mentioned, there are some instances when a distributor will complete the entire build of a turnkey Laundromat and will look for an investor once the business is ready to open. If an investor acquires this type of turnkey Laundromat, they may not have the opportunity to be involved in some of the conversations surrounding the equipment, design and layout of the store.

In other cases, a distributor and investor will team up early on in the process, and the investor will be involved throughout the build and design. This approach allows the Laundromat owner to review plans and provide approval at each step.

If an investor wants to have a say in the equipment, location, design and layout of his/her future Laundromat but does not want to coordinate the actual build and construction, partnering with a distributor early on is the right approach.

BENEFITS OF INCREMENTAL UPDATES

Many investors get started in the industry by acquiring an existing Laundromat that is run-down or closed and needs to be retooled. Some customers will depend on their distributors for the turnkey model in these situations if they want someone with knowledge and experience to handle making all of the necessary

updates at once.

However, some distributors argue that store owners will have more time to learn the needs of their specific demographics if they make incremental updates instead of making changes all at once. Over time, they are able to factor in customers’ needs, as well as identify if additional services would bring more profit to the business. This may include determining future equipment needs based on which machines have the most usage, offering ancillary services, or providing amenities such as a children’s play area, Wi-Fi or TVs.

Two of my customers were initially looking to purchase a Laundromat that had a lot of competition in the area, so we worked together early on to find the right location. The store we found was equipped with residential washers and dryers that needed to be replaced. The investors saw a benefit in updating the equipment incrementally, and their business profited. In less than a year, they’ve enjoyed much success and recently purchased a second Laundromat.

DEVELOP AN UNDERSTANDING OF THE BUSINESS

If a store owner chooses to move forward with a turnkey Laundromat developed by a distributor, it is still important for the owner to develop a deep understanding of their equipment and customer base, so they are prepared to run the business. Some investors may feel more prepared to run the operation if they work with their distributor early on, rather than stepping in to acquire the business once it is ready to open.

Whether an investor chooses to move forward with a turnkey Laundromat or not, a distributor should educate store owners on their equipment and its capabilities. Understanding the technology helps a store owner get the most out of their washers and dryers to improve the user experience by working efficiently and providing the option to easily customize cycles. Additionally, the equipment technology helps with the overall business operation by tracking revenue, usage and maintenance needs.

Investors that have gone on to become successful multi-store owners were involved throughout the early planning of their businesses and were dedicated to understanding their customers’ needs. By getting customer feedback, they are able to implement it in their existing business and also use it when making future Laundromat investments.

If considering working with a distributor on a turnkey Laundromat, think through these considerations to determine if it is the best approach for you. No matter what you decide, a world-class distributor will work with you as a trusted partner throughout every step of opening and running your laundry business.

Steve Millman is co-owner of H-M Company, Cincinnati, a family-run Huebsch® distributor established in 1957. To learn more about Huebsch, visit www.huebsch.com or call 800-553-5120.

... it is still important for the owner to develop a deep understanding of their equipment and customer base, so they are prepared to run the business.

MONEY-HANDLING EQUIPMENT

CUMMINS ALLISON

Cummins Allison’s broad range of coin-counting and currency-scanning solutions are designed for speed, accuracy and productivity. Its large network of local sales and services offices ensures that customers will get the necessary support when and wherever the need arises, the company says.

Cummins Allison JetSort® coin counters are the fastest, high-capacity coin processors in the industry, the company asserts, delivering speeds of up to 10,000 coins per minute, with 99.9995% accuracy. This translates into less time managing coin processing and more time for other tasks.

With processing speeds of 1,600 bills per minute, the JetScan iFX is 33% faster than other money-counting machines, the company says. JetScan® money counters and currency scanners can process 1,500 bills per minute, counting, scanning and sorting mixed currency while facing bills. Both the JetScan iFX and JetScan products contain advanced counterfeit-detection capabilities. At selectable speeds of up to 1,600 bills per minute, the economical JetCount® cash-counting machines are reliable, compact and easy to use, the company says.

www.cumminsallison.com 855-609-4802

MONARCH COIN & SECURITY

Monarch Coin & Security Inc. offers a vertical eightcoin slide that can accept up to eight quarters, “DD”-style tokens, or a variety of foreign coins.

The vertical 15-coin slide can accept up to 15 quarters in one push, the company says, while the Model 444 chute accepts one token or coin that lays

CRANE PAYMENT INNOVATIONS

The MEI AE Series portfolio from Crane Payment Innovations (CPI) is comprised of note acceptors perfect for unattended environments like Laundromats, the company says.

The acceptors securely validate all denominations $1 through $100 and easily handle notes of all conditions, including wet or damp notes, CPI says.

The AE Series includes three base model types: AE2400, AE2600 and AE2800. Multiple operating voltages are available within each model to meet varying machine requirements. Because machine interfaces also vary, the series features interfaces for Pulse, MDB, MEI Serial Protocol (EBDS) and NISR.

MEI note acceptors also have the ability to accept coupons specifically designed to work only in a single store’s equipment.

CPI says it is a global leader for currency validation in the unattended retail space, processing more than 4 billion transactions daily. CPI engineers a broad range of note- and coin-handling devices, along with cashless clearing, wireless telemetry systems, and operations management software.

CPI’s core business centers around five primary global industries: financial services, gaming, retail, transport and vending.

www.cranepi.com 800-345-8215

down flat.

Token styles include standard round, DD, breakable plastic tokettes, and Monarch’s proprietary security and lugged tokens.

All chutes are available in chrome or black powder-coat housing.

www.monarchcoin.com 800-462-9460

www.americancoinop.com

MONEX® products offer a payment option for all coin laundry applications, the company says.

As prices rise, higher-valued payment systems are essential, IMONEX says, and the ability to accept both dollar and quarter values in a single-inlet coin acceptor is the “obvious option.”

IMONEX’s manual, multi-coin, single-inlet drops are dependable and profitable, the company says, providing numerous benefits. With the addition of tokens, coin laundry stores can operate without an attendant, IMONEX says. Its patented design offers low maintenance and reliable coin acceptance, and the acceptance of higher-valued coins allows for extended collections.

The tokens are 100% recyclable, the company adds, and can be used as a promotional tool, as the tokens stay in the store and can also be utilized to issue refunds to customers.

www.imonex.com 800-446-2719

SETOMATIC SYSTEMS

Setomatic Systems provides drop-coin meters for many makes and models of laundry machines designed for Laundromats.

The company suggests replacing older turn-knob dryer meters with an up-todate drop-coin meter that features a digital display and time countdown. The meters are adjustable in 15-second increments and are easy to install, the company says.

If you still have plastic drop coins, Setomatic has allmetal drop-coin replacements. The company also makes drop-coin meters to replace the coin slides on most machines.

Multipush insertions on Wascomat washers can be eliminated with a drop-coin meter, Setomatic says. The company also offers aftermarket drop-coin meters to replace factory-installed units on many front-load washers.

www.setomaticsystems.com 516-752-8008

Operators who prefer the economy and simplicity of coin slides can select from ESD’s four basic models, which include a four-coin, five-coin, eight-coin, and a 14-coin slide model.

The vertical slides can be configured to accept various quantities and denominations of coins, ranging from 5 cents to $3.50. The company says it manufactures 72 different slides, which will accept coinage of most countries, for international markets. In addition to currency, ESD also builds slides designed to accept various tokens.

All slides are equipped with several security devices—designed with components made of stainless steel, magnets and case hardened parts—that defeat attempts to slug, string, wrap, tape or any variation of “pull back” cheating, the company says.

ESD also manufactures a variety of money boxes, with security design features like case hardened steel face plates, a four-point locking system, and a cone that provides extra protection for the lock, which is additionally available. Four different options of lock styles can be purchased with each of its boxes.

Coin trays are available in 6-, 8- and 9-inch lengths, with faces available in several finishes, including powder black, chrome and powder blue.

www.esdcard.com 215-628-0860

SEAGA

Seaga fills the need for economy-size changers with its CM1250 model. Holding $250 in quarters, the CM1250 accepts $1 and $5 bills and can also be programmed to accept $10 and $20 bills.

Hopper-style loading, an LCD display, dual locking system and coin cup are all features of the CM1250, which is easy to

STANDARD CHANGE-MAKERS

Standard Change-Makers has a proven line of Bill Exchanger products for coin and card laundry operations, the company says. Bill-to-Bill (BX) and Bill-&-Coin (BCX) Exchangers are available with either the single-note or dual-note Fujitsu™ Bill Dispenser.

The BX Series machines break higher denominations into lower denominations. For example, $20 bills can be broken into four $5 bills in a single-note machine, or three $5 bills and five $1 bills in a dual-note machine. In the BCX Series machines, you can break the larger denominations into a combination of bills ($5 and/ or $1) and coins (dollar coins and/or quarters).

The “Always Transfer” feature allows the machine to make the best change available in order to complete the transaction. For example, if a store runs out of $5 bills in a dual-note dispenser, the Always Transfer feature would substitute $1 bills to complete the transaction. Likewise, if it ran out of $1 bills, the machine would substitute quarters or dollar coins (if available). The machine will automatically use the available dispensers to fulfill the transaction, the company says.

The Bill Exchanger products provide a valuable service for laundry operations by providing bill-change convenience for customers while taking the cash out of attendants’ hands and thereby providing greater store security, Standard Change-Makers says.

www.standardchange.com 800-968-6955

mount to a vending machine or wall, the company says.

As experts in vending with more than a quarter-century of experience in the world market, Seaga also provides service, parts and repairs from its corporate offices in Freeport, Ill., the company adds.

www.seaga.com 815-297-9500

CONTINENTAL GIRBAU INC. CELEBRATES 20 YEARS IN BUSINESS

Continental Girbau Inc. recently hosted a two-day celebration marking its 20th year in business. Formed in 1995 as Girbau S.A.’s North American subsidiary, Continental has grown to become an industry-leading provider of vended, on-premises and industrial laundry solutions, according to Continental President Mike Floyd.

More than 150 business partners, staff, distributors, community officials and friends participated in the anniversary celebration here. Events included an open house and tour at Continental’s headquarters, followed by a presentation and reception at the Experimental Aircraft Association (EAA) Air Venture Museum.

Keynote speakers included Floyd; Mercé Girbau, co-CEO, Girbau S.A.; Brian Wallace, president and CEO, Coin Laundry Association (CLA); John Casper, president and CEO, Oshkosh Chamber of Commerce; and John Riddle, senior vice president, LG Home Appliances.

“The formation of Continental came before I joined Girbau S.A.,” says Mercé Girbau. “But I know it took a lot of negotiation between my father, Santi Carol, Len Kafer and Mike Floyd. My father wanted to establish distribution in the United States. Today, Continental accounts for 25% of Girbau’s total sales.”

The celebration continued throughout the next day with a group tour of Lambeau Field/Packer Hall of Fame, in Green Bay, Wis., and a golf outing in Green Lake, Wis. A riverside tailgate party culminated the event, says the company.

Continental says that it has ballooned since 1995, expanding product offerings; serving new niche markets; establishing new brands, divisions and subsidiaries; investing in facility expansions and additions; expanding its distributor network; and continuing its commitment to environment, community, service and quality.

IN MEMORIAM: SUE ROSE WRIGHT PELLERIN, PELLERIN MILNOR CORP. Sue Rose Wright Pellerin, widow of Pellerin Milnor Corp. cofounder Norvin Leroy Pellerin, died Oct. 23 due to complications from Alzheimer’s disease, the company reports. She was 84.

She was the former first secretary and treasurer for the laundry machinery manufacturer founded in 1947 by her husband and her father-in-law. She was married to Norvin Pellerin for 62 years before his death in 2013.

She is survived by her children, James Willis Pellerin (Stacy); Julie Pellerin Bukrey (Charles), Grand Rapids, Mich.; Curtis Allen Pellerin (Maria); and Renée Pellerin Gordon (Robert), Palm Beach Gardens, Fla.; her brother, James Luther Wright Jr., Tifton, Ga.; her sister, Vera Louise Thibaut, Mandeville, La.; 13 grandchildren; and eight great-grandchildren.

In lieu of flowers, the family requests donations be made to The Alzheimer’s Association, South Louisiana Chapter (3445 North Causeway Blvd., Ste. 902, Metairie, LA 70002), or The Pellerin Foundation, which awards merit-based college scholarships (P.O. Box 400, Kenner, LA 70063).

HUEBSCH NAMES TEXAS’ ABRAHAM STORE OWNER OF QUARTER

Huebsch has named Scott Abraham, owner of Northside Coin Laundry and Saginaw Laundry Center, located in the greater Dallas area, the latest recipient of its Store Owner of the Quarter Award.

“In just five years, Scott has developed a deep understanding of the laundry business and the nuances it can bring,” says Kathryn Rowen, North American sales manager for Huebsch. “We are lucky to have been a part of the rapid growth of his business, becoming a multi-store owner in such a short span of time, and we are excited to work with Scott as he continues to renovate and expand his stores.”

Operating his two distinct Laundromats was made simple with the technology that his stores’ equipment has provided, Huebsch says.

Continental’s six original employees were recognized for 20 years of service. Five of the six still serve Continental and are pictured here. The sixth, retired Continental President Len Kafer, was not present. Pictured are (from left) Gary Clark, technical services division manager; Santi Carol, export vice president, Girbau S.A.; Laurie Kilgore, customer care manager; Mike Floyd, president; Kelly Zabel, director of finance administration and human services; Mercé Girbau, co-CEO, Girbau S.A.; and Jay Leitz, inventory control and operations logistics manager. (Photo: Continental Girbau)

With the help of Arthur Wechsler of Ed Brown Distributors and Joe Purbaugh, Huebsch regional sales manager, Abraham learned that while his stores’ demographics and buildings may be different, the science behind operating a successful Laundromat is the same.

“Joe and Arthur have been very supportive as I started out in the laundry business,” he says. “They knew how to analyze the demographics in my area, and I relied on them for advice in the purchasing and planning processes of my Laundromats. From expanding to my second Laundromat to the day-to-day operation, their support has been instrumental to the success of my business.”

ACO

Pellerin

Abraham