American Coin-Op - June 2016

A ‘LITTLE HOUSE’ OF A LAUNDROMAT

There is a wooden clapboard house on the road heading to the beaches of Marshfield and Duxbury, Mass. If it weren’t for the self-standing sign out front, and the oldfashioned barrel washing machine sitting on the ground, one might think it’s just another summer place by the seashore. But it’s Jack’s Scrubboard Laundromat, now in its 28th year, and Howard Scott takes you inside.

COIN-OP 101: HOW TO HIRE, TRAIN AND RETAIN THE BEST ATTENDANTS

As a Laundromat owner, one of your most important decisions is hiring attendants, says Speed Queen’s Jim Rosenthal. Oftentimes, they are the face of your store, which is why you need to hire wisely to ensure they represent your business positively to help grow and maintain your customer base. Rosenthal, with the aid of multi-store owner Tony Kahan, offers some tips.

WHAT’S NEXT: THE FUTURE OF VENDED LAUNDRY

Coin Laundry Association President/CEO Brian Wallace assesses the state of the industry and predicts what stores will look like in 2026.

A CLOSER LOOK 10

A wash-dry-fold order for Fort Cliff Army Base awaits delivery. About two-thirds of Jack’s Scrubboard’s business is WDF.

For the past 120 years, Dexter has been helping people realize their dreams. We build only high-quality, commercial-grade washers and dryers in the heart of America, and we’re doing everything we can to make a positive impact on our customer’s lives. We offer industry-leading warranties, lifetime technical support and DexterLive controls that allow owners to run their business with any connected device from anywhere in the world. This gives our customers the freedom to live the life they want to, not the life they have to.

SPROUTING BRANCHES

This month, I had the pleasure of interviewing several multi-store owners about their personal experience owning and operating multiple stores and what advice they may have for a store owner considering moving beyond singlestore ownership.

Location and demographics combine to serve as a key factor in deciding where to build/acquire additional stores, but the common theme I heard constantly during my conversations with the owners was the importance of attendants.

As Laundry Depot’s Dan Marrazzo so capably put it, “The master of the obvious is that you can only be in one place at one time.”

Indeed, I learned that these owners place high value on their attendants and the stability they bring, as well as using standardization to make it easier to run their group of stores.

Another commonly used word was “passion,” as in you’d better be passionate about owning multiple stores, because the situations you deal with in one store will be multiplied if and when you branch out. Turn to page 12 to learn more.

IMPORTANT DEADLINE

A few years ago, the Occupational Safety & Health Administration brought the United States into alignment with the Globally Harmonized System of Classification and Labeling of Chemicals, and June 1 is an important deadline related to that effort.

OSHA’s Hazard Communication Standard requires employers who are chemical users to receive labels and SDS (Safety Data Sheets) from their suppliers. Employers have responsibilities to establish hazard communication programs, and provide workers with access to labels and SDS, in addition to informing and training these workers. By June 1, businesses should have updated their workplace labeling and hazard communication program and provided employee training.

It’s unknown if OSHA inspectors will target small businesses like vended laundries in enforcing the Standard, but there is the potential for fines if an inspection finds that a business is not in compliance.

You may wish to confer with your chemical suppliers about this matter and/ or visit the OSHA website (www.osha.gov/dsg/hazcom/index.html) to learn more.

Bruce Beggs Editorial Director

Charles

E-mail: cthompson@ATMags.com

Phone: 312-361-1680

Bruce Beggs, Editorial

E-mail: bbeggs@ATMags.com

Phone: 312-361-1683

Nathan

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

Donald Feinstein, Natl. Sales Director E-mail: dfeinstein@ATMags.com Phone: 312-361-1682

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

American Coin-Op (ISSN 0092-2811) is published monthly. Subscription prices, payment in advance: U.S., 1 year $46.00; 2 years $92.00. Foreign, 1 year $109.00; 2 years $218.00. Single copies $9.00 for U.S., $18.00 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 57, number 6. 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, 2016. 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.

Bruce Beggs

NEW LAUNDRY OPENING NEARBY CAN BE CONCERNING

When a new laundry opens in your area, how do you react? Are you anxious about the impact it will have, or are you unfazed because you’re confident in your own operation?

This quarter’s American Coin-Op Your Views survey asked coin laundry owners about sizing up the competition. More than 41% of respondents to the unscientific poll say they don’t fear competition, but the remainder do in one respect or another.

For 37% of respondents, their worst fear is that the new laundry is “more attractive or larger than my store.” Vend prices that are cheaper than theirs concerns 10.9% of respondents the most. Another 8.7% fear the new store offering higher-quality equipment, and 2.2% are afraid it will be cleaner than theirs.

If a “good” laundry opened near them this week, 63% believe they would take a “mild hit.” Roughly 24% say they would “lose little, if any, business,” and 4.4% “would lose no business.” Only 2.2% believe they “would take a major hit.” Roughly 7% aren’t sure how the opening would impact them.

When going head to head with the competition, 34.8% of respondents believe the cleanliness of their store is their greatest strength. Roughly 20% say it’s that all of their equipment up and running, and 13% say it’s the size and/or layout of their store. Approximately 11% lean on their “reasonable prices,” and 6.5% stand behind their “ideal machine mix.”

The remaining 15.2% of respondents see something else as their greatest strength. In many cases, they say all of the previous points combine to be their greatest strength.

In what ways do you differentiate yourself from your competition? Here are some of the responses from those who took the survey:

• “I’m a hands-on owner of one store. I make an effort to drop in during busy times and make customers feel welcome.”

• “I offer free Tide on Tuesdays and Thursdays.”

• “45 years of experience.”

• “We show our customers that we put money back into the business for their benefit.”

• “Make them feel at home.”

• “We have the most locations (five).”

• “Five words: Clean, safe, easy, fast, friendly. This really is all about customer service!”

While American Coin-Op’s Your Views survey presents a snapshot of store owners’ viewpoints at a particular moment, it should not be considered scientific. Qualified subscribers to American Coin-Op e-mail blasts are invited to participate anonymously in the industry survey.

‘Little House’ of a Laundromat A

By Howard Scott

Sometimes, cute works.

There is a wooden clapboard house on the road heading to the beaches of Marshfield and Duxbury, Mass. If it weren’t for the self-standing sign out front, and the old-fashioned barrel washing machine sitting on the ground, one might think it’s just another summer place by the seashore.

But it’s Jack’s Scrubboard Laundromat, now in its 28th year.

John Killion has run the business for 15 years. His father, Jack, started it in 1988. When Jack wanted to retire to Florida, the two made a deal. Jack owned the building, so John would pay rent to him. It’s worked, as last year was John Killion’s best, he says.

The homey look is intentional.

“I never liked the industrial look of typical Laundromats in malls,” Killion says. “This feels like home.”

Along a busy road, his business attracts a lot of patrons. The shop is open from 7 in the morning to 9 at night seven

days a week. Fortunately or unfortunately, Killion lives in the upstairs apartment. Fortunately, he is Johnny-on-the-spot. Unfortunately, he sometimes gets knocks on the door during his off-hours.

“It’s all part of doing business,” he shrugs.

To service his clientele, Scrubboard has a dozen 10-pound washers (“singles”), a half-dozen 18-pounders (“doubles”) and five 45-pounders (“triples”). A bank of 18 dryers aligns on one wall. An extractor is available to service his customers with comforters, dungarees, and garments that really need to be spun out. “It costs 75 cents (to use),” he says, “and customers really appreciate that I have the machine, because not too many Laundromats own one.”

The biggest portion of Scrubboard’s trade—about two-thirds of it—is washdry-fold service (WDF). Many customers bring in clothes and pick up a few days later. Also, Killion maintains a WDF route that services 50 customers.

Scrubboard charges $1.25 a pound for WDF work. That rate doesn’t scare

off anybody because many of his route customers are in the affluent town of Duxbury, while others are second-home dwellers of Marshfield. Renters spending a week at the beach don’t want to do their own laundry. Also, his pickup and delivery service is appreciated.

In addition, Scrubboard services a major commercial client, Fort Cliff Army Base on the cliffs of Marshfield. Six years ago, when Hanscom Field closed its laundry facilities, Fort Cliff turned to Scrubboard. Killion has been servicing the account ever since. Volume is extremely high, but he discounts his $1.25-a-pound WDF price.

Jack’s Scrubboard Laundromat is located on a busy road leading to the beaches of Marshfield and Duxbury, Mass. (Photos: Howard Scott)

John Killion has been running the business his father, Jack, built for 15 years.

Still, it’s profitable business. In addition, Scrubboard services a few beauty parlors.

For all road accounts, Killion picks up one day and delivers the next. It works because the service area is manageable, all within two adjacent towns. He’s in the truck about two hours every day.

“The pickup and delivery customers are long-term, and we’ve worked out the logistics,” he says. “They know when I’m coming and they leave the clothes on the porch. I pick the order up and leave it on the porch the next day. Everyone is on credit card so it’s easy to do payments. Of course, sometimes a senior-citizen customer will call me in and search for her checkbook and that (takes a little) time.”

Killion employs three part-time helpers who attend to the customers and process most of the WDF work; they each work about 20 hours a week. The staffers live nearby, are hard workers, and appreciate the hours, he says. But much of the work falls on Killion. His typical workweek is 60 or 70 hours, depending on the season.

Within the last 10 years, Killion has replaced every machine. They had been there from the beginning, he says. This required a $54,000 investment, and Killion says he will pay off the loan in a few years.

“The new machines are tight as a whistle,” he says. “My utility costs have dropped.”

That’s good, because over the years, Killion has learned to fix all machines, and does most of the maintenance. Only rarely has he had to call a mechanic. With new equipment, he doesn’t have to spend much time on repairs.

Speaking of utility costs, Scrubboard’s monthly gas bill is now running about $800-$900 a month, Killion says. This is a lot lower than when energy costs were sky-high a few years ago.

For water, Killion uses his own well. The town bills him for sewage, so his water bill is not excessive, no more than a few thousand dollars a year. Finally, electricity is running about $800 a month. That’s a manageable utilities expense.

Scrubboard’s prices are in the uppermiddle for the area, based on comparisons. A “single” washer runs $2.75, a “double” $3.75 and a “triple” $5. The dryers run 5 minutes for a quarter.

“It used to be 10 minutes for a quarter, but increasing utility costs have forced me to cut the (time),” Killion says. “I have very little price complaint from customers,

and we feel our prices are fair.”

It helps that there is only one area competitor, whom Killion says has older equipment and high-tide flooding problems.

A few nifty touches adorn the premises. Scrubboard sets out a half-dozen paper cups on each machine for detergent. An active bulletin board sits at the front of the store. A bank of seats in the front encourages customers to relax while waiting for their laundry to finish. A television sits on top of the washers. Washboards given by customers hang on the walls.

“Everyone loves (our) name because

it reminds them of the old days,” Killion says. “When a customer offers to give me a washboard now, I refuse. I simply have no more space to hang them.”

All these touches help give Scrubboard a homey feel, exactly what management has in mind.

Killion talks about buying another Laundromat. Hopefully, he’ll give it the same cozy look and feel. ACO

Longtime business writer and consultant Howard Scott is a regular columnist for American Coin-Op

Scrubboard offers washers ranging in size from 10 to 45 pounds, and a bank of dryers lines one wall.

A wash-dry-fold order for Fort Cliff Army Base awaits delivery. About two-thirds of Jack’s Scrubboard’s business is WDF service.

Customers with comforters, dungarees, and garments that really need to be spun out appreciate having this extractor available, Killion says.

OUT Branching

Five multi-store owners share experience, offer advice in overseeing multiple operations

by Bruce Beggs, Editorial Director

Is your laundry business ready to open its next location? And if you’re already a multi-store owner, would opening another location be a viable business strategy?

Making the decision to invest in and open a vended laundry can be life-changing. But what about doing it again … and again … and again? Adding more stores can mean more revenue but it can also mean that the management issues you’ve been dealing with on a single front will be multiplied.

American Coin-Op interviewed five multi-store owners from around the country to learn about their operations and seek their advice about branching out.

PHILLY’S LAUNDRY DEPOTS

Dan Marrazzo once operated as many as seven vended laundries, but now he’s down to four in the suburban Philadelphia area. “I’ve sold all the stores I’ve had landlords with, so now I’m the only landlord.”

His Laundry Depots in Newtown, Penndel and Morrisville, Pa., and Ewing, N.J., range in square footage from 1,400 to approximately 6,000. The smallest, Newtown, has 25 washers and 20 dryers. The largest, Morrisville, has nearly 100 laundry machines, Marrazzo says.

All of his stores were previously occupied by other businesses, such as a shoe store or an indoor golf arena, and were fully renovated. About two weeks before our interview, Marrazzo changed out all of the equipment in the Ewing store. He’s loyal to the Dexter brand, he says, and relies on the expertise and assistance of

distributor Professional Laundry Systems in running his business.

Marrazzo, who has worked in the construction industry for about 35 years, got into the laundry business in 1989 as a matter of economics: “After having a horrible building season, I wanted something a little bit more predictable.” He opened his second store roughly three years after his first.

“There are a lot of similarities (among my stores),” he says. “The machinery types are pretty much the same. We have a little more latitude and variety with larger stores, but typically we run the same manufacturer and the same types of equipment.”

Standardization is at the heart of the Laundry Depots; Marrazzo buys the same supplies for all of his stores. But while he mass-markets the stores collectively under one brand, each is separate as far as revenue is concerned.

The farthest distance between any two of Marrazzo’s four stores is 20-25 miles. The Morrisville and Ewing stores are attended 24/7. The rural Newtown store is open around the clock but only attended one shift, he says. The Penndel store is attended until 11 nightly.

It’s not unusual for Marrazzo to work

seven days a week, but that’s by choice, he says. Either he or his operations manager visit the stores virtually every day. Between full-time and part-time workers, Marrazzo employs around 25 people.

The company maintains a separate office warehouse facility that houses some surplus laundry and construction equipment plus has several offices and a conference room, he says.

Marrazzo says he learned some important lessons immediately upon opening his second store.

“The master of the obvious is you can only be in one place at one time,” he says. “One, you need someone else, or a series of people, to actually help you with the stores. The other thing is, you really need the first store, or all the stores that you presently have, to be organized and running properly before you decide to take on another.”

He continues: “You have an expecta-

He continues: “You have an expecta- ▼

(Image compilation: © iStockphoto/ChrisGorgio & macrovector)

Laundry Depot of Morrisville, Pa., is one of four similarly equipped Philadelphia area stores owned by Dan Marrazzo. (Photo: Laundry Depot)

tion, some sort of model to run with. My first store was really totally flying blind. … You get a comfort level for what you’re doing because you’re already doing it.”

QUEEN CITY QUARTET

Dave Menz has been in the laundry business in Cincinnati about seven years. He was working as a telephone lineman but had always wanted to own his own business. He stumbled upon a Laundromat for sale on Craigslist and, after doing several months of due diligence, decided to take the leap in 2009. He continued working full-time for three more years before devoting himself entirely to his laundries.

All four of Menz’s Queen City Coin Laundry stores were born from “terrible states of disrepair,” he says. Before he took ownership, all four were in bad shape, and one had closed. “Kind of, our business model is we do a ‘gut job’ from top to bottom.”

His first store, in the suburb of Amelia, Ohio, was renovated in phases because he didn’t have the resources to do it more quickly. “We acquired our first location approximately six years ago. We acquired our second location (in Milford, Ohio) about six months later. That seems crazy to say now, and I wouldn’t recommend that strategy to newbies, but, hey, it worked out wonderfully for us. Our team is certainly not afraid of hard work!”

His remaining stores are located in Cincinnati and are known as Anderson and Mt. Washington, based on their neighborhoods. He just added the Mt. Washington store last October.

The Queen City Coin Laundry stores range in size from 2,600 square feet to 5,000 square feet. The smallest, Anderson, has 28 washers and 30 dryer pockets, while the largest, Mt. Washington, offers 36 washers and 33 dryer pockets.

The Mt. Washington store operates on dollar coins, and it’s Menz’s plan to convert the other three stores to dollar coins within the next 24 months. “Once that is completed, we plan to install debit/credit card readers on all machines and operate our stores as hybrid stores. We believe this is the future and the best of both worlds.”

The farthest distance between any two

of Menz’s four stores is 13 miles. He estimates he spends a total of 15-20 hours a week in the stores. His wife, who has a full-time job and career of her own, acts as bookkeeper and assists in other ways when needed. Together, they employ as many as 20 people.

“To be honest, our employees are everything to us. We are blessed with great employees and are always looking for exceptional people to join our team. We believe that anyone can build a nice Laundromat, but having friendly, welltrained employees separates us from the rest of the pack.”

He also credits his relationship with local distributor H-M Co. for helping him grow his business.

When asking about branching out, his response focused on the need for passion. “Is this what you are doing, or want to do, full-time? … If you are passionate about growing and wanting to do this full-time, be picky about the locations you acquire. … when you find a community that has a need, find the best location in that community.”

CARD-ONLY IN CALIFORNIA

Art Jaeger is on his second go-around in vended laundry in California. The former record company executive opened two stores in 2004 and a third in 2005 before selling them all in late 2005 for what he called a “very strong profit.”

As time passed, Jaeger realized how much he liked being a small-business

owner and that the vended laundry business was still right for him. “I had a much stronger idea of what I felt would work for me,” he says. “I had a much better understanding of where I could do better, in both design and location, and customer service. I then built three more stores.”

They are the Santa Clarita Laundry Center (5,400-square-foot store opened in June 2007, 59 washers, 60 dryer pockets), the Oaks Laundry Center (3,000-squarefoot store opened in August 2009, 38 washers, 40 dryer pockets), and the Simi Valley Laundry Center (6,000-squarefoot store opened in November 2013, 60 washers, 51 dryer pockets).

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1 14 AMERICAN COIN-OP JUNE 2016 www.americancoinop.com

Jaeger favors Continental Girbau laundry equipment, and all three of his fully attended, card-only stores feature Card Concepts payment systems. Whereas his first three stores were all named Santa Fe Lavanderia and themed similarly, he chose to name this second trio based on where they were located, so it would be easier for potential customers searching the Internet to find a store in or near their community.

“If you would walk into it, you would know it’s my store,” Jaeger says. “They all have similar design elements, similar materials, similar feel. … Each store design is improved upon the previous one in terms of customer flow, location, even including vending storage and where the vending machines go.”

If he drives a “loop” and visits all three of his stores in one day, he covers 96 miles, Jaeger says. He works 200 to 220 hours a month (his time is generally split 70/30 field to office), and virtually every day, but hiring additional personnel has enabled him to take Saturdays off.

He’s reduced his workload by hiring a manager who has taken on some of the collections and managerial duties, plus a driver/handyman who does some of the purchasing as well as commercial account pickups/deliveries and equipment maintenance. Between the three stores, he employs 15 people.

“Each time you own a store, your problems multiply,” Jaeger says. “Every store has X number of problems every day. … When you put everything into it, I realized it was a full-time job, with the third store.”

Owning a vended laundry provides a person the experience to open a second and so forth, he says, but that doesn’t necessarily mean one must do that.

“I think somebody who has a previous store has a tremendous knowledge base and understanding of what it takes, and the most important thing that they have to do is find a situation that’s totally going to work for them before they move forward. But by owning one store, you should not have the pressure to open a second store.

“You can wait until you have the perfect location, and then combine that with being able to negotiate the perfect

lease, and combine that with having acceptable construction costs, and combine that with feeling comfortable in your equipment acquisition negotiations and have your financing in place before you pull the trigger.”

TO THE BEST ADVANTAGE

Brian Brunckhorst is the owner of five Advantage Laundry stores in California. Locations are Hayward (coin store purchased and rebuilt in 2003), Oakland (coin/card store purchased and rebuilt in 2006), Livermore (coin store purchased and rebuilt in 2006), Pleasant Hill (coin/card store purchased and rebuilt in 2009) and Vallejo (newly constructed coin/card store opened in 2015).

His stores range in size from 1,300 to 3,800 square feet. The smallest, Livermore, has 20 washers and 22 dryers, while the largest, Vallejo, offers 48 washers and 57 dryers. Not all of his stores have the same equipment mix, but he says he has been moving toward a single manufacturer, Speed Queen, due to its advanced machine controls.

Every store is branded similarly, featuring the same name and color scheme.

“I market each of my stores individually, but use the same marketing company and marketing methods. I market each store individually because they are located in different cities and markets,”

Brunckhorst says.

“Even though the stores are branded the same, each store operates as its own unit. From a customer point of view, each of our locations looks and feels the same, because we train staff and run the stores similarly.”

[1] Art Jaeger’s Santa Clarita Laundry Center opened in June 2007. [2] His Oaks Laundry Center offers customers the option of injecting ozone into their wash.

A banner outside Oaks promotes the store’s ozone wash.

The Simi Valley Laundry Center is Jaeger’s largest store. (Photos: Art Jaeger)

His two most distant stores are separated by 40 miles. All but the Livermore store are fully attended. He estimates he spends 15-20 hours a week working in the stores.

“I employ 25-30 people across all of my stores, and the attendants in our Laundromats are extremely important,” Brunckhorst says. “They interact with our customers daily, and the image they portray and support they provide is important for the success of our business.”

As he opened new stores after his first, Brunckhorst soon learned that each is different and provides its own unique challenges.

“Every time you build or buy a store, it will be different. After opening multiple stores, I know it’s important to have a good system in place to be able to manage the different environments and challenges at each location.”

If you’re thinking about taking the leap and adding another, make the decision and go for it, Brunckhorst advises.

“Owning multiple locations requires a business owner to give up control of some of the day-to-day responsibilities of the business so that they can operate multiple stores. By giving up some of that responsibility and control, they have more time to give their attention to managing the overall business so that each store is successful.”

SWEET HOME ALABAMA

Kent Walters got his start in the laundry industry on the manufacturing side and only recently became a store owner. Walters worked 21 years for Whirlpool, including the last several as sales manager for its commercial laundry business. Today, he works for distributor LaundryRx on a contract basis besides owning three coin-operated laundries in Alabama.

He built and finished his first store, West End Laundry in Tuscaloosa in October 2013. The 1,400-square-foot store sits at the end of a shopping center

and is themed blue and gold after nearby Stillman College. It offers 17 washers and 18 dryers.

About seven months later came the Choctaw Coin Laundry in Centreville. The 2,000-square-foot store offers 19 washers and 19 dryers. “It was going so well and not requiring a lot of my time,” he says of West End and the decision to add another. “I had some money to invest. I did not want to finance it, so I found a rehab and got the building for a good deal. I spent most of my money on new equipment.”

His most recent addition, completed in May 2015, is The Washer in Birmingham. At 1,700 square feet, there are 20 washers and 20 dryers.

Equipment across his three stores includes Milnor, ADC, IPSO and Whirlpool brands. He markets the three stores individually within their communities.

None of his stores are traditionally attended. At his Tuscaloosa and Birmingham stores, he pays adjoining

shopkeepers monthly as 1099 contractors to clean and watch over his stores when he’s not around.

“I don’t ask them to do a whole lot other than clean, but I do ask them to let me know when something happens, so I can address it,” Walters says. He strives to find good communicators for these positions, and admits a few assistants came and went before he found the folks that fit his business needs. “I have surveillance there, but I don’t want to sit and look at my cameras all day. If something happens, I want them to tell me.”

The distance between his two most distant stores, Birmingham to Tuscaloosa, is 65 miles. He estimates that he spends between 15 and 20 hours a week in his stores, including drive time.

“Broaden your mind on where you want to be,” Walters says. “A lot of people say they want to be 20 minutes away from my house or 20 minutes from my first store. Well, there may be great opportunities 45 minutes away.”

And don’t be fearful of building another laundry close to your others if the circumstances are right. “I’m fixin’ to pull the trigger on (store No. 4) and it’s 5-6 miles away,” Walters says. “It’s another market that got hit by the tornado in 2011. The city hasn’t done a whole lot as far as putting businesses back in there, so they’re offering grants and things like that. There’s a big need for a laundry.” ACO

[1] The West End Laundry is the first coin-op laundry business Kent Walters opened. [2] Walters opened his second store, Choctaw Coin Laundry, within months of the first. [3] Today, Walters says he’s preparing to open a fourth store in his area of Alabama. (Photos: Kent Walters)

HOW TO HIRE, TRAIN AND RETAIN THE BEST ATTENDANTS

As a Laundromat owner, you are faced with many decisions that affect the daily operation of your business. One of these important decisions is hiring attendants. Oftentimes, attendants are the face of your store, which is why you need to hire wisely to ensure they represent your business in a positive way to help grow and maintain your customer base. Whether opening your first store or your fifth, hiring and training attendants can be challenging as you are trusting someone else to help operate your business.

With more than 20 attendants working across four stores, multi-store owner Tony Kahan is all too familiar with what it takes to hire and train the best employees. Kahan has a simple motto for the four Chicago Laundromats he co-owns with his brother, Rich: “Always Clean, Always Friendly.”

WHERE TO START?

Since 2006, the Kahans have opened three brandnew stores in Chicago’s Jefferson Park, Avondale and Belmont Cragin neighborhoods. In April, they acquired their first existing store in Logan Square. All of the stores are located in high-density, urban locations.

While the Internet has become a main source for employers looking to fill vacancies, it is not the end-allbe-all in the Laundromat industry. Kahan, for example, looks for referrals from his existing attendants.

“I like to hire friends and relatives of people I have already hired,” he shares. “If they are happy employees, the people they refer typically are, too. This practice has worked very well for us.”

Another employee-procurement resource is his customer base. If in need of a new attendant, Kahan will put up a “Help Wanted” sign, and he generally receives a lot of responses from his customers.

“Our customers are already familiar with our store, our values and the community,” Kahan says. “They also know how to operate the equipment, which puts them ahead of the game when it comes to training.”

Once a prospective attendant has been identified, it is the one-on-one interaction Kahan has with the candidate that helps determine if he or she will be the right fit.

“I look at how the person is with me while we are talking,” Kahan explains. “Do I sense sincerity? Do I

get a sense this person is looking for an opportunity to better themselves, or are they just trying to get a job?”

The Internet can play a large role in the final screening stage of the hiring process. Depending on the state where a store is located, owners may be able to search public records, or they can pay a small fee to have an independent agency conduct a background check. It can also be as easy as typing the candidate’s name into a search engine to see if any result warrants concern.

TRAINING PROCESSES AND PROCEDURES

Once a new attendant is hired, he or she will need to be trained on how to properly execute tasks. Every store trains new attendants differently, but in general there are two areas that make up training: administration and hands-on.

Owners should provide new employees with documentation of the store’s standards and procedures, as well as training checklists. These documents will help the owner and the attendant stay accountable for what is expected of the new employee. Training checklists will also serve as a reference for an attendant once he or she begins working alone.

After an attendant understands the owner’s expectations, a hands-on training process with either the store owner or a veteran attendant should be next. It starts with a walk-through to explain how all aspects of the store operate, beginning with the equipment.

If the store features washer-extractors and tumble dryers with advanced control systems, store owners should make sure the new attendant understands the benefits of the controls. For example, if there are revenue-generating features such as multi-level and time-of-day pricing, attendants should know how and when these prices change in the event a customer has questions.

Should the store offer additional profit-generating amenities such as wash-dry-fold services, training may be a lengthier process as attendants will need to learn the proper sorting, processing and folding techniques. It is important for owners to review the output of a new attendant’s wash-dry-fold services to ensure it is up to their standards.

Cleaning is an essential aspect in an attendant’s dayto-day responsibilities, especially at Friendly Wash.

“We expect our attendants to be able to clean the

Jim Rosenthal

store from top to bottom,” Kahan explains. “It starts with cleaning the inside and outside of the machines, from the detergent areas, to the lint traps. Attendants need to take care of the equipment, as it’s the biggest investment for the store owner.”

Friendly Wash in Belmont Cragin recently began operating 24 hours during the weekend. “We are a high-volume store, so it is important for us to give the store a thorough cleaning. In addition to helping the customers, the attendants working overnight complete an in-depth cleaning in preparation for the next day.”

ADDING A PERSONAL TOUCH

Depending on how hands-on an owner is in the day-to-day operation of their business, an attendant may end up being the face of the store for customers. This makes the service an attendant provides to customers that much more important.

“We try to create a welcoming environment and expect our attendants to be friendly and helpful,” Kahan shares. “Sometimes it is helping a customer fold, or sometimes it is just catching up. We try to encourage our stores to be community meeting places, so we encourage our attendants to spend quality one-on-one time with the customers.”

If a new attendant is successfully able to execute his or her duties and provide great customer service, an owner should do whatever they can to retain the talent. Owners can implement incentive and recognition programs to reward employees and create a positive work environment.

Unfortunately, sometimes the attendants hired don’t work out, even if provided the proper training, a positive work environment and incentives or recognition.

Kahan’s recommendation to owners dealing with a problem attendant is simple: “You have to create expectations early. When you see an attendant deviating from these expectations, you need to address it right away. You can hope the person works with you to fix the issue, but if not, you need to make a change.”

For many stores like Friendly Wash, an attendant is the heart, soul, eyes and ears of an operation. With proper screening and training, an owner can set an attendant up for success, which in exchange helps the business succeed. ACO

Jim Rosenthal is the North American sales manager of Speed Queen’s® Commercial division. To learn more, visit www.speed queencommercial.com/coinop101 or call 800-590-8872.

What’s Next?

The Future of Vended Laundry

CLA’s Wallace assesses state of industry, predicts what stores will look like in 2026

Wby Bruce Beggs, Editorial Director; assisted by Tim Burke

When examining our industry today, it seems that the lines separating the laundry and drycleaning segments are blurring, according to Brian Wallace, president/CEO of the Coin Laundry Association.

“Self-service laundry is blending with full-service laundry and commercial accounts and pickup and delivery and the commercial/industrial side of our business,” Wallace says while speaking at the Southwest Drycleaners Association’s Cleaners Showcase in April. “Cleaners are getting into wash-dry-fold. These pretty distinct buckets are starting to blend together.”

In examining the industry and predicting the path it will take, he offered a SWOT—strengths, weaknesses, opportunities, threats—analysis.

What does he see as strengths?

• Improving image and customer service.

• More active management style.

• Greater business experience, especially in financials, among owners.

• Greater ownership focus on vended laundry as sole or primary business.

• More information is readily available and easily sharable.

• Technology advances: Data-driven management; equipment offers greater utility conservation; advanced payment systems; remote store monitoring.

“The most dramatic impact of the new technology is the fact that we’ve got washers and dryers that use, conservatively, 20-30% less utilities,” Wallace says. But in some cases, when vintage equipment is replaced by today’s state-of-the-art models, the savings could be closer to 50%. “Those are game-changers.”

• Delivery of time savings and convenience.

“From the customer’s standpoint, they’re

looking for a hassle-free experience,” he says. “Not only does that help you get the lion’s share of the traditional customers, it starts to entice that non-traditional customer” to visit your clean, accessible, safe Laundromat.

• Demographics that increase consumer demand for laundry services, including a larger renter market.

It’d be nice if the industry had no weaknesses, but that’s not reality. Wallace identified a few:

• There remains a significant share of “inferior laundries” with outdated equipment, poor store conditions, low level of service, etc.

• Certain owners are satisfied with the status quo, which inhibits innovation.

• The industry has exhibited an inability to sufficiently raise vend prices in correlation with increasing operational costs.

But some of these weaknesses can lead to opportunities for forward-thinking investors and business owners, Wallace says.

“Not to aim low, but even uttering the word ‘marketing’ will probably put you in the top 1% of your peers, let alone proactively deploying a marketing plan, let alone being really good at it.”

Wallace spoke of differentiation, setting your store apart from your competition.

“(The desire for cleanliness) really hasn’t changed much in 25 years. … Larger capacities on the equipment side, I think that’s a significant point of differentiation today. That double-load machine that used to be the purview of only the Laundromats … is in the home environment now more than it ever was before, and it’s in the apartment environment.”

Plus, getting involved in your community further establishes your identity there, and

utilizing payment systems that offer flexibility can be another distinguishing feature.

So, what are some of the threats facing vended laundries?

“The multi-housing laundry industry is a big business, folks,” Wallace says. “They have, conservatively, 70% of the market share … In other words, we’re living off of 20%, maybe 30% of those renter households. Most of those folks never leave their building to do laundry.”

Building laundry service contracts can be quite lucrative, he says, so when route operators vie for a fiercely contested contract, they may be willing to install brand-new equipment and/or even remodel the laundry room to land the deal.

“We don’t have to go running for the hills here, but I think we have to be aware of what’s happening with our primary competitor,” Wallace says.

Increasing utilities cost is something that laundries will continue to face. As municipal water systems grow older and cities embark on costly infrastructure replacement projects, that will lead to higher rates and impact fees, he says.

Taking all this into account, what will a vended laundry look like in 10 years?

“It’s probably part of a small owneroperator chain, two to five stores,” Wallace says. “It’ll probably have some kind of payment system. You’ll be really good at digital marketing, making sure the people looking for you can find you. You probably have some big equipment in your store. … And you’ve got that technology leveraged … to make you a better operator.” ACO

(Image licensed by Ingram Publishing)

Wallace

ROLLS OU T

AN TIMIC ROBIA L WI RE LAUN DR Y CAR T

R&B Wire Products has introduced a new Antimicrobial Wire Laundry Cart — 100E58/ANTI.

The product option creates the first wire laundry cart with an antimicrobial powder coating that inhibits the growth of bacteria, providing a new level of cleanliness, R&B Wire says.

The entire base, basket and rack has an antimicrobial additive incorporated into the coating for lasting protection, plus the cart features an antimicrobial bumper for complete protection.

R&B also offers antimicrobial basket liners and complete cover kits in antimicrobial vinyl. Additional options and carts are being evaluated, the company says.

www.rbwire.com | 800-634-0555

N EW 70-PO UND M OD E L ADD E D TO CON TINEN TA L’S G-FL E X W A SHER LI NE

Continental Girbau recently added a 70-pound-capacity G-Flex Washer to its most advanced line of hard-mount flexible-speed washers, the company says. The G-Flex line – featuring 40-, 55-, and 70-pound models – boasts the ProfitPlus® Control, serial communication and six programmable extract speeds, including 100, 140 and 200 G-force.

The new washer not only offers 21% more capacity than the 55-pound model, it features a manageable width and fits through a standard 34.5-inch door opening, Continental says.

The ProfitPlus Control helps set vended laundries apart by offering customers various cycles and more control over the laundry process.

Meanwhile, owners can program G-force extract, mechanical action, wash temperature (by degree), and more, plus implement multi-level vend pricing.

www.continentalgirbau.com | 800-256-1073

It’s not just print anymore.

American Coin-Op can now be viewed on tablets and other mobile devices – great ways to stay on top of the latest industry news and updates.

R&B WI RE P R OD U CTS

HUEBSCH NAMES BOHANNON ITS STORE OWNER OF QUARTER

Huebsch reports it has named Dewayne Bohannon the latest recipient of its Store Owner of the Quarter award for his seven successful Wash-n-go Laundromats in South Carolina.

“Dewayne is an accomplished Laundromat owner with a keen grasp on what it takes to run a prosperous business,” says Kathryn Rowen, Huebsch North American sales manager. “His authenticity and savvy business skills have made him an expert in the laundry industry.”

Before he began his Laundromat venture, Bohannon owned a wide array of small businesses, ranging from self-storage to coin amusement and arcade machines. He was looking to find a more stable investment during the economic recession, and research led him to the Laundromat industry. He had property management experience and was in tune with the real estate landscape and businesses in the community. He began looking for run-down or defunct Laundromats that he could buy and revamp.

Bohannon relied heavily on distributor Laundry Systems of the Carolinas and its sales manager, Chad Bradley, to help get his business off the ground. Bradley continued to advise him on the planning and introduced him to Huebsch Financial, which allowed Bohannon to finance his equipment through his manufacturer’s finance operation.

Bradley also assisted in the analysis of demographic information to ultimately help Bohannon acquire the right location for each Laundromat. This dynamic partnership led to the creation of seven profitable stores, with more plans in the making, Huebsch says.

“I knew that Chad and Laundry Systems of the Carolinas could offer exactly what I was looking for,” Bohannon says. “Laundry Systems of the Carolinas was an extremely knowledgeable and trustworthy partner. They educated me on industry trends and taught me all the nuances of the business.”

INDUSTRY VET TOMASIAN ANNOUNCES RETIREMENT

Don Tomasian, 50-year veteran of the commercial laundry industry and founder of Chicago-based distributor D&M Equipment Co., has announced his retirement.

Tomasian started in the industry as a service technician for Norge. Soon, the company offered him a distributorship and D&M Equipment was formed. In 1972, Bernie Milch, the founder of Wascomat, became aware of Tomasian’s rising industry expertise and knowledge and offered him the opportunity to represent the Wascomat line in Illinois.

Over the next 20 years, Tomasian helped grow the coin laundry industry in Chicagoland, D&M Equipment reports. In building well over 200 Laundromats, including some of the “largest and most progressive stores with larger-capacity washers and dryers to meet the growing demographics,” he solidified his status as “one of the most highly regarded and respected laundry equipment distributors in the country,” the company adds.

Tomasian was offered a Dexter distributorship in 1996. The first four Dexter stores he built were for the Spin Cycle chain. Since taking on Dexter equipment, D&M Equipment has received the manufacturer’s Million and Multimillion Dollar Sales Achievement awards in each of the last 20-plus years, D&M says.

When Tom Benson’s World Largest’s Laundromat in Berwyn, Ill., was destroyed by fire, he called on Tomasian to rebuild it. That store sporting more than 300 machines is now one of the largest grossing Laundromats in the world, D&M says.

In 2010, the Coin Laundry Association named Tomasian to its list of the 50 Most Notable People in the Industry.

With Tomasian retiring, his nephew, Joe Frankian, is now the owner and president of D&M Equipment. Frankian had spent the last 12 years as D&M’s sales manager.

Frankian says he hopes to maintain the strong standards and traditions that his uncle left in place. “D&M will grow upon its solid foundation moving forward,” he adds.

Tomasian helped many successful store owners get started in the industry, but now he looks forward to engaging in hobbies and spending time traveling with his wife, Jean.

MAYTAG HONORS DISTRIBUTORS DURING 57TH ANNUAL MEETING

While hosting its 57th Annual Meeting in Florida recently, Maytag® Commercial Laundry awarded key distributors with accolades for dedication and excellence within the industry.

Receiving the most prestigious and sought-after honor of the evening was Hercules Corp., Hicksville, N.Y. The distributor received the Fred Maytag Award, given to the distributor that best emulates the founder’s marketing philosophy and supports the

Dewayne Bohannon (right), owner of seven Wash-n-go Laundromats in South Carolina, and recipient of Huebsch’s latest Store Owner of the Quarter Award, relied heavily on Chad Bradley (left), sales manager for equipment distributor Laundry Systems of the Carolinas, to help get his business off the ground. (Photo: Alliance Laundry Systems)

Tomasian

TOP FIVE NEWS STORIES

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• Maytag Commercial Laundry Honors Distributors at 57th Annual Meeting

• Whirlpool Corp. Welcomes New Commercial Laundry Leadership

• Springtime Laundry Industry Calendar ...

COLUMNISTS/FEATURES

• Dryer Maintenance D.I.Y.

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OUR SISTER WEBSITES

From AmericanLaundryNews.com:

• ARTA Draws 130-Plus to Orlando Conference

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From AmericanDrycleaner.com:

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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

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CALL FOR SPECIAL NEEDS

USED EQUIPMENT

Continental (6) L-Series, 18lb, Washers $999 ea/obo (7) L-Series, 30lb, Washers $1299ea/obo

Dexter (8) DL2x30, Stacks, SS $1699 ea/obo (12) DL2x30, Stacks, Alm $1699ea/obo (2) WCN, 40lb, Washers $1599 ea/obo (6) WCN, 25lb, Washers $1199 ea/obo (8) WCN, 18lb, Washers $999 ea/obo

Huebsch/Speed Queen (25) 0300, Dryers, White $1699 ea/obo (19) 0300, Dryers, SS $1699 ea/obo (10) MD2, 18lb, Washers $999 ea/obo (6) MD2, 35lb, Washers $1599 ea/obo (6) BC2, 20lb, Washers $1499 ea/obo

Wascomat (17) TD30x30 Dryers, Alm $1699 ea/obo (8) W105, 25lb, Washers $999 ea/obo (4) W74, 18lb, Washers $899 ea/obo (4) W125, 35lb, Washers $1399 ea/obo (2) W184, 50lb, Washers $1999 ea/obo SHOP @

Maytag brand with salesmanship, professionalism and integrity.

Founded by Alfred May in 1959, Hercules is now the largest family-owned laundry room outsource provider in the country, Maytag says. It is a past recipient of the Maytag Commercial Laundry Energy Advantage™ and Red Carpet Service® Awards, and is also a three-time Multi-Housing Excellence Award winner.

“Through nearly 60 years of service and distribution, Maytag Commercial Laundry has been an outstanding partner — one that we can count on to help our business grow in future generations,” says Andrew May, president and CEO of Hercules. “We are truly honored to receive this renowned decoration and look forward to continuously providing the excellence our customers have grown to expect.”

at a Spring Sale,” says Brad Pollack, PWS copresident. “People were thrilled at the discounts on equipment and parts, and seemed so pleased with our new office space.”

The facility is located in a historic building and features a greatly expanded parts warehouse, PWS says. Additionally, it contains a fully functioning 3,400-square-foot Laundromat that will open in July and serve as a state-of-the-art showroom and testing facility.

The new South Gate, Calif., headquarters of laundry equipment distributor PWS includes a soon-to-open Laundromat that will serve as a state-of-the-art showroom and testing facility.

PWS is planning a fullday service school at all three California office locations on Saturday, June 18. Visit www.pwslaundrywest.com for registration details.

WHIRLPOOL CORP. WELCOMES NEW COMMERCIAL LAUNDRY LEADERSHIP Whirlpool Corp.’s Commercial Laundry Division recently added three new team members: Trey Northrup, general manager; Chad Lange, director of sales, service and parts; and Matthew Conn, senior manager, product development and marketing.

Other Maytag distributors receiving awards included Best Wash Inc., Houston, Texas — Vended Distributor Award; Northwest Laundry Supply, Spokane, Wash. — OPL Excellence Award; Washstation, London, England — Multi-Housing Excellence Award; Intertrade Chile S.A., Santiago, Chile — Marketing Excellence Award; Harco, Mississauga, Ontario — Red Carpet Service® Excellence Award; PT MLC, Jakarta, Indonesia — International Distributor of the Year; and Excellence Appliance Technologies Inc., Quezon City, Philippines — Top Quota Award.

PWS HOSTS RECORD-BREAKING SPRING SALES, UNVEILS NEW HQ

Distributor PWS says that attendance records were broken during the company’s recent series of “Spring Sales” events in Redwood City, San Diego and South Gate, Calif. More than 750 people attended the sales in late March and early April.

Besides the excitement surrounding specials on Speed Queen equipment and parts from many manufacturers, attendees were enthusiastic about the grand opening of PWS’ new corporate headquarters here south of Los Angeles, the company reports.

“In my 30 years at PWS, I have never seen so many people

As general manager, Northrup will oversee the global commercial laundry business. Northrup’s experience is extensive, including nearly 15 years with Whirlpool during which he has held leadership positions, such as director of commercial execution and new business, director of sales and marketing, and director of merchandising. Most recently, Northrup was the general manager for Whirlpool’s Europe, Middle East and Africa region.

Lange will be responsible for the creation and development of the global sales, service and parts strategy, implementing business development initiatives that maximize and grow the division footprint. Starting at Whirlpool in 2000 as an electrical engineer with the Global Product Organization, Lange has since held many roles of increasing responsibilities, including product business team finance lead, senior marketing and product development manager, and director of sales operations.

As senior manager of commercial laundry product development and marketing, Conn will be responsible for product development and marketing strategy development. His applicable experience, including marketing and business development, category and product development, and merchandising for both consumer and trade brands within Whirlpool, makes him an ideal fit for this position,

the company says.

Members of the Maytag® Commercial Laundry and Hercules Corp. teams gather for presentation of the Fred Maytag Award: (from left) Chad Lange, Steve Beckerman, Paul Finkelstein, Barry Heller, Alfred May, Andrew May, Adam May, Neal Melandovich, Andy Tegan, Bryan Rausch and Trey Northrup. (Photo: Maytag® Commercial Laundry)

(Photo: PWS)

IT’S SIMPLE.

Continental has been marketing the advantages of washers touting extract speeds greater than 200 Gforce since DAY 1! Why should on-premise laundries be the only ones to benefit from high-performance washers with high-speed extract capabilities? Thanks to Continental, vended laundries began enjoying the high-speed benefits of lower operational costs, greater customer turnover and improved profit potential. We lead the industry in market-unique, creative innovations that positively impact vended laundries. NO WONDER THE OTHERS FOLLOW OUR LEAD … Call (800) 256-1074 to make your laundry more attractive, flexible, profitable, convenient and unique!