Now nearly two years into the coronavirus pandemic, smallbusiness owners remain challenged to fill open jobs. A lack of quality candidates may entice the person hiring to overlook certain job-seeker deficiencies. Hiring out of desperation can produce poor results, Starchup warns, and it shares suggestions for conducting your next employee search.
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Having been successful in retail auto sales, Eddie Qaqish thought he’d try his hand at self-service laundry ownership. Taking over the lease of a run-down store, he decides to remodel and rebuild to produce “Super Wash.”
During his 40-plus-year career in laundry ownership, Paul Russo fielded many questions about the self-service laundry business and what’s involved. This month, he’s decided to answer some of those most frequently asked of him about machine repair, store location, funding requirements, equipment mix and more.
Happy New Year to you and yours!
Now, you and I have always known that laundry services are essential. For many people, that means making regular trips to the laundromat or to the laundry room. The consumer’s persistent need for clean clothes has led to our industry being labeled as recessionresistant and a business model of investor interest.
On top of that, younger consumers’ love of convenience is increasingly making app-based pickup and delivery laundry services a growth market.
Among businessmen and women looking to invest their capital in clean laundry, some turn to solutions like a franchise, licensing, or a partnership.
In this month’s cover feature, “Unboxing Ready-made Laundry Services Solutions,” starting on page 16, we look at a random sam pling of companies presenting such opportunities and analyze why there is a place for such offerings.
Our other main feature, “Hiring Practices: Stay True to Your Mission,” focuses on hiring (the lack of labor available to small businesses today is well-documented) and resisting the temptation to hire just anyone when pressure to fill a vacant attendant position mounts. That article can be found on Page 6.
There’s also a Pointers from Paulie B column by Paul Russo answering typical investor questions, plus other important content.
At the start of a new year, it’s typical to predict what’s coming. Or, at least, what one hopes is coming. I hope that 2022 will be a year of continued recovery. The Clean Show’s return in July after a three-year absence is a very good sign.
I raise my glass and wish you all a happy, healthy and prosperous (profitable?) new year.
Bruce Beggs Editorial DirectorCharles Thompson, Publisher
E-mail: cthompson@ATMags.com Phone: 312-361-1680
Donald Feinstein, Associate Publisher/ National Sales Director
E-mail: dfeinstein@ATMags.com Phone: 312-361-1682
Bruce Beggs, Editorial Director
E-mail: bbeggs@ATMags.com Phone: 312-361-1683
Mathew Pawlak, Production Manager
Nathan Frerichs, Digital Media Director
E-mail: nfrerichs@ATMags.com Phone: 312-361-1681
Main: 312-361-1700
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Now nearly two years into the coronavirus pandemic, small businesses remain challenged to fill open jobs. In a recent American Coin-Op Your Views survey, roughly 38% of laundromat owners polled said they were either “slightly understaffed” or “severely understaffed.”
Some laundry owners find themselves offering higher wages and perks to try to fill their positions (read the page 8 sidebar to learn what one store owner is doing to retain his employees).
But when pressured to fill vacant attendant positions, for example, a lack of quality candidates may entice the person doing the hiring to overlook certain job-seeker deficiencies to get a slot filled. (You’ve heard of hiring a “warm body,” right?)
Laundry skills are specialized, and the pool of candidates with direct experience is small, according to Chicago-based Starchup, which offers an app-based POS and delivery platform for laundries and dry cleaners. It says hiring out of desperation can result in quick turnover, poor performance, a drag on your culture, or, worse, a stain on your business reputation.
So, the company has some suggestions for your next employee search:
Like hires like, so if the person you entrust with hiring is lazy or complacent and does not push themselves to achieve excellence on a daily basis, then the recruiter will not seek high quality in a new hire. Candidates will also see this and self-select.
Select a search avenue—be it a headhunter (for key salaried roles), online job sites like Indeed.com and Craigslist.org, or good old-fashioned black-and-white print—and stick with it.
Each option comes with its pros and cons, so determine the one best suited for your needs and style. Using many at once will prove rewarding; most candidates are using multiple sources anyway and may apply multiple times.
Most people are unemployed for a reason, so keep this in mind when reading over the high number of résumés. Do not get dis-
heartened, and do not stop sorting and filtering; the good ones are in there, you just have to look.
Put Yourself in the Candidate’s Shoes
Candidates will research your company before they apply. What will they find? Your reviews on Google, Facebook and Yelp may be customer-driven, but they can tell a prospective employee a lot about the company and the types of issues they may have to deal with. Review your Glassdoor.com profile as an employer; if you don’t have one, consider setting one up. You can also post jobs that are aggregated to other sites from there. Understand that highpotential employees pay attention to these things, even if you do not.
Good candidates don’t stay on the market long. Consider scheduling dedicated time each day on your calendar for recruiting so you can stay on top of it. If you put it off, it will not receive the attention it requires. When you meet a great candidate, schedule next steps quickly. Remember that you are competing with other employers who will see the same qualities that you do!
Sometimes getting the best candidates means paying more. We are often fixated on a dollar figure and have trouble moving past it. Reframe the cost and see if it helps you think differently.
For example, let’s say you’re looking for a driver, you generally pay $20 an hour for candidates, and you won’t consider paying more than that. But then, a great candidate interviews with you who wants $21 an hour. That dollar more per hour costs an extra $2,080 a year (another $40/week or $80/pay period). Will the quality of this employee save you that much in productivity? What do you estimate the cost of having the role open for another month to be? What is the cost of settling for a lower-quality hire at $20/ hour in two months? Reframing costs in your mind may help you make a better decision.
Explore the following steps for setting up a good candidate search process:
Step 1: Clearly Define the Position You Are Hiring For and the Criteria Required to Hire
Start with something that gets the employee excited about the company. Searching for a job is boring and cumbersome so it is nice to read a positive ad. By shedding a positive light on your company, you’ll get more positive people to apply. After describing your company, describe the job position (and be honest). If the position is hard, the post should reflect that in a positive way. If the position requires lifting 50 pounds every day up and down stairs, say so. If the applicant reads this and is already discouraged, it is much better that they self-select now.
Give them at least two calls to action. Ask them to check out the company website and to submit their résumé via email with a specific subject line. This serves as a screening process: if the candidate has not devoted time and attention to this post or cannot follow directions, move on.
Step 2: Analyze the Applicants Based on Your Needs and Culture
Once the applications arrive, filter out the definite rejections and review the rest for the necessary skills. For example, when hiring a driver, you’ll likely need someone who is knowledgeable with computers. In this industry, flexible employees who are skilled in multiple areas are at a premium, because they are often doing many different jobs and it indicates ability to advance.
Step
Send the applicants you want to call for interviews a prescreening questionnaire. This gives you three types of information about the applicant:
1. Did he/she take the time to read and return the screener promptly and completely?
2. Did he/she answer the questions in the format given or did he/ she elaborate and give more detail?
3: How did his/her answers stack up to the ideal candidate?
Step 4: Schedule the Interview
Call them for an interview and have a specific time and date in mind. If they cannot make that time and date, give a backup. If they cannot make the second, tell them, “We will have to check our schedule and get back to you with another time that works.” The candidate obviously doesn’t want this position badly enough to make time. Aim for candidates that are hungry.
When they arrive, observe their grooming and punctuality. Punctual people who care about their appearance will give the same respect to the company they represent.
Take them around and show them the business. Make them feel
welcome and show that you are human, not just a “company.” In addition to asking what they bring to the table, tell them what you can do for them. A positive reaction is one of the first things to look for.
After you show them what and who you are, determine if they checked out your website (or something similar), the first action point. Ask one specific thing about your content. If they give you feedback, then you know in the future they will communicate with you. If they are silent or did not go to the website, understand how that reflects their ability to do the job.
Ask the candidate to complete a task that they will be doing on a regular basis. For a delivery driver, for instance, ask them to lift a package properly, drive from point A to point B and parallel park, and locate and use a Google map. During this time, ask questions like, “What song do you have on repeat these days on their stereo? When you were little, what did you want to be when you grew up? (But be careful to not ask any illegal interview questions.)
These simple, straightforward questions can show how the candidate handles mild amounts of stress. Can they handle your questions and still complete the task accurately and quickly? The on-the-job stress will certainly be more intense.
After you send the candidate on their way, often the most important question is: will this candidate be a good fit for the team? Fitting in with the team and the culture is crucial to their success. An employee may be a great individual worker, but in any great company everyone is on the same team.
By following these steps, you’ll give yourself the best chance to identify good-quality candidates and add them to your team. ACO
Multi-store owner Chuck Hinkel knows that finding and hiring good laundry attendants can be difficult, so he offers certain incentives aimed at keeping his staff invested in their business’s continued success.
Hinkel, who’s been in the laundry business since 2015, owns three locations. Two fully attended Laundry Depot stores are in the heart of the Finger Lakes region of New York; he employs two full-time employees (he plans to add a third in March) and five part-timers. An unattended store called Laundry Junction is in Greece, N.Y., near Rochester.
Vacation rentals and bed-and-breakfasts are plentiful
in the Finger Lakes, so his two stores there offer pickup and delivery service that Hinkel describes as “booming.”
“I can’t do this business and be successful without [my employees], so I thought it would be important to build loyalty with those people and to get people that want to stay with you and … really make them partners in the business,” Hinkel says. “I preach to them that, ‘If I make more money, you make more money.’”
His attendants receive 20% commission on all wash/ dry/fold business. Bonuses are available based on performance. Hinkel offers a 401(k) retirement savings plan; if an employee contributes 5% of their wages, he
matches 4%. Plus, there’s profit sharing, with employees receiving a year-end check if the business does well.
“Not only does that build loyalty but it gives them ownership of the business, without giving them ownership,” he says. Further, “you’re showing people you want them to be around, you don’t want it to be a stepping stone, you want it to be a job [they] can work for a long time.”
Hinkel recognizes that having a profitable WDF business enables him to offer these incentives, and that not every laundry can do the same.
“There’s just a lot of variables. I’m very lucky where I am that this has worked for me.” ACO
Employees of Harry Miller Companies, the parent company of commercial laundry distributor Coin-O-Matic, gath ered in December to celebrate the Alsip, Illinois, company’s 100 years in business.
Matt Miller, president of Harry Miller Companies, represents the third gen eration of his family’s business that was founded in 1921.
“I’m so grateful that my grandfather, uncle and dad decided to focus the fam ily business on home and commercial laundry equipment over the last century,” says Miller. “Clean laundry never goes out of style, and I’m proud to have the finest staff to give our clients the best customer service in the marketplace.
“One hundred years is a long time, and some mornings I have to pinch myself knowing that we’ve positioned the Harry Miller family of companies ahead of mar ket trends in order to offer our clients the finest laundry products and services.”
Coin-O-Matic is one of the nation’s oldest commercial laundry dealers, serv
ing laundromat, on-premise, and multihousing professionals throughout Illinois, Indiana, Wisconsin and Michigan. Harry Miller Appliances sells home appliances, including kitchen and laundry appliances.
Harry Miller founded the business by selling washers and dryers door-to-door from the back of his Ford Model T pickup truck throughout Chicago’s Englewood and surrounding neighborhoods. Surviving the Great Depression and World War II by making his own replacement parts and installing coin meters on wringer washers, Miller was one of the first recognized cre ators of coin-operated laundry equipment, the company says.
In the late 1950s, Miller was joined by his sons, Bill and Bob. The duo focused their efforts on the period’s exploding coin-
(Far left) Harry Miller founded his family’s busi ness by selling washers and dryers door-to-door from the back of his Ford Model T pickup truck throughout Chicago’s Englewood and surrounding neighborhoods.
(Near left) A delivery truck for Coin-O-Matic, one of the nation’s oldest commercial laundry dealers.
(Above)
operated laundry equipment market, thus founding Coin-O-Matic Equipment Inc.
Today, Harry Miller Companies is led by Harry’s grandson, Matt. The prod ucts and technologies have evolved over decades of family operation but the ser vice and character of those representing the company have remained consistent.
To chronicle this significant milestone, Harry Miller Companies underwent rebranding to better align the business with the changing needs and expectations of their customers. New logos, signage and marketing materials were developed.
“For over 100 years, customers have found that we listen well to understand their needs, work hard to exceed expecta tions, and are strongly committed to their long-term success,” Matt Miller says. ACO
During my long career in laundromat owner ship, I fielded many questions about the selfservice laundry business and what’s involved. For this month’s column, I thought I’d answer some of the questions most frequently asked of me while in my mats or when “cornered” at parties.
But before I do, let me say first that if you’re truly interested in owning and running a mat, read as much as you can. Go into the online archives of American Coin-Op where you will find a treasure trove of mat information. The Coin Laundry Association has many helpful tools for researching laundromats, and there are laundry-related forums on Facebook.
Now, onto the questions:
Q: If I buy a laundromat, do I have to know how to fix the machines?
This was one of the most common questions I received. Sometimes I’d be asked while I was working on a machine! My most common response: “Would you open a restaurant if you didn’t know how to cook?”
Laundromats are loaded with computerized, electro mechanical equipment. If you are handy at fixing things in general, you can probably learn how to diagnose and repair them from your distributor, as well as searching online for laundromat “how-to videos” for your brand of equipment.
Don’t forget, you’ll be competing with mat owners who do know how to fix their equipment.
Q: How do I find a store location?
Many laundromat markets are already saturated. A simple way to find locations is to drive around your tar get market and visit all the mats in the area. If you find one that’s busy most of the time but run-down, you may want to buy it and renovate it. Make sure the financial numbers work, and that the store is run-down due to owner neglect and not because a big, new mat nearby is “crushing” it.
Opening a new mat across the street from the rundown target mat can be risky because the run-down mat can be renovated to compete with you.
Recommended reading: “Eight Ways to Find the Best Laundromat for Sale,” February 2021 American Coin-Op
Q: Can I keep my job and run a laundromat?
It depends. Contrary to popular belief, laundromats do not run themselves.
They must be well-managed like any other business. You must be able to compete with other mats whose own ers and/or family members may be onsite full-time. Some competitors may have been in the business for years.
If you’ve never operated a business before, are “all thumbs” when it comes to technical issues, are under capitalized, are not skillful at managing employees, and become overwhelmed with problem-solving, I think you’re asking for trouble.
If you love fixing things (after hours), are available by phone/text, completed your due diligence to minimize painful financial surprises, and refuse to give up when things get hard, you have a shot.
These points apply mostly to newbies. Once you have some experience under your belt, you can gradually manage them remotely, provided you have great employ ees who are happy working for you.
I started operating mats in 1976, yet years later, I would still show up for a few hours per mat at least five times a week. But that’s me.
You can spend a million bucks building a gorgeous, brand-new mat, yet it can go downhill in a matter of months if you don’t give it the attention it needs.
That said, mats can be easier to operate in absentia than many other businesses. The three main needs are having great employees, keeping the mat immaculate, and keeping the equipment running smoothly.
If you can do these things while working your other job, then you could have years of success, provided the mat was built correctly and is in a great location.
If you attend one industry event in 2022, The Clean Show should be it! Discover new products, exciting technology, and groundbreaking research in commercial laundering, dry-cleaning, and the textile service industry as exhibitors from around the world showcase their latest innovations. Registration opens this winter. Start making your plans to attend!
Recommended reading: “Laundromats are a Business, Not a Hobby,” September 2019 American Coin-Op
Q: How much money do I need?
Depends on how big your mat is. These days, bigger mats that are open 24/7 with plenty of parking seem to do better, at least in the big cities.
Too big can also be a problem. Bigger mats mean bigger expenses, so a 5,000-squarefoot mat in the wrong market can indeed fail.
If your mat is less than 1,500 square feet (I’ve seen them as small as 800), you will not have enough equipment to pay for a full crew, even with the help of drop-off ser vice. You will be forced to either go unat tended, or you will be buying yourself a job. Unattended mats do work, but mostly in low-crime locations, and locations where vagrants are low in numbers.
For me, a sweet spot could be 3,000 square feet. Big enough to attract customers, yet not so big expense-wise. Of course, it all depends on your market. A 5,000-squarefoot mat could cost over $1 million for equipment and construction, not including the building (I recommend buying the latter, if possible). Figure that a 2,500-square-foot mat will cost about half that.
Q: How do I find good employees?
This is a tough one nowadays. The easi est way is to put out “Now Hiring” signs or banners. For online searches, I’ve heard some good things about using Indeed.com. There are plusses and minuses for both approaches.
If you already have a mat, you can offer a finder’s fee bonus to your employees for any new employee who works out well after a 90-day trial period. You can also try offering a sign-on bonus after 90 days for any new employee.
For me, the best strategy was to pay them well, and treat them well.
Recommended reading: “How to Hire Great Employees for Your Laundry,” August 2019 American Coin-Op
Q: Can I sublease space to a comple mentary business?
Yes, sometimes this works if you have extra space, but make sure your lease allows it.
Some mats make a deal with the lessee to help maintain your mat in exchange for them doing business there. You lose some control, but you’ll have fewer worries
about finding help.
This should be done through a lawyer so you can draft up a sub-lease that protects you from liability due to your lessee’s actions, and structured so the IRS is OK with it.
Recommended reading: “Protect Your Rights when Dealing with a Landlord,” December 2020 American Coin-Op
Q: What’s the best equipment mix?
Again, it depends on your market. Your distributor probably knows this best. Just keep in mind their tendency to overpack a mat with too much equipment. You need “people room” when the mat gets busy. Otherwise, there will gnashing of teeth.
There is a trend now for customers to favor big washers and dryers. Big machines attract customers with big loads. In some cases, really big … 100 pounds or more.
If you’re doing drop-offs, I like to see a couple of dedicated top loaders for your crew so they can open the lids to soak the laundry and work on stains.
Recommended reading: “Perfecting a Laundromat’s Equipment Mix,” July 2021 American Coin-Op
Q: What are the best brands of equip ment?
Every brand has its plusses and minuses, I believe. Finding the best distributor in your area is just as important, maybe even more so, than the brand. In the beginning, their support can be priceless.
Important tip: Take the time to do your own laundry at different mats in your area! You’ll learn a lot, not only about the equip ment you may like, but also how those mats are managed, and how the business feels from the customer’s point of view. If you plan on spending as much as $1 million on a mat, isn’t it worth it to do a few loads of laundry for research?
Q: Is crime a problem for laundromats? Laundromats do experience burglaries and various thefts. They can also be targets of armed robberies, but that’s not nearly as common as in other retail stores, from my experience. This is due to the fact that most of the money is locked up in either the change machines, or the washers themselves. However, this leaves you, the owner, as the primary target when you come to collect.
It’s important that every employee knows to never give out any information about you, or your mat. Post a small sign next to your store phone to hammer that point home.
Criminals can get creative and say things like, “Hi, I’m Michael, Paul’s brother. He sent me to collect the day’s receipts.” This is one of the reasons I had everyone call me “Frankie.” If someone approached my workers using my “stage name,” the work er would see that the person didn’t know me and might be trying to scam them.
Video surveillance is your best friend! When combined with great lighting, it can identify both customer and employee thefts, verify if someone did indeed slip and fall in your mat, or identify anyone who is abusive to your employees or your equipment.
Recommended reading: “Maximizing Your Laundromat’s Security,” July 2021 American Coin-Op
Q: Do I have to have a pickup and deliv ery service?
The short answer is no, you don’t.
Most investors are attracted to laundro mats because they see them as relatively easy to run as a part-time effort. If your mat is doing well without pickup and delivery, I would stay that way. It used to be that mat owners would only run a pickup/delivery ser vice to boost their mat if it wasn’t doing well.
Having said that, advances in technology (such as laundry apps, texting, GPS, and cellphone navigation) have allowed some mat owners to greatly expand their sales, if they want to put the time in.
The plusses are you aren’t limited to your immediate area, you can charge more for this service, and you can build a much bigger business! The minuses are doing this right requires more time and effort from you, a vehicle or vehicles with proper insurance, drivers, and a good laundry app to support the service. Since there are more steps in the process compared to wash/ dry/fold, having mix-ups or losing items is more likely.
I’m sure you may have more questions. As I mentioned at the open, read, read, then read some more. Don’t pull the trigger on a mat until you get everyone of your ques tions answered. ACO
Paul Russo owned and operated mul tiple Laundromats in New York City for more than 40 years before retiring in 2018. You’re welcome to direct any questions or comments for Russo to Editor Bruce Beggs at bbeggs@atmags.com.
by Bruce Beggs, Editorial Director
Whether it be a franchise, licensing, or a partnership, investor interest in ready-made laundry services solutions appears to be on the rise.
For a business model already generally seen as being recession-resistant, the labeling of laundry services as “essential” during the coronavirus pandemic has only served to ratchet up the attraction of investors looking for solid business opportunities.
And it doesn’t hurt that younger consumers who value time and are willing to pay more for convenience are embracing app-based laundry pickup and delivery.
American Coin-Op unboxes a random handful of these readymade solutions to examine what they provide to investors or partners and illustrate why there is a place for such offerings in the laundry industry.
Girbau North America (GNA) started this national brand and proven turnkey vended laundry services entity with distributor and store owner input and ongoing assistance a dozen years ago, according to Joel Jorgensen, GNA vice president of sales.
“Let me first say that it is not a franchise or a corporate-owned brand,” he explains. “Express Laundry Centers® operate under a licensing agreement allowing our business partner to use registered trademarks and exclusive equipment and business service concepts with no franchise fees. Express Laundry Centers offer a proven model, branding, marketing and operational training.”
The model also allows total owner control over the laundry and its management, says Jorgensen, describing it as “complete independence.”
An Express Laundry Center is designed to deliver the maximum
turnover and profit using the least amount of utilities and cost per square foot possible. High-performance, moisture-removing Continental Girbau washers create shorter dry times. They also offer automatic chemical injection and are ozone-compatible, so owners can easily add sanitization and/or the convenience of detergent and softener injection if they choose.
“Express Laundry Center is a ‘center,’ not a laundromat,” Jorgensen says. “It is designed and branded to support multi-level laundry services with broad demographic appeal,” including fullservice wash/dry/fold, student laundry, drop-off dry cleaning, dry/ fold only, and self-service.
“This ‘center’ focus allows owners to generate multiple revenue streams and better penetrate their demographic for greater total revenue.”
Time for an investor to develop a vended laundry depends on many factors, but an Express Laundry Center generally can be completed in a year or less, according to Jorgensen. The investor’s local GNA distributor guides them in every aspect of vended laundry development, including demographic studies, pro forma assessment, financing assistance, equipment mix recommendations, customer flow, installation, training, and marketing support.
Investors don’t have to create their own brand, because Express is a “proven and national identity and all the branding, logo, graphics, as well as website and signage templates, are done.”
There are hundreds of Express Laundry Centers in operation across the country, according to Jorgensen.
“Historically, franchised laundries have not lasted and succeeded,” he says. “But, the Express Laundry Center brand has succeeded for more than a dozen years because power remains with the owner, who can control the laundry to appeal to local needs.”
Tech-enabled laundry pickup and delivery service HappyNest is not a franchise but a partnership with individual laundromat owners, says founder and CEO John MacKrell. The company recently announced that it has grown to 76 U.S. laundromat partners servicing customers across 29 states and Washington, D.C.
“We do not sell anything or try and get our partners to agree to a long-term contract. We recruit our partners,” he says. “Our goal is to drive significant additional pickup and delivery laundry revenue to independent owners. HappyNest is responsible for all the marketing, software, technology, and customer service. Our local partners are responsible for the pickup, production, and delivery of laundry.”
There are no upfront or ongoing fees, no marketing costs, or customer service or credit card costs, according to MacKrell. HappyNest also provides a van subsidy to its laundromat partners. The company launches most laundromat operators in its program in two to three weeks.
“We have to invest in our partners every day. If we are not successful in generating customers, we will lose money,” MacKrell says. “Our revenue share model aligns our interests with our partners’ interests. We do not collect any fees, so our success is only determined by our partners’ success. Our customer service team, tech team, marketing team, and marketing spend are all supported by our share of the revenue.”
Laundromat owners appreciate the HappyNest model because operating requirements are limited, he says.
“We recruit high-quality operators because they know how to get
the job done. Once we set service and define what areas we should market to, we move forward together. Our partners all operate differently, but they all do a great job satisfying the customer.”
But the HappyNest model isn’t for every laundromat business, according to MacKrell.
“Someone who wants to manage their own marketing dollars and wants to handle their own customer service would probably be better with one of the other fee-based software packages available in the market,” he says.
Partnerships enable organizations to grow faster than they would on their own, according to MacKrell, and that’s attractive to companies in a variety of industries, including the laundry industry.
LaundroLab is a full-service franchise model or concept innovating on the traditional coin laundry industry, says Dan D’Aquisto, its co-founder and president.
Each location offers a vibrant space, state-of-the-art Electrolux equipment through North American distributor Laundrylux, payment technology, and amenities to pass the time. Franchisees receive a business playbook, technology assets, education and support from a team with a long track record, and a well-regarded brand to build their business, according to company materials.
“We start by going through a mutual evaluation process, looking to identify the right owners for our opportunity and our business,” D’Aquisto says. “That takes about 60 to 90 days. Once a franchisee signs with us, that activates the on-boarding and new-store opening process, which is about nine to 12 months long.” ▼
The process includes site selection, lease negotiation, store design, equipment purchasing, construction and installation. “Then we provide all of the necessary training, grand opening, marketing support, ongoing business support, whether that’s operations, technology, marketing, HR, all of the above.”
Projects range from $1 million to $1.5 million. Franchisees pay a one-time franchise fee upfront, then a gross revenue royalty fee and technology fee once open. There are also mandates for local marketing spending.
D’Aquisto says the full-service support is attractive to LaundroLab investors, whom he describes as “sophisticated business professionals who are looking for a semi-absentee, passive investment model.”
The franchise offers a “good balance” of owner independence and operating within the system.
“Obviously, as a franchise, we have to have our systems and balances in place as far as brand reputation and management,” he says. “So when they sign the franchise agreement, they’re opting in to abiding by those sort of brand standards and brand guidelines.” But the franchise also considers itself to be “entrepreneurialminded” and will have a franchise advisory council so franchisees can gather and share new ideas and opportunities.
LaundroLab began 2021 with a goal of finding its first five investors. It’s now up to 11, spanning as far west as Phoenix and as far north as Burlington, Vermont.
“We’re looking to build a national brand. We’re being methodical about the markets that we approach but we’re being even more methodical about the type of owners and investors that we want in the system who can really bring the mission and vision to life.”
One of the newest players in the U.S. “ready-made laundry services” market is Mr Jeff. The franchise brand based out of Spain was founded in 2016.
Mr Jeff says it has modernized the task of laundry through a 48-hour pickup and delivery mobile app-based service. It started a pilot project to open flagship hubs inside existing Clean Rite laundromats in New York and Ohio, and two opened during 2021.
Mr Jeff offers two models: a “store within a store” concept where the franchisee sets up shop within an existing laundromat, and a traditional concept based on newly developed storefronts.
Shepherding the U.S. rollout is Managing Director Peter Stern: “We’re going full force in just traditional franchise sales and they’ll be newly developed boxes anywhere from 500 to 1,000 square feet.”
Picture a front counter for drop-off, with the equipment and production area hidden behind it.
“There’s a few machines, (Fagor) wetcleaning washers and dryers. All the dry cleaning is done through a wetcleaning process. It’s all done onsite. There’s a commercial grade steam table and ironing board in the back, wetcleaning machines and then regular washers and dryers to do all the wash and fold. Out of that same box, all the pickup and delivery would be done.”
Mr Jeff supplies the laundry-specific know-how and expertise, according to Stern: “We have a set-up team to help with the buildout, from permitting, construction, design. We’re just really a partner with them every step of the way of getting into the business, getting started, and then operations.”
The timeline for opening a traditional location would vary depending on site selection, lease negotiations, and local permit-
ting. Stern estimates the project cost for a traditional “box” to be $150,000 to $175,000, “all in.” There is a franchise fee, a royalty fee as a percentage of sales, and a monthly technology platform fee.
Independent laundries are asked to meet certain criteria to become a Mr Jeff franchisee.
“There’s definitely a quality standard that we want operators to adhere to but that would be flushed out in the vetting process of the franchisee, especially if they were already … doing wash and fold,” Stern says. “If their quality wasn’t measuring up to Jeff standards, it just wouldn’t be a good fit to begin with.”
Having operated a group of company stores for several years, Speed Queen Laundry is now offering franchise stores, according to Dan Bowe, general manager of franchise and retail operations at Alliance Laundry Systems. This past year, the brand built a Chicago flagship store that “showcases to new investors the exceptional quality and aesthetics that are part of this model.” The facility exceeding 12,000 square feet opened in July.
Quite simply, there are not enough hours in the day for owners to manage everything from marketing to customer acquisition, according to Bowe.
“Speed Queen Laundry franchises combine the company’s 14 stores and six years of learnings from corporate stores with its equipment, systems and processes to create a truly differentiated laundry business product for investors seeking a more hands-off turnkey solution,” he says. “Franchisees benefit from ongoing support and training from franchise success staff, as well as from the learnings of other franchisees.”
The length of time for project completion can vary depending on site location.
“Often, we have secured locations in our pipeline for prospective investors,” Bowe says. “If that is the case, we can go from signed franchise agreement to opening quite quickly. If we must identify and secure a location, the process is roughly 10 months from start to grand opening.”
Total investment can range from $500,000 to $1.5 million, depending on buildout costs, according to company materials.
Franchisees receive support and assistance in real estate, construction, marketing, operations, and training.
About having a level of independence, Bowe says Speed Queen continues “to adapt our offering based on the learnings from the group. So, if the service isn’t a distraction from the core service Speed Queen Laundry, it can be integrated. We want to stay focused on providing the best customer experience in the laundromat industry.”
Ultimately, investors have full control over their business, he says: “We give them the tools to secure a path to success. It’s important to note that a franchisee is not ‘buying a job.’ The franchise product is for investors who want to tap into our knowledge and formula for success. For investors who want a more independent model, we offer that product, too.”
Franchising meets a growing need in the laundry industry, Bowe believes: “Many new investors want to get into the laundromat business and reap the financial returns without creating a significant amount of work... It’s another product that we offer. Just as in the restaurant industry, where there’s room for franchises and independent restaurants, our industry can accommodate a variety of models.”
Commercial laundry equipment manufacturer Alliance Laundry Systems has tapped Eric Meyers to lead its North America laundro mat/on-premises laundry segment as general manager, the company reports.
In a recent reorganization, the company combined the two segments under one leader.
GE Appliances, a Haier company, reports it is entering the com mercial laundry space with new “WiFi-enabled, easy-to-use and powerful” front-load and top-load washers and dryers.
Meyers, who owns Stay and Play Deluxe Laundromats in Massachusetts, most recent ly was sales consultant for commercial laun dry equipment distributor Yankee Equipment Systems.
He served 26 years in the U.S. Air Force and National Guard, piloting a variety of aircraft, including the A-10 Thunderbolt.
“Eric’s track record of success and communication skills make him a perfect fit for leading the sales organization we are build ing,” says Craig Dakauskas, senior vice president, North America Commercial for Alliance Laundry Systems. “I’m excited to watch him guide this team to next-level success.”
“I’m humbled to be given this opportunity... it doesn’t get any better than this,” Meyers says of joining the manufacturer whose brands include Speed Queen, Huebsch and UniMac. “I’m excited to begin building relationships with our valued distributor partners and end customers.”
By integrating advanced technology solutions throughout the entire cycle, business owners and property managers can offer customers a “seamless experience that’s rooted in convenience,” the company says, adding that it applied the same level of care, innovation and technology to its commercial products as its wellknown high-quality consumer laundry machines.
“At GE Appliances, we never rest on products that just meet expectations, we drive beyond to uncover new opportunities to bring breakthrough solutions to new industries,” says Peter Pepe, vice president of Clothes Care at GE Appliances. “We know that business owners are always looking for new ways to remain effi cient, productive and profitable while providing high-quality prod ucts to a wide range of customers. With our new line of commercial laundry products, we’re offering enterprises the opportunity to deliver exceptional performance in a compact form factor.”
The product portfolio features three top-load machines, including a 4.2-cubic-foot Commercial Washer, a 7.4-cubic-foot Commercial Electric Dryer and a 7.4-cubic-foot Commercial Gas Dryer.
For owners who prefer front-load machines, a 22-pound
Eddie Qaqish entered the laundromat business after a successful career in the retail auto business, where he was general sales manager of a thriving Nissan dealership. He retired from the auto industry to turn his focus to building promising retail enterprises on his own.
His first venture, according to commercial laundry distributor Western State Design, was acquiring, remodeling and reopening a liquor store in a shopping center a few blocks from his home. His “Super Liquor” store has been so successful that Qaqish says he plans to expand it and purchase the smoke shop next door.
A few years after acquiring the liquor store, Qaqish jumped at the opportunity to take over the lease on an old, rundown laundromat in the same Asuza, California, shopping center in March 2019. He says the 2,200-square-foot laundromat was more than 25 years old, had a hodgepodge of equipment, no service, and had not been upgraded for years.
His plan was to run the laundromat “as is,” remodeling it in stages. First, he thought he would purchase some new Dexter Laundry commercial washers and dryers to replace the worst of the inherited equipment, to tide him over for the short term. Based on prior research, he considered Dexter machines to be the “gold standard” for vended laundries in terms of durability, reliability and user-friendliness.
He also committed to spending as much time as possible at the store, understanding that providing top-notch service to his customers will make his business stand out.
As he operated the laundry prior to the partial remodel, he realized the value in acquiring more than just some equipment, and instead decided to install almost entirely new equipment.
Within no time, customers started flocking to his store to use the
new Dexter machines, according to Qaqish. They were attracted to the appealing, new stainless-steel machines and loved how they worked — especially how fast they were. They also expressed appreciation for the improved and personalized service.
This early success prompted him to reequip completely: in October 2020, he ordered additional Dexter washers and dryers to replace the last of the older equipment in the store. By early 2021, when all was said and done, in consultation with Western State Design’s Steve Erlinger, Qaqish had installed 32 coin washers—11 T-300 (20 pounds), eight T-400 (30 pounds), eight T-600 (40 pounds) and five T-900 (60 pounds)—and 17 dryers—13 30x2 (30 pounds) stacks and four 50x2 (50 pounds) stacks.
Erlinger, a coin laundry industry veteran, knew from experience that it made sense for Qaqish to retool completely from the start.
Over the years, Erlinger has witnessed more than a few operators waste time and money trying to limp by with old, decrepit equipment in a dark, dingy store. He’s long stressed the importance of laundromat customer service in order to stand out from the competition.
Qaqish quickly realized the value of the new equipment as he spent time interacting with customers and began to understand what drove new business.
In addition to boasting a full complement of modern, high-efficiency Dexter commercial laundry equipment, the owner realized he could attract even more customers by making his store a more appealing and welcoming space. He freshened up the exterior and the interior and added popular amenities such as plenty of free parking, free Wi-Fi, and stocked soap and snack vending machines.
Having seen the value in providing customers with exceptional customer service, Qaqish hired full-time attendants. He also started offering fluff-and-fold service, after learning best practices from a consultant. He accepts bags in three sizes that customers can fill with laundry to bring in to be washed, dried and folded: small ($20), medium ($30) and large ($40). Always the entrepreneur, he sells the bags, too.
Super Wash Coin Laundry is open from 6 a.m. to 9 p.m. seven days a week. Qaqish says business is booming and he has yet to advertise outside of the “Grand Opening” sign that once hung at the store entrance. When he asks people how they heard about the store, they tell him it is because of the sign or word-of-mouth.
“I love the business as it’s much less stressful than selling cars,” Qaqish says. “But more importantly, I enjoy meeting and getting to know the people and hearing how thankful they are for such a great store for the neighborhood. The more relaxed work schedule is also nice!”
There are certain things an owner has to do well and pay attention to in the laundry business, Qaqish believes, but doing so isn’t really hard. You just have to be diligent and consistent, he says.
Asked if he had any regrets, Qaqish says he wishes he would have bought more of the 60-pound washers because “customers love them.”
Service Technician Wanted
Laundry Equipment Services is seeking an energetic, positive person to help with installation, service, and repairs of commercial laundry equipment in the mid-Atlantic region. Benefits include, company vehicle, on the job training, retirement plan, health insurance, pto, holiday pay and competitive salary.
Job Requirements:
• Experience is a plus
• Mechanical ability
• Willingness to learn
• Ability to identify and resolve mechanical problems
• Ability to work in an independent environment
• Ability to lift and/or carry 100 pounds
• Great customer service skills
• Excellent motor vehicle record
• Ability to pass a drug screen and a background check
Submit resumes to Laundry Equipment Services email: info@leslaundry.com or call 800-866-6905
Sales Representative Wanted
Laundry Equipment Services is seeking a highly motivated hard-working individual with sales experience to represent our company as a sales rep. Meet potential clients, educate, & provide them the info they need to purchase commercial laundry equipment & ancillary items.
Responsibilities:
The ideal candidate must be a loyal, honest, & ethical sales representative. You will provide solution selling techniques to a variety of different customers within the commercial laundry industry. Lead generation, lead follow up, quotation, sale closing, after sale follow up, paperwork.
Candidate must be motivated, organized, tech savvy, a great communicator & able to work independently. Traveling around the DMV i95 corridor for face-to-face interactions, continuous phone, & email follow through. Company car provided; competitive salary & benefits package offered!
Requirements:
• Willing to travel
• 1-3 yrs. outside sales exp
• Valid driver’s license
• Good driving record
• Familiar with a CRM & Microsoft Office
Submit your resume to info@leslaundry.com or call 800-866-6905
Commercial Washer and a 7.7-cubic-foot Electric Dryer will be available in summer 2022, and a 7.7-cubic-foot Commercial Gas Dryer will debut in the fall.
Onboard management will help owners manage and monitor connected fleets across properties without having to be on-premise. The equipment will also feature an app-based coinless pay system.
More information about the rollout is available at https://www. geappliances.com/commerciallaundry
Card Concepts Inc. (CCI), an innovator of automated payment systems, has welcomed three new Level 1 support technicians to its support team, the company reports. Warren Barnhart, Tyler Heller and Brett Norrell are the latest additions at CCI.
The new support techs provide full techni cal support for all CCI product hardware and software for store owners and authorized distributors during business hours Monday through Saturday, CCI says, and after-hours emergency support is also available under certain conditions.
Barnhart served as a military police officer with the U.S. Air Force for four years and has held several IT positions during his career. CCI says he brings an “uplifting, positive outlook to everything he does.”
Heller brings three years of professional IT experience to his new role. It isn’t common for all product hardware and software to be researched, developed, manufactured and supported in one place, CCI says, and Heller is excited to see the entire product lifecycle in close proximity.
Norrell attended technical college in Florida and received his CCENT (Cisco Certified Entry Networking Technician) cer tification. Since then, he has continued his education and received his CCNA (Cisco Certified Network Associate) certification.
“We have always been known for having the best support team in the industry (and) this investment into our support department proves the continued commitment to our customers,” says CCI President Steve Marcionetti. “We welcome Tyler, Warren and Brett to the team and look forward to the positive impact they will make here at CCI.”
As contactless methods of payment continue to gain traction worldwide, the CleanPay Mobile app for laundry from KioSoft has experienced dramatic growth, surpassing 3 million users, the company says.
The pandemic has accelerated the transition to mobile payment and the adoption of cash alternatives, particularly in the wake of
coin shortages. Laundromat customers and residential laundry users are gravitating to KioSoft’s iOS and Android app, growing its user base from 1 million to 3 million within one year.
KioSoft says that in 2017, it recognized how reliant today’s con sumers were becoming on their mobile phones for completing dayto-day tasks and realized there was a “gap in the laundry market.” It strategically developed CleanPay Mobile to offer the option for payment via app while in the laundromat or the laundry room.
The app offers “heightened levels of functionality and conve nience” by allowing users to add funds, view machine availability, start machines, receive real-time cycle notifications, and request refunds.
Meanwhile, benefits for the laundry operator can include greater revenue (laundry users not limited by cash may run more cycles, KioSoft says), owning customer data, access to cloud-based report ing/management, and the opportunity to brand the app.
Beyond the app, KioSoft also offers additional technology and support for flexible payment options.
WHIRLPOOL CORP. PROMOTES KLYN TO SENIOR VICE PRESIDENT
Whirlpool Corp. has named Pamela Klyn, vice president –Global Product Organization, its new senior vice president for Communications, Public Affairs and Sustainability effective Jan. 1, the company reports. She will join the Executive Leadership Team and report directly to Chairman and CEO Marc Bitzer.
In her previous role, she was accountable for all of Whirlpool’s Washer, Dryer and Commercial Laundry platforms globally, including the company’s long-term strategy to drive profitable growth across all regions.
Klyn will now leverage her extensive prod uct knowledge and global experience to advance the company’s sustainability goals. She will guide all communications for the company and take a leadership role in gov ernment relations.
She succeeds Corporate Vice President, Communications and Public Affairs, D. Jeffrey Noel, who will retire in mid-2022 after nearly 18 years at the company. Noel will work with Klyn over the first half of 2022 to ensure a smooth transition.
“Pam has been an outstanding leader at Whirlpool. She brings not only a strong technical understanding of the products and the types of purposeful innovation that exceed our customers’ expecta tions, but also a commitment to bettering the communities around her,” says Bitzer.
Klyn was hired into Whirlpool’s Technical Excellence Program in 1993 after graduating Michigan Technological University with a bachelor’s degree in mechanical engineering. She earned a master’s degree from the University of Michigan in 1995. During her time with the company, she’s held advancing roles in engineering, prod uct development, global innovation and marketing.
As part of the transition, Eleanor Reece has been named vice president of Global Communications. She joined the company in 2019 as senior director of Global Communications after serving across various communications and government relations roles in the private sector.
LG Commercial Washers and Dryers are built for constant use and long life cycle. Drive profit with durability.
Inverter Direct Drive™
Unlike the traditional belt and pulley system, the LG commercial laundry drum is directly attached to the motor, providing superior durability and reliability. Fewer parts equals fewer repairs.
Our powder coated finish creates the same durability as it does when painting a car. It ensures longevity and provides an easy to clean exterior.
To ensure superior performance, LG heat-treats the shaft which connects our drums and motors. This protects against gradual wear and tear.
LG Gyro Balancing System provides optimized performance through an advanced algorithm, which allows for errorless spin entry and on-time cycle completion.
Success starts with LG. Contact us at 800-256-1073 to get started with LG.
lg.com/us/business/commercial-laundry
The new ESD® Trident payment terminal provides the most technologically advanced acceptance for all payment options.
The PCI compliant unit is EMV chip enabled to provide for the highest level of card acceptance. It also supports NFC contactless credit card usage with tap and go convenience.
This new terminal supports ESD® generic and store branded loyalty magnetic stripe cards. This terminal will support the various loyalty card marketing plans and features of the ESD® card systems.
The ESD® CyclePayTM App can also be utilized with the reader to provide today’s consumer with mobile payment capabilities.
