NOLN - July 2021

Change of Pace

2021 TOPS IN THE INDUSTRY PAGE 34

FIND THE RIGHT REAL ESTATE

PAGE 49

MERCHANDISING MADE EASY

PAGE 52

Industry Forces Operators share the strategies, challenges, and triumphs of growing their footprints

PA G E 2 8

JULY 2021 / NOLN.NET

Brian Morrison moved from a corporate quick lube career into shop ownership with strong, sustainable growth in mind.

2

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AGENCY: CLIENT:

Wunderman Thompson/Atlanta Jiffy Lube

6/4/2021 11:52:53 AM 1/3/20 5:07 PM

2021

VOLUME NO.

36

ISSUE NO.

07

STEPHEN STINSON

CONTENTS

J U LY

COVER STORY How do operators in the top quick

lube franchises grow their networks?

Three leaders share their stories.

PAGE 28

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CONTENTS

09 ONLINE

More from the flower farming quick lube 10 EDITOR’S LETTER

Industry growth continues 12 BY THE NUMBERS

Shifting trends in oil recycling

QUICK HITS 16 INDUSTRY INSIGHT

Leading a top brand into 2021 and beyond 18 AROUND THE INDUSTRY

Supporting local high school seniors 21 ADAPT

High-tech maintenance barriers 22 SHOP LOOK

A wash and lube powerhouse

SERVICE 44 PIT STOP

How to say yes (or no) to pay raises 46 EDUCATION+TRAINING

Spot leaders within your ranks 49 CASE STUDY

28 FEATURE

Growth Point

Operators talk about their paths to owning their local markets—and what’s next

BY M AT T H U D S O N

38 PROFILE

Bright Future Ahead

This young manager took an opportunity and ran with it

BY PAUL HODOWANIC

34 SPECIAL SECTION

TOPS in the Industry

Where the biggest names in quick maintenance stand

52 CUSTOMER SERVICE

Merchandising your shop brand

COLUMNS 25 FROM THE SHOP

What to consider when expanding

BY A DA M TAT U M

55 AOCA CORNER Big events on the horizon

BY KRISTY BABB

58 LEADING EDGE

To hire right, make the extra effort

BY LENNY SAUCIER

NOLN, VOL. 36, NO. 7 (ISSN 1071-1260), IS PUBLISHED MONTHLY BY 10 MISSIONS MEDIA, LLC, 571 SNELLING AVENUE NORTH, ST. PAUL, MN 55104-1804. COPYRIGHT ©2021 BY 10 MISSIONS MEDIA LLC. ALL RIGHTS RESERVED. NOLN CONTENT MAY NOT BE PHOTOCOPIED, REPRODUCED, OR REDISTRIBUTED WITHOUT THE CONSENT OF THE PUBLISHER. PERIODICALS POSTAGE PAID AT ST. PAUL, MN AND ADDITIONAL MAILING OFFICES. POSTMASTERS SEND ADDRESS CHANGES TO: NOLN, 571 SNELLING AVENUE NORTH, ST. PAUL, MN 55104-1804.

6

STEPHEN STINSON

FE ATURES

Find the right building for you Paving the Way Brian Morrison took his corporate quick lube experience and opened his own network of service centers that’s still growing.

NOLN.NET

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BY T H E N U M B E R S

07.21

VISIT

NOLN.NET TODAY

PODCAST

THE NOLN PODCAST NOLN has expanded its offerings of podcasts, bringing four monthly episodes to the airwaves. The podcast brings operators and industry experts to the screen to go in-depth with the editorial staff on topics that matter to shop owners.

BLOG

THE FLOWERING LUBE SHOP

You likely saw Peel’s Pit Stop of Celina, Ohio, featured in the May issue’s Shop Look. It’s a classic lube shop with a unique feature out back—a full greenhouse.

Co-owner Barry Peel Jr. revealed his surprising side hustle, which he does with his wife, Janice. They raise beautiful flowers and pumpkins, depending on the time of year. It started by selling straw to the nearby agricultural community.

“I was selling bales of straw, and I found a greenhouse was cheaper to put up than a building to store my straw in. And it just kind of mushroomed,” Peel Jr., says.

WILLOW LANE PHOTOGRAPHY

Green Thumb Peel Jr. says that he learned his skills in the ’80s during high school, when he worked at an open air produce market in Detroit. That was also when he first started to catch interest in the nearby auto shop.

“I was in high school, so I would go up and watch the guys in the shop,” he says.

Fast forward years later, and the Peels run their own quick lube, which they acquired in 2001. They operate in Celina, which is an important hub for a bustling regional agricultural industry. You can tell by the mix of customer vehicles in the shop.

“I do a lot of farm trucks,” he says. “We do more pickups than we do cars, by far.”

Read more from this extra interview, which debuted online at noln.net/Greenest.

N O L N . N E T/ L I N K E D I N

N O L N . N E T/ F A C E B O O K

N O L N . N E T/ T W I T T E R

N O L N . N E T/ P O D C A S T S

Recent episodes tackle online reviews, employee needs, and leadership during rapid growth. It all can be found at: noln.net/podcasts.

NOLN NEWS Have you subscribed to the newsletter? NOLN will send the latest industry news, strategies and profiles straight to your inbox. Sign up at noln.net/subscribe.

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N O L N . N E T/ V I D E O S

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07.21

EDIT LETTER

VIEW FROM THE TOP Our annual list represents thousands of hardworking operators

LOOKING BACK AT THE DECADES OF

TOPS in the Industry lists in the NOLN archives, one thing remains the same: Jiffy Lube sits atop.

So much else has changed, however.

To most of you readers who follow the industry closely, the TOPS list says a lot about what those changes have been over the years. Brands have disappeared or consolidated over that time as the big names Hoover up smaller chains. That creates its own dynamic lower on the list, carving out space for smaller operators to stake their claims as dominant regional forces.

10

We chose to do the TOPS list (page 34) a bit differently this year. Instead of a long list of brand names, we’re focusing only on the 25 names that make up the majority of the industry. It’s the bellwether group for quick maintenance nationwide. In addition, our team added some commentary from an industry leader to put more context around what it means to be among the top brands around.

The list is meant to pair with this month’s feature story (page 28), called “Strive for More.” The story features three operators who play important roles as franchise owners for major brands on the TOPS list. The goal is to go beyond the list and build a story around TOPS—to highlight the people who build their own success, step by step. Behind a network of dozens, hundreds, or thousands of quick lubes are individual operators like those featured this month.

Speaking of impressive individuals, I’d invite you to check out this month’s profile story (page 38). So often, the magazine focuses on the people at the top of quick lube organizations. This story shines a light on a bright young manager who is the kind of employee that every operator wants on his or her team. A good opportunity is just the start, and this manager shows what can happen when you respond and flourish with a chance like that.

With all these big brand names flying around, you might ask, “What place do the little guys have in NOLN?” The answer is that they play a huge role. The editorial team and I strive to show a complete picture of our industry, big and small.

Make sure to read this month’s Shop Look (page 22) that features a local shop that made some smart investments early on. We’ve also got the owner of Georgia-based East Coast Lubes in the

magazine (page 46) talking about how operators need to spot talent within their ranks and build their talents for greater things.

So what should you do with the TOPS in the Industry list?

It’s always one of our most popular special projects at NOLN. Information is power, to be sure. If you know your markets and know your industry, you’ll be better prepared to anticipate and evolve alongside the business. Maybe a big acquisition happened right in your backyard, in your local market. How do you respond?

Whether you’re in a franchise system or an independent quick lube, my colleagues and I will be looking toward you to judge which way the wind blows in this industry. From time to time, I speak to an operator who explains a certain training program or service process that they shared with other operators.

Before they know it, that idea has spread throughout a franchise or operator peer group. That’s real impact, and it shows how each small action can help lift the industry a bit higher.

We try to imitate a similar idea in the magazine. Tell me what’s working in your shop, and we’ll share it within these pages. Hopefully it will inspire the next shop owner to improve a small part of their own operation.

MATT HUDSON SENIOR EDITOR, 10 MISSIONS MEDIA

NOLN.NET

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07.21

BY T H E N U M B E R S

CUTTING DOWN ON WASTE

Oil recycling can be a great environmental service for shops.

Manufacturers have found lots of uses for spent engine oil, including the potential to be remade into new oil.

Used oil pickup used to be a small but steady revenue stream.

In 2010, more than 90 percent of operators reported getting paid for used oil pickup. These days, the landscape is more mixed, depending on the facility’s region and local markets for used oil. Here’s what operators reported as part of the 2020 Operator Survey.

FOR USED OIL PICKUP, OPERATORS ARE: 0% PAID CHARGED

10%

20%

30%

40%

WHAT ABOUT FILTERS?

50% OF OPERATORS ARE NOT CHARGED FOR FILTER DISPOSAL.

LEARN MORE 12

Read all about how the market for used oil has seen big changes—and what factors make used oil viable today. The story is at noln.net/UsedOil.

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NEITHER

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AROUND THE INDUSTRY

18

ADAPT

21

SHOP LOOK

22

CARISSA DAVIS

QUICK HITS

INDUSTRY INSIGHT

SHOP LOOK Find out why this operator calls

this shop the “Taj Mahal for a car wash and lube center.”

PAGE 22

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INDUSTRY INSIGHT

JIFFY LUBE’S NEXT STAGE

Company president Edward Hymes talks about the trends shaping the company

BY MAT T HUDSON

16

EDWARD HYMES TOOK OVER AS JIFFY

Lube’s president in March 2020, shortly after a successful (and in-person) Jiffy Lube Conference and Trade Show. It wasn’t fully clear at the time how drastically COVID-19 would change things.

In an interview with NOLN, Hymes says that the pandemic reinforced the need to support franchisees so they could continue business in a way that’s as safe as possible.

“I’m really proud of the fact, actually, that 97 percent of our Jiffy Lube locations remained open throughout the height of the pandemic because of that support and us working closely together,” he says.

Hymes was also able to redouble

his focus on the first of his initiatives at the head of the country’s largest quick lube network. That is the customer experience, and while that would have been the same without a pandemic, COVID-19 did require more attention on how customer attitudes might be different moving forward.

Hymes says that he saw customer behaviors change a bit through 18 months of pandemic life, which requires service businesses to adapt to meet those preferences.

“Not only to address the consumers’ behaviors during COVID-19, but also we prepare to go forward and emerge with the new normal, I guess as they call it, from the pandemic,” he says.

JIFFY LUBE

QH

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the Jiffy Lube Multicare model, and all new stores that we are putting in place offer those expanded services,” he says.

The Multicare approach of adding brake, tire, spark plug, and other services to the menu reflects company research that shows customer preferences toward a true one-stop shop, Hymes says. It has also been a good move for nationwide fleet service, which is a big part of Jiffy Lube’s business. The company can leverage its geographic reach and standardized Multicare service so national fleets know what to expect at any location.

“It basically enables the fleet customers to get in and out quickly so they can get back on the road for their business,” Hymes says.

App Development One way that Jiffy Lube looks to push customer experience forward is through its mobile app, called MyJiffyLube. It’s one way that the company is looking to extend the customer experience beyond the bay doors and into the digital space.

While lots of quick lubes are dabbling in the digital space—whether it’s social media, apps, digital coupons, or newsletters—it’s still an emerging area for customer acquisition and retention.

There’s a lot of interest in the use of telematics information, customizable service reminders, and service histories that could really boost retention.

According to Hymes, Jiffy Lube sees its app development as a promising start that will adapt and evolve as needed.

“To be successful, we’re going to have to enable that virtual experience for our customer, providing what they want, when they want it and how they want it,” he says.

Multicare Movement The rollout of Multicare has touched Jiffy Lube’s entire network, Hymes says. It represents the second of Hymes’ big initiatives, and that’s to optimize the company’s business model. The growth of Multicare plays into Hymes’ third big initiative, and that’s to grow the network. In the first quarter of 2021, Jiffy Lube added 19 service centers.

“The majority of our Jiffy Lube service centers have transitioned to

The Long View Hymes offered a few reasons why he’s confident in Jiffy Lube’s model amid lots of news about the electrification of vehicles.

“There has been a shift in the way that OEMs are communicating their future production,” he says. “So we do plan to be prepared for that future, but I don’t think it’s just EVs as well.”

He points out that the market share for electric vehicles remains small, and quick maintenance shops are still well-positioned to serve hybrid vehicles, as well as all of the internal combustion models still on the roads today. There’s potential in brakes, tires, and other parts for electric vehicles that shops have already seen.

Hymes says that Jiffy Lube will pay attention to those trends, adapt as needed, and make use of its market power.

“We’re confident that the Jiffy Lube model is going to continue to evolve and innovate really to service the vehicle of the future, whatever that vehicle is,” he says.

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QH

AROUND THE INDUSTRY

800-468-1970 DevonLube.com

SpeeDee Oil Change and Auto Service added a franchise location in Winston-Salem, N.C., according to a press release.

The shop is located at 124 University Center Drive and has eight bays for quick maintenance and some repair work. Franchisee Brian Morrison is the operator and is expanding in the mid-Atlantic markets, the release says.

“My Winston-Salem team and I look forward to delivering on the same, outstanding service we deliver at our other locations—service that SpeeDee has been known for throughout the country for more than 40 years,” Morrison said in the release.

WASH, LUBE FACILITY WINS BEST REGIONAL OIL CHANGE

Fluid Transfer Machines Cleaners/Additives Air Compressors Wheel Service A/C Machines Vehicle Lifts

...and MORE! 18

Drive and Shine of Schererville, Ind., took home the Best Place for an Oil Change award for the region, reports The Times of Northwest Indiana.

Owner Frank Hatami models his leadership after the late General Electric CEO Jack Welch, the paper says. That means top notch training for management and good benefits for employees.

“It doesn’t matter how experienced you are or how good you are in your job, if

you have a negative attitude and you bring everybody else down, we don’t want you there,” Hatami told the paper.

The Valvoline Express Care in Munster took home second place. The Duke of Oil/ AutoFix chain in the region won third place.

ALLIED LUBE OPENS NEW JIFFY LUBE LOCATION

Franchisee Allied Lube Group announced the opening of a new service center in Texas.

The four-bay shop is located at 12701 Telge Road in Cypress, Texas, according to a press release. The service menu includes brakes, tires, and battery work, in addition to the oil change.

This is the second new location for Allied Lube in 2021, the release said.

STRICKLAND BROTHERS GAINS STRATEGIC INVESTMENT

Princeton Equity Group announced a strategic investment in Strickland Brothers 10 Minute Oil Change, according to a press release.

Exact terms of the investment weren’t released. The press release noted that Strickland Brothers has awarded 165 franchise licenses since it began franchising in early 2020.

STEPHEN STINSON

SPEEDEE ADDS N.C. LOCATION

NOLN.NET

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“This investment is a testament to our track record, and we are excited to have the team at Princeton Equity Group support our aggressive plans for growth,” Strickland Brothers CEO Justin Strickland said in the release. “Our shared values and vision for the Strickland Brothers brand will allow the company and our franchisees to continue providing excellent customer service at a much larger scale.

­

THE LUBE CENTER’S SINGING

Cleaner

TECH BRIGHTENS MOODS

Lube shop tech Marvin Mills has been serenading customers who visit the shop.

The Frederick News-Post reports that Mills likes to sing at work and shares his talents with drivers while performing regular service at The Lube Center in Frederick, Md. He’s been a steady presence at the shop for 15 years and has received awards from parent company WLR Automotive.

Years ago, Mills worked at a large hotel in Los Angeles, often bumping into celebrity guests. He moved to Maryland to be closer to his mother. Now in his current job, he’s developed a bit of a fan base as the singing lube tech.

“Life is too short to be any other way,” Mills told the newspaper. “Smiles are contagious.”

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Get more industry news at noln.net

Makes your place SHINE

X TO

Masterlube of Billings, Mont., helped out high school seniors for Grad Day. KPAX reports that seniors and parents raised money by washing cars in Masterlube parking lots. The shops also donated all the revenues from oil changes and wiper blade sales.

Also part of the longtime tradition is for students to paint murals on the sides of Masterlube buildings to represent each of the local schools.

PrimeLube Lube Prime 1-800-634-4615 1-800-634-4615 RelaDyne RelaDyne Great Lakes Lakes 708-599-8700 Great 708-599-8700 Mid-South 318-368-3101 Mid-South 318-368-3101 Midwest 800-786-2803 Midwest 800-786-2803 Northeast 800-352-2776 Northeast 800-352-2776 Oklahoma 800-256-5017 Prime Lube 800-256-5017 Oklahoma South 800-256-2512 1-800-634-4615 South 800-256-2512 Southwest 713-747-7411 RelaDyne Southwest 713-747-7411 WestLakes 801-561-4251 Great 708-599-8700 West 801-561-4251 Reisner Dist Reisner Dist Midwest 800-786-2803 1-800-293-2197 1-800-293-2197 Northeast 800-352-2776 West Texas318-368-3101 800-588-4662 Rowleys Wholesale Mid-South South 800-488-8411 Gulf Coast 800-256-2512 Southwest 713-747-7411 West 801-561-4251 Reisner Dist 1-800-293-2197 Rowleys Wholesale 1-800-769-5397

Call 1-800-528-0334 for questions or samples Sampson-BladenOilOil Sampson-Bladen CoCo 1-800-341-9266 1-800-341-9266 S&E Distribution Service Champ 1-888-251-2609 1-800-221-0216 Service Champ 1-800-233-9041 1-800-221-0216 Steve Shannon 1-800-233-9041 Automotive Warehouse Sampson-Bladen Oil Co Steve Shannon 1-800-343-8473 1-800-341-9266 Automotive Warehouse S&E Distributors Service Champ 1-800-343-8473 1-888-251-2609 1-800-221-0216 Tyree Oil 1-800-233-9041 Tyree Oil 1-800-669-0760 Steve Shannon 1-800-669-0760 Whitfield OilCo. Co. Automotive Warehouse Whitfield Oil 1-800-343-8473 1-888-394-3835 1-888-394-3835 S&E Distributors 1-888-251-2609 Tyree Oil 1-800-669-0760 1/16/19 11:39 AM Whitfield Oil Co. 1-888-394-3835

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K E Y I N S I G H T S , T R E N D S A N D S T R AT E G I E S F O R T O M O R R O W ’ S I N D U S T R Y—T O D AY

FIND OUT EVEN MORE

TECHNOLOGY BARRIERS TO REPAIR A report submitted to Congress by the Federal Trade Commission seeks to address some crucial roadblocks that independent repairers have when working with the newest vehicles.

Called “Nixing the Fix: An FTC Report to Congress on Repair Restrictions,” the report follows hearings and testimony about the tug of war between OEMs (and affiliated dealer service centers) and independent repair and maintenance facilities. The report sought to identify potentially unfair practices and suggest paths forward.

Trade groups like the Auto Care Association and the Motor and Equipment Manufacturers Association praised the report and it’s findings, which included that OEMs showed no evidence “to suggest that independent repair shops are more or less likely than authorized repair shops to compromise or misuse customer data.”

Take a closer look at some of the report’s findings that deal with newer vehicle tech and data.

SOFTWARE LOCKS

GETTY

One barrier raised in the report involves “software locks” that control access to onboard vehicle systems. OEMs argue that they need to secure their proprietary technology and aid security, while independent repairers say that it locks them out of necessary and commonplace maintenance and repair.

Similar issues have played out in right to repair cases related to Apple and John Deere products.

One trend reported to the FTC is called “VIN burning.” Here’s the description in the report: “With VIN burning, a manufacturer can constrain a part to function with only a single car. Using the part on another vehicle would be blocked by the vehicle’s embedded software. This practice is reportedly being used by General Motors as well as a number of European luxury brands.”

To read the whole story that reveals more technological barriers, head to adaptautomotive.com/RepairRestrictions.

D E C E M B E R 5 –7 • N A S H V I L L E , T E N N .

The challenge to develop autonomous vehicles is similar to the challenge to regulate them.

Replacing the human driver with technology is a tall task for developers, but it’s also an interesting challenge for federal regulators looking to ensure safety across an emerging transportation sector.

Head to adaptautomotive.com/ Regulate to learn about how the NHTSA is moving toward regulation of AVs.

ADAPT TREND REPORT Want the latest automotive technology stories sent right to your inbox? Get the newsletter that will help you prepare for the future of automotive service.

Sign up at adaptautomotive.com/newsletter.

JOIN US ONLINE ADAPTAUTOMOTIVE.COM ADAPTAUTOMOTIVE.COM/FACEBOOK T W I T T E R . C O M /A D A P T_ A U T O M O T I V E

The ADAPT: Automotive Technology Summit Registration and hotel accommodations are open for The ADAPT: Automotive Technology Summit. The full two-and-a-half-day schedule is available at adaptsummit.com.

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QH

S H O P LO O K

ALL-AMERICAN SUPER CAR WASH OPERATOR:

LARRY AYRES

LOCATION:

WICHITA FALLS, TEXAS

STAFF SIZE:

7

SHOP SIZE:

3 BAYS

AVERAGE CAR COUNT:

50

TICKET AVERAGE:

$100

BY MAT T HUDSON P H OTO S B Y C A R I S S A D AV I S

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ORIGINAL BUILD Operator Larry Ayres built this location back in 1997, and the combination car wash and lube shop made a big splash as the one-stop-shop service center.

“Taj Mahal for a car wash and lube center in Wichita Falls, Texas, which is a city of 100,000,” Ayres says. “It was 90,000 at the time.”

He grew a network of car washes over time, but this shop remains the only ground-up build. The chain of five car washes includes two quick lube shops.

One great feature as part of this build is the full basement. The space for inventory and movement helps techs stay comfortable and efficient.

“The entire underneath of the building is a basement,” Ayres says. “We’ve got lots of room underneath. We keep it very clean, so it’s organized and we can have the filters available. It makes for a quick process.”

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H AV E A N O U T S TA N D I N G S H O P T O S H A R E ? E M A I L N E W S @ N O L N . N E T

BAYS OUT BACK Ayres says the shop is focused on speed in the quick lube bays. For longer services like flushes, brake jobs, and tire rotations, there is another structure out back with six bays. There are lifts and alignment racks as needed.

That allows the shop to expand services but keep the main lube shop available to express work.

“Being three bays and having the back shop is probably the best thing that we did,” he says. “Having that separate shop for preventative maintenance keeps the oil changes flowing through those three bays.”

ADDED AMENITIES Ayres says that he’s worked to optimize the shop for speed and efficiency, with customers staying in their cars through an oil change and included car wash. They can be in and out in a half hour.

To help sales in those additional service bays, the express bays are outfitted with alignment check machines that can quickly diagnose a needed alignment. That work would then be handled out in the back bays.

Another nice touch: They are able to pump cool air into vehicles when the temperature rises.

“It’s hot in Texas, so we’ve got air conditioners that we pop into the vehicle,” he says.

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FROM THE SHOP

c

So You Wanna Grow?

Tips and tricks to ensure that you make the right move NOW THAT THE WORLD HAS BEEN TILTING BACK

ADAM

TATUM

Adam Tatum is director of operations for the Virginia Group, a Jiffy Lube franchisee with 11 locations.

He has over a decade of experience in the industry with a proven track record of building customer counts and sales, as well as using innovative ways to bring a new look to the automotive field for both the customer and the employee.

Performance comes from growing your business through people.

ATAT U M

LUCAS MOORE

@VALUBE.COM

toward normal, with vaccines happening and mandates being lifted, you are looking to the future.

With the market that we are in right now in real estate and SBA loans having the $0 down, the time is right to expand your empire. Before you jump into the deep end of the pool and get yourself in trouble, answer a few questions and do a little homework. It is easy to add stores, but are you doing it wisely?

Do your homework.

One critical mistake to make would be to just go out there and plop a store location down somewhere just because you do not have one right now. Do a little research beforehand with the area. You want to consider the population, the median income, and most importantly, the number of competitors in the area.

That pie can only be sliced but so many times with the customer base.

Taking a ride in the market is a valuable piece of knowledge. You will get the opportunity to see how the traffic flows around your potential property and how others are doing in their businesses. If your competition is not doing cars when you are checking out the area, that could be a sign that you may be looking in the wrong spot. Patience is a virtue. That wisdom applies to business, too.

Own or lease?

This is an important piece of your decision making about growth. The rule of thumb is that land is king.

But look at the options out there for properties to just move into or convert. Some advantages can be said for this way of going to business in a new market. It allows you to get a foothold and see if you are in the right place.

If you want to own the land, remember that it’s so hard today to get the right properties for a competitive price. Those selling the property will generally overvalue their plot of dirt based on a Target a block away or the number of vehicles driving by each day. Sure, that is all important in our business, with anchor stores bringing business

to that road, but a little searching could get you a much better number.

Make decisions.

When you are growing, sometimes you will need capital. It can be difficult to know what type of financing is right for you. If you are just looking for a short-term injection of cash to get you started, then a long-term loan would not make much sense. Also, you want to investigate the terms of the loan and the interest rates, as you do not want to be in the line for years for cash that was used in a few short months. Funding is just one part of the growth process, but make sure that you are managing your cash flow. Forecast your short-term and long-term expectations for the business and take this into account. You do not want to get so deep that you are working and making no distribution.

Use your network.

Another way that you can expand your empire is to get your name out there with other business professionals. Join some groups on LinkedIn, attend business seminars, and get it out there that you are looking. There is a potential that one of these network contacts knows of a spot in your area or can get you in contact with another business owner looking to get out. Even if you cannot find what you are looking for, listen to their insights. You gain valuable knowledge in hearing what others did right and wrong prior to you making the same.

At the end of the day, expanding your business involves several decisions that have a calculated risk, moving your business into the future.

Only you will know how much is too much for you and your business, as well as what you expect to get in return. Decide how best to approach the locations, staffing, and financing. Do not forget that expanding a business takes effort, planning, capital, and a lot of signing documents. Be sure to look at your business’ past performance and make the right decisions to grow that performance. But do not forget that you do not just go sprinting into the first opportunity that hits the board.

The tortoise will always beat the hare.

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WE BUY QUICK LUBES

658 658 LOCATIONS PURCHASED SINCE JANUARY 2014, AND COUNTING! Valvoline is seeking single and/or multiple locations performing 7500+ oil changes per year. ™

Contact Gayle McMillin

859-357-7303

lgmcmillin@valvoline.com 26

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You have questions.

Valvoline is here to help. We offer independent owners like you a variety of resources to help answer pressing questions for the future of your business. Contact us for a free, no obligation consultation.

Learn More

Visit www.valvolinequicklubes.com Call Gayle McMillin at (859) 357-7303

TM

Trademark, Valvoline or its subsidiaries, registered in various countries.

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SM

Service mark, Valvoline or its subsidiaries, registered in various countries.

6/9/20 3:00 PM 6/24/2021 12:33:39 PM

B R E A K I N G B Y

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T H E

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P H O T O G R A P H Y

B Y

S T E P H E N

O F

G R O W I

S T I N S O N

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G R O W I N G

Q U I C K

L U B E

N E T W O R K S

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STRIVE FOR MORE

Making it to the top isn’t easy.

That’s especially true in the franchise structure, which makes up so many brands in NOLN’s annual TOPS in the Industry list (p. 34). Success depends on a strong brand at the top and the determination of each franchise owner at the unit level.

Steve Isom knows what the work is like. He’s been building quick lube networks for three decades. His current franchise, Stonebriar Auto Services, has plans for 150 Jiffy Lube Multicare shops within five years.

Growth is the name of the game in quick maintenance, whether you’re looking at 20 shops or two.

“That’s big,” Isom says. “When you go to two, you just doubled your business. Nobody can diminish that.”

TOPS shows the final numbers—where the biggest brands stack up with regional and nationwide shop networks. In this story, take a look at the individual efforts that go into making each brand part of a growing industry.

You’ll find that success across the industry has many different stories with a lot in common.

EXTENSIVE GROUNDWORK Steve Isom

Brand: Jiffy Lube Multicare TOPS Rank: 1 Stores in this Franchise: 30

The goal is clear and ambitious for Isom’s outfit.

“We’re planning on having around 150 stores in a five-year period,” he says. “So it’s a pretty aggressive growth strategy.”

The company opened its first 29 stores over eight months in a pandemic-shrouded 2020, and the company doesn’t look to slow down its momentum with mostly new construction of Jiffy Lube Multicare shops.

This kind of growth trajectory wasn’t an accident. It required a lot of planning and time before the first store went up.

Relying on his experience, Isom and his team spent 21 months making plans for a franchise that could be deployed quickly

30

and effectively—all before the first store went online.

“So everything we were doing in the very beginning, before we were opening stores, was all knowing we were going to be opening stores quickly and spread out, and how we could deliver a high level of service for our customers,” Isom says.

Proper Partnerships During that planning phase, Isom and his team laid the groundwork for a quick growth plan. That meant examining every part of the business and making sure it was ready for that level of change with Stonebriar’s large geographic area.

The company has plans to reach 13 states by the end of 2021.

One of the first items of business was finding vendor partners who could keep up with that growth.

“With us having a spread out-footprint, you could end up with a million different vendors, suppliers all over,” he says. “The first thing was that everybody

Top That Brands get to the top of the TOPS list through the work of individual operations, like this SpeeDee run

by Brian Morrison.

SECOND OPINION

“And as you grow store count, it’s that much more critical that you have a strong process in place. Not just for when a customer pulls up, but everything. From your back office and how you manage payroll and accounts payable and receivable and the employee handbook and missions and mottos.”

—Brian Morrison, owner, SpeeDee Oil Change and Auto Service of Spartanburg, S.C.

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ACCOUNTABILITY IN ACTION Gregg Gaskins

Brand: Express Oil Change and Tire Engineers TOPS Rank: 10 Stores in this Franchise: 7

we work with has got to be a national provider that reaches every one of our current and future locations.”

Having a vendor that works with Stonebriar’s scale allows Stonebriar personnel to focus more on hiring and training rather than managing multiple accounts.

Road Warrior It’s not unusual for Stonebriar to have multiple openings of new stores in one day. Anticipating this, it was key to make sure the store-level preparation went as smoothly as possible.

When Isom and his colleagues worked to streamline the setup procedure for the new stores, they reexamined some tasks that are necessary, but time-consuming.

That’s the process of setting up equipment, software, tools, and inventory.

The solution was to designate someone who could handle those tasks for each location with the help of vendor assistance.

“The way we do it is turnkey. We have all that done with one internal person and our vendor partners to do that,” he says. “So our store managers, district managers, they’re walking into stores hiring and training and nothing else.”

Before you know it, the store-level manager is focusing on customer care and not troubleshooting software.

Gregg Gaskins was a professional in the medical device industry before getting into auto maintenance and repair.

When he did jump into the industry, he made a big splash in his South Carolina market, growing a successful regional network of shops and building a community service reputation as well.

“We’ve been at it 15 years as Express Oil Change and Tire Engineers, fundraising annual donations to local food shelves,” he says. “And it’s absolutely been an interesting and successful ride.”

As the franchise owner, Gaskins has been able to shift day-to-day duties to trusted managers while maintaining the strong values that got the business off the ground in the first place.

Set the Standard Gaskins started with a single store in Columbia, S.C. He worked as the store manager there for two years and became a successful leader in the industry.

“And then we opened up a second one, and I was store manager there for approximately two years,” he says. “Once we got the third store, then I started to step out of the day-to-day and focus more on development.”

That can be a tough transition for operators who have put all their effort into the processes and culture that made the first couple of locations grow. In Gaskins’ case, that transition came quickly in 2011, when the company opened stores three and four within a couple months of each other.

“The biggest thing for me was making sure that your culture and your core values, your message was getting down to the troops,” he says. “That was

the most difficult thing to make sure was happening.”

His solution might sound obvious: meetings. What Gaskins made sure happened was that meetings had a rigid schedule, so they were sure to happen.

Each meeting had an agenda, so that important topics were always covered.

Without that regular format, it can be easy for meetings to become too casual, with missed opportunities to focus on important (or sometimes thorny) topics.

Sticking to a format means accountability is part of the process.

“Everybody is being held accountable to their peers and to our director of operations,” Gaskins says.

SECOND OPINION

“I try to set the messaging and culture, but they report on their results. We start every Monday morning talking about our customer service metrics.”

—Steve Isom, executive vice president, Stonebriar Auto Services

GREGG GASKINS’ MEETING SCHEDULE LEADERSHIP TEAM MEETING When: Every 2 weeks Time: 1.5 hours MANAGERS MEETING When: Weekly Time: 1.5 hours DAILY STORE-LEVEL HUDDLE When: Each morning Time: 10-15 minutes

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INVESTMENTS THAT MATTER Brian Morrison

Brand: SpeeDee Oil Change and Auto Service and Grease Monkey TOPS Rank: 10 Stores in this Franchise: 7

Brian Morrison’s network of SpeeDee Oil Change and Auto Service shops started with what he calls a “diamond in the rough.”

It was the original shop he purchased in 2019, which came after he spent 20 years in leadership positions with another quick lube company.

That first shop in Spartanburg, S.C., had two employees and a manager. Now it has 14 employees and more than three times the monthly sales.

“I go into it with the thought process of investing back into the business until it stops growing,” Morrison says. “And find out what it truly can do if it has unlimited resources.”

kind of push you out. Like, ‘Hey, boss, I got this.’”

The right managers will thrive with the opportunity to take on responsibilities. Morrison says that it’s a great feeling to see those managers take the reins and reinforce your decision.

“And as they took care of it and demonstrated the capacity to take care of it, you gain confidence that they can and it’s the right thing to do,” he says.

“If you’re going to grow, you have to put people in place that you trust to run it in your absence.”

There’s one factor that needs to be in place for this to work, according to Morrison. The shops need to be well-staffed.

Hands Off Brian Morrison learned that it’s important in a growing network to leave the details to the trained experts on site rather than micro-manage.

Prepare for Growth Like the other operators in this story, Morrison started his franchise with plans for growth. In his previous job, he oversaw as many as 40 shops.

Like Gaskins, Morrison started as the day-to-day manager at the first location. He wanted the computer consoles arranged in the most effective way and the transmission flush machine in the most accessible spot. As the network grew, he empowered his managers to take on certain duties.

“It was hard at first,” Morrison says.

“Those first few weeks and months were a challenge. If you hire the right people and put the right people in charge, they

32

SECOND OPINION “Always make sure you hire the right people.

That’s always a hurdle.

And then making sure that you’re carrying that message to your direct reports as much as possible, too.”

—Gregg Gaskins, franchisee, Express Oil Change and Tire Engineers of Columbia, S.C.

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Staffing Up Brian Morrison’s shops always have plenty of staff on shift rather than the barebones operation.

People in Place Morrison doesn’t like to see operators become complacent with a low car count, particularly without making an investment in labor that can make a real difference.

It can be hard for an operator to spring for that extra overhead, but he says an anti-growth mindset can creep into the picture.

“I’ve seen a lot of what people call the death spiral,” he says. “As car counts decrease, they reduce staff. And because car counts decrease, they reduce staff

again. And so they have this bare minimum of three employees working during any given time, and maybe a total of four or five at the entire shop.”

Budget for healthy staff numbers.

That’s staffing for growth, Morrison says.

The best staff level might vary depending on the shop size, market, and potential.

But search for the ceiling with staffing, not the minimum.

“I kept adding people until adding people didn’t help,” he says. “I just kept adding people until the customer count didn’t grow because of that.”

Staffing is a big part of the puzzle, but it’s not the only factor. Operators need to make sure their operational processes are detailed and dictated down to each and every tech. They need to hold managers accountable with regular check-ins, and they need to exert their leadership talents where they’re able.

That’s how the brands in the TOPS list made it to those levels. It’s thanks to the individual successes of owners like Isom, Gaskins, and Morrison.

“I don’t know what the total number endgame looks like,” Morrison says. “I just know that it’s easy. It’s fun. It’s rewarding.

So right now, I don’t see an end in sight.”

Invest to Grow Brian Morrison warns against putting off necessary nvestments.

Operators need to stay ahead of shortfalls.

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Sponsored by

I N

T H E

I N D U S T R Y

R A N K I N G S

Each year, National Oil and Lube News compiles this list to highlight the top brands in the field—organizations that shape the quick lube industry today. The list represents the diverse group of automotive professionals and businesses that work every day to keep America’s vehicles on the road and working properly. While

it’s the goal of NOLN to highlight lube shop operators big and small, this list shows how the biggest companies are growing to meet the needs of customers and support staff members and their families.

2. Valvoline

4. Take 5

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1,327

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1,000

405*

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For 2021, the TOPS in the Industry list is supplemented with a new Q&A

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*Number of stores represent from 2020 TOPS listing and may not reflect 2021.

34

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T O P S I N T H E I N D U S T RY R A N K I N G S

supplement from a major industry stakeholder. Be sure to check that out, as well as this month’s feature story that highlights the growth of operators who work in some of the top maintenance brands.

Special thanks to Valvoline for sponsoring this edition of TOPS.

6. Quaker State Oil Change

400*

12. Shell

Rapid Lube

7. Grease Monkey

369

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100

Oil Change and Auto Service

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35

The Future of the Successful Lube Shop Dave Schletewitz is the automotive installed channel marketing manager at Chevron. He sat down with NOLN to take stock of where we are, where we’re headed and how savvy shop owners can get ahead.

How has the company developed its quick maintenance segment in recent years?

Chevron views its role in the important quick lube maintenance business as one that revolves around leveraging the strengths of our brands, our people and reputation for trusted, high-quality products; promoting a broader premium product line up that brings greater value to Havoline customers and consumers; and offering customers business insights and sharing best practices.

What does successful growth look like for the next few years at Chevron?

I’ll answer the question in the general context of our industry. As demand partially recovers post-2020, the near term priority is to regain stability of supply across all industry supply chains. As that happens we will see organizations return to a typical cadence of innovation (product, package and brand programs) and a resulting uptick in activity related to: renewables, EV and synthetic aftermarket fluids addressing niche OEM specifications. We’ll also see continued reduction in packaging materials and growth of branded products and networks that promote trust and peace of mind with end consumers.

How do you see the quick maintenance industry changing in the next 10 years?

Over the next decade, considering the trends, we can expect to see: gradual fluid demand compression; increasing cogs on related supplies; OEM powertrain technology advancements and specifications driving pricier fluids; growing demand for servicing alternative power vehicles; paying more to find and retain the right labor force; continued aging of the car park; and spending on auto maintenance.

Those who adapt and control their controllables will remain strong—speed and saving consumers time is the fast lube owner’s key value proposition (the stay-inyour-car model gets people in and out quicker); maintenance (adapt to capture more services); staffing should mirror one’s customer base (female employees/managers); disciplined management of retail prices to keep pace with increases in the cost of doing business; and most importantly, customer service—those who consistently deliver a service experience that exceeds consumer expectations will justify pricing and win over their local competition.

25. Fast

Change Lube and Oil

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6/22/21 11:45 AM

You have questions.

Valvoline is here to help. We offer independent owners like you a variety of resources to help answer pressing questions for the future of your business. Contact us for a free, no obligation consultation.

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Visit www.valvolinequicklubes.com Call Gayle McMillin at (859) 357-7303

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You have questions.

Valvoline is here to help. We offer independent owners like you a variety of resources to help answer pressing questions for the future of your business. Contact us for a free, no obligation consultation.

Learn More

Visit www.valvolinequicklubes.com Call Gayle McMillin at (859) 357-7303

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THE RAPID RISE of a Youthful Lea F R O M E N T RY- L E V E L T O T E C H T O S H O P M A N AG E R I N U N D E R A Y E A R , K E I T H S C O T T ’ S J O U R N E Y H B Y

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P H O T O G R A P H Y

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PROFILE

ISE Leader JOURNEY HAS BEEN UNIQUE

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TAKE 5 OIL CHANGE OWNER:

NLJ VENTURES, LLC

LOCATION:

ROCK HILL, S.C.

STAFF SIZE:

13

Seize It When circumstances handed Keith Scott a rare opportunity, he jumped on it and made a difference at his service center.

NUMBER OF BAYS:

3

AVERAGE DAILY CAR COUNT:

70-85

F

or most young adults Keith Scott’s age, they’d be on a college campus. Or enlisting in the military, like Scott once planned he would. Or maybe they’d just be starting out a career as a quick lube technician. Not Scott.

At age 21, Scott took over as the general manager of a Take 5 Oil Change location in Rock Hill, S.C, just nine months after joining the company.

And it wasn’t just an average location.

It was the “pearl store” according to Lee Johnson, owner of NLJ Ventures, which operates eight Take 5 locations in the area.

Open seven days per week Scott has been the leader of the franchise’s top-producing location for the last three years.

A Quick Rise Scott already had experience as a technician before he joined Take 5 Oil Change in the same capacity in August 2017. It was with that experience and a knack for leadership, that Scott says he’s had since a child, that he quickly became a prominent voice in the shop.

As is often to happen in the quick lube industry, there was turnover early in Scott’s

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tenure. At the company’s Christmas party in 2017, Scott was promoted to the assistant store manager. At that point, he thought he was on a great pace and happily expected to be in the role for a while.

Then five months later, the general manager role opened up, the top position in the store, and Scott was offered the job.

“It was a shock,” Scott says.

At age 21, Scott was skeptical about

taking the role at first. His plan was to work for a while before enlisting in the military. Taking the role at the store would delay, or possibly wipe out, that plan. He thought about his peers who were in college, or were just getting started in his career and wondered if he was ready for the step. After talking with his mentors, he decided to accept the job.

“There was no point in backing out,” he says. “Then it was just about making a game plan.”

There wasn’t as much skepticism on the side of Johnson, who had watched Scott make an immediate impact for the NLJ’s first Take 5 location.

Despite his young age, Johnson says he admired Scott’s straightforward attitude, evident leadership and maturity beyond his years.

“We wouldn’t typically turn over one of our pearl stores to someone that

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PROFILE

“Stay stern. You know the job.

You hired them. You know what you’re looking for.”

—Keith Scott, manager Take 5 Oil Change, Rock Hill, S.C.

young,” Johnson says. “But the long-term vision at his age was uncommon.”

Now 24, Scott has guided the location for three years and has helped more than just his store. Johnson says Scott has trained technicians and managers at several of NLJ’s other locations and is the leading voice in the group chat among store leaders, constantly sending out reminders and inspirational messages.

Balancing Youth with Experience At first Scott was a bit uncomfortable in the new role. Most of his peers were in completely different life situations.

Nobody was managing a business or the livelihoods of employees.

“It was weird,” he says.

He also had to combat the fact that the previous general manager was in his late 30s. With Scott at such a young age, he was managing employees who were several years older than him who needed to buy into Scott and his message.

But as a child, Scott was always spending time with his older brother and his friends. It was there he developed an older mindset, so while he is five years younger than his brother, he feels much closer to his age. He also has several younger brothers, one who now works for him in the shop. In that

sense, he feels like he’s “between two eras.” That mindset helped him quickly acclimate to the role with staff older and younger than him.

The team has responded to Scott’s leadership, which is centered around transparency and telling the hard truths.

“He’s got no problem telling his staff how it is,” Johnson says.

The first year was a lot of trial and error, Scott says, but he used the knowledge of some of the older workers to help guide him along. And when it got uncomfortable, Scott reminded himself of a few things. “Stay stern. You know the job. You hired them. You know what you’re looking for.”

He also credits his smooth transition to leadership to his commitment to working on the floor alongside his staff.

Despite having an assistant manager, a lead technician and a senior lead technician, Scott is rarely in the back office.

He’d much prefer to be working on the floor with the team.

Now 24, Scott isn’t the oldest in the shop, but he’s definitely not the youngest.

The worries of leading an older workforce are gone and the team has bought into Scott’s mindset. Earlier this year, the shop broke an NLJ record for weekly car count and sales performance.

One Percent Better What led to Johnson promoting Scott in the first place was never his skills as a mechanic. It was what he could do as a leader.

“It’s always been within me,” Scott says of his leadership prowess. “I love helping people and sometimes people just need

the motivation and push behind them. It eases my soul to be able to do that.”

Instilling a culture and strong team chemistry has been top of mind for Scott, which is why he instilled the “one percent better” rule. He asks his employees to be one percent better than the day before, both at work and away from it.

His emphasis on promoting good habits outside of work has been important, Johnson says. When it comes to cultivating relationships, “he’s the best at it.”

It’s common for Scott to host Christmas parties and cookouts at his house. He’ll organize a group to help employees move and after the recent record-breaking performance, he took the team go-karting.

For Scott, it’s all about creating relationships bigger than work. He knows his staff will spend hours a day in a hard-working, competitive environment.

He harkens back to lessons he learned playing football and participating in a band. Without camaraderie, he understands the shop will struggle.

“We connect like a web,” Scott says.

Johnson has also applauded the longterm approach that Scott takes with the job. Scott wants his workers to understand that working as a technician at the shop doesn’t have to just be a step along their journey. It can be, if that’s what the employee wants, but they can make a career out of it.

“I just want them to be the best.

Whether that’s here or somewhere else,” he says, adding that he uses his story to help motivate his younger workers. “I tell them, ‘I did it in a few months. You can do it,’” he says. “It’s not to gloat. I didn’t think I could do it, but ultimately you can do it.”

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PI T STOP

RESPONDING TO PAY RAISE REQUESTS

There’s an art to saying yes—and no BOTH FOR AN EMPLOYER AND AN EMPLOYEE, ONE OF THE MORE UNCOMFORTABLE

conversations to be had surrounds pay raises.

Everyone wants to get paid more and employees often have to summon up the courage to make the request, says Jeff Haden, small business writer and contributing editor for Inc. “That’s a tough thing for most people to do. Understand that,” he says.

So how should employers handle a pay raise request? What is the best way to say no? What is the best way to say yes? National Oil and Lube News spoke with Haden to find out.

A S TO L D TO PA U L H O D O WA N I C

Understand Emotion, Counter with Objectivity Expect for pay raise conversations to be uncomfortable for you. It’s going to be

uncomfortable for the employee, but it’s going to be uncomfortable for you too.

So the problem is it’s an emotional discussion for an employee. That

person has thought about it for a while. They’ve decided that they want a raise. In all likelihood they’re disgruntled in some way. They’re in an emotion-based place.

So when they ask, don’t get defensive. Don’t push back. It’s an important discussion for that person, treat it that way. Say, “Great, tell me why you feel you deserve a raise.” Turn it back to the person, not in a bad way, but to hear what they’re thinking. The key is you have to actually sit back and listen. Don’t immediately jump in. If you do, it will make the employee feel like they haven’t been heard, which is important in that discussion regardless of the outcome.

What you can’t do is to let the emotion drive the conversation. You shouldn’t consider or really discuss the person’s personal financial situation. The fact that the employee has several car payments shouldn’t be factored into the equation

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because everyone has those issues. How do you judge who deserves a raise more or less based on those external factors?

The second thing you don’t want to get into, if you can help it, is comparisons to how much someone else makes in comparison to another if they’re at the same job level. That’s a slippery slope you’ll have a hard time getting back from.

Saying No There’s a whole host of reasons why the answer might be no. Maybe the employee hasn’t met expectations, or maybe the company doesn’t have the financial standing to raise wages. But whatever the reason for saying no is, it needs to be performance-based. It needs to be quantifiable and it can’t seem like an opinion. Where you get in trouble is when your pay seems arbitrary. When it just seems like you gave out a raise because you feel like it.

So be honest and transparent with the employee. But also leave the conversation open. Be ready to tell them what they can do to earn a raise. “If you do X or Y or your metrics go up, then you can get a raise.”

Whatever those criteria are, you need to give them a target to shoot for.

And don’t compare them to other people. Have a set of standard expectations that every employee can reference and understand what they need to do to get a raise.

it’s great but then says, “But why did I have to ask?”

The best thing to do is deal with it right when they start thinking, “Well, why do I have to ask?” And say, “You’re right, and to be honest, I haven’t been paying as close of attention as I should have and you do deserve a raise so we are going to do that. And as part of that, I promise to pay better attention to the job you do and the value you bring.” Admit the fact that they deserve it.

Now this also opens up another slippery slope. I don’t care if you have a policy that says keep your pay confidential. People talk. I used to. If you grant a raise, it’s more likely more people will come talk to you about a raise of their own, which is why it’s even more important that whatever criteria you use to make a decision for one person, you can use and apply for the other people that come along.

Saying Yes The tricky part is that if you’re paying attention to your people, you should already know their value to you. So if they deserved it, you probably should’ve already given them a raise.

That’s an awkward spot to be in because if you listen to them and say, “You’re right, you do deserve a raise,” invariably that person leaves and thinks

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E D U C AT I O N + T R A I N I N G

TODAY’S SUPERSTARS, TOMORROW’S LEADERS

What employees need to take them from good to great

BY RYA N M C C A N N A

owners find leaders among their staff?

NOLN spoke with shop owner Lawrence Campbell of East Coast Lube in Pooler, Ga., as well as speaking professional and master certified coach Patrick Donadio of Columbus, Ohio, to learn about leaders and what it takes to keep them.

How can you spot a superstar?

What distinguishes a good employee from a great one? How do you know if you’ve found a technician who has the potential to be a shop manager?

It comes down to more than technical skill. Donadio identified several professional and interpersonal skills that superstars have, especially those with leadership potential.

“Don’t just look at performance,” Donadio says, “but try to see potential. It’s about finding people that are engaging.”

Campbell agrees that a team leader is more than just a technician.

“You’re never going to find all the perfect qualities in a single person,” he says, “but if you have a majority of them, you’re headed in the right direction.”

The traits Campbell and Donadio

46

identify as integral to potential leaders are accountability, conscientiousness, dependability, principals, and passion.

Accountability shows the employee’s awareness of their strengths, limitations, and their ability to see the consequences of their actions—especially when they need to give credit to the right person or to apologize.

“A leader answers for their failures, admits mistakes, and takes responsibility,” Donadio says.

Conscientiousness shows that the employee understands their role as an employee, but more importantly, as a person. Their self awareness helps them form strong social ties and navigate difficult situations.

“You want someone who is emotionally intelligent,” Donadio says. “You’ll see it in [other] employees’ reactions to them, in their personal relationships, that they’re interacting well.”

Successful leaders have remarkable communication skills and listen well, he says.

A dependable employee is one that shows consistency in their actions and words and displays discipline in how they manage their workload. Campbell

says he looks for problem solvers who follow a project through to the end.

Donadio identifies multitaskers as potential leaders.

“They have the ability to manage several things at once, who know themselves and can balance their assignments well,” he says.

A principled employee displays values and character even when no one is watching. They do the right thing because it is the right thing to do.

Finally, a leader is someone who is passionate. Even if their current position is not their dream job, they approach daily tasks with appropriate enthusiasm and curiosity.

“It’s about finding people that are engaging with the material, with customers,” Donadio says. “They’re forward thinking, solution-oriented employees who ask and act.”

How do you hire a leader?

Shops can disagree on whether it’s better to hire managers from outside of the company or to grow your own manager. However, both Campbell and Donadio agree that when it’s possible, they prefer to promote from within.

When hiring a manager, Donadio says

C A R I S S A DAV I S

HOW DO MANAGERS AND SHOP

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he recommends that operators start from the inside, since employees already understand the culture and structure.

“They also understand the strengths and weaknesses of the company and they have the potential to move into the role faster,” he says.

Donadio explains that seeing other employees get promoted often encourages their coworkers to emulate their behavior and reach for a higher position. Campbell adds that the shop environment benefits when employees are promoted from within the company.

“It’s a comfort factor,” he says.

“You work together, create a culture together. You’ll get more consistency and get more out of employees at every level.”

How do you train a leader?

Campbell and Donadio have different approaches to training leaders, but they both agree that an employer has to encourage and train their employees— leaders don’t spontaneously materialize.

“Training is not an event, it’s a process,” Donadio says. “To really make lessons stick, train from a process perspective. That includes a before, during

and after component. In general, think of training employees and see how folks are performing, as a progression.”

Donadio has more than 30 years in the field of leadership training. He is an author, a keynote speaker, a certified speaking professional, master coach and workshop presenter. He uses a signature multilayered and multimedia approach to leadership training.

One follow-up method he uses is encouraging employees to teach each other. After presentations or teaching sessions, attendees of his conferences engage in employee breakout sessions where they teach each other what they learned.

“As the saying goes,” Donadio points out, “teaching is like learning twice.”

Individual employees may have further coaching sessions to bring their potential as a leader to the next level.

Campbell’s shop features on-thejob training for its employees. They attend regular manager and company meetings, investigate new vehicle information, observe in-house checks and balances, reviews, and attend training with vendors.

How should leaders be evaluated?

Both Campbell and Donadio agree that once-yearly employee evaluations are not effective or helpful tools to encourage lasting changes in performance.

Donadio suggests, at a minimum, “semi-annual reviews when you want to identify and share, ‘Here’s what you can work on if you want to move up in the company.’” He also highly encourages regular feedback to help keep employees engaged. This helps an employer encourage behavior employees have seen and helps them set attainable goals.

When relevant, Donadio says that DiSC profile assessments are often helpful when determining employees’ and leadership’s communication styles.

The self-administered surveys categorize an individual’s personality into four profiles: dominance, influence,

steadiness, and conscientiousness.

Understanding where your team members fall on this scale, he says, can help a team improve its coordination and productivity in the workplace. The method is popular with Fortune 500 companies and several government agencies.

Campbell’s shop performs evaluations of strengths and weaknesses about once a quarter or every 90 days. He says he finds it to be particularly helpful to eliminate common errors and break down bad habits, or errors in logic, that may lead to mistakes. It keeps technicians’ sharp and keeps the lines of communication and feedback open.

How can employees demonstrate leadership?

Campbell says he’s passionate about encouraging his employees to demonstrate leadership in everyday tasks.

“Looking at just the word: leadership,” he says. “The ‘leader’ is the position, and the team is the ‘ship.’”

Leadership is therefore demonstrated in action and in team building.

When employees organize their work area, clean their desk, help their coworkers, and anticipate others’ needs, that all demonstrates leadership.

“Leadership is everybody,” Campbell says, “it’s action, not a position. Everyone in the building has opportunities to be a leader. Everyone can demonstrate leadership by following the example of their leaders. It’s our shop culture.

Leaders set things right for the benefit of our business and our customers.”

Donadio agrees, quoting author Mark Sanborn’s book, You Don’t Need a Title to Be a Leader.

“Even if you don’t currently have the capability to promote an employee, you should still foster leadership because everyone can be a leader,” Donadio says.

“In the same way rotating jobs improves a team’s skill level and empathy, rotating opportunities for leadership improves a team member’s sense of purpose in a shop and within the company.”

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C A S E S T U DY

UTILIZING USED BUILDINGS

Don’t let a building compromise the business model B Y PA U L H O D O WA N I C

BENJAMIN RINENBACH PHOTOGRAPHY

When looking to expand, there are two options. Build from the ground up, or use an already existing structure. While in many scenarios, constructing a building from scratch is the most desirable option, not every business will have the resources to do so and not every community will have space for one. So what should owners hoping to expand evaluate when looking at an existing building?

“A lot,” says Edward Hymes, president of Jiffy Lube.

THE CHALLENGE For any business, whether it’s a national brand like Jiffy Lube or a young and developing multi-shop operator, careful consideration and hours of site visits are spent to find the exact facility, both from where it sits geographically and what’s inside the four walls. The challenge is finding the best building that fits your business’s needs.

THE SOLUTIONS Pay attention to location.

This is the first step regardless of whether it’s a new build or repurposing an existing structure, Hymes says. Where the business sits has a great influence on whether

it will be successful. Hymes, and his Jiffy Lube colleagues, look at a litany of factors when considering where a shop should go.

Does this population need a quick lube? Is this area of people going to spend money servicing their car?

What is the traffic count? Will it be aided by other retail in the space? Is there an opportunity for synergy with other car care services?

“The last piece of it is probably the competition as well,” Hymes says.

“You really need to take that into account of where they’re placed and where you’re placed in relation to not only the population growth but the traffic flow as well.”

S

All of these are questions that need to be answered, and it’s not a onesize fits all discussion. Jiffy Lube has locations in all 50 states, both in rural and urban areas. There are no specific benchmarks that must be cleared, but all the factors need to be understood.

Make sure it fits the desired business model.

Jiffy Lube diverts a bulk of expansion resources into new builds. The main reason behind that, Hymes says, is it allows them to make sure their desired business model is carried out exactly how they want it. When going into an already existing location, unless you have the resources for a total remodel, it will likely require some concessions to the “perfect layout” you have in your head.

So when Jiffy Lube does use an existing building, there are several things the location needs to have to fit their business model.

First is bays. At minimum, Jiffy Lube needs three drive-in service bays, but Hymes much prefers it if it has at least four or five. Especially as Jiffy Lube prioritizes secondary services, those secondary bays have become very important, he says. For other businesses, three bays might be the right amount, or even too many, but for Jiffy Lube, that’s the ideal number.

It also must have an attractive and

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comfortable lounge for our guests.

That is a linchpin of any successful Jiffy Lube, Hymes says. The company is not afraid to remodel buildings to fit these goals, but some locations just don’t have the capacity for it.

“I think it’s no different than what any other retail business would be looking at,” he says. “The site has to flow. It has to fit with the service center. There has to be the right access and a consumer base.”

failures of the previous ownership is important when deciding to buy the building and/or business.

If the business was struggling, chances are there is a good deal to be had when acquiring the location, Hymes says. However, make sure those struggles are something you’re aware of and you feel comfortable potentially dealing with once you take over. If the potential acquisition is a successful business, understand the price will come with a premium. It will also be important to win over the existing customer base once a new brand is introduced.

If the building was vacant, and a new quick lube is moving in, then ask yourself: “Why is it vacant?”

Understand the previous business.

For Jiffy Lube, its brand has become synonymous with the quick lube industry. So its risk in opening a new location is less because the brand follows with it. For that reason, Hymes is confident that any new location will do well, regardless of how the business it is taking over was doing.

However for smaller operators, understanding the successes and

THE AFTERMATH After looking over all the factors, making a decision is the next step.

Understand whether the building is

available to own or just rent. Roughly 80 percent of quick lubes buildings are rented, says Mike Baynes, president of Auto Sales Inc. So especially if a shop is acquiring another shop along with the building, understanding the building’s lease terms are pivotal. Don’t assume the shop owns the building.

THE TAKEAWAY The physical building and the location of the building is just one step in the process of having a successful quick lube. A shop can have a space that fits all its needs and sits in the best spot in town, but if the customer service isn’t strong, or the product isn’t dependable, it won’t matter. At the same time, the right building and location is a pivotal component to developing a strong business. Make sure that whatever building is chosen, it meets the company’s standards for location.

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MAXIMIZING MERCHANDISE

Build an image through branded products B Y PA U L H O D O WA N I C

to market themselves appropriately and to as large or an audience as possible is essential. Most shops will run advertisements in local media, push their brand hard on social media, or send out mailers, but not too many shops consider merchandise.

Common in other industries, merchandise can be a great way to market a service while also creating a connection between the business and a customer that an advertisement or social post couldn’t.

Through the merchandising of t-shirts and stickers, Turbo Tim’s—a repair shop in Minneapolis, Minn. that does roughly 200 oil changes per month—has been able to cultivate a robust customer base that cares deeply about the success of a shop.

There are so many options to choose from when it comes to merchandise. Hats, t-shirts, sunglasses, pens, keychains, stickers—the list goes on.

So how should a shop decide what to choose and what should they keep in mind during the process? National Oil and Lube News discussed those questions with Rachel Grewell, co-owner of Turbo Tim’s, and Erin Shea, the North American market director for the online printing service Vistaprint.

Don’t treat it as another revenue stream.

The making of the Turbo Tim’s t-shirts were never intended to come with a high price tag, Grewell says. Currently selling them for $5, the shop will often give them away for free during community events and through different promotions.

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At first the t-shirts were just for employees. But after customers expressed interest in purchasing a shirt, Grewell saw it as an opportunity.

The amount of money the t-shirts generate alone isn’t much. They could charge more for them if they wanted to, Grewell says. But it’s not about maximizing the profit of every t-shirt sale.

To Grewell, it’s much more of a marketing and customer retention tool.

“There’s something to be said for return on investment, but when it comes to branding and brand recognition and community participation, it’s hard to put a value on that,” Grewell says.

And the cost doesn’t have to be enormous to purchase merchandise or other promotional items.

“Whether a business is buying in bulk or small quantities across our other product categories, it is easy to impact your business regardless of the size of your budget,” says Shea, adding that the average order is only $55.

By far, Turbo Tim’s most successful merchandise turned marketing campaign is its bumper stickers.

Available for free to any customer, the shop will give out a 10 percent discount for anyone that puts a Turbo Tim’s bumper sticker on their car. That discount lasts for the life of the car. So every visit that car makes with the sticker somewhere on it, they’ll receive a discount.

“We’re incredibly grateful when someone is willing to put something on a valuable asset of theirs that has our name on it. So we like to reward those customers,” Grewell says.

NATIONAL OR LOCAL?

Deciding where to order merchandise can often be as stressful as what to order. Rachel Grewell, co-owner of Turbo Tim’s in Minneapolis, has used both local and national companies for the shop’s merchandise.

While the t-shirts have always been made local, she began using a national manufacturer for the Turbo Tim’s stickers. She found the stickers were starting to wear with the local provider she was using and they wanted to expand into other types of stickers, like decals. With the expanded need, a larger manufacturer was the way to go.

But Grewell recommends assessing exactly what your business needs. National manufacturers, like Vistaprint, will likely have more resources to buy in bulk which may lead to a greater discount. Local shops have the benefit of being local, giving them a leg up on customer service and the benefit of being very close to the business to work through any concerns or questions.

GETTY

FOR SMALL BUSINESSES, THE ABILITY

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SAMPLE RATES (when buying 100 units)

$3.50

$6.96

$14.10

$11.61

$13.28 $1.50

T-shirts, hats, and everything in between, have several functional purposes but can also be used in a successful marketing strategy.

Adding your logo to the front of a t-shirt or hat places your brand in front of people in the workplace, at events, and in the community.”

— ERIN SHEA, North American market director, Vistaprint

It creates a community.

It’s not uncommon for customers to tell stories of seeing the Turbo Tim’s bumper sticker in other states, Grewell says. She’s heard of customers that strike up a connection at their own workplace after seeing a co-worker drive in with the bumper sticker on their car. She senses it has helped foster inclusion and connection among those that like the shop. And from there it just continues to spread.

“The number of cars driving around with our bumper sticker is unbelievable, and that’s usually how someone finds out about us,” she says. “Our bumper sticker is the first thing that people mention to us when they walk in. You can’t put a value on that.”

Grewell says she’ll often see customers come in who didn’t know about the shop, but after buying someone’s

$1.40

$1.50

Promotional items like pens, stickers, hand sanitizer, and key chains are the perfect additions to your marketing strategy. These types of low-cost promotional items double as reminders of your business, making your brand a household name, and often provide the customer with your contact information for follow-up business.”

— ERIN SHEA, North American market director, Vistaprint

vehicle that had the sticker, they decide to try it for themselves.

The t-shirts have created a similar effect. Customers routinely wear their Turbo Tim’s shirts when they get their vehicle serviced. It makes them feel a part of the team, Grewell says.

She recalls a story a customer once told her about how her 10th grade son wore his Turbo Tim’s shirt on the first day of school, even after the parents went out and bought him much more expensive clothes to wear back to school.

“It’s a big deal for youth to think you’re cool enough to wear the shirt,” she says.

Make it authentic to the brand.

Don’t just slap on the logo and company name and call it a day. With both the stickers and t-shirts, Grewell has

emphasized creativity and uniqueness.

Think about what embodies the brand of the shop and go with that. It’s what Grewell believes sets their products apart from a free t-shirt that someone might just toss in the trash. It’s why that student wore the t-shirt to school instead of something else.

“What’s worked for us is to be authentic in who we are,” she says. “If you’re proud to wear the t-shirt and think it’s cool, make it. Don’t come up with something just because you think other people will like it.”

For Turbo Tim’s that has meant artistic and silly designs. That fits the brand of the shop. For others, maybe it’s less about the design and what that design is on. Make a cool pen, or a bottle opener, or a key chain. Whatever it is, make sure it encompasses the brand that the shop promotes, Grewell says.

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AO CA C O R N E R

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Nixing the Fix

FTC report reflects the work of AOCA on behalf of the industry LAST MONTH, THE FEDERAL TRADE COMMISSION

KRISTY

BABB

Is the executive director of the Automotive Oil Change Association (AOCA).

INFO

COURTESY KRISTYBABBI

@AOCA.COM O R 8 0 0 . 2 30 . 0 7 0 2

(FTC) delivered its report to Congress reflecting the “Nixing the Fix: A Workshop on Repair Restrictions” event held in July 2019. The automotive oil change industry is ecstatic in the fact that Congress has decided to pursue a multi-faceted approach of law enforcement, regulator options, and consumer education to stop illegal tie-in sales of branded parts/ services and other OEM anti-competitive behavior.

The FTC concluded that OEMs provided no evidence that aftermarket service providers cause any vehicle damages or other hardship to consumers or OEMs, let alone any justification to allow OEM tie-in sales. In fact, FTC cited AOCA to demonstrate the reality of OEMs’ deflections: “In addition, AOCA argued that manufacturers simply use aftermarket parts and service providers as scapegoats for issues that arise with OEM-branded parts and service. For example, AOCA asserted that automakers engage in this type of restriction when they issue a technical service bulletin (TSB) directing its authorized dealers to treat certain aftermarket parts as the de facto cause of problem engine symptoms that can be caused by a variety of factors including engine defects. The dealers forgo technical analysis and instead repeat the maintenance process for which the aftermarket part was employed—this time using the automaker’s recommended brand part. The automaker and dealer have not proven the particular aftermarket part caused the problem engine symptom as required

by MMWA, yet the consumer gets charged for the mandatory maintenance including when it doesn’t solve the problem engine symptom.”

Mark Bochnowski, who was AOCA board president at the time of the report, commented on the findings.

“AOCA’s argument was no mere concept,” he said.

“We used decades of field experience, actual OEM TSBs, owners’ manuals, OEM advertisements, related defect recalls and class action litigation, thousands of consumer complaints to NHTSA, and critical Better Business Bureau statistics.”

AOCA encourages Congress to take the next logical step and require automakers and their authorized dealers to disclose to consumers their Section 102(c) anti-tying rights at both the time of vehicle sale and prior to vehicle service.

The backing of the Automotive Oil Change Association on legislative issues like this helps give our industry

a loud voice because our membership dues help fund these initiatives. Actions like this mean more profit for business owners like you! Based on one oil change per day, with an $80 average ticket, 40 percent cost of goods, and 307 operating days, your business will see an annual gross profit of over $14,000.

Event Recap During the month of May, Automotive Oil Change Association teamed up with the Western Carwash Association to offer their members tips from hiring to inspiring. More than 50 attendees were able to learn from Claudia St. John, president of Affinity HR Group, through two informational sessions.

From Hiring to Inspiring: How to Build a Powerful Team was the first session in this series. St. John was able to assist attendees in how to create a team that is full of energy, full of ideas, and working their best. It all starts by learning the critical tips for hiring the right people. She explained how to onboard team members the right way so that they will want to stick around. By also debunking the myth of inspiration leaders, managers were able to learn about how to engage and inspire their employees to collaborate at their best.

The second session, Hiring Entry-Level Workers: Tips for Attracting and Engaging Front-Line Workers, gave insight on different ways to over the challenges in hiring front-line workers in today’s market. She dissected the recruiting and screening strategies that would source quality workers. One major way to do that was to create successful hiring incentives that could include employee referral programs.

These sessions were a fantastic way to kick off another year of learning! Be on the lookout for other opportunities on our events page at aoca.org/events.

Save the Date iFLEX will be here before you know it! Over the course of three days, attendees will be able to learn from top industry professionals while networking with other operators and vendors. You’ll be exposed to training and education that will advance your business as well as your confidence, but it doesn’t stop there.

Come join AOCA at the Rockhouse in Las Vegas on November 14 to kick off iFLEX! From 6 p.m. to 9 p.m., you can connect with our industry professionals and enjoy the ambiance of the Hard Rock Café. Register today at aoca.org/events.

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LEADING EDGE

Now Hiring

Make your shop more attractive to potential techs

Lenny Saucier has been serving the automotive aftermarket and its future leaders since 2000. He serves as the director of retail training for Fullspeed Automotive.

LSAUCIER @FULLSPEEDAUTOMOTIVE.COM

Times have changed.

In July 2019, I wrote an article after listening to owners complain they cannot find good help as they invest more into finding top talent rather than building it (“Where Do All the Good Employees Grow?”). That was a great time when applications were flowing, people were getting anxious to move up in the ranks and the future opportunities were becoming a reality. It was much more advantageous to pay attention to the potential talent and build on that rather than attempt to recruit top talent and hope they stick around.

Two years later, the pool of applications is shallow, and just like with everything else, you need to adjust your tactics to include some aggressive recruiting. That waiter or waitress who was busting his or her rump, smiling at every customer and adapting to the changes was precisely what you need in your business. While you gave him or her a good tip, you could have given a good career.

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The servers today are walking into changing situations, understaffing, and mobs of customers.

They also have the will to not only do the job, but to attempt to please every customer they come across.

All you did was ask for onions and cheese in your chili rather than ask what plans they had for their professional lives.

Most wait staff are looking for a means to get by until they get to their path of their actual goal. I loved waiting tables, but while there was a career path to take in the hospitality business, it wasn’t for me. It was just a repetitive, fast-paced and rewarding place where I could make some money. Sound familiar?

While you can’t get your tech to ask customers about the wipers on every vehicle, the waitress looks at the food left on your plate and asks, “Did you save room for our lava cake tonight?”

Are you worthy of the new worker?

The catch is that you have to make sure your place is attractive enough to stick around.

There are a few prominent places to eat locally that draw big daily crowds. One has hiring ads that say, “If we had a problem with you before, we are willing to bury the hatchet if you come back.”

The other one is busting out the seams with staffing processing hungry guests from greeting to goodbye. In a conversation with my oldest daughter about the differences (who is also in the restaurant business), she plainly said that it’s all about the leadership. Places that are staffed are not only paying well, but the management and team are supportive and provide a great work environment despite how busy they are.

Business owners and operators who have keyed in on a collective mantra—teamwork makes the dream work—have an easier time convincing talent to turn their attention toward them.

Take the time to look at your own business from an employee side. Would you want to do the work, for the pay and the environment if you were looking for work?

Chances are that if your staffing is cut really short, the answer is no. If you can honestly say that your business can compete with a culture that attracts those already working, then get out there, order the lava cake and make a sales pitch for your business.

COURTESY LENNY SUACIER

LENNY

SAUCIER

LET ME PAINT A FAMILIAR PICTURE. You walk into a restaurant after a long workday. You see plenty of people waiting to be seated, followed by a brief look at the dining room to find plenty of open tables. The problem is a major shortage of people who are willing to work, which caused the restaurant to shut down part of their floor, altering their menu and closing early. You wait patiently to be called out while reflecting on how the current employment status has hampered your businesses abilities to perform as well. Once seated, you are interacting with the very few people who are willing to come to work, deal with the high stresses and adapt to the overwhelming (almost daily) changes to business. You pay appreciation to the service and dedication with a healthier tip than before (or at least I hope you do).

Back at work the next morning, you look at your workload and compare it to your staffing abilities as your stomach begins to churn. It’s not the effects of last night’s chili you added as your side dish. It’s the realization that you are in the same boat again.

Plenty of business, one of those little “now hiring” yard signs, and yet no applications. You commit to rolling up your sleeves and turning wrenches while trying to get new hires in the door.

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