American Coin-Op - January 2013

Is It Time to

Add Another Store?

Lean on lessons learned when deciding to build or acquire more

INSIDE: JANUARY 2023 FOLLOW THESE CRITERIA TO FIND THE RIGHT STORE LOCATION

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CONTENTS JANUARY 2023 VOLUME 64 ISSUE 1

COVER STORY

IS IT TIME TO ADD ANOTHER STORE? If thinking about pursuing multi-store ownership, it makes a lot of sense to do so armed with the knowledge of any successes or failures from the first go-around. Some owners discuss their multi-store experiences and what they’ve learned through the journey.

6

(Cover image: © CopterAnansak/iStockphoto)

INSIDE

COLUMNS

10 FINDING THE RIGHT LOCATION For the investor looking to own their first self-service laundry, or the store owner intent on adding another to their portfolio, choosing the right location to set up shop is one of the most important decisions they’ll make. So what are some of the things to consider when searching for the best spot to open a laundromat?

DEPARTMENTS 4 VIEWPOINT 15 WEB UPDATE 20 NEWSMAKERS

22 CLASSIFIEDS 23 AD INDEX

2 AMERICAN COINOP JANUARY 2023

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16 POINTERS FROM PAULIE B: UTILIZING AN ATTENDANT TRAINING REGIMEN THAT STICKS When hiring new workers, the ideal scenario is for them to do a great job right out of the gate, says retired multi-store owner Paul Russo, and that requires some training. That can be easy but the real trick is getting your rules, policies and procedures into your attendant’s long-term memory. Russo describes how that can be done.

DID YOU KNOW...

American Coin-Op releases a new podcast on a different topic of interest every other month? Give it a listen at AmericanCoinOp.com/ podcasts.

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VIEWPOINT Charles 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

WHEN MULTIPLIED, STORES DIVIDE

Bruce Beggs

The point at which it becomes apparent is open to debate but there’s a difference between owning one self-service laundry and owning two or more.

The person who owns and operates a single laundromat can focus their attention and devote their time and resources (apart from any other businesses they may own, the topic of a column for another time) to that one store.

If someone owns two or more vended laundries, then by necessity, their time and attention are divided.

In this month’s cover feature, “Is It Time to Add Another Store?”, we take a look at some of the ownership aspects that may change when adding a store or stores, as shared by several businesspeople who own between two and eight stores (with others on the way). That article opens on page 6.

Another key aspect of laundry ownership is site selection. “Finding the Right Location,” which begins on page 10, points out several criteria to assess when searching for the right spot to set up shop.

Opening a self-service laundry represents a fresh start of sorts, which fits perfectly in this January issue, our fresh start of 2023. Happy New Year, and I hope it’s a profitable one for you.

Bruce Beggs Editorial Director

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

ADVISORY BOARD Douglas Pratt Sharon Sager Matt Simmons

Tony Regan Michael Schantz

OFFICE INFORMATION Main: 312-361-1700

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American Coin-Op (ISSN 0092-2811) is published monthly. Subscription prices, payment in advance: U.S., 1 year $50.00; 2 years $100.00. Single copies $10.00 for U.S. Published by American Trade Magazines LLC, 650 West Lake Street, Suite 320, Chicago, IL 60661. Periodicals postage paid at Chicago, IL and at additional mailing offices.

POSTMASTER, Send changes of address and form 3579 to American Coin-Op, Subscription Dept., 125 Schelter Rd., #350, Lincolnshire, IL 60069-3666.

Volume 64, number 1. Editorial, executive and advertising offices are at 650 West Lake Street, Suite 320, Chicago, IL 60661. Charles Thompson, President and Publisher. American Coin-Op is distributed selectively to owners, operators and managers of chain and individually owned coin-operated laundry establishments in the United States. The publisher reserves the right to reject any advertising for any reason. © Copyright AMERICAN TRADE MAGAZINES LLC, 2023. Printed in U.S.A. No part of this publication may be transmitted or reproduced in any form, electronic or mechanical, without written permission from the publisher or his representative. American Coin-Op does not endorse, recommend or guarantee any article, product, service or information found within. Opinions expressed are those of the writers and do not necessarily reflect the views of American Coin-Op or its staff. While precautions have been taken to ensure the accuracy of the magazine’s contents at time of publication, neither the editors, publishers nor its agents can accept responsibility for damages or injury which may arise therefrom.

4 AMERICAN COINOP JANUARY 2023

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www.americancoinop.com

12/12/22 9:17 AM

Is It Time

to Add Another Store?

Lean on lessons learned when deciding to build or acquire more

A

fter owning and operating a self-service laundry for a bit, thinking about adding another store might come pretty naturally. Acquiring Store No. 2 and beyond would offer greater money-making opportunity but also require more work and resources for each to provide the level of service that generates profits.

If thinking about pursuing multi-store ownership, it makes a lot of sense to do so armed with the knowledge of any successes or failures from the first go-around. In that light, American Coin-Op interviewed some laundromat owners about their multi-store experiences and what they’ve learned through the journey.

Erich and Lori Wagner own and operate a pair of Hilltop Laundromats in Ft. Thomas/Southgate and Newport, Kentucky, just across the Ohio River from Cincinnati. Their unattended stores open 24/7 are roughly a half-mile apart on the same street. The Wagners handle all cleaning and maintenance themselves. They purchased the Southgate store in 2015 and the Newport store in 2021.

“It was not specifically in our plan to own multiple stores, but shortly after purchasing our first store, we decided we enjoyed the industry so much that we started looking around for additional stores,” says Lori.

With wife Kelli, Joe Dan Reed owns eight attended Splash Em Out stores in the Kentucky communities of Lexington, Richmond and Nicholasville. Already owners of a well-known janitorial firm, the Reeds had opened their first laundromat in 2010 when the World Equestrian Games asked if they could supply laundry services during the week-long event. That work led to other gigs and soon the brand was looking to expand.

“That made us think, ‘Hey, we have this one small location. We need to just scale and start getting more locations.’ Of course, the revenue had a lot to do with it, too. We couldn’t support the drops that were coming in.”

Their last store opening was in 2021 but Store No. 9 is set to join the group early this year, he says.

Sunitkumar Vashi has an ownership stake in four attended stores in the Greenville, South Carolina, area with another under construction in nearby North Carolina. With 10 years of retail entrepreneurial experience, Vashi says he got into the laundry industry in 2017 because he saw a need for a new-generation concept store.

“Within six months of acquiring my first store, I realized that the plan 6 AMERICAN COINOP JANUARY 2023

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of expanding to multiple stores could definitely be a reality, so I acquired a 5,400-square-foot existing building and opened my first LaundryPlus concept store.”

Edgar Vasquez once owned four North Carolina stores but is now down to two that are attended: Mountain Wash Laundry in Shelby and High Spin Laundry in Charlotte. His first store was opened in 2006 and others were added in 2012, 2014 and 2017.

“I wanted to own a large store and even build one from scratch,” he says. He acquired two existing stores before purchasing a third new store and then—as he’d wanted—built a fourth from the ground up.

Beyond the many employees and/or family members they count on in serving their customers, the multi-store owners also say they use technology in some fashion—cashless payment, wash-and-fold order tracking, security systems, etc.—to help them operationally.

ADDED WEIGHT OR IMPORTANCE? It’s a transition going from a single store to two or more, and that

▼

by Bruce Beggs, Editorial Director

Edgar Vasquez (right) owns two attended stores in North Carolina that range in size from 2,000 to 6,000 square feet. They offer self-service and wash-dry-fold while employing an average of two people per store. (Photos: Edgar Vasquez) www.americancoinop.com

12/11/22 10:06 PM

shift sometimes brings added weight or importance to certain aspects of ownership.

“We quickly realized that maintaining and cleaning two stores is more challenging than one, but we quickly adjusted,” Lori Wagner says. “It doubles the workload to some degree, but the basic operational structure was already there.”

Employees and payroll took on greater importance as Vasquez’s portfolio grew: “(There was) more work on my part in preparing payroll and finding good employees. Also, with four laundromats, (there was) quadruple work in preparing my documents for the accountant to do my tax returns.”

“On the very first store, we realized that if we are heading in a right direction, if we want to expand, we’d carefully find a location very close to the first location within the 20-mile radius where we (now) have our four stores,” Vashi says. “Not only that, we had started giving training to the manager of my Berea location who would be becoming the manager of my Greenville store.”

“Branding was very important to us. We knew from the onset that we wanted to use the same name, same colors, and same customer experience for every store,” Reed says of his eight stores. “We have done a good job of branding, because our customers know they will have the same experience when entering any of our stores. They know when entering a Splash Em Out Laundromat, it will be bright, clean, and (offer) great customer service.”

And what about his employees? “If I take one employee, team member, and put them across to … any store, it’s the same exact thing. The only difference is they need to know where the (circuit) breakers are,” he adds.

HARD TO GET A HANDLE ON

tiple sites that can be miles apart sometimes presents challenges that can take a while to get a handle on.

For Vasquez, it was finding dependable employees and addressing customer complaints: “The more locations you have, the issues you normally address in having a laundromat will multiply depending on the class of customers the future locations will have and how dependable (is) the equipment you inherited or purchased will be.”

For the Wagners, accounting took some adjustment, Lori says: “For example, how to attribute expenses and supplies to each store so that you can see profit/loss for the individual stores. Another thing was a question of priorities. When a machine breaks down at two different stores, which one do you fix first?”

Reed says he also struggled initially with making sure every machine in each of his stores was working properly: “Having a plan, and knowing how to work on the washers and dryers. I would also say having a good team around you is essential in this business if you are going to have (multiple) stores.”

FINDING POWER IN UNITY While each store added has its own identity, so to speak, creating a unified style or system can make operating and managing the group as a whole easier.

“We have modeled our second store just like our first store, down to the color choices, equipment and pricing,” says Erich Wagner. “We see this second store as an extension of our first store. … it offers our customers an alternative. If they drive by one store and see that it’s busy, they can go to our second store.”

“It was very critical that each store run like the rest,” says Reed of his

Prepare as one might for the growth, the logistics of overseeing mul-

(continued on page 14)

(At left) Lori and Erich Wagner own and operate a pair of unattended stores located roughly a half-mile apart on the same street linking two Kentucky communities across the Ohio River from Cincinnati. Store size ranges from 1,250 square feet to 1,500 square feet, and the Wagners handle all maintenance and cleaning themselves. At present, both stores offer only self-service but the Wagners hope to add drop-off service at some point. (Photos: Lori and Erich Wagner) 8 AMERICAN COIN-OP JANUARY 2023

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Finding the Right Location (Photo: © perig 76/Depositphotos)

Some things to look for when searching for the best spot to open a store

by Bruce Beggs, Editorial Director

F

or the investor looking to own their first self-service laundry, or the store owner intent on adding another to their portfolio, choosing the right location to set up shop is one of the most important decisions they’ll make.

So what are some of the things to consider when searching for the best spot to open a laundromat?

WHAT DO THE NUMBERS TELL YOU? It’s vital to identify sites where a large enough share of the resident population would be potential customers. (If the demand isn’t there, then why supply the service?) Demographics can help paint a picture of the area under consideration. As defined by Merriam-Webster, demographics are “the statistical characteristics of human populations (such as age or income) used especially to identify markets.”

“Demographics are a snapshot of a given neighborhood,” says Bryan 10 AMERICAN COINOP JANUARY 2023

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Maxwell from distributor Western State Design, during “Can’t-Miss Site Selection Strategies,” an episode of the American Coin-Op Podcast. “You can learn things about income level, family sizes, the ethnic makeup.”

Store location can significantly impact an operation’s success or failure rate, so there are a few key demographics to identify when examining sites. First, the service area being considered needs to have a significant share of renters. A good starting point is 35%.

Household size and income level are also important when it comes to demand potential. It’s recommended that the average household size in a considered location be at least 2.3 people with a low to medium income level. Lower-income households—earning less than $35,000 per year— are less likely to pay extra for an in-unit washer and dryer, thus making the area laundromat more attractive to them.

Neighborhoods that are heavy in multi-family housing and communal living—such as apartment complexes and trailer parks—offer great potential.

“How many renters live nearby?” Paul Russo asks rhetorically in his American Coin-Op column, “Important Factors for Reaching Laundry Success.” “Are they in apartment houses that have excellent laundry rooms? … What condition are those laundry rooms in? Clean or dirty?

Old or new equipment? Do apartment dwellers feel safe in their laundry rooms?”

Demographics can also influence what machines, services and amenities a laundry should offer. If the nature of the local population shows it’s changing, that may also signal a need for the service or services being offered to change, too. www.americancoinop.com

12/11/22 10:10 PM

WHERE’S THE COMPETITION? It might seem like one would want to stay away from competitors when searching for a site to open a business but the laundry industry is unique. Alliance Laundry Systems’ Dan Bowe advises looking for a spot that has some competition nearby already.

“You should actually be slightly wary of opening a store in a location where there’s no competition for miles; in that case, the surrounding demographics likely won’t match your criteria,” he writes in “Site Selection Strategies,” a 2015 American Coin-Op column.

“When you do identify an area that fits your core criteria, you can safely assume that plenty of others have done the same and are operating a successful laundry business.”

“I think a well-run store will attract new customers regardless of what the competition is,” Maxwell says. “But obviously, if there’s more competition, more quality competition, meaning stores that are well-run, it’s going to make your new venture more difficult.”

ADEQUATE INFRASTRUCTURE A vended laundry has certain physical requirements that not every building or location can meet. Determine what kind of infrastructure— square footage, utility availability and connections, things like that—is in place that would accommodate a laundromat.

For instance, most laundromats range in size from 2,000 to 6,000 square feet, so having a large enough physical space is necessary. They require sufficient water supply in order to fill the washers in a timely fashion and a dedicated sewer line connected to the local sewer system.

Maxwell says whether a laundromat covers less than a thousand square feet or is several thousand square feet in size, he’s seen stores fitting either

description have success. But it’s important that one gain an understanding of the target community, its needs, and the competition before acquiring or building an appropriately sized laundry.

“I think working with a local distributor to help you look at a location and make sure that it makes sense for you is really important,” he says.

“As far as the infrastructure, as far as utilities, those types of things, it’s rare that you’re going to have the utilities that you need in a given facility.

Connecting into the water and sewer system should be one of the first things that are researched in any given location.”

And when doing this due diligence, be certain to find out what the local community charges in impact fees for utilities connections, Maxwell adds. They can be quite costly.

Of course, the decision between building a new store or acquiring an existing store heavily influences site selection strategy.

Building a new store means the owner-to-be can create their own place and isn’t limited by another’s vision about what a store should look like and how it should function, writes Howard Scott in an American-Coin-Op column, “Building from the Ground Up?” That blank slate enables one to construct the infrastructure their laundry will need to succeed.

On the other hand, buying an existing laundry business may have its advantages, Scott writes: “For one thing, you have a ready-made turnkey operation that just requires you to unlock the door and you’re in business. You don’t have to order equipment and deal with comparing brands.

If you’re lucky, you can retain the employees and reduce the chance of someone stealing from you. There’s no searching for an ideal location or negotiating with the landlord for a favorable lease.” (continued on page 19)

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Sunitkumar Vashi (left) has an ownership stake in four attended South Carolina stores that are 3,600 to 5,400 square feet in size. They offer self-service and wash-and-fold pickup and delivery for residential and commercial customers, employing 3 fulltime and 1-2 part-time workers per store. (Photos: Sunitkumar Vashi)

(continued from page 8) stores. “This way, you can cross-train all employees. If they work in one store, they are able to work in any store we have, because they are all the same.”

“If you want to become a multiple-store owner, you really can’t work on all the stores, so you have dial up such a system and you have to train your employees through that system,” says Vashi, calling a unified system “a must.”

But there can be times that some individualization is preferred and possibly even necessary.

“We attempted to do this with our third location using the attendants manual we developed for our second location but found allowing individualization to work better,” Vasquez says. “We use the attendants manuals to guide new employees for the other locations as basis for (the) minimal requirement we as owners expect from our employees.”

machine breakdowns and maintenance, you can hire at will, but for collections, you have to be very picky.”

“I always tell people that if you are going to own a laundromat, you really need to be able to do your own repairs and maintenance. This includes the buildings and the machines,” says Erich Wagner. “If you have to hire everything out, it will be difficult to make a profit.”

“Make sure you have the time and the resources to handle two stores,” Lori adds. “Everything from maintenance, accounting, social media, purchasing, cleaning … it all gets doubled.”

“I would think if you are planning on adding more stores, this would mean that you are also thinking about making this your full-time job?” says Reed. “If so, go for it, and if you put all your heart and effort into it, you will be successful and never look back.”

IF I COULD DO IT ALL AGAIN...

As the multi-store owners looked back at their experiences to date, we asked them to tell us the one thing they would do differently.

“Understand the demographics of each store,” Reed says. “Don’t get a store just because it closed down. Not every opportunity is a good opportunity. I do wish I (had done) some extensive research on a few stores.”

“I really can’t think of anything,” Lori Wagner says. “Our stores are within two miles of our home, so making quick visits to address issues isn’t a problem.”

Vasquez says he would refit an existing store in a good location, because “building from scratch is just too expensive.”

“However, if you have the capital, build from scratch to your heart’s content, but on a property you own,” he suggests.

A PIECE OF ADVICE Finally, each was invited to give one piece of advice to someone preparing to become a multi-store owner for the time.

“You will have to allow yourself to give the stores more time,” Reed says. “Meaning that you need to spread yourself a little thinner, especially at the beginning until you have a good management team together.”

“Make sure you have dependable, trustworthy, and honest persons (great if they are immediate family members) so that you do not become a slave to this business in handling collections,” Vasquez says. “(For) 14 AMERICAN COIN-OP JANUARY 2023

0123aco_p006,008,014-Is it Time For Another Store-FINAL.indd 14

With wife Kelli, Joe Dan Reed (pictured) owns a group of eight attended Splash Em Out Laundromats in Lexington, Richmond and Nicholasville, Kentucky. They range in size from 2,000 to 6,000 square feet and employ an average of 2-3 workers per store in offering self-service, wash-dry-fold, and pickup and delivery. (Photo: Joe Dan Reed) www.americancoinop.com

12/11/22 10:06 PM

WEB UPDATE

Most popular stories from AmericanCoinOp.com for the 30 days ending December 10 — (WE) denotes Web Exclusive

TOP FIVE NEWS STORIES

COLUMNIST/FEATURES

• CSC ServiceWorks Appoints Co-CEOs

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OUR SISTER WEBSITES

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• The Best Culture Wins (WE)

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JANUARY 2023 AMERICAN11/23/22 COIN-OP 11:43 15 AM

12/12/22 9:13 AM

POINTERS FROM PAULIE B

UTILIZING AN ATTENDANT TRAINING REGIMEN THAT STICKS W

Paul Russo

hen we hire new workers, the ideal scenario is for them to do a great job right out of the gate, and that requires some training.

Start with a clear job description that details the skills, duties and responsibilities. Having a new hire who understands what’s expected in their new job will help you weed out people who may not like some of what the job entails. For example, I had new hires who quit when they discovered that one duty was to mop the floor when needed.

After the job description, I began with safety issues, which are the most important in my mind.

I would personally give the first hour of safety training, leading a tour of everything in the store from inside to outside. It covered the basement, the boiler room, back office, behind the dryer banks, the main lobby, all exits, and the locations of fire extinguishers, emergency shut-offs, silent alarms, etc. You want every employee to know your store inside and out.

Training someone can be easy but the real trick is getting your rules, policies and procedures into your attendant’s longterm memory.

REPETITION Way back when I was a high school student, one of my instructors used to say, “Repetitio mater studiorum,” which,

translated from the Latin, is “Repetition is the mother of learning.”

You see repetition in learning how to play musical instruments, speak foreign languages, and other things. In fact, I used to tell my daughters that if they wanted a D or worse, they shouldn’t study. If they wanted a C, they should study once. Earning a B would require studying twice. But if they wanted an A, they’d have to study three times … and on separate days!

I found that some people can be shown something only once and retain it, but many cannot. This is why repetition is so important in training. So are visual aids, but more about that later.

Why separate days to do your best? Well, it’s all about “sleeping on it.” When we sleep, the subconscious mind reorganizes what it experienced during the day, meaning your mind basically puts things in order. If you repeat the same thing on different days, it’s much more likely to end up in long-term memory.

So, don’t expect a new employee to remember everything you tell or show them in one training session. You’ll be lucky if they can remember 25% of it.

Let them take notes if they need to, but expect to make an investment in training time to really prepare a new worker. In other words, don’t cheap out and then expect them to know everything, or “learn as they go.” This costs you more money in unnecessary mistakes, and higher turnover of new hires. A well-trained worker will save you money in the long run.

SOMEONE TO EMULATE

(Photo: © pressmaster/Depositphotos) 16 AMERICAN COIN-OP JANUARY 2023

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Designating a lead attendant that the newbie can follow/ emulate for a few days can help.

When I was in hospital orientation training, the new nurses would shadow the experienced ones, following them around for a couple weeks. They mostly observed the first few days, then progressively took on more tasks the second week as confidence grew. Even that wasn’t enough, but there’s a limit to how much an employer will pay to “hold a worker’s hand” before they’re “thrown to the wolves.”

For example, my new hires at the laundry were told that I expected them to eventually produce quality drop-offs at a rate of 20 pounds per hour. It wasn’t expected right away, but after a few weeks on the job. I had some experienced workers doing more than that, but 20 PPH was my minimum.

Connect them with your best teaching attendant, but not necessarily your best producer. Why? Because the high producers often believe that teaching slows them down. That www.americancoinop.com

12/11/22 10:37 AM

HERE ARE THE RULES...

I liked to post my written rules for all to see, rather than try to only present them verbally. So, I posted a few laminated lists of policies and rules to help remind everyone what was required of them: • Cleanup duties for all shifts, • Duties specific to the graveyard shift, • Tasks an attendant should perform when not busy, and • “Things That I Consider Wrong” (which could lead to various levels of disciplinary action).

When you post your employee policies in this way, no one can say that

they “didn’t know” or “weren’t told.”

Nowadays, I suppose you could do this online, but to physically post these topics in the workplace provides an ongoing reminder to them. The topics and content of your lists is up to your own judgment.

SET AN EXAMPLE Remember me saying that I’d lost some new hires who didn’t want to mop the floor, one of their prescribed duties? Well, I mopped my laundry’s floors right in front of my attendants many, many times.

Over the years, they also watched me get down on the floor and scrub the washing machine bases. I handled drop-off service. I cleaned out lint traps.

I never asked any employee to do anything that I couldn’t or wouldn’t do myself. So, how can they refuse a task when they’ve seen their boss do it? If they did in my store, they were outta there!

KEEP SAFETY TOP OF MIND I always trained my crew for emergencies. However, I broke my own repetition rule by showing how to handle emergency situations only once.

That was dumb of me!

One day when I wasn’t in the store, there was a dryer fire. I had shown every employee to shut off the circuit breaker first, grab the fire extinguisher and then slowly open the door just an inch to blast the fire with the extinguisher. (I also had these instructions posted right above every extinguisher.)

▼

could show up in their training attitude, which doesn’t make them the best teachers. Of course, each person is different, but it’s something you should consider before deciding on a pairing.

It’s hard for the mind to remember things in the abstract. It’s harder to remember the spoken word as opposed to a visual demonstration. In cases where a demonstration isn’t practical, then a photo, a video or even a diagram can help. Seeing is believing, as they say.

When hiring attendants, you’ll have to weigh hiring an experienced person against hiring a newcomer. I found this needs to be taken on a case-by-case basis. Some experienced attendants from a competitor could learn quickly, and possibly offer some operating tips you never thought of, but they could also be set in their ways.

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12/11/22 10:37 AM

POINTERS FROM PAULIE B A dryer fire can be very scary to many people. Unfortunately, in this instance, my employee froze like a deer in the headlights. She panicked and opened the dryer door wide while it was still operating, which only made the flames leap out. Her fear, and my incompetence in showing her how to respond to such a fire only once, led to panicked action. Luckily, a customer in the store took charge and grabbed the fire extinguisher.

After that incident, I learned to repeat all my safety instructions on a routine basis to keep them fresh on everyone’s mind (there’s that repetition thing again).

THE RETURN DEMONSTRATION Most of the time, new trainees will nod yes to whatever you are teaching them. Sometimes, you get a lot of nodding. Maybe they got it, maybe they didn’t. How do you know?

You can ask them, but the best thing to do in this situation is what I call the return demonstration. After you show them something, have them show it right back to you.

Not only do you get to confirm whether they got it or not, having them go through the mechanical action of duplicating reinforces what you just showed them and really helps them remember.

ends, because people do forget. At the end of the day, ask, “So, what did you learn today that was new to you?”

And ask your new hires if they have any suggestions for doing things differently. It’s easier for them to think outside your own little box. For instance, I once received an excellent suggestion from a newcomer about folding comforters, then rolling them like a sleeping bag that I used the rest of my career.

CREATING AN EMPLOYEE MANUAL My employee manual was in ring binder form. I could have made it a PDF for emailing but I felt that a book that remained in the store was less likely to fall into a competitor’s hands.

It was comprised mostly of the memos I posted over the years, because I too would sometimes forget. (It’s human nature, after all.)

I divided it into two main sections: 1) Service Training and 2) SelfService Training. Each section had subsections to make it easier for attendants to look something up. There were policies, rules, no-nos, task guidance, protocols, and “what to do if ” descriptions.

New hires were required to read it at least once, and I encouraged everyone to reread it from time to time. It was an excellent reference for all employees, especially those who may have forgotten something.

I like little slogans. They can point us all in a positive direction by reminding us of what can be important. They tend to stay in our long-term memory.

“Do it right the first time, and you won’t have to do it over a second time.”

Here’s another one I said a lot: “Customer complaints are actually a good thing because they alert us to something we are doing wrong while giving us the opportunity to make it right and prevent it from happening again.”

I would follow up by saying, “A complaint gives us another opportunity to turn an angry customer into a happy customer.”

I have one on my computer screen right now that reads, “Today is the tomorrow that we worried about yesterday.” And I think many of you have heard the expression, “Carpe diem,” which is Latin for “Seize the day.”

POST YOUR VISION FOR ALL TO SEE For at least 30 years, I posted a quote attributed to Hindu nationalist leader and social reformer Mahatma Gandhi in (Photo: © olanstock/Depositphotos) my laundromats for all to see. I felt it set the tone of service I expected of my new hires as well as long-term employees, and reminded all of us about the importance of the customer: ASK OPEN-ENDED QUESTIONS “A customer is the most important visitor on our premises. He is not During training, ask questions like, “What would you do if a dryer fire dependent on us, we are dependent on him. He is not an interruption in broke out?” or “How would you handle an angry customer?”

Open-ended questions require a detailed answer rather than just a yes our work, he is the purpose of it. He is not an outsider in our business, or no. You’ll be surprised by some of the answers you’ll receive. Asking he is part of it. We are not doing him a favor by serving him. He is doing in this way forces people to think a little harder and sets you up to give us a favor by giving us an opportunity to do so.”

By creating a positive training experience that prepares your new hires them the best answer if they missed something, further locking that detail for most contingencies, you’re positioning your laundry business for in for them.

Never let a new hire feel bad if they get something wrong or can’t greater success. remember. It’s all part of their journey to do the best job they can, and let them know you understand that. Just help them out by filling in the Paul Russo owned and operated multiple Laundromats in New York City blanks if they leave anything out. for more than 40 years before retiring in 2018. You’re welcome to direct any And I would ask open-ended questions well after the training period questions or comments for Russo to Editor Bruce Beggs at bbeggs@atmags.com.

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12/11/22 10:37 AM

(continued from page 11)

VISIBILITY, PARKING AND ACCESS Assess a proposed site for its visibility, Scott advises. Does it catch the eye of passersby under normal conditions or is signage needed to point out its existence and how to reach it?

Take the time to check out potential sites at night as well as during the day. Is the area in question well-lit and can reasonably be expected to present a safe environment for customers?

Is getting into and out of the site by vehicle easy or hard?

“If you’re trying to reach a specific shopping center or location, or a standalone laundromat, and it’s a busy intersection and you have a difficult time making your turn from that area, realize that if you get frustrated, your customers probably will, too,” Maxwell says.

And you can develop the most modern, customer-friendly laundromat in the world but a lack of parking can pose some real problems. To put it bluntly, parking can make or break a laundromat location, according to Bowe.

“If a customer can’t find parking close to your store, they may go elsewhere,” he writes. “Find a location with head-in parking spaces that cover at least two sides of the building your laundromat occupies. For every 1,000 square feet that your store occupies, you should have four dedicated parking spaces.”

Make loading and unloading laundry as easy as possible for customers.

Setting up a designated zone near the store entrance can help immensely.

“Think about practical things of people bringing in Glad bags full of clothes and where they are going to park and how they will get into the facility,” Maxwell says. “Physically, how do people do this? If it’s easy,

(Photo: © urban_light/Depositphotos)

people will come. If it’s harder, maybe people will choose another facility.”

These are just some of the things to consider when evaluating a potential laundromat site. During the process, don’t allow yourself to think that all the best spots have already been taken.

“There will always be opportunities for growth in this industry and for additional stores,” Maxwell says in the podcast. “Some markets are going to be more challenging than others, frankly, because of the impact fees … and existing competition and cost of real estate and so forth. But you know, you should always be looking and in any given market, there’s probably an opportunity.”

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12/12/22 9:24 AM

NEWSMAKERS CLA NAMES NEW, RE-ELECTED MEMBERS TO 2023 BOARD

MILNOR REWARDS DEALER NETWORK FOR SALES EFFORTS

The Coin Laundry Association (CLA) has announced 2023 board members who, together with the Board of Directors, will prioritize the organization’s focus and lead in its commitment to advance an evolving self-service laundry industry and improve the customer experience.

Five re-elected and one newly elected board members will work with active CLA members who are comprised of store owner/operators, manufacturers, distributors, and others conducting business or professional activities related to the self-service laundry industry.

Election results were ratified during the CLA’s annual meeting at the 2022 Clean Show in Atlanta. Board members are elected for staggered terms, so that membership elects approximately one-third of the board annually to hold office for a two-year term. Board members serve up to three consecutive terms.

Re-elected to the board for 2023 were Todd Fener, Laundry Owners Warehouse, distributor; Alex Harris, Professional Laundry Systems LLC, distributor; Yvette Morton Williams, store owner, Wash & Spin Coin Laundry; Dan Marrazzo, store owner, Laundry Depot; and Neal Shapiro, store owner, Wash Time on Fullerton. Newly elected was Kevin Butorac, Triad Laundry Equipment, distributor.

The all-volunteer board serves as the policy- and decision-making arm of the association. Work includes setting priorities that will equip store owner/operators with the industry research, education and other resources required to create better, more successful businesses and positive impacts within the communities they serve.

Commercial and industrial laundry equipment manufacturer Pellerin Milnor Corp. hosted a dealer banquet and awards ceremony during the 2022 Clean Show for its dealer network to celebrate the previous year’s sales efforts.

“Pellerin Laundry Machinery Sales Co. had a tremendous level of sales activity for 2021,” says Rick Kelly, vice president sales and marketing for Pellerin Milnor Corp.

CSC SERVICEWORKS APPOINTS CO-CEOS

Ron Hirsch (left) of Direct Machinery Sales Company in Hicksville, New York, accepts the Pellerin Milnor Corp. Lifetime Achievement award from Milnor President and CEO James W. Pellerin. (Photo: Pellerin Milnor Corp)

The Board of Directors at CSC ServiceWorks, which provides multifamily housing and commercial laundry solutions, along with other services, has appointed Eric Robinson and Rod Castellanos to co-chief executive officers and members of the Board.

In their expanded roles, Robinson will continue to lead several corporate functions while focusing on external stakeholders and business strategy, as he has for two decades, while Castellanos will continue to scale the end-to-end operations and strong execution that are fundamental to CSC’s platform growth.

Robinson joined CSC in 2016, bringing 25 years of human resources and business strategy Robinson leadership experience across multiple industries.

He’s had leadership responsibilities for HR, communications, legal, and business transformation.

Before joining CSC, Robinson was on the executive team at BrightView Landscapes. He’s led teams across multiple industries and at numerous Fortune 500 companies, including Pulte Homes, Clorox, BF Goodrich, and Eaton Corporation.

Castellanos Castellanos joined CSC in 2017, bringing 20 years of deep strategic sales and operational experience at every level in the services industry. He has had increasing responsibilities, including his previous role as chief operating officer (COO).

Castellanos came to CSC with a wealth of management experience in the service sector, having led operations and sales teams with Iron Mountain and Cintas Corporation.

20 AMERICAN COIN-OP JANUARY 2023

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“Their success in finishing as Milnor’s 2021 top dealer was achieved through their continuing commitment to fostering customer relationships and product solutions of our industry-leading products.”

Pellerin Milnor President and CEO James W. Pellerin presented awards to several authorized Milnor dealers.

The 2020-2021 Key Man winners were: • Bill Bell and Ralph Tuccillo of Steiner-Atlantic Corp. (Miami).

• Grant Ellis, David Johnson, Shawn Ryan and Derek Ward of Pellerin Laundry Machinery Sales Co. (Kenner, Louisiana).

• Steve Hickey, Barry Spiezman and Prescott Spigner of TLC Tri-State Laundry Companies (Valdosta, Georgia).

• John Janz of Herb Fitzgerald Co. (Butler, Wisconsin).

• Andy Jeninga of Western State Design (Hayward, California).

• Gabe Rees of Loomis Bros. Equipment Co. (Fenton, Missouri).

• Brendan Ristaino of Yankee Equipment Systems (Barrington, New Hampshire).

• Kyle Zabrin of Equipment International (Skokie, Illinois).

Ron Hirsch of Direct Machinery Sales Co., Hicksville, New York, was presented with the “Lifetime Achievement” award for his countless contributions to Milnor throughout his career.

Randy Gutkowski of Pellerin Laundry Machinery Sales Co. and Craig Kind of Western State Design were named “Star Performers” for their sales achievements.

Troy Willis of Loomis Bros Equipment Co. was awarded the “Bulldog” plaque for his persistence and success in his sales efforts.

Steve Jankowski of Direct Machinery Sales Co. and Drew Lamas of www.americancoinop.com

12/11/22 10:36 AM

TLC Tri-State Laundry Companies were each named “Rookie of the Year.”

Milnor also awarded nine dealers with the “100/100 Club” Award for achieving 100% of their quotas for various sales categories. They were East Coast Laundry Systems, Herb Fitzgerald Co., Horwath Laundry Equipment, Loomis Bros. Equipment Co., Mendenhall Equipment Co., Pellerin Laundry Machinery Sales Co., Steiner-Atlantic Co., TLC TriState Laundry Companies and Western State.

LAUNDROLAB CORPORATE TEAM ADDS THREE As laundromat franchise LaundroLab continues working to expand its licensing, its corporate team has added three new members: COO David Reeves, Director of Finance & Accounting Jason Carache and New Store Opening Project Manager Keith Martinez.

“There’s no dominant player in our space, and we’ve had some early traction,” says Dan D’Aquisto, co-founder and president of LaundroLab, which is based in Charlotte, North Carolina. “As we continue to realize our goals, having these three experts on board will allow us to supercharge our growth by providing even stronger, more thorough support to the franchise network.”

Reeves is an operations professional that has worked for companies like Amazon and GoPuff during their early stages of growth, LaundroLab says. He says he’s thrilled to support a growth trajectory similar to what he’s experienced in the past.

With nearly a decade of financial planning and analysis experience, Carache had spent time at larger organizations like PepsiCo forecasting sales, supporting marketing programs and developing budgets. He says he began to feel a pull toward smaller business models and happened to reunite with two college friends: LaundroLab CEO Alex Smereczniak and Director of Franchise Operations Beck Miller. After some conversations about the brand and its mission, Carache decided to join the team.

Martinez has a varied professional background, having worked in community development, marketing, nonprofits, real estate, franchising and more. In his position at LaundroLab, he collaborates with franchisees from the time they sign an agreement to the time they open their doors.

ALLIANCE LAUNDRY SYSTEMS ACQUIRES ANOTHER DISTRIBUTOR Commercial laundry equipment manufacturer Alliance Laundry Systems is expanding its distribution base with the acquisition of Laundry Equipment Services (LES), based in Hagerstown, Maryland.

Wisconsin-based Alliance closed on the purchase Dec. 1; terms were not announced.

The manufacturer says the acquisition is its “latest move in a strategy to bring extraordinary service and factory support to expanding markets where there is an opportunity to partner with exceptional people.”

It is Alliance’s fifth distributor asset acquisition in the last two years. (continued on page 24)

HOT-TOPIC TRIO: Reasonable Accommodations; Caring for Money Makers; and Getting to Know Someone Complying with the Americans with Disabilities Act New York City attorney Eric Sarver describes the ADA, identifies store areas most deserving of ownership attention, and warns of the problems that noncompliance could bring.

Staying on a Maintenance Schedule Planning for and properly executing a preventative maintenance program keeps a laundry’s money makers up and running. Michael “Stucky” Szczotka of distributor Eagle Star Equipment describes what’s involved and the benefits.

Every FREE episode... offers engaging, industryspecific conversation with an expert, including businessbuilding tips you won’t find anywhere else. And you can listen anytime, either online or download for later!

Give us a try!

Learning What the Customer Wants Kristyn Van Ostern, co-owner of laundry services company Wash Street, details putting in the effort needed to know what type of people her laundry’s customers are and why they visit her store instead of others nearby.

Listen in at:

americancoinop.com/podcasts www.americancoinop.com

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NEWSMAKERS (continued from page 21) “We’ve seen LES make incredible progress in the Mid-Atlantic region with our Huebsch brand,” says Craig Dakauskas, senior vice president North America Commercial for Alliance Laundry Systems. “We are looking forward to building upon the strong foundation LES has created under its owner, Cameron Clark.”

Since 1991, LES has been providing vended and on-premises laundry solutions to the Mid-Atlantic region through its distribution of Huebschbranded equipment.

“I’ve always believed I was partnered with the best company in the commercial laundry industry and delighted in helping my customers achieve new levels of success through that affiliation,” Clark says. “This acquisition will enable us to take our customer service and support to a truly next-level experience.”

• In a multi-family property, one washer/dryer pair can serve 8 to 12 families; if a family washes 5.2 loads of laundry per week on average, then that washer would have to run continuously between 20 to 30 years until it would reach 60,000 cycles.

• It is common for a Commercial Laundry machine in a laundromat or hotel to run at least five loads a day, 365 days per year, Maytag says. It would take more than 32 years for that machine to reach 60,000 cycles.

PELLERIN MILNOR CORP. CELEBRATES 75-YEAR ANNIVERSARY Commercial laundry equipment maker Pellerin Milnor Corp. recently marked its 75th year of service to the textile care industry.

Founded by W.A. Pellerin, wife Mildred, son Norvin and brother-inlaw A.W. “Jack” Walsdorf in 1947, Milnor (a trade name derived from MILdred and NORvin) began manufacturing 20-inch extractors. The company gained respect and a valued reputation for durable and efficient laundry machinery.

Milnor’s manufacturing efforts initially took place in a small factory in urban New Orleans. The company’s continued growth led to a search for a new location and further product enhancements in 1954. A new plant in suburban Kenner, Louisiana, became a reality for the company in 1956 and remains Milnor’s manufacturing center today.

Milnor’s network of dealers expanded over the years. To strengthen international marketing efforts, the company established a support office in Belgium in 1965. The U.S. Department of Commerce has recognized Pellerin Milnor as a leading equipment exporter with top honors through its “E” and “E Star” awards for export excellence.

James “Jim” W. Pellerin succeeded his father, Norvin, as company president in 1982. This marked the third generation of Pellerin family leadership.

Milnor focuses on improving efficiencies and developing innovations that keep it on the cutting edge of technology, as evidenced by its 52 U.S. patents (more are pending) and many overseas patents. Its PulseFlow® tunnel washing technology and RinSave® software in washer-extractors highlight its sustainability initiatives.

MAYTAG COMMERCIAL LAUNDRY WRAPS 60,000-CYCLE LAB TEST Equipment maker Maytag® Commercial Laundry reports that in September, its engineers ended a seven-year lab test on its Commercial Laundry MHN33 front-load washers.

The test of the DuraCore Drive System started in 2015 with 10 machines running daily, with proper use and care and adherence to the recommended maintenance schedule, the company says.

Throughout the ongoing lab test, three of the 10 machines were removed from testing and used at trade shows to demonstrate the results achieved while the remainder of the seven machines reached more than 60,000 cycles individually (individual washer dependability may vary in actual use).

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(From left) Dan Roscoe, engineer lead; Kurt Werner, engineer; and Bill Martin with a tested Maytag Commercial Laundry MHN33 front-load washer. (Photo: Maytag Commercial Laundry) The company says the results are based on lab testing of the DuraCore Drive System up to 60,000 consecutive 34-minute timed cycles using an 11-pound laundry load on the “Heavy Load” setting.

The system as tested included hub, drive bearings, bearing spacer/ shaft sleeve, triple-lip with garter spring tub seal, cross-piece assembly with drum shaft, and drum. Individual washer dependability may vary in actual use, and this testing is not meant to supersede the machine’s actual warranty, Maytag specifies.

When the front-load washer was launched in 2015, its robust advanced design delivered features including intelligent controls with M-Series technology, advanced spin technology, six-point suspension and the DuraCore Drive System.

Dan Roscoe, engineer lead, has been working for Maytag Commercial Laundry since 1989 and led the design concepts seen in the machine.

“We wanted to design solutions that translated to reliability at the core of the machine,” he says.

Engineer Kurt Werner has worked for Whirlpool Corporation for more than 40 years. He started working on commercial laundry in the 1990s and enjoys the focus on producing long-lasting equipment.

“Because the performance and reliability expectations are so high, all our single-load washers that come off the production line—100%—get inspected and get that extra human touch,” Werner says.

The company says its engineers are satisfied with the test results and will shift efforts to start testing new machines launching to market soon.

This milestone and the end of the lab test were celebrated by the entire Commercial Laundry organization with food, games and a gathering of current and retired engineer colleagues. www.americancoinop.com

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