STATS Project

S.T.A.T.S Dustin Burroughs

01.

PURPOSE

STATS initiative purpose

02. SWOT analysis at site operation &

SWOT - BUSINESS OPERATION unit growth at 20-60+ sites

03. Overview of STATS & objectives OVERVIEW

04. Customer experience journey story with CUSTOMER JOURNEY STATS impact & inclusion

TABLE OF CONTENT

05. Road map of initiative and STRATEGY MAP business aspects

06. Real world case study of beta SITE CASE STUDY rollout of STATS

TABLE OF CONTENT

01.

PURPOSE

PURPOSE STATEMENT The purpose of the subsequent, SWOT analysis, overview, and customer journey narrative is to provide prospective investors and partners with an immersive example of the exceptional customer service experience we aim to consistently deliver across all locations through our STATS operating model. As we rapidly scale our express car wash business to new sites across the region, maintaining outstanding service levels is our utmost priority. The proceeding customer journey story illustrates how the integration of systems, talent, training, technology and specialized support services enables us to simplify complex wash operations in order to focus on customer satisfaction through every touchpoint. From the specialized presoak delivery process to multilayered staff training programs and preventative equipment maintenance, each aspect of STATS works in concert to create the end-to-end experience conveyed in this customer’s visit. As we grow, the STATS foundation provides assurance that even first-time customers will become regulars and in turn, devoted brand advocates. This system drives the word-of-mouth referrals and retention we rely on for sustainable market expansion that will stack on traditional marketing efforts to drive customer traffic to units across operators strategic market placement. We welcome further conversation around the STATS operational blueprint and how its implementation positions us for streamlined scaling without quality erosion.

02.

SWOT-BUSINESS OPERATION & UNIT GROWTH

@ 20-60+ UNITS

S

W

Exceptional business model, with consistent revenue & high profit margins, blended with market share tremendous financial performance & profitability

Complex operational challenges, with dynamic product that are heavily influenced by site operators. Lack of qualified talent, with needed technical, management, business acumen, and leadership abilities

Customer expectation and competitor performance are low, making execution bar low relative to other similar retail businesses

After 20-30 units oversight and management of site execution are challenging. Increased competition and poor execution by unqualified or poor site level management can lead to loss of revenue or ample share of markets

O

T

03.

OVERVIEW

OVERVIEW

EVERY CAR WASH OPERATION AIMS TO PROVIDE AN EXCEPTIONAL CUSTOMER EXPERIENCE THROUGH THE BUSINESS. TO SUPPORT RAPID EXPANSION GOALS WHILE MAINTAINING HIGH SERVICE LEVELS, THE GOAL IS TO DEVELOP AN INTEGRATED OPERATING MODEL CALLED STATS: SYSTEMIZATION STANDARDIZED PROCESSES, SOPS ACROSS ALL SITES TO ENABLE CONSISTENCY STREAMLINED COMMUNICATION AND HANDOFFS BETWEEN TEAMS EFFICIENT SITE LAYOUTS AND TUNNELS FOR CONSISTENT AND IMPROVED RESULTS SIMPLICITY FOR LESS AND MORE EXPERIENCE ALIKE TALENT REFINED RECRUITING TO ATTRACT QUALIFIED CANDIDATES DATA DRIVEN RECRUITING SOLUTION WITH CAR WASH EXPERIENCE TO ASSES BEST CANDIDATES TO DELIVERY OF HIRING MANAGERS IMPROVED AND MEASURED HIRING TACTICS FOR BETTER CANDIDATES ROBUST ONBOARDING TRAINING TO SETUP STAFF FOR SUCCESS ADVANCED TRAINING ONGOING CLASSROOM AND ON-THE-JOB TRAINING VIA LMS LMS CONSISTENT TRAINING AS SITES AND LOCATIONS EXPAND, REDUCING TRAINING OVERHEAD AND THE CONSTRAINTS OF GEOGRAPHY BUILDS ACCOUNTABILITY THROUGH LAYERED OVERSIGHT ADVANCED TRAINING IN PERSON IN BOTH CLASSROOM AND ONSITE. CREATING MORE THAN CAR WASH KNOWHOW BUT ALSO LEADERSHIP, MANAGEMENT AND BUSINESS ACUMEN TECHNOLOGY ADVANCEMENTS LEVERAGE INNOVATIONS IN LPR, OPERATIONAL MONITORING, DATA ANALYTICS TECHNOLOGY INTEGRATIONS CONNECT BUSINESS FUNCTIONS UTILIZATION OF TECHNOLOGY AND INTEGRATION BUT NOT BEING FULLY DEPENDENT ON THEM AS THE TECHNOLOGY IS A TOOL AND RESOURCE FOR THE LEADERSHIP OF ORGANIZATION SPECIALIZED SERVICES DEDICATED TEAMS FOR KEY FUNCTIONS: MAINTENANCE, SALES, SAFETY ENSURE REGULATORY COMPLIANCE AND OPERATIONAL EXCELLENCE ALONG WITH GREAT OPERATIONS MULTILEVEL MANAGEMENT, SPECIALIZED SERVICE TEAMS ALLOW SUPPORT TO BUILD FOOTPRINT, INCREASE REVENUE, LIMIT COSTS, DEVELOP TALENT, AND GROW MARKET SHARE

OVERVIEW Objective The STATS model creates a simplified environment enabling exceptional customer service as operators rapidly expand our site footprint. It allows us to level site development and construction that outpaces organic talent development with comprehensive systems to support customer experience consistency.

STATS is not just technology, or human capital, and or resource but comprehensive structure for unparalleled customer experiences. With the purpose of changing the depiction of car wash visits to current industrial or gawky gimmicky feels, to a professional casual environment that invites customers to repeat the experience and transforming the process with a unique environment with multiple welcoming amenities & services while still clearing the errand of washing their vehicle.

04.

CUSTOMER JOURNEY

CUSTOMER JOURNEY A customer pulls into site unaware that a flex wrap had just been put back online after an ice cube relay was replaced. A flag was sent via an automated platform that flagged multiple wraps that had exceeded normal life expectancy. The wraps were checked by the service team and an ice cube relay was left in the spare inventory as a redundancy preventative measure. The site was able to diagnose and replace the ice cube relay in only 15-30 minutes, without any direct assistance from the service team due to both precautionary methods taken, training, and the automated platform. Technology, training, and specialized service blended together to reduce downtime that subsequently increases revenue and customer satisfaction.

When the customer then hits the license plate reader (LPR), the LPR reads and cross references the tag, showing the customer has washed 3 times in the past 5 weeks. This automatically prompts the customer with the club active screen with top wash selection. The sales attendant went through training via classroom and learning management system (LMS) and knows that the prompting indicates the customer is a returning customer who has washed at a frequency high enough to prompt a club offering. The sales attendant goes through the set club pitch, informing the customer they have seen them prior and that the club can provide instant savings. The customer still declines. Although the customer declines the offer, the sales attendant is assisted through advanced technology, guided training and specialized services & advanced training done by the corporate sales division which can greatly increase sales on proceeding customers.

The customer was in a hurry and figured the process was time intensive. Also unbeknownst to the customer, the site is on pace to wash 1000 cars today.

Even though there is a line at the paystations, there is hardly one at the conveyor as it only has 2-3 cars at any time. This site was remodeled two months ago, it was an older site in the companies portfolio, with a 90 foot tunnel, and lacked enough friction points and lacked needed dwell time for drying purposes. A three set combo wrap unit was placed inside the cleaning section of the wash,allowing more spacing for dwell time and upgraded blowers for a dryer car, along with pivoting high pressure arches that allows a constant track speed of 150, so in turn the 110 cars washed that hour was processed with minimal stress output with more consistent car quality. Systemization of equipment layout provides high efficiency even with less working space, advanced equipment technology allows more vehicles to be processed, increasing on average 15-30 cars per hour. On yearly pace of 50k more vehicles washed. At $11 average ticket this increases profit margin by direct potential of $247,500 for the year.

The customer is loaded onto the conveyor and pre-washed with a high alkaline presoak and high pressure lance wands, the customer had ample bugs from a family vacation to Florida. The process eats off the bugs even before the wash entry and starts activation of dwell. Improved prep process was a systemization effort to reduce physical touch points, along with sales tax mitigation as the state the site operated in taxed any service that has physical touch points offered by servicing business. Major impact is reduction of labor needed to “prep” vehicle. Decrease is forecasted at >10% labor to sales compared to 15-18% in previous model, while still utilizing labor in customer facing segments, and increased sales presence at pay stations and front lot with new sales kiosk/station for backend sales opportunities and increased sales execution.

JOURNEY CONTINUED As the customer is sent through, a pincolda fragrance catches their attention and gives an instant feeling of clean. The customer now pays attention to multiple lighting fixtures and equipment functions they had not necessarily noticed prior when washing. Even with small introduction of a fragrance the impact it can make impact to customers who’s expectation is of past era of car wash operation with dark & dingy tunnel with unpleasant smells like stagnant reclaim water, and caustic smelling cleaners. The fragrance cost is next to nothing and gets customer attention to higher cost functions of wash like LED lighting and equipment. Although it is not so over the top it gives tacky or gimmick feeling, but the feeling of a professional welcoming facility.

The customer pulls up to the vacuum island and starts to vacuum. As they are wrapping up, the customer is approached by the manager checking on how the wash turned out. The manager acknowledges they have a quick detailing package with high quality microfiber, air freshener and a quick detailing wax. He makes them aware the package comes for free when customers sign up for a plan, or with multi-car offerings or a family plan, and more information can be found at the sales tent with a set sales attendant. Talent and general level training meet together for execution. Increased focus on talent, with technology advancements, allowed hiring manager to make effective hire. Then with general level training, the employees path to success was increased to allow them to be positioned into MIT program, where they went through advanced training, and used specialized training from the sales division to just give customer insight versus a high pressure sales exchange. The sole focus of the manager was the check-in ensuring car quality was up to expectation.

The customer is now intrigued to the offering based on the results and follow through of this particular visit. The customer walks to the sales kiosk and sales attendant #2 goes into more detail on the savings and types of plans. The customer acknowledges the single wash purchase today. The sales attendant confirms the purchase through the stationary tablet and quickly walks the customer through the sign up process for the multi-car plan without requiring additional payment. The customer acknowledges this was actually her first time visiting and it was her husband who visited previously. But based on her experience, she now believes the wash will provide value for her, her husband and her son who just started driving. All components meet at sales execution, equipment, technology, quality, and service. The customer makes their own decision. Even though initial offering was declined, sale was executed through complexity of operation. The three plans sold are now an additional revenue to customers original purchase. If the customer is a member for one year with the three plans, the site just received $960 gross on one sale.

The customer walks back to get in her car to leave, but realizes her back wiper is not working. She gets out and engages the same manager who made her aware of the special offering. The manager takes a look at the wiper, then pops the plastic nut cover and sees the jam nut is loose, which did not allow the wiper to engage. The manager tightens it and the customer leaves thrilled and happy. Unbeknownst to the customer, the manager was sourced via a internal recruiter who used data on the best quality candidates from the local community college. The manager went through the LMS, classroom and certification process and company meetings that gave him insight into troubleshooting and problem solving.

Again Talent and general level training meet together for execution. Increased focus on talent, with technology advancements, allowed hiring manager to make effective hire. Then with general level training, the employees path to success was increased to allow them to be positioned into MIT program, where they went through advanced training, and used insight to make deduction that wiper could have very simple issue other than a bent or broken wiper motor. General claim documentation would have ruined customer experience The customer gets home and runs into her neighbor and, with the experience fresh in her mind, tells her neighbor how impressed she was with the overall experience. The neighbor realizes she needs a wash and goes to the wash the next day. All elements were incorporated to meet the expectation of one customer, and more than likely make them a loyal customer. Now with the potential of another customer visiting the site. STATS is creating more than a standard car wash offering, but a professional convenient and casual experience that provides high value creation for its customer base. The model is amplification of the business and can be duplicated across various units. It allows the business to rapidly grow as less experienced operators can handle the load output, as it creates environment for higher level operators to be created for future growth.

05.

STRATEGY MAP

STRATEGY MAP Expansive Growth Systematization Talent

Refined Recruiting - Data Driven - AI Integration - Hiring - Robust Onboarding

Specialized Services

Technology Advancements

Advanced Training

Dedicated Teams per Training per Classroom, Onsite, LMS for both Service, Sales, Safety, & technical, operational Install management

Innovation Leveraging - RIOP - LPR Business Dashboard - Talen

Specialized Services

Structured systems with data warehousing, data collection, communication overhead & service execution

Advanced Training Advanced systems and software for training delivery on all lines & facets of operating business

03.

SITE CASE STUDY 2020-2021-2022-2023

SITE CASE STUDY 2021

250,000

2023 Full beta rollout of STATS with experienced operator, projected best performing year in site history

Total Cars Washed

Market leveling and reduction, implemented elements of project with appropriate talent introduced

2021

2022

2023

21%

Post COVID year, major bounce back, 2020 149k TCW, but customer expereince concerns

2022

2020

200,000

Projected Growth 2022-2023

150,000

29%

Sales Gross Growth 2022-2023 100,000

25.3%

50,000

Growth in Profit Margin 2022-2023

0

Operating Years

THANK YOU +704-576-1650 dustinburroughs1990@gmail.com www.linkedin.com/in/dustin-burroughs