Laundry Owners Open Up About Their Recent Renovation Projects
During last year’s Clean Show in Atlanta, the Coin Laundry Association presented a seminar dubbed “Flip My Laundry,” in which laundry owners discussed the highlights of their recent store renovation projects.
At the time, CLA President and CEO Brian Wallace, who moderated the session, pointed out the growing number of owners retooling laundromats across the U.S., while stressing the importance of such store renovation on a regular basis.
“One of the more prominent positive trends I’ve noted is remodeling,” Wallace said. “Honestly, there are a lot of lousy laundries out there that are in great locations.”
One year later, yes, there are still some rather poorly cared for laundromats in solid markets. But, yes, the retooling of self-service laundries continues to be the direction in which a good portion of the industry is headed.
Whether it’s a new investor looking to take advantage of an underperforming store in a great neighborhood or a veteran operator interested in staying ahead of the competition, a well-thought-out renovation plan is the key.
Before You Start
Before you begin any type of major remodel, such as an equipment replacement and/or an expansion, you need to do your homework. Before you reinvest a substantial amount of income into your store, you need to find out if it’s indeed a worthy investment. After all, not every store can support a hefty investment.
Talk to other store owners in the area. Talk to brokers. Talk to distributors. Talk to your current customers – what are they looking for? Educate yourself before you start spending money – and be sure you know what you’re spending it on.
Another exercise before going forward with your remodel is to establish some sort of timeline for the construction process. Be sure to build in a decent cushion, because it always takes longer than you think.
A minute of planning will save hours of execution. If it’s a major remodeling, sit down with an architect or a distributor and put pen to paper, even if you simply make a list of items you’d like to entertain. Prioritize. Create a layout.
Some store owners will actually put tape on the floor or arrange laundry carts where new machinery is going to go so that they can get a feel for the laundry’s new flow. After all, “eight feet” on paper can be very forgiving, but you need to actually see what eight feet looks like in your store in person.
Planning is crucial. If you get halfway through a renovation project and it’s wrong, you’ve spent a lot of money and gotten nowhere. That can be an expensive and beyond-frustrating exercise.
To assist with any upcoming retooling projects, we’ve asked three laundry owners in three quite different business situations to discuss their recent store renovations:
Great Location – Not-So-Great Laundromat
Rita Ferrero
Sierra Laundry
Citrus Heights, Calif.
Project Cost: Approximately $405,000
We purchased the store in July 2014. Fellow California laundry owners – and our laundry business mentors, Debbie and Jim Dower, along with Debbie’s father, Jack – helped us to find this deal. First opened in 1973, the store is 1,800 square feet, and it features two long rows of washers and dryers.
When we purchased the laundry, we knew that it would require a complete retool and remodel. We did some aesthetic modifications and limped along for a year before shutting down for the full remodel – it was a painful year with 20- to 25-year-old equipment constantly breaking down.
The store’s demographics within a two-and-a-half-mile radius include 41 percent renters, with 44 percent of the households earning $50,000 per year or less. However, forget about the demographics. I grew up in this area. I knew the laundry was located at one of the three busiest intersections in the county, and my gut told me the store would do well. Yes, of course, you need to run the numbers and make sure that they’re solid. But you also have to feel it in your gut.
Of course, we also knew we were going to have to re-do this store if it was ever going to reach its full potential. It was old and outdated, the floor was cracked and the machines would hold our customers’ clothes “hostage” on a daily basis. In fact, every time the phone rang, we would cringe. We wanted to create a clean, new self-service laundry that people would look forward to coming to and using.
With that in mind, we officially shut the doors on June 15 of last year for the renovation, and the store reopened for business on August 22. Of course, I had padded the original project estimate by two weeks, and we still almost didn’t make it.
Essentially, we had to re-do the entire laundry. It was a full demolition. We had to cut the concrete floor to make way for new plumbing. We had to install new electrical, as well as new plumbing in the floor. We reframed the facility and put up new sheetrock. We also installed new washers – including concrete bases for our new 60- and 90-pound machines – and new dryers.
In addition, the project included new bulkheads, finished concrete floors, painting, added vending options and an entirely new ADA-compliant restroom.
We were extremely fortunate to have the guidance of Debbie, Jim and Jack. They prepared us for what to expect and helped us to think ahead, based on their experience with retooling and building five laundries. However, despite their valuable input, we definitely hit some snags – with the biggest being some extra time on the part of our contractor. Things began to move too slowly, and we were forced to intervene.
Fortunately, in the end, open and honest communication with the contractor was the key to overcoming those obstacles.
Beyond that, the project ran into a few snags along the way due to change orders – bulkhead modifications, main water shutoffs, T-bar ceiling, folding table posts, rewiring of lights, dryer valance modifications, etc. In the end, the schedule became a bit rushed, which increased our costs, and the quality admittedly took a hit in some areas.
The most challenging part of the renovation process was in knowing that our fate was in the hands of the contractor, but we had to step back and let him run with it. I would strongly recommend a quick weekly meeting with your contractor; sit down face to face and check the schedule to make sure that the project is on track.
Our contractor really was excellent. However, he only had done “rip-and-replace” laundry projects in the past. I didn’t understand how valuable it is to have a contractor who has experience with a full laundry remodel. In hindsight, we would have found someone with that full-scale project experience – a contractor with soup-to-nuts experience.
Our contractor was fantastic when it came to putting in big machines, pulling out old ones, doing the demo work and pouring concrete. However, other areas, such as the finish work, were not his strength. We ended up doing the painting and the floor work. If you want to be hands off and be able to step away from the project, you need a contractor that can do it all.
How the renovation has helped the business: The turnaround that this business has experienced is amazing. We were back to our “pre-remodel” revenue within 30 days – and our monthly revenue is up 77 percent year over year. We can’t keep up with the business on the weekends.
From an intangible perspective, the store is now a place where people want to be. The customers love the brand new equipment. They also love that we can remotely manage machines to help them when they have an issue. We couldn’t be happier.
Advice for other laundry owners and potential investors looking to retool a laundry: Most importantly, do your homework, run the numbers and study your demographics. And don’t be afraid to take the leap. Don’t underestimate the draw of a brand new store.
Talk with other laundry operators and get several references for the contractors you are considering. Also, if you can, find a good mentor – because I don’t think you’d want to jump into this industry without having someone guiding you. From a retooling standpoint, Debbie, Jim and Jack really honed in on where they had made previous mistakes, what some of those pitfalls were, and how we could avoid making those same errors. They pointed out some crucial factors, such as where to locate the main water shutoff valve and the need to install drain troughs – just items that a newcomer would never think of. They helped guide us through and pointed out the things we should be thinking about before they actually became problems.
When choosing a distributor, understand that the small things are really the big things. How these potential partners in your business respond during your “evaluation” period is a good indicator as to how your relationship will be. Our distributor, Western State Design, jumped through hoops to earn our business.
Above all, don’t skimp, trust your gut – and believe that if you build it, they will come.
Rising Above the Competition
Conrad Cutler
MegaMat Super Laundromat
Mt. Vernon, N.Y.
My store, which is located in Mt. Vernon, N.Y., is faced with fierce competition. Mt. Vernon is a densely populated city of 69,000 people within four square miles. In fact, there are nearly 40 self-service laundries within this small city.
Although we offer critical amenities, such as free parking and being open 24 hours, which some of the other stores don’t, I felt that we needed something else to distinguish MegaMat from the other stores in the marketplace. All laundries can – and should – be clean and offer great customer service, but we wanted to get our customers addicted to washing their clothes and other laundered items at MegaMat.
To do so, we elected to go with new, high-speed, soft-mount washers. The 5,000-square-foot store had originally featured older, inefficient hard-mount machines. By installing that new equipment, we not only made aesthetic improvements to the business, but also were able to substantially increase our vend prices while attracting many new loyal customers at the same time.
The retooling process ran from February to May of 2014. During this time, we removed all of the old hard-mount washers; installed new 450 G-force, high-speed, soft-mount washers; converted from a coin-operated store to a card-operated laundry business; installed new porcelain tile flooring; added ceramic tile to the walls; updated the restrooms; and completely repainted the laundry.
Previously, the business had been stagnant, and the customers were extremely price-conscious. However, I knew that increasing our vend prices was essential for the survival of the business – and, by introducing brand new washers and a completely renovated retail environment, we were able to boost those vend prices by an initial 20 percent, while dramatically reducing our utility costs.
What’s more, the soft-mount equipment perfectly positioned us to be able to aggressively compete for commercial accounts business as well.
If I could change anything about my recent renovation project, I would have closed the store while the work was being done. However, I was scared to close the store. I feared losing key employees who were critical to my operation, and I also was afraid that my customers would get comfortable washing their clothes at one of my competitors.
In hindsight, keeping the laundry open was the biggest mistake of the entire process. As a result of all of the construction and dust that accompanied it, we upset many customers and created an unfriendly environment in which for them to wash. Moreover, the project took an additional four weeks as a result of doing the work while remaining open for business.
How the renovation has helped the business: We have increased our gross revenue by 30 percent in one year. Our utility expenses have decreased by nearly 40 percent. Average customer usage has increased by $4 per visit per customer. Customers are saving an average of 20 minutes by washing with our soft-mount machines, because less dry time is required – and this has increased the daily capacity of my store. And, on top of that, we have acquired commercial accounts that have added more business; thus, we’ve hired six additional full-time employees to support the growing commercial segment of the business.
Advice for other laundry owners and potential investors looking to retool a laundry: If you decide to make any investment to improve your store – whether it’s new equipment or just something as simple as a new paint job – spend money to advertise and promote whatever it is you did as much as possible. Just because you know you made improvements to your laundry, don’t expect your customers to notice or fully understand the value of your renovation to them unless you go out of your way to advertise and highlight exactly what you’ve done for them.
Staying Ahead of the Game
Scott Schmidtt
The Clothesline Laundry
Woonsocket, R.I.
Project Cost: Approximately $350,000
I own four self-service laundries, and my goal is to renovate each one once every 10 years. In other words, I don’t want to have any store that is more than 10 years old.
I have been in the business since 1993, and I have renovated one of my laundries three times already. The last one I renovated was two years ago, and it is my largest store at 4,000 square feet. In fact, I had built that laundry from scratch 15 years ago, so I actually was a little behind schedule in renovating it.
This building is 5,000 total square feet, with 4,000 square feet of customer/laundromat space and 1,000 square feet of storage space. This laundry is located in a densely populated urban area with a heavy concentration of multi-family homes nearby. It features very typical laundry demographics.
Again, I try to keep each store on a 10-year renovation schedule, because I’ve found that customers want to use the latest and largest laundry equipment available. In fact, during my most recent renovation in 2014, I made space to install two 100-pound washers, four 45-pound stack dryers and three 75-pound dryers. Those machines simply weren’t available to the retail, self-service laundry market 15 years prior – and those machines are constantly turning. If I had room for more new 75-pound dryers, I would put them in because my customers love them, and there is virtually no down time.
I began the planning stage for my most recent renovation almost two years before the construction phase, which was completed in May 2014. As I had done in the past with other stores, I essentially split this one large laundry into two stores so that I could remain open throughout the retooling process. I replaced almost everything – from the floor to the ceiling. When the first side was done, I opened that and repeated the very same process on the other side. This way, I was never closed.
For the most part, this renovation project went smoothly. The secret is all in the planning. I worked closely with my distributor, Yankee Equipment, to coordinate what equipment I would need and when. And I planned all of the plumbing and electrical work so that construction time was minimized.
I don’t think I would have done anything differently. After all, as I mentioned, I have completed six total renovations and several smaller ones in the last 23 years, and I’ve learned from each other them.
Although I didn’t really encounter any major problems during this last renovation, I have learned a lot of lessons over the years. And it’s not to say that I haven’t ever had major problems in the past. For example, when I installed this particular store 15 years ago, I had all of the specifications and gave them to my electrician. However, he made a mistake in his load calculations, and it turned out that I didn’t have enough amperage coming into the store to service my machines. This caused a substantial delay, and cost me an additional $50,000, which I certainly had not planned on. It seems you can learn something from every renovation.
With regard to this particular retooling, the first thing I did was to make a determination with respect to what my customers wanted. And, by all accounts, the customers want bigger equipment. In fact, I haven’t owned a toploading washer in more than 20 years. This is what led to the decision to add some 100-pound-capacity washers. I didn’t have much additional floor space to work with, so I had to eliminate some of my smaller machines.
Next, I met with my distributor, who I’ve been with for more than 20 years. I’ve had a fantastic relationship with the folks at Yankee Equipment for such a long time, so I can call them and get an answer for whatever I may need to know. I can’t stress how important it is to have a strong working relationship with a distributor. After all, retooling your laundry business is much more than simply buying new machines – it’s also knowing that your distributor is going to be there all the time, not just when you place an order.
Third, I lined up my plumber, electrician and carpenter. I scheduled as carefully as I could. My electrician was still disconnecting the old machines when the new ones were delivered. When he was done, he started wiring the new ones. The plumber was installing gas pipes to the added dryers.
At the same time, the carpenter was cutting away walls to accommodate the new dryers. I took some space from what previously had been a children’s play area to make room for my new 75-pound dryers. When the dryers were in place, my carpenter started building the walls.
Lastly, the finish work had to be done. The new floor went down, the new ceiling went in, and the paint and other finish work were completed. Then, we opened up that side of the store for business, and followed the same procedure on the other side of the facility.
The most challenging part of the process was keeping the store open while renovating. We had to get a little creative while each side was shut down, but we pulled it off.
How the renovation has helped the business: Today’s customers have a lot of choices regarding where they do their laundry, and I don’t look at store renovation as an option. It has to be done. Even the biggest, brightest and newest store will look tired after 10 years. Color schemes that were in fashion a decade ago are no longer in fashion. More importantly, machines are constantly being updated and improved, to use less utilities and to offer additional cleaning options. If you don’t keep up, your customers are going to go somewhere else. Therefore, a regular store renovation schedule helps me to not only retain my current customer base, but also to add to it.
Advice for other laundry owners and potential investors looking to retool a laundry: Plan on it, and budget for it.
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