Multi-Location Owners Only

[akbrouwer]

I am helping a single location owner transition into multi-location with the acquisition of 2 more washes. We are trying to get a grasp on what the biggest hurdles will be once they are taken over.

For those that are Multi-Location Owners-
Where do you spend most of your time?
What are your biggest challenges?
How did you combat them?

 

[robert roman]

I’ve consulted for firms operating networks with up to 500 stores.

How can you help someone if you are asking such fundamental questions? It’s like the blind leading the blind.

People with experience creating and growing a network of retail stores know principal problems are 1) how many stores (acquire or build) in what period of time (implementation timing), 2) which location to choose and 3) what store characteristics for the sites selected.

Biggest challenges are 1) obtaining funding (integrated investment model), 2) assessing sales and 3) designing services (service quality, customer satisfaction).

Time involved varies considerably and is a function of business model, number of sites and distance between sites, management, etc.

In acquiring two existing stores, the principal real estate and investment risks are 1) can entitlements be obtained, 2) is there previous toxic contamination and 3) will future market conditions allow sale to 3rd party at expected price.

Principal operating risks would be 1) will sites produce sufficient sales and 2) is new owner capable of providing adequate management to ensure efficient and customer-centric operation.

 

[cwguy.com]

The biggest challenges are not ignoring one location. You also need to stay organized. I would recommend each location being self contained.... Meaning it has all ladders, tools etc.

I think the transition to 3 or more is cake.... because then you need someone to help like an employee. My Dad owns 3-8 and always had an employee.

 

[Stuart]

Agree w/ cwguy, especially the point of having each location stocked with it's own tools, spare parts, etc.
I have 2 and the sales at one is half of the other. Always finding myself getting too involved with the busier location- have to remind myself to check out the other and they are only 10 minutes apart. I couldn't do it myself with a 3rd location.

 

[JGinther]

Its the same, but different. Obviously, you can't do everything, nor should you. In the end you wind up learning to be a better manager instead of a doer. It becomes a full time job fixing broken crap and messing with cash, and you have to have good help to keep the places clean and the customer concerns looked after. You should also have a someone answering the customer calls besides yourself, and only taking the important ones - not the ones about credit card pre-auths and whatnot...

 

[robert roman]

“I think the transition to 3 or more is cake...”

Anytime someone tells you something like this or similar like it’s a “no brainer” it’s a good idea to take a couple of step backwards to survey the forest.

If self-serve, the minimum time to attend and administrate three sites would be about 90 hours per week.

Average performance would require full-time attendant (60 hours) rotating between each site as well as general manager (owner or for-hire employee) overseeing operations (30 hours).

If express tunnel, three sites would require a minimum of 588 hours of attendant labor per week, 150 hours of site management plus 50 hours for general manager.

If flex or full-service, figure between 8 to 22 employees or more per day per site plus site manager for each location plus general manager to oversee operations.

Nothing cake about transitioning to either of these scenarios.

 

[Earl Weiss]

I am helping a single location owner transition into multi-location with the acquisition of 2 more washes. We are trying to get a grasp on what the biggest hurdles will be once they are taken over.

For those that are Multi-Location Owners-
Where do you spend most of your time?
What are your biggest challenges?
How did you combat them?

Spend most of the time doing Accounting and Bookkkeeping, making sure on site personnel do what they should have been doing, and point out what they fail to see.

Challenges: Constant surprises at long time personnle seeming to miss the obvious. Also some surprises when they thin of a solution I miss.

Combat them - Teach- train - dlegate - repeat. Also important since you have less time for details. Learn to accept that all will not be 100% as you want 100% of the time. Standardize procedures and processes across locations. Perhaps have an employee that can float between locations as needed. Have all locations be seperate legal entities to avoid liability cross contamination.

 

[cwguy.com]

With expresses and full service you should look into profit sharing? Having a manager with vested interest I believe helps. But I don't own any expresses.... just my Dad (4).

“no brainer” it’s a good idea to take a couple of step backwards to survey the forest.

How many ss car washes have you personally owned? Your references do change but ss has never been on the list.
You also live by a lake not the forest? I also read about scaling businesses in business school? So what?

 

[robert roman]

“How many ss car washes have you personally owned? Your references do change but ss has never been on the list.”

I’ve owned and operated full-service, several detail businesses and quick lube.

I was never interested in self-serve because it has historically been a low yield business.

Now that I’m old enough to collect social security and my pension owning a wash doesn’t seem that attractive.

Quite frankly, I get more enjoyment working with carwash operators to help turn their properties into cash flow monsters.

 

[cwguy.com]

I’ve owned and operated full-service, several detail businesses and quick lube.

Owned only please.... So you have only owned one detail place out of your own personal garage? I don't care about operated or being an employee. Also don't care your 80.
http://www.autocareforum.com/showthread.php?6882

 

[robert roman]

“You also live by a lake not the forest?”

“Owned only please....”

“So you have only owned one detail place out of your own personal garage?”

“I also read about scaling businesses in business school? So what?”

Actually, I live near the Gulf of Mexico and Tampa Bay.

As for the other items above, I don’t know if you can’t read well or just have trouble communicating to others in general.

 

[cwguy.com]

I don’t know if you can’t read well or just have trouble communicating to others in general.

I wish I couldn't read or remember things some times..... this is one of the time.

BTW you post your home address.... you live by a lake.... next to the gulf? So both are correct.
So you have only owned a detail place in a garage you lived in.... in Tampa! That took you probably over 10 years to say...... congrats! Talking about problems communicating.... I also really don't care so don't worry.

 

[PEI]

It might help if we knew what kind of washes you are looking to operate. What you would need to operate 3 SS versus 3 IBAs would be different. Either way you will need to have clearly defined processes and excellent management skills.

You will also need to decide if you want to operate all three as if they were separate car washes are bring them under one brand.

Duplicating tools and parts at all locations increases start up cost and inventory carried. Having a central warehouse or storage facility with a work van or truck reduces the amount of stock and tools that must be kept. This method works best when all equipment platforms are the same at all locations. The downside to a central storage location is the cost of rent and operation.

Another reality is that multiple sites require a lot of travel, increasing the cost of vehicle operation. The numbers on the three sites have to support not only the normal costs but also the additional cost of the vehicle that will support them. While you will have a planned route that will take you to all the car washes each day, problems will arise that will require you to abandon your plans and travel back to a site you have already been at.

Most importantly, having multiple sites means you simply can not be as hands on as you can with one. You must have people that you can trust to do the work that you would while you are not there.

 

[akbrouwer]

I’ve consulted for firms operating networks with up to 500 stores.

How can you help someone if you are asking such fundamental questions? It’s like the blind leading the blind.

People with experience creating and growing a network of retail stores know principal problems are 1) how many stores (acquire or build) in what period of time (implementation timing), 2) which location to choose and 3) what store characteristics for the sites selected.

Biggest challenges are 1) obtaining funding (integrated investment model), 2) assessing sales and 3) designing services (service quality, customer satisfaction).

Time involved varies considerably and is a function of business model, number of sites and distance between sites, management, etc.

In acquiring two existing stores, the principal real estate and investment risks are 1) can entitlements be obtained, 2) is there previous toxic contamination and 3) will future market conditions allow sale to 3rd party at expected price.

Principal operating risks would be 1) will sites produce sufficient sales and 2) is new owner capable of providing adequate management to ensure efficient and customer-centric operation.

Bob, thank you for the response.. It's not as much the "Blind Leading the Blind" as I made the question out to be. haha

I more so asked because I am fluent in streamlining processes. And I wanted to see what processes are already being used by multi-location owners.
We are working on linking the locations for a fluid and seamless owner/manager system. The locations are pretty far apart and need to be aware of what is going on at each location. Without physically being present.

In doing that I wanted to be clear on what challenges owners have faced, and how to make life easier for everyone- both owner and managers. What information is an owner looking for immediately in real time. And what do they have in place for their managers.

 

[akbrouwer]

The biggest challenges are not ignoring one location. You also need to stay organized. I would recommend each location being self contained.... Meaning it has all ladders, tools etc.

I think the transition to 3 or more is cake.... because then you need someone to help like an employee. My Dad owns 3-8 and always had an employee.

Self Contained is a great Idea.. no sense of driving all over God's green earth to make more work for yourself.

 

[akbrouwer]

Agree w/ cwguy, especially the point of having each location stocked with it's own tools, spare parts, etc.
I have 2 and the sales at one is half of the other. Always finding myself getting too involved with the busier location- have to remind myself to check out the other and they are only 10 minutes apart. I couldn't do it myself with a 3rd location.

Stuart,

Have you implemented anything to monitor your second location while you are not there? Imagine if it was 20-30 minutes away... what would you do?

 

[akbrouwer]

Its the same, but different. Obviously, you can't do everything, nor should you. In the end you wind up learning to be a better manager instead of a doer. It becomes a full time job fixing broken crap and messing with cash, and you have to have good help to keep the places clean and the customer concerns looked after. You should also have a someone answering the customer calls besides yourself, and only taking the important ones - not the ones about credit card pre-auths and whatnot...

SYSTEMS SYSTEMS SYSTEMS..

haha

 

[akbrouwer]

“I think the transition to 3 or more is cake...”

Anytime someone tells you something like this or similar like it’s a “no brainer” it’s a good idea to take a couple of step backwards to survey the forest.

If self-serve, the minimum time to attend and administrate three sites would be about 90 hours per week.

Average performance would require full-time attendant (60 hours) rotating between each site as well as general manager (owner or for-hire employee) overseeing operations (30 hours).

If express tunnel, three sites would require a minimum of 588 hours of attendant labor per week, 150 hours of site management plus 50 hours for general manager.

If flex or full-service, figure between 8 to 22 employees or more per day per site plus site manager for each location plus general manager to oversee operations.

Nothing cake about transitioning to either of these scenarios.

Bob,

Can we talk more about this? I'll PM you.

 

[akbrouwer]

Spend most of the time doing Accounting and Bookkkeeping, making sure on site personnel do what they should have been doing, and point out what they fail to see.

Challenges: Constant surprises at long time personnle seeming to miss the obvious. Also some surprises when they thin of a solution I miss.

Combat them - Teach- train - dlegate - repeat. Also important since you have less time for details. Learn to accept that all will not be 100% as you want 100% of the time. Standardize procedures and processes across locations. Perhaps have an employee that can float between locations as needed. Have all locations be seperate legal entities to avoid liability cross contamination.

Earl,

Thank you!
Do you have checklists or systems in place so you know what your personnel are doing? Do they check in with you? How do you monitor them if you are at another location?

Nothing will be 100%- but if you learn to live with 95% and they can take full control without you doing it or getting hands on.. that is perfect ownership/management.

 

[akbrouwer]

It might help if we knew what kind of washes you are looking to operate. What you would need to operate 3 SS versus 3 IBAs would be different. Either way you will need to have clearly defined processes and excellent management skills.

You will also need to decide if you want to operate all three as if they were separate car washes are bring them under one brand.

Duplicating tools and parts at all locations increases start up cost and inventory carried. Having a central warehouse or storage facility with a work van or truck reduces the amount of stock and tools that must be kept. This method works best when all equipment platforms are the same at all locations. The downside to a central storage location is the cost of rent and operation.

Another reality is that multiple sites require a lot of travel, increasing the cost of vehicle operation. The numbers on the three sites have to support not only the normal costs but also the additional cost of the vehicle that will support them. While you will have a planned route that will take you to all the car washes each day, problems will arise that will require you to abandon your plans and travel back to a site you have already been at.

Most importantly, having multiple sites means you simply can not be as hands on as you can with one. You must have people that you can trust to do the work that you would while you are not there.

PEI,
Thank you for the insight..
You brought up valid points that I never even considered.. Planned Travel, routes, vehicle costs, etc.