EXPRESS TO SUCCESS

Oil change is one of those
necessary tasks & that makes
this biz repression-proof!

Express Oil Change is the leading automotive service center in the South with almost 170 company and franchise locations in nine states. With successful growth largely attributed to emphasizing integrity in every action, Express Oil Change – the largest independent fast-lube chain in the Southeast – can boast of some impressive figures:

2008 system wide sales per location averaged $810,000, a 23 percent increase since 2004.

2009 projections call for same-store sales to increase five to six percent with total sales growth to increase solidly for the seventh consecutive year.

The top 50 percent of Express Oil Change locations averaged more than $1,050,000 in sales in 2008, while the top 25 percent averaged more than $1.2 million. The industry average ranged between $500,000 to $600,000. Half of Express Oil Change’s million-dollar stores are owned by franchisees.

Jim Lunceford founded Express Oil Change in Birmingham, Ala., in 1979. Locations offer a 10-minute, full-service, drive-through oil change that includes a 20-point courtesy vehicle inspection and fluid top-offs while the customer waits in his or her vehicle. In addition, a full-service mechanical department offers full-scope maintenance and repair services through Automotive Service Excellence (ASE) certified mechanics.

In 1996, franchise partners Ricky Brooks and Joe Watson acquired the franchise corporation from Lunceford after they became the chain’s largest franchisee with 14 service centers. With 48 locations in Alabama at the time of the acquisition, Brooks and Watson have since added more than 120 franchised and corporate locations and expanded to eight other states.

With more than 100 franchised locations currently, Express Oil Change expects to open 10 to 12 new centers in 2009 and increase those numbers in coming years toward a goal of reaching 230 to 250 locations throughout the Southeast and Texas in five years. In an economy where business closings and downsizings have seemingly become the norm, Brooks, the company’s 56-year-old CEO, said Express Oil Change is chomping at the bit for further growth.

“We have the scalable infrastructure in place, including training, support, real estate development, technology and systems to grow more than 12 stores a year,” Brooks said. “Our company has never been better positioned for growth.”

The fast lube industry is also well positioned. In a January 2009 interview with trade publication National Oil Lube & News, Steve Christie, former executive director of the Automotive Oil Change Association (AOCA) said the staggering drop in new car sales combined with the average age of vehicles on the road increasing to just under 10 years, represents “good news for the fast lube industry” since older vehicles are the industry’s “exact audience.”

If the industry is expected to fare well in 2009, consider where Express Oil Change sits among its peers, according to figures in National Oil Lube & News’ annual fast-lube operators survey.

Express Oil Change surpassed 2008 industry averages in its category of “lube-plus” facilities by wide margins: 

Express Oil’s average daily car count (43) for its franchise locations open at least 12 months was 32 percent above the industry average (32.3) and average annual franchise store sales ($780,000) were 38 percent above the industry average ($566,039). 

Systemwide, including it 68 corporate-owned stores, Express Oil surpassed national averages on daily car count by 35 percent and average annual sales volume by 43 percent. Corporate-owned locations averaged 42 percent above industry averages in daily car count and 55 percent above the national average for annual store sales. 

“If you compare our numbers to others in the industry, we dominate,” said Kent Feazell, senior vice president of development. “We promote a very strong cash-on-cash return and a very strong return on investment. And when you compare Express Oil Change to other franchise concepts, we believe we offer attractive margins and strong quality of life since we are not open evenings or Sundays.”

The root of the company’s success is “our people,” according to Brooks. The focus on integrity isn’t just a convenient catchphrase. As important as what Express Oil does, is what it doesn’t do:

Not wasting customers’ time. Seventy-five percent of oil changes are completed in less than 11 minutes.
Oil changes are not deeply discounted in order to sell unnecessary services that create higher total charges.
There is no use of pressure tactics, which have become prevalent in the auto services industry.
No service is ever recommended that is not needed.

Instead, Express Oil Change utilizes a unique compensation system for its fast-lube employees based on car-count growth, not average ticket sale. “We focus on serving the customer well so they will return,” Brooks said.

Lunceford, the company founder, created the foundation of the compensation system. Employees are recognized each month and share in a profit pool that rewards them with both financial incentives and non-financial rewards such as cruises, use of vacation condominiums and more.

Managers have an average tenure of 10 years. Express Oil Change does not employ part-time help, only career-minded employees who earn higher-than-average wages in the fast-lube industry.

“It aligns everybody’s interests,” Brooks said. “If you serve the customer well, car counts grow and employees are recognized and rewarded. Sales grow, profits grow and the net worth of our franchisees’ grows.”

One hundred percent of Express Oil Change franchisees come from white-collar backgrounds ranging from airline pilot and bond salesman to brain surgeon, engineer and attorney. “Express Oil Change is a million-dollar business and we treat it as such,” said Feazell.

Adds Brooks: “All of our franchisees have been successful in other careers, but when they join Express Oil Change they need to immerse themselves in our system and be trained to execute the system, because it works.”
About 75 percent of franchisees own more than one location. “Even those with single locations have legitimate and long-term goals to be multi-store operators,” Feazell said.

Franchisees are drawn by a proven business model backed by an unparalleled support program, whose success is exemplified by a 99 percent survival rate of all new-construction stores built over the last 13 years. Some highlights of the support program:

Outstanding site selection and facilities – Express Oil Change only builds its bright and attractive service centers in “A” locations chosen for their high-traffic, destination-oriented retail developments in densely populated neighborhood communities.

A comprehensive eight to 10-week training program that includes classroom and hands-on instruction at a company-operated center. An abbreviated program is provided to the initial crew. “Most training in our industry averages one to three weeks,” Feazell said.

ExpressTrack, a proprietary management software system that allows franchisees to easily track key business indicators in real time.

A large percentage of Express Oil Change franchisees are owner-operators. They are in their stores every day, although many move into a general management role as they open additional stores. While they develop their own successful businesses, franchise owners don’t have to look far for advice when needed. Express Oil Change company-operated stores are consistently among the chain’s top performers. 

“We do it every day, just like our franchisees and we lead the chain in car counts and sales,” Feazell said. “When we talk, our franchisees listen and understand. And now that they’re closing the gap on us, it’s motivated us to get to the next step.”

For more information, visit www.expressoil.com. The phone is 888/945-1771.