Big Business in Little Rock

By PlanetLaundry staff | Oct 23, 2009

Keith Griffin has developed a sprawling empire of Super Suds Coin Laundry stores in Arkansas. Headquartered in Beebe, located about 45 miles northeast of Little Rock, Super Suds stores dot the landscape for 150 miles throughout the central and eastern portion of the state.

“I typed my information into the CLA Web site, someone from the CLA called, and I’ve opened 10 stores in 10 years,” Griffin said.

How did you get involved in the coin laundry industry?

I looked at the car wash business. I had owned a car wash at one time, but it was not my cup of tea. I also looked at some vending routes and other coin-operated businesses. The investment and the return on investment in the coin laundry industry seemed to be a better option to me.

What attracted you to this business?

I wouldn’t say it’s 100 percent recession-proof, but it’s recession-resistant. I like that it’s pre-paid. That’s one thing that’s attractive about it. With the amount of capital it takes to get into the business now, it’s difficult for a lot of people to get into. Not just anybody can get into the laundry business. It takes management skills and capital. That keeps people out of the laundry business, and I think that’s not a bad deal.

What are the keys to a successful self-service laundry business?

You’ve got to have a good location, and you need enough capital to run it. The number-one reason for failure is a poor location. You can’t ‘make’ a good location. It’s either good or it’s not.

And, contrary to some beliefs, it requires management skills to maximize the potential of each store.

Cleanliness is next to godliness. The cleaner you keep the store, the better your store will do. You can’t open the doors and check on it two hours a week if you’re going to be successful at it.

Do you run your 10 stores with same basic template?

No. There’s no absolute rule to running a laundry. I have some 24-hour stores, some partially attended, some fully attended and open 6 a.m. to 9 p.m., and some totally unattended. Some of my laundries offer wash-dry-fold service and some don’t. We do whatever the market calls for. If there’s a need for a drop-off laundry service, we offer it.

Are there any things you stay away from entirely?

We’re not into drycleaning. When you factor it in, it’s not a significant amount of revenue. With drycleaning, you have an employee spending 90 percent of his or her time on something that makes 10 percent of your revenue. Also, I can’t justify having snack bars, coffee shops, tanning beds and those types of things.

What are some of the hot-button issues for laundry operators in your area?

Utilities are an ongoing concern and are always going to be a concern. We’re in a regulated market, so there’s nothing we can do about it.

What major trends are you noticing in this industry, particularly in your marketplace?

I’m seeing a lot more multi-store owners, as well as laundries that are being acquired by others. They’re not necessarily being run as mom-and-pop stores, but they’re also not big corporations. They’re being run a lot more professionally, and they’re replacing equipment when it’s time – updating the stores instead of letting them get rundown.

There is more professional management and more multi-store owners. Those are trends you’re going to continue to see.

What is the biggest concern you hear from the customers in your area?

I think customers do some complaining about the vend prices, but I think, overall in our industry, you’re going to hear some complaints, even if you give a customer good service at a fair price. As a whole, we’re going to hear some complaining in our industry because of our core customers.

One thing I hear on the business side is that it won’t make any money. If you’re in the business, you have to run it like a business. You’re not doing anybody any good if you’re not turning a profit for the company. You’re letting your customers down.

There’s nothing wrong with being a price leader. If you built a better mousetrap, you’re justified in charging more.

What’s the greatest technological advancement you’ve seen since you’ve been in business?

The card system is a great deal. Being able to check on point of sale and that type of information is great. With cards, it’s so easy to run a special such as a Half-Price Wednesday. And the remote accountability of your store is very helpful, especially when you’re able to check on multiple stores.

Do you have a business philosophy that guides your decisions?

I don’t really think so. If there’s one thing I try to do, it’s to make sure you do your due diligence. I almost always have an escape plan. If it doesn’t progress like I want it to, I know that I can run it for a certain period before I start losing. If you get a loser, you’ve got a loser.

Buying 10 stores in 10 years is a pretty rapid pace. Do you ever turn down prospective laundry locations?

When something doesn’t seem right or if it doesn’t feel right, it’s not. Be patient, wait for an opportunity to present itself.

I’ve looked at several potential laundry locations that I’ve passed on. For instance, I was very anxious to get a store in this one particular town. My distributor said, ‘I’ll sell you the equipment, but I’m telling you not to do it.’ As it turned out, the seller came back with too high of a price, so I passed on it. However, fortunately, a few years later I returned and bought the store at terms I could live with. Patience and diligence go a long way.

Specific to your market and region of the country, what are your thoughts on vend pricing?

We try to be the absolute top. We keep a clean store with modern, efficient equipment, security and air conditioning. We’re going to be the highest-priced stores in our markets.

How about utility costs?

It’s just a cost of doing business. All we’re doing is re-selling utilities to our customers. You have to get very efficient equipment and adjust the price accordingly to make sure you’re making an acceptable return on your investment – no matter what the competition is doing.

What are your thoughts on attendants and their training?

I use the CLA training videos for my attendants. Whether it’s construction, a convenience store or a laundromat, employees come with their own set of problems, so every business owner is in the same boat. We try to keep and retain the good employees, and the ones that need to go, we let them go.

Are you a big believer in the marketing and advertising of self-service laundries?

I’ve done a wide array of marketing, from cable TV to radio. One of the most effective things we have taken advantage of are door hangers on apartment doors and in-store promotions. Also, depending on the market, we’ll give away a summer picnic basket full of picnic supplies, or maybe a charcoal grill. Of course, sometimes certain customers would rather have $100 cash than $100 in picnic supplies. We’ll set up a box and hold regular drawings.

Also, whenever we open a new laundry, we offer free washing at that store for the first seven days. My equipment distributor told me about that one. We still a charge for drying during that first week, but the washing is free. People always like something for free.

In your experience, when a coin laundry fails, what is the most common reason?

It’s probably a combination of location, number one, and poor management would be a close second.

Personally, what’s the biggest mistake you’ve ever made in this business?

When I was expanding as quickly as I was, I was probably a little under-capitalized. You can grow too fast even if it’s a great deal. You have that slack time after you open up, where you’re so starved on cash, you can’t market, can’t get the right employees.

In the beginning, I grew the business too fast compared to the capital I needed. I think I had a stretch where I built three stores in 15 months.

Did you have any crazy purchase stories?

I went into one town and bought all three laundromats. I consolidated them into one, kept the best location and shut the other two down. But that still doesn’t insulate you from the competition 100 percent. If there’s a town out there that has a guy running a good business, I’m not going there.

From a business standpoint, what goals are you looking to accomplish in the next 12 months?

I’d like to continue to improve efficiency in operating costs. I want to be as efficient as I can. I’m always looking for other store locations to grow the business. I want to provide a good service and make an adequate return on the investment.

What advice would you give a new store owner just getting into this business?

Join the CLA. It’s the cheapest money you’ll ever spend. There’s a wealth of information and a wealth of knowledge at the CLA. But also do your due diligence. Just because a store owner or a distributor is telling you something, that doesn’t necessarily mean it’s true.

Owners of CLA-member stores are more profitable because we’re more in tune with what’s going on in the industry.

In your market, is the coin laundry business still a good business to get into?

Absolutely.