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franchise.co.nz – PUTTING PEOPLE IN BUSINESS
alking into Whangaparāoa’s Coast Plaza shopping centre one
day, a colleague was surprised and delighted to be greeted by
a stream of bubbles from a new doorway. Looking beyond the bubble
machine, he realised they were promoting a newly-opened laundromat
– and it was working. The stream of people heading between the carpark
and escalator found their attention grabbed - and Stuart Rutley’s new
business was on the map.
Two years later, we checked in with Stuart to ask him about his
experience of working with Speed Queen to set up and run his business.
Stuart is a local lad, having been to school just down the road from Coast
Plaza. “I don’t know if you remember the gumball vending machine that
used to be upstairs here, but that was my first-ever business,” he laughs.
“I was at school and wanted to make some pocket money, and Dad’s
friend had this machine. They did a deal, and I had my first taste of semi-
passive income – I just had to stock it from time to time. I suppose a
laundromat is another giant vending machine in some ways, but there’s
a lot of automation and your customers do the work themselves.”
Between gumballs and laundry, Stuart did a business degree, got
married and, with his wife Leah, developed an online distribution
company specialising in maternity gear. With five children themselves,
they had plenty of experience. But when they sold it, they were looking
for a side-hustle they could operate alongside Stuart’s day job as
manager of a business selling security products.
Only one stood out
“Laundromats had been in the back of our mind for a while, so now we
started looking seriously,” Stuart recalls. “We looked at three different
suppliers of equipment, but only one stood out – Speed Queen. They
weren’t the cheapest, but the service and advice they provide is really
good, the machines are robust, and the technology is brilliant. Royce
Little, Speed Queen’s head of laundromat sales, really listened and got
invested in the project, with design and costing analysis to maximise the
potential of the business.
“They produced four different floor plans to suit our unusually shaped
space, with a 3D render showing exactly what they would look like. They
were so accurate that I was able to use one for pre-opening promotions.
And their advice was spot-on. When I was looking at dropping one
machine to reduce costs, Royce said, ‘Don’t drop that one, it’s the prime
earner’ – and he was right. It’s still one of our busiest machines today.”
Technology maximises income
Speed Queen held another major advantage for Stuart and Leah –
properly-integrated software that allows the owner to manage and
promote the business remotely. “Every equipment supplier does
Eftpos, but Speed Queen helps you build a successful business, with
contactless payment and a loyalty app that allows you to carry out
promotions and reward repeat customers. They can see which machines
are available, on a map of the store, and don’t have to carry coins or a
loyalty card to get a discount.
“It also helps customers manage their time; they can load their
machine and get an alert when it finishes. This means they can go and
do their shopping, have a coffee or drop the kids at school rather than
hanging around.
“As an owner, I use the management software to analyse usage and
programme in promotions. At the moment, for example, we’re running
a Bonus Credit promotion through Speed Queen’s customer loyalty
programme. This is a loyalty programme on the Speed Queen app, which
rewards customers with credit for how much they spend. And at any
time, if business is quiet, I can see this on the app and put out a Happy
Hour promotion there and then on social media – all without having to
go near the store. It’s very effective, and it’s so reliable. I’ve dealt with
a lot of computer systems and this one just plugged in and
worked immediately!”
“I used to be physically in store 8-10 hours a week, talking to people,
learning and looking at new ideas, but the laundry itself is completely
hands-off. The app means I always know what’s going on, so now it’s
mostly about cleaning and ensuring a positive customer experience.
It still takes 8-10 hours per week, but it doesn’t mean I need to be the
person doing those hours.”
Sizeable returns
Speed Queen is not actually a franchise – you operate under your own
name, but the company provides all the equipment and assistance you
need to get up and running. “The return on investment is in the region
of 20-30%, and some of our owners have done much better than that,”
says Royce.
“Cash-free operation means no security concerns, and many sites run
24/7, meaning investors are earning a return at all hours of the day or
night. A medium-sized investment will be
between $250,000 and $300,000, with
a cash deposit required of $75-100,000
and finance options available.
“It’s the perfect money-making
investment – high returns, low
involvement and remotely manageable.
“Give me a call to find out more.”
Speed Queen
www.speedqueen.co.nz
Contact
Royce Little
09 528 5600
royce@speedqueen.co.nz
Advertiser Info
THE PLAN
AS BUILT
PERFECT PLAN
A Speed Queen-equipped laundromat
is the perfect side-hustle.