Perfect plan

Walking 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.”  

See this advertorial on page 43 of Franchise New Zealand magazine Year 33 Issue 4

Contact details for Speed Queen

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