| Author | Message | ||
| ty (360mode)
Member Username: 360mode Post Number: 265 Registered: 9-2002 |
ironically jim, the newest chipotle in houston is where an atomic burrito was! atomic burrito did not go over well at all for some reason. freebirds does great as does mission burrito. w/ all seriousness, if you come across something that looks interesting, please share. i've always wanted to do some kind of business (i know, great business plan, huh?) | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 2070 Registered: 7-2002 |
chipotle is owned by McDonalds so that made me not like them  There was a small startup a few years back from Oklahoma called Atomic Burrito that was the same thing, but much cooler. Still a few of them around, but think they made a bad merger deal with NY Bagel and that was that..... Paul, must have been some salary/options at Dell to walk from owning your own biz and making 6 figures "forever". If you chat with him bring it up and see what his views were. | ||
| ty (360mode)
Member Username: 360mode Post Number: 264 Registered: 9-2002 |
paul: on a few what? car washes or lube places? i wish chipotle was currently franchising | ||
| Paul Cox (Paulc)
Junior Member Username: Paulc Post Number: 73 Registered: 2-2003 |
Jim I have a friend here in Austin who was ready to pull the trigger on a few. He ended up going back to work at Dell, so he backed out. They looked real good from what he said. I am happy to connect you if you would like. | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 2069 Registered: 7-2002 |
Maybe that was $21K a month. Can't remember now. Ah found it...currently makes $6K a month, but a comparable unit makes $21K a month. Very little overhead for $250K a year. | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 2068 Registered: 7-2002 |
as a standalone carwash or as part of the lube biz? One lube biz comes with a carwash too, but it costs $2.4MM. Said it makes $21K net I think a year. costs about $1MM+ to install just a carwash. I called a broker in Houston about some full service carwashes, but didn't connect with them so got no info. | ||
| fanatic (Fanatic1)
Member Username: Fanatic1 Post Number: 582 Registered: 2-2003 |
Have you thought about or discussed the "toughless car washes".....I know a guy who owns 2 of them in our area......a lot of high priced apt's and condos.....people are lined up all the time to use his washes....he's making loads of cash. | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 2067 Registered: 7-2002 |
agreed. the ones I am looking at are established locations with 5 or so years of sales records so somewhat predictable. I was driving up Preston the other day and there are like 4 or 5 of them within a few blocks....jiffy lube, valvoline, kwik kar adn 2 others. Hmmmm...... | ||
| Dave M (Davem)
Member Username: Davem Post Number: 479 Registered: 1-2002 |
Gary brings up a good point. I dont think there is much 'brand' loyalty in this biz. | ||
| Gary Green (Mr_green)
New member Username: Mr_green Post Number: 15 Registered: 10-2003 |
It seems like a good business if you don't have to much competition. There is a jiffy lube down the street from me that charges 28.95 for an oil change. About 6 months ago an Independant operator opened up across the street from Jiffy lube. I just got a flyer in the mail advertising the new store. They are charging 19.95 for the same service. This is not a special but regular price. If you open one be very careful about the location. Make sure there is not going to be any vacant buildings in your area where somebody can build one. | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 2063 Registered: 7-2002 |
The ones I am looking at cost about $1.2MM for the biz and real estate. Put up about $250K or 20% and after all is said and done you net maybe $75K to $100K. That is with you being the "mgr". THey say most guys try to buy 3 of them and then float between then a day here a day there. So they do seem to be hands on to a degree so it would be impossible for me to be at 50 of them each week you know. Guess if you had competent mgr at each site or a field rep you could do that, but that eats into your $$. Just don't want to buy myself a job. Rather be more passive investor with ability to expand. So if I buy apt complexes and have them professionally managed I am pretty much hands off, but earn less cash, but still get cashflow and equity. | ||
| Jim E (Jimpo1)
Advanced Member Username: Jimpo1 Post Number: 2792 Registered: 7-2001 |
A friend of mine owned one in San Diego. He had a full time manager making about $50k, and he personally put about 15 hours/week into it. It was throwing off about $100k/year net. He sold it for less than $200k just last year because he needed the money to buy a car dealership. | ||
| Bill Sawyer (Wsawyer)
Intermediate Member Username: Wsawyer Post Number: 1002 Registered: 2-2002 |
The problem with these is that there is one on every corner. Some people do well. Many late model domestic and Japanese owners use them. I have a friend who has an independent lube shop in Raleigh, NC, and he's doing great. Of course, three weeks after opening he had to buy a new engine for a customer because one of his less qualified employees put a Chevy diesel oil filter on a Ford diesel. It is very hands on. Absentee ownership will result in mistakes and inefficiencies that can cost you $$$. But, if you have a good location and work your butt off you can do well. There's a guy in our area who has 3 of them, and he has owned at least 2 360s and a Pantera. He may be making loads of $$$ or he may just have different priorities. | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 2061 Registered: 7-2002 |
Yet another biz concept I am considering. Been looking at real estate/apt complexes and lube shops as well. Seems they throw off pretty good cash for the same cash investment, but they are more hands on so may be limited on expansion. What do you think about thier recession proof'ness? Do people get their oil changed on time/regularly? Do they need tuneups for new cars? Seems everyone is leasing so car age is newer. Am I limited to the 15 year old beater car market? Opinions? |