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July 25, 2017 02:00 AM

Meineke approaches 1,000 stores in N.A.

Bruce Davis
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    Meineke photo
    Meineke President Danny Rivera (left) presents a $25,000 check to Tyler Roshau, winner of Meineke's Summer Drive contest.

    PARADISE ISLAND, Bahamas — Meineke Car Care Centers' franchisor Driven Brands Inc. expects up to 50 Meineke locations to open this year as the business strives to report record sales for a fifth straight year.

    That was part of the message Meineke President Danny Rivera delivered at the franchise group's 2017 dealer meeting earlier this year on Paradise Island.

    Celebrating its 45th year as a business, Meineke is approaching the 1,000-store threshold in North America. There are roughly 40 Meineke outlets in Canada, the rest in the U.S.

    The average "established" Meineke franchised outlet generates $692,000 in sales annually, according to the Meineke franchise recruitment website. Tire sales are a growing aspect of Meineke's business model, Mr. Rivera said, and could represent 20 percent of a typical franchisee's revenue by 2020.

    "We find that consumers who visit us for an oil change or brake service or other service will likely come back for their new tires or tire service," Mr. Rivera told Tire Business.

    To promote this aspect, Meineke has tied up with Cooper Tire & Rubber Co. as its key supplier through a program called "Meineke ExTRA" — Expert Tire Replacement Authority — that offers Meineke franchisees attractive rates and promotions on Cooper-, Mastercraft- and Starfire-brand tires.

    The franchise group added a second tire procurement option last year, tapping into "TreadSmart," a program offered by Pep Express Parts, the wholesale business unit of Pep Boys – Manny, Moe & Jack.

    Driven Brands photo

    Rivera

    Mr. Rivera noted that the basic franchise model hasn't changed significantly in recent years, but the type of franchise owner is evolving, with an increasing interest by investors who want to own multiple centers in a given trade area or across several cities.

    Both investors of this sort and the more traditional entrepreneurs who work in the shops they own "are great paths to success that work well for our network," Mr. Rivera said.

    During the dealer meeting on Paradise Island, Meineke rolled out some initiatives designed to help franchisees generate new business and/or improve their bottom lines.

    Among these were a website and mobile app, expanded rewards and credit card programs and linked-in to services, such as Revvy by Meineke.

    Individually, the initiatives were:

    A digital vehicle inspection program, called "eInspection," which will provide customers with a "simple-to-understand" electronic report of the findings of their visit to a Meineke location. The program is supplied by AutoVitals Inc., a developer of "integrated shop productivity solutions," which said franchisees should benefit in terms of improved shop efficiency and workflow.

    Upgrades to the Meineke rewards program that will provide additional rewards and redemption opportunities.

    The launch of "Tire Wire," a program designed to help franchisees manage their inventory and have just-in-time inventory of sizes and brands the consumers want on a timely basis. At selected locations, consumers can pre-order tires through Tire Wire and have them waiting for installation when they arrive.

    The launch of Meineke Revvy, a connectivity system that connects to a vehicle's onboard diagnostic systems and scans all of the car's diagnostic codes to ensure all are in working order, monitor fuel mileage and track vehicle performance and driving style. If a check engine code returns an error, the Meineke Revvy notifies the driver that maintenance or repairs are needed and also contacts the nearest Meineke location to arrange an appointment.

     

    The Revvy — built on the Vinli platform — allows drivers to access their dashboard and download a daily driver score and performance report, including: miles driven; average and top speeds; hard braking/acceleration; fuel used and efficiency; engine load; travel routes and time; WiFi hotspot data usage; vehicle diagnostics and check engine codes; etc.

    Meineke has created a dedicated URL, meineke.com/revvy, with details about the service.

    In addition, Meineke last year began working with franchisees on a "refreshed" store image that will be used on all new outlets going forward.

    The new look features "bold, clean" exterior branding with a more open, airy interior designed to enhance customer comfort while their vehicles are being serviced, Meineke said. The format incorporates stand-alone kiosks that allow for private conversations with customers.

    Separately Driven Brands engaged Medallia Inc., an online customer-feedback monitoring enterprise, to help it generate "cohesive insights" tailored to each brand and franchise location.

    Also, Meineke honored Bryan Brown, a Meineke Car Care franchisee for the past 20 years, with the Franchisee of the Year Award, the third time he's earned that honor. Mr. Brown owns 11 Meineke shops throughout Louisville, Ky., and southern Indiana.

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    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

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