Callaghan Tire family embraces new leadership

BRADENTON, Fla. — Dan Callaghan, at age 82 perhaps THE elder statesman among the nation's commercial tire dealers, is finally stepping away from the day-to-day grind of running his business, 40 years after founding the company that bears his name.

To his credit, he has steered the dealership, Dan Callaghan Enterprises, through the throes of succession, leaving several family members in key executive positions to work with new CEO Don Mead, who brings a decade of tire industry experience and 15 years of other management experience to his new job.

With $46 million in sales last year and 175 employees, Callaghan Tire is the second largest independent commercial dealership in Florida, and No. 35 in North America. It operates through a dozen servicing outlets stretching the length of Florida, from Jacksonville in the north to Miami in the south.

The dealership also is among the 50 largest truck tire retreaders in North America, producing 289 units a day at two plants.

In addition to running his own company for the past four decades, Mr. Callaghan looks back on 20-plus more years in the tire industry as a sales executive with Michelin North America Inc. and Bandag Inc. He and his wife Betty started the dealership in 1978 by taking over a mothballed Bandag franchise in Bradenton.

Mr. Mead started working with Mr. Callaghan a year ago on a consulting basis, but the two native Chicagoans have known each since the '90s, when Mr. Mead was a sales executive with Bandag and Mr. Callaghan a Bandag franchisee. They have kept in touch since, which helped ease the decision to bring Mr. Mead in, Mr. Callaghan said in a conversation with Tire Business.

For his part, Mr. Mead said the opportunity to run a business such as Callaghan Tire is a welcome one, considering the business' "great brand name and reputation" all over Florida and strong alliance with Bridgestone/Bandag as a supplier of new tires and retread technology.

"The challenge for us will be to focus on sustaining long-term profitable growth," Mr. Mead said. "This will require us to think differently about the business,…but if we don't think differently we'll end up being one of those companies (in the mergers/acquisition pool).

Mr. Mead, 58, stressed there's "great opportunity to drive growth and profits" from existing customers and markets, but "I wouldn't rule out expanding into adjacent markets," he said, noting that existing fleet customers are keen to have the dealership continue to service them as they expand into new territories. This may necessitate physical expansion at some point.

In terms of competition, there are only two other Bandag franchisees in Florida — Boulevard Tire and Bridgestone's GCR Tires & Service business — but outside of Florida there's considerable competition.

"Competition makes you better," Mr. Mead said, "…without it you don't challenge yourself to think differently and work harder.

"We have to see ourselves as a value-added service provider," he continued, "You can't survive forever just buying something and reselling it…. You have to understand what the customer is looking for…and surround that with service."

Callaghan Tire sees growth potential in affiliated areas of industrial tires and OTR tire repair/servicing, which represent 15 percent or more of the dealership's revenues.

Mr. Callaghan said although he's now retired, he "still has a passion for the business, wanting to see it continue to grow and be prosperous, so I'll be communicating with Don.

"We need new blood, new thoughts…," he continued. "Don came along at the right time…. The whole family has embraced him. There's still a lot of value in the business for the family and the coming generations."

Other family members active in the dealership's management include:

Son-in-law Todd Severson, president; daughter Patty Virgilio, chief administrative officer; son-in-law Guy Virgilio, who manages the dealership's manufacturing operations; son-in-law Tom Gainer, who manages the industrial tire division; and daughter Jane Callaghan-Trinci, human resources manager.