LEXINGTON, Ky. — The Valvoline Instant Oil Change (VIOC) network of quick-lube stores grew by 42 locations in the first half of 2021, split 50/50 between franchised and company-owned locations.
The 21 franchised stores were opened by 14 existing franchisees in a dozen states, including four in North Carolina by Quality Automotive Services Inc. and three in the Carolinas by QAS II Inc.
The new stores expanded the network of VIOCs to 1,570 locations in 47 states across the U.S.; of these, 875 are franchised versus 675 company owned.
Besides the 21 new franchised VIOC stores, independent operators opened six Valvoline Express Care locations, which offer a broader array of automotive services than the VIOC shops. The new Express Care shops are in Selma, Calif.; Salem, Mo.; Grove City, Ohio; Beatrice, Neb.; Denton, Texas; and Nainaimo, British Columbia.
Valvoline Inc., the lubricants producer and VIOC franchisor, acquired 22 franchised locations in Kentucky and Texas during the period in addition to the 21 VIOCs opened.
The acquired locations are: Six stores in Kentucky from franchisee Phoenix 27 L.L.C. and 16 shops in metro Dallas/east Texas from franchisee AWC Premium Automotive Service Ltd.
"One of Valvoline's core business strategies is to continue to grow and strengthen our industry-leading retail services segment through organic store expansion and high-quality acquisitions in both existing and new markets," Matthew Furcolo, vice president of operations, VIOC, said.
Phoenix 27 owner Steve Goddard is selling his assets after over 19 years as a VIOC franchisee; AWC Premium Automotive Service owner Bill Cavalle is retiring after nearly 20 years as a VIOC franchisee.
The pair of acquisitions in 2021 follow three deals in the second half of 2020 comprising 60 quick-lube service centers in 10 states. Valvoline intended to refranchise a dozen of them once the deals closed.
The franchisees and the new stores opened are:
- AD Kenwood Co., South Bend, Ind.;
- Galena II, Mastic and Medford, N.Y.;
- Henley Gulf Coast L.L.C. New Orleans;
- Henley Pacific L.L.C., Norco, Calif.
- Meadowbrook Associates L.P., Selinsgrove, Pa.;
- Metrolube Enterprises Inc., Chicopee, Mass.;
- Mid Atlantic Lube L.L.C., Millersville and Perry Hall, Md.;
- Ozark Lubes L.L.C., Fayetteville, Ark.;
- QAS II Inc., Belmont and Charlotte, N.C.;
- QAS III Inc., Simpsonville, S.C.;
- Quality Automotive Services Inc., Greenville (two locations), Jacksonville and New Bern, N.C.;
- Southeast Quality Auto Inc., Fuquay-Varina, N.C.;
- Sunshine Lube L.L.C., Naples, Fla.:
- Superior Lube Inc., Bountiful, Utah; and
- Surfside Lubes L.L.C., Winter Park, Fla.
SEPARATELY, Valvoline recently disclosed it is realigning its operations globally along two main streams of revenue: Retail Services (formerly Quick Lubes) and Global Products, which includes the operations of the former core North America and International segments.
In disclosing the realignment, Valvoline called the Retail Services segment — which comprises the broad array of preventive maintenance services performed in Valvoline's retail network — "a high-growth, high-margin segment with significant reinvestment opportunity."
In the quarter ended June 30, the Retail Services segment generated $330 million in revenue, or roughly 42% of Valvoline's total sales, while also doubling the operating profits generated.
System-wide sales — i.e., including revenue generated by franchisees — grew 51% over the 2020 quarter to $526 million.
Valvoline is forecasting the Retail Services segment will deliver "normalized" system-wide sales growth of 6% to 8% through 2024.