Shopping center

Shopping center developer invests in laundromats (conclusion)

GARDEN GROVE, Calif. – Red Mountain Group, which specializes in retail redevelopment, recently developed its first high-speed laundromat – Boulder Express Laundry Services – here in Garden Grove. Rooted in a Walmart store, the 3,800-square-foot laundry room has seen 10% month-over-month growth since its launch, according to the owner.

In May 2020, Red Mountain expanded the Express Laundry brand – and business plan – to Las Vegas. Sales at this 4,600 square foot location grew even faster.

Part 1 of this article explored Red Mountain’s entry into the laundry industry with the help of equipment distributors Continental Girbau West and Reliable Commercial Equipment, and its attempt to position and equip its two stores to stand out from the competition. Let’s conclude:

CUSTOMIZED WASHING AND SANITIZING

Customers at both stores enjoy greater control over how their laundry is washed, thanks to ProfitPlus® Control, which is standard on all Continental washers. The control offers a variety of wash options and cycle functions to the customer, with four main cycle options including ‘Hot’, ‘Warm’, ‘Superwash’ and ‘Cold’, and optional additional cycles, including “Extra Wash”, “Extra Rinse” and/or “Extra Spin”.

Each time a customer selects an “add-on,” it adds to the total sale price, helping to generate in-store revenue. Overall, customers choose an “extra” 25% of the time, according to Tony Mendoza, director of sales and operations at Boulder Express, “and after doing it once, they choose that extra every time.”

Perhaps even more powerful, especially in light of the recent COVID-19 pandemic, is that every load of laundry is sanitized. A San-O3-wash ozone system automatically injects ozone gas into each washer to effectively eradicate 99.9% of viruses, bacteria and mold in laundry. The result is security and peace of mind for customers. This investment had a significant impact on revenue.

“While other businesses in our malls have closed, we have excelled,” Mendoza says. “We noticed a significant increase in sales during the first months of COVID-19 because people were in love with ozone disinfection. A massive influx of people washed household items, bedding and clothes. Since then, we have become a mecca for sanitation.

WDF WITH PICKUP AND DELIVERY

Sanitizing also has a positive impact on full-service offerings, according to Red Mountain. Residential and commercial washing/drying/folding (WDF) already accounts for 15-18% of gross revenue. While the Las Vegas location enjoys partnerships with a number of hotels to provide concierge laundry service to construction workers and transplant plumbers, the Garden Grove store serves the full range, from restaurants and rentals from holidays to small hotels.

“Next year, we expect wash/dry/fold sales to grow by 25-35%,” Mendoza says.

At both laundries, a cloud-based point-of-sale system from Curbside Laundries automatically tracks the entire washing and folding process, as well as counter sales. It’s easy to use for attendants and allows customers to schedule orders online, making the process as efficient as possible.

With approximately 5,000 total customers and a 98% customer retention rate, the Boulder Express Laundry model is working, officials say; it is certain that it will be applied to other properties of the Red Mountain group in the future.

Miss part 1? You can read it HERE