Valvoline, Midas Executives Discuss Brands’ Growth Over Past Year
Franchise Times’ recent Top 400 list ranked U.S.-based franchise systems based on global systemwide sales, which automotive maintenance businesses across the board saw rise.
All the auto brands within Franchise Times’ list combined saw a 10.2 percent increase in total sales from 2021, as well as a 3.3 percent increase in number of units from 2023.
With the oil change service market being valued at $7.48 billion in 2022, Grand View Research has estimated that number to grow to $11.31 billion by 2030.
Valvoline Instant Oil Change, which placed no. 40 in this year’s list, surpassed $2.8 billion in sales last year, having just overcome the 2 million threshold in 2022.
Valvoline Chief Franchising Officer Adam Worsham credited this to an inherent resilience of the quick lube industry.
“New car sales are increasing, and by about year three and beyond, we start to see those cars,” explained Worsham to Franchise Times. “When the economy is strong, people are buying new cars, and that helps fill the pipeline for the following few years. Then, when the economy is soft, and new car sales decline, people keep their car longer, which also fits us.”
Worsham noted that consumers are more mindful of how they spend their money, but are more confident doing so with a business that provide reliable, friendly service.
“There are examples of that happening, where they continue to reward those retailers. Being able to offer quick, easy and trusted services in around 15 minutes is also a benefit to consumers who’re looking for convenience,” Worsham added.
According to Mordor Intelligence, the average vehicle age has risen for the fifth year in a row, which is a factor giving way to more business for maintenance providers.
As Midas President and Chief Operating Officer Lenny Valentino Jr. noted, however, a strong relationship between a company and its franchisees is tantamount to reaping the benefits of that.
“The strategy for building growth is that you have to be a unified organization between the franchisor and franchisee,” said Valentino.
