I am very honored to stand before you today as this year's recipient of the IDC Fellowship Program.
First of all, I would like to take this opportunity to thank Simon Murray, Tom Gosselin, and the IDC for awarding me this year's scholarship. I would also like to recognize Doris Easley, who encourage me to apply for the Fellowship Program. It was her initial push and her encouragement that got all of this started. It was a wonderful experience, one not to be forgotten.
Fellowship, as we know it, is about friendship and sharing ideas. On my trip through the Eastern United States, I experienced both. I have met some wonderful people in our industry, and they made me feel welcome. I have established new friendships and have learned many new ideas on how to better my business.
I am currently managing a chain of 7 dry cleaning outlets with 1 central plant, located in Edmonton, Alberta, Canada. It is a well-established company built on four generations of family values. My wife and I represent the 4th generation.
It was founded in 1912 as the Snow Flake Laundry which served the City of Edmonton by horse and buggy. From that point, 3 more laundries were purchased during the 1930s and then consolidated under our current name: Fabric Care Cleaners.
The company has a tremendous history and has established itself as a leader in our market. I am proud to be part of it. Although it's tough as the son-in-law, expectations are high, and I do not want to be the generation that drives it into the ground. Usually, it's the third generation that does that, so I think I'll be OK.
As a new person to the industry, I am very fortunate to have had the opportunity to travel through the United States and see some of the leaders in dry cleaning and laundry.
Edrick's Fine Dry Cleaning, Farmington, CT
My first stop was to see David Edrick of Edrick's Fine Dry Cleaning. David is an IDC member who operates in Farmington, CT. Farmington is a dormitory community south of Hartford, considered to be an upscale neighborhood. David has excellent store-front presentation with a commitment to service posted for all customers to see. He caters to a higher end market, and has established himself as a quality cleaner. Quality, however, is more than just words on his letterhead.
In the case of Edrick's, they do live up to their quality commitment. The employees are very knowledgeable and seem to have a real commitment to customer service. Training programs are ongoing to ensure all his employees are kept up to date on fabrics, procedures and policies.
The focus of Edrick's has been on the current customer base. With one main plant and 4 routes it is enough to keep him busy. He has found success by continuing to mine his database and keep his customers coming back. Basically, he spends the majority of his marketing efforts toward keeping those frustrated 20% who seem to go elsewhere every year. All of the marketing pieces, post cards, door hangers and telemarketing campaigns are geared toward keeping those customers.
David's motto is to "stick with what you know and what you are good at. From there, success builds momentum." Sounds easy, but it's his commitment to quality product and educated front line people that has made his business what it is today. His new customers are normally generated by word-of-mouth -- which in this industry can mean everything.
Edrick's production areas have been primarily focused on wet cleaning. With a new Meile wet cleaning machine and a new finishing board, he no longer feels the pinch of this casual clothes era. He has grasped the opportunity to gain this side of the business with open arms, welcoming all those dreaded wash and wear customers.
September 11, 2001
During my visit with David that fateful day, September 11, 2001, our discussions and meetings were, of course, overshadowed by one of history's worst attacks. Like everyone in the United States, and around the world, what we saw and what happened to all those innocent people horrified us.
My next stop was scheduled to be with John and Joe Hallak of Hallak Cleaners in New York City. Not knowing what to expect, I ventured down to the city to make contact and to see their store and main plant. I wasn't able to meet with Joe until the following day, so I made my way into Manhattan to see first-hand what had happened.
Hopping on the subway and walking as far south as 14th Street, I made my way down. Manhattan was deserted, and not as I remembered it to be. What is usually a sea of people and taxicabs was nothing more than a depressed city that had lost more in one day than all of us will in a lifetime.
As I looked on, all I could see was dust and despair. I joined New Yorkers as they cheered the rescue workers coming in and out of Ground Zero. It was a very moving experience to see the disaster first-hand, and to see police and fire fighters weeping as they made their way out. People lined the streets with their flags and their messages of hope -- some cheering, some crying. It was the most powerful thing to witness a nation banded together as they mourned such a devastating loss. Although I fly a Canadian flag, I felt a deep sorrow and a certain connection with the people of New York City and all Americans.
Hallak's Cleaners, New York City, NY
My visit with Hallak's moved forward as planned, and I thank the Hallaks for taking time to host me during such a tough time. It was their late father, Joseph, who understood how important quality was from the very beginning when he founded Hallak Cleaners. As New York's finest cleaner, Joe Hallak Senior had a solid reputation in the community. People knew of him and the great work he did. From what I gathered, he was a very spirited man.
Currently, John (the eldest son) runs the business and administration, and his brother, Joe Jr., takes care of production. In fact, it seems to be a good working relationship, feeding off each other's strengths. With a brotherly dynamic, both voices are heard and both respect the other's ideas. They have established a real balance in their relationship and turned it into a successful partnership.
Today, Hallak Cleaners is considered a real leader in our industry that has taken quality to the next level. With hand-finished shirts for $9.50 each and wedding gowns that start at $400, Hallak's takes pride in their work and the customers love it.
Some may say it's their market that allows them to charge these prices, but what I saw was customers prepared to pay for quality workmanship, regardless of price. It was shocking at first to see one of many standard tickets that read $150, but as I explored his facility and saw first-hand the quality they produce, it was no surprise.
Never would you see an order go out with a broken button or improperly pressed. They have multiple levels of inspection and a committed team of pressers that ensure that nothing gets missed. In fact, they have a person who is employed full time to check every order that goes out to ensure it is accurate, properly cleaned, pressed and packaged. Although this may seem to be labour-intensive for some, the Hallaks assured me that attention to detail pays off. Customers have nothing to complain about and claims are virtually nonexistent. With high fashion New York garments on the line, who could afford to make mistakes?
Hallak Cleaners has also found success in fire restoration and wedding gown preservation. These two areas of their business seem to be growing steadily. John has established Hallak's as the Wedding Gown Specialists, working with a variety of dressmakers who recommend only Hallak's for cleaning and preservation. In fact, they have designed a care label that is sewn into the gowns giving customers specific instructions to call Hallak's.
Their attention to detail and their commitment to quality has made them a destination cleaner. It is not uncommon for Hallak's to receive gowns from all over the country via Fed-Ex. It's their reputation as the best that draws the people. "If you build it, they will come."
Their production floor that Joe manages is very clean and a well-run operation. Joe runs a no-nonsense plant with his expectations clearly outlined to all staff. They make no bones about it, they want to be the best and stay there. They have taken every step within production to ensure they exceed their customers' expectations. Otherwise, they might be gone in a New York minute.
The systems that are in place allow the staff to move effectively and efficiently within their work station. With a fully-automated conveyor system, each production staff has all the tools at their disposal. With air conditioning directed to each station, they have created a comfortable environment. This air system was installed at significant expense. However, the end result is happy staff and low turn-over.
Recently, John has installed hand-held bar code readers in three different areas within his plant. One is installed at the check-in department; the others are in the packaging department and the check-out department. This allows them to monitor and track the progress of each order.
They have also purchased a hydrocarbon machine to keep up with the Green Clean movement and plan to use the machine for some of the more delicate wedding gowns.
The Hallak brothers run a fantastic operation, and have achieved a smooth work flow. They have taken what their father created and made it into one of New York's finest cleaners and wedding gown specialists. I am sure Joe Senior would be proud of their success.
Prestige Cleaners -- Knoxville, TN
With the way things were in NYC, I decided to keep my rental car and drive south to my next destination, Knoxville, TN. Traveling over 1000 miles, I had the opportunity to see the beautiful countryside. I had to break the trip into two days, and spent the night in a wonderful place called Natural Bridge, Virginia. I was welcomed by good old fashioned Southern hospitality. It was the first chance to relax and forget about what happened in New York.
The next morning I had a five-hour drive ahead of me, and a chance to reflect on all I saw during my visit to Hallak's. I thought I had seen everything. The impression that John and his brother, Joe, made was "it doesn't get any better." But when I pulled into Eddie Mannis' plant, all that had changed.
Eddie Mannis owns a successful dry cleaning and laundry company called Prestige Cleaners. Eddie, as some of you might know, is an IDC member. Perhaps you've even seen his operation, but for those who haven't, it's very powerful. Eddie, in my opinion, is an image of the American Dream. He started out as a route driver working for an established dry cleaner in Knoxville. As he worked his way through college, he continually identified areas of the business that needed improvement or were inefficient. Realizing that the industry was full of potential, he ventured forward and purchased a small dry cleaning plant.
Starting out with no customers and zero sales in 1985, he grew his business to over $5 million in 2001. Today, Prestige Cleaners is a top performing operation that gave me new hope and inspiration for the industry. His success is largely due to the fact that he has committed himself 24-7 to the business. He has made many sacrifices in his personal life, but it has certainly paid off today. His business is currently running at 95% capacity with quality, well-trained managers working under his direction. He now has the time to enjoy life and reflect on his success.
As I mentioned earlier, Eddie represents the American Dream. As a young entrepreneur, he had a vision for success and never lost sight of it. He had it in his mind that he wanted to be the best, and ladies and gentlemen, he IS the best. My experience at Prestige Cleaners has given me a new-found hope for my business, and I have realized that we all have a huge potential within our market.
Eddie's formula for success is a simple one: Commitment to his business, maintaining quality workmanship, and continually educating his staff and empowering them to ensure they deliver customer satisfaction beyond expectations.
Other areas that Eddie has succeeded in are shoe repair and cleaning. He purchased an old shoe repair business that was depressed and ready to close. Keeping on the store manager, who possessed the lost art of a cobbler, he saw the opportunity to marry the service with his dry cleaning customers. The results were immediate and his dry cleaning customers currently enjoy this value added service. By bringing this unique dynamic to the industry, he has made Prestige Cleaning stand above the rest.
Also, similar to Hallak's, Eddie has found opportunity in fire restoration. His approach is directed to key insurance companies within his market, communicating the alternative to replacement for garments and household items damaged in a fire. This option is relatively new to most insurance companies and most are excited by significantly reducing the dollar value for claims. Eddie takes an educational approach by hosting key people within these companies on tours of his plant to see how successful fire restoration can be.
Basically, anyone can get involved in fire restoration by purchasing an ozone machine and placing garments in a sealed room. The cost to set up such an operation is minimal, but the return is amazing. I plan to start up my own restoration division and I highly recommend you do the same. Not many people are aware of such an opportunity, so now is the time to strike before our competitors get wind of it. I mean, what insurance company isn't looking to save money?
Massey Cleaners -- Montgomery, AL
Last stop on my tour was Montgomery, AL to visit Jim Massey III of Massey Cleaners. With 18 locations, 2 routes and the largest main plant I have ever seen, they should call it Jim Massive Cleaners. To put things into perspective, they have 16 pressers and 4 2-person shirt units. They produce more shirts in a week than I do in a month.
They have pretty much complete market share in Montgomery by offering good quality at competitive prices. Their motto is: "It's right, it's ready, or it's free." This message is printed all over their store frontage and on their packaging. It is a bold statement that customers gravitate toward.
The main focus of Massey's is efficient production and quality control. Production expectations are clearly posted for all to see and everyone works toward those goals. Massey's, like most of us in the industry, has a family-run operation of three generations. They have also diversified into Tuxedo and bridal rentals. This has proven to be successful because the return on your investment is almost immediate after one rental.
Their operation is something else. The main plant is over 50,000 square feet with more conveyors than one can imagine. They are currently using the Tail Wind System for their shirt department and are expanding into wet cleaning. With a fully automated system and a steam tunnel, they have eliminated a lot of production bottlenecks making their business one of the most profitable ones I have ever seen.
In summary, time does not permit me to elaborate on all aspects of each business. However, there was a common theme among all of them:
Everyone has made a real commitment to their business and spends time working ON the business, not just IN the business.
Each company has made an effort to portray a professional image in their call offices with clean appearance and consistent decorum.
All have drive-through service.
All have made a commitment to quality control and have achieved it. Not over night, but they continue to strive to be the best in their markets.
All have positive attitudes and manage their business in a democratic fashion.
My trip through the Eastern US has given me a real inspiration for success. I now have something I can strive for. I have taken away many good ideas and I have learned a great deal about this industry from people who have remained positive and objective in this very fluctuating world.
Thank you, again, to the IDC and my sponsors who made this lifetime experience possible. And to the people of New York City and all Americans, God bless.
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