Sales Performance: Automotive Franchises

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By Laura Michaels

Even though federal data showed Americans drove 13 percent fewer miles in 2020, they still took care of their vehicles, as evidenced by the uptick in sales for automotive aftermarket franchises. The 1.3 percent increase overall, to $12.8 billion, is a marked slowdown from the 7.8 percent jump in 2019. But, as Missy Wright pointed out, during tough economic times consumers aren’t going out and buying new vehicles. “They start siphoning funds into maintaining their lifestyle,” said Wright, director of franchise sales for Christian Brothers Automotive, and that means auto repair. Christian Brothers, the leader in the repair segment with 12.6 percent growth, moved quickly to contactless service. “We will pick up your vehicle, take it to a service center and bring it back to you,” said Wright. Several brands in the repair segment did take a hit, including Meineke, down 6.5 percent, and Midas, which saw sales decline an estimated 4.8 percent.

Oil Change

By Laura Michaels

The performance of quick-lube oil change franchises demonstrates the demand for auto maintenance in 2020. The trio of brands combined for $3.7 billion in sales, a 7.3 percent increase. The group also grew its collective unit count by 5 percent, to 4,113 total locations. Take 5 Oil Change, which debuted on this Franchise Times ranking last year at No. 198, shot up to No. 152 thanks to its 23.6 percent increase in sales. Acquired by Driven Brands, franchisor of Meineke Car Care and other auto repair businesses, in 2016, Take 5 saw growth “across the board in 2020,” said Brand President Danny Rivera. He noted growth in two key areas: car counts and average checks. To increase car counts, Rivera said Take 5 focused on its brand positioning, “being 100 percent clear with the consumer on who we are and what we stand for: A stay-in-your-car, 10-minute oil change.” To push average checks higher, Rivera pointed to the brand’s mix of high mileage oils, synthetic blends and ancillary products such as wipers that give technicians the opportunity to make recommendations.