The Golden Age of Maaco
As the leader in the $43 billion paint and collision industry, Maaco is a force to be reckoned with and is only getting stronger.
Last month, Driven Brands announced its purchase of the second largest chain in the automotive industry, CARSTAR Auto Body Repair Experts. With the addition of CARSTAR to Driven Brands’ portfolio, a new Paint & Collision division was created within the company. Comprised of Maaco, CARSTAR and Drive N Style, the new division is led by former Maaco President, Jose Costa, with Maaco’s Chief Operating Officer, Jason Ryan, stepping into the role of Maaco President.
“The beauty of the Maaco system is that there are many different business mixes and ways to create a profitable business,”said Jason Ryan. “And Maaco is at an incredible turning point right now.”
With a combined 700+ shops across the United States, opportunities are endless for the Paint & Collision division of Driven Brands. “This type of deal allows us to increase the profitability of each of our franchisees, greater negotiating power with vendors and partners, and ultimately leads to growth across the board,” Jose Costa said. Throughout the past 43 years, Maaco has built a niche for itself in the automotive industry, becoming the face of paint and collision. Today, the average certified Maaco shop exceeds $1.2 million in gross sales.
“Maaco is focused on harnessing the power of what we like to call the ‘three legged stool’: retail paint, fleet and insurance work,” said Costa. “We’re very happy about the results this focus has brought – record-breaking months, increased car count, and expansion into new markets.”
Maaco has been growing with new and existing franchisees and thinking outside of the box with innovative concepts. Last year, the company launched the Maaco Retail Store, a hub-and-spoke model that allows franchisees to enter new markets and expand their reach by operating out of locations that couldn’t normally house a regular Maaco center due to cost and size restrictions. In addition, they are building on this with Maaco Express, a new, flexible concept that will offer same-day microrepairs, and Maaco Pep Boys Satellite, a store-within-a-store concept.
Both locations allow franchisees to tap into a new, more affluent customer base, and operate efficiently as an extension of current Maaco production centers with few major fixed costs. There is a world of opportunity for people seeking a new franchise. With a lot of available territory, Maaco is actively seeking new franchisees. “We’re excited by the enthusiastic response our newest concepts have gotten,” said Rob Cambruzzi, Maaco’s VP of Franchise Sales and Development.
“I think franchisees are facing the opportunity of a lifetime, and many have realized this and reinvest in the business. We’re in our Golden Age.”
One of the biggest parts of Maaco’s recent growth is undoubtedly the rise of Maaco Fleet Solutions, which caters to business fleets from car rental companies, to government agencies, to food and beverage companies. Franchisees with the “we paint anything” mentality benefit most from Maaco’s fleet business, which has grown 35% year over year and is aiming for $80 million by the end of 2015.
“We’ve set some very aggressive goals for Maaco Fleet Solutions, and we’re on track to meet them,” said Frank Petrane, VP of Maaco Fleet Solutions. “Our job is to make sure that we’re bringing fleet business to franchisees all over the country, and we have the right team on board to achieve this.”
In order to properly support the growing insurance and DRP work, the Maaco Fleet team plans to grow their team of 11 industry professionals over the coming years. With an unparalleled value proposition, customizable programs for diverse fleet needs, billing options, and national warranty, this fleet division is addressing and capitalizing on an overlooked – and highly profitable – area of the market.
Maaco is a big believer in providing the right preparation for franchisees to get the most out of their business. The Maaco Operations team has concentrated their efforts on making sure franchisees and their employees are well-equipped to retain leads. This led to the introduction of tools such as the Maaco Playbook, Maaco University online, and Peer Group financial meetings.
Franchisees are seeing a positive trend in car count and same store sales year over year thanks, in part, to these operational initiatives.
With more than 43 years of brand equity, the power of the Maaco brand is undeniable. With the relaunch of a new modern take on Uh-Oh, Better Get Maaco, Maaco delivers unmatched national brand awareness and market level support. From the Maaco App to state-of-the-art Maaco.com, the brand leverages innovative and comprehensive television and digital strategies to drive traffic straight to the centers.
Driven Brands is focused on building a strong portfolio that will bolster companies within their family and cement its place as the leading automotive franchise company in the world. Through Maaco’s innovative development concepts, impressive fleet goals and operational improvements, the growth opportunities are endless for the brand. Welcome to the Golden Age of Maaco.