Multi-Unit Franchisee Magazine Issue I, 2015 | Page 24

BY HELEN BOND

Clearly Transparent

W

Communicating and sharing success

hen it comes to creating a
successful corporate culture,
veteran Jiffy Lube franchisee Richard Paek has found
that seeing does lead to believing. Paek,
who opened his first Jiffy Lube in 1992,

has built a multi-unit system that emphasizes transparency inside and out.
If there is a sales, customer service, or
employee performance stat to be had,
Paek will use it to rank, reward, and
motivate his team.

“‘No sugarcoating’ is one of our
favorite quotes,” says Paek, CEO of
Newport, Calif.-based Allied Lube Inc.,
which operates 75 Jiffy Lube service
centers in California and Texas.
This focus on sharing the facts with
his 800 employees is paying off. With
estimated annual revenue of more than
$60 million, Allied Lube’s growth outpaced the 2,000-unit Jiffy Lube chain by
9 percent in 2012, 7 percent in 2013, and
is on track to three-peat growth in 2014.
While Paek contends there is no silver
bullet to operating multi-unit locations,
it starts with creating an infrastructure
that promotes communication from the
top down. “If you look at what we have
been able to do, it is pretty amazing,”
he says. “We worked on structure and
morale. Our morale and teamwork are
very high and we make sure we communicate efficiently and effectively
throughout the entire company.”
Paek has spent millions on store
upgrades, signage, and advertising, but
he contends it is the internal restructuring of his culture, communications,
and daily operations that has fueled Allied Lube’s growth. The company uses
sales and labor data, car counts, mystery
shopping, customer satisfaction survey
results, and other objective data to award
NAME: Richard Paek
TITLE: CEO
COMPANY: Allied Lube, Inc.
NO. OF UNITS: 75 Jiffy Lubes

FACEFIRSTPHOTOS.COM

AGE: 50

22

FAMILY: 4 kids
YEARS IN FRANCHISING: 22
YEARS IN CURRENT POSITION: 22

MULTI-UNIT FRANCHISEE IS S UE I, 2015

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