Many oil change franchises saw an increase in their sales in 2022, Franchise Times reports.
Franchise Times' Top 400 list, which ranks franchises by systemwide sales, saw Take 5 Oil Change break into its top 100, making its way from number 134 to number 87.
Take 5 Oil Change experienced a 47.6% growth in its earnings in 2022 from the year prior, jumping from $625 million to $923 million.
Mo Khalid, executive vice president of Take 5 and Meineke at Driven Brands, credits this to the company expanding to new markets and locations, and predicts that it will continue to expand.
It’s not only Take 5: all five oil change brands listed in Franchise Times' Top 400 saw an increase in their sales last year. The brands altogether accounted for $5.75 billion in sales overall, marking an increase of 15.1%.
Two of these brands saw their sales surpass $2 billion in 2022, with Jiffy Lube earning $2 billion across 2,199 units and Valvoline Instant Oil Change raking in $2.4 billion across 1,622 units. In 2021, neither of these brands had sales succeeding $2 billion.
Valvoline, which experienced a 21.8% increase in its sales, credits this growth to acquiring new units as well as strong same-store sales growth, according to CEO Lori Flees.
The brand opened another 106 stores in 2022, marking a 7% increase, and has also been heavily collaborating with its franchise partners on investments in technology that can help efficiency and profitability.
The brand also struggled with increased oil prices in 2022, resulting in the company raising the price of its services.
“We increased our pricing. I think the entire industry did,” said Flees, according to Franchise Times. “Managing pricing relative to cost was a significant focus last year.”
