Oil changes are always in demand. Our brand has had more than 4 decades of success and has plenty of room to grow.
If you’re a QSR franchise looking to diversify and expand your portfolio, consider an oil change franchise such as Grease Monkey®. While it may seem challenging to enter a different industry, robust support from an experienced leadership team may make it easier than you may think.
Here are five reasons why automotive franchises are a good fit for QSR franchise owners.
Higher profit margins
According to IBISWorld, a business research company, profit margins for the oil change industry reached 15.3% for 2024. In contrast, QSRs have an average margin of 6% to 9%. You can examine Grease Monkey’s performance here.
There are several reasons margins in the oil change industry are higher. While QSR demand can fluctuate with seasons or trends, demand for automotive services is stable. Drivers rely on oil changes and other maintenance even in times of economic uncertainty, making the business recession-resilient.
As an oil change franchisee, you don’t have to worry about perishable inventory, eliminating major costs such as food spoilage. In addition, oil change transactions usually have a higher average ticket than QSRs.
Top-performing oil change franchises can generate substantial EBITDAR. Grease Monkey’s EBITDAR for the top quartile of sales revenue averages for the 2023 fiscal year was $447,519.
Fewer employees
One of the biggest differences between industries is that oil change franchises have fewer employees. QSRs must have staff to cover peak periods, such as lunch and dinner rushes, and to cover all shifts.
A quick lube business typically has three to six employees per shift. Some franchises need only eight to 10 staff members per location total.
Better hours for staff and owners
Most fast-food restaurants open early and close late. A Grease Monkey business is typically open for 10 or 11 hours, often 8 a.m. to 6 p.m. or 7 a.m. to 6 p.m.
Shorter operating hours provide several benefits:
- A better work-life balance for employees, making them less likely to miss shifts.
- Offering flexible hours or shorter workweeks can be a competitive advantage for attracting and retaining workers.
- Shorter hours simplify shift management and reduce the number of workers needed.
- All these factors reduce the difficulty of managing a location.
Labor costs and lower turnover
Fewer employees mean lower total labor costs. Openings at an oil change business can attract people seeking long-term opportunities, such as opportunities to become a master technician. Grease Monkey provides robust training to help ambitious employees build their skills. In contrast, QSRs often experience higher turnover, causing frequent hiring and training cycles.
Shared focus on efficiency and customer service
Oil change franchises like Grease Monkey offer the operational familiarity of a QSR paired with the advantages of reduced staff, consistent demand, and a simpler operating model. Oil change franchises have standardized procedures similar to QSRs.
Both QSRs and oil change businesses prioritize quick service and customer satisfaction. Grease Monkey emphasizes quick, no-appointment-needed oil changes and preventive maintenance, which mirrors the fast-paced, customer-centric nature of the restaurant business.
For QSR franchisees, transitioning into an automotive franchise isn’t just about entering a new industry — it’s about diversifying in a way that complements your existing experience.
Contact us now
The Grease Monkey brand is growing, with opportunities for multi-unit development and territorial expansion. If you’re ready to explore how our franchise can strengthen your business portfolio and hedge against cyclical demand, Grease Monkey has opportunities for you. It’s the perfect time to get on board.
Want to learn more? Start a conversation with our team today to see how you can shift gears into a thriving industry.